Some traders believe that avoiding trading around news completely is the safest way to protect their capital. After all, economic announcements often cause sharp volatility, unpredictable price spikes, and increased spreads. However, avoiding news entirely can also mean missing major opportunities. The key is not to avoid trading around news altogether but to approach it with the right strategies, risk management, and understanding of the risks involved.

The belief that you should avoid trading around news completely overlooks the fact that some of the biggest moves and best setups happen immediately after important news events.

Why Traders Fear Trading Around News

Several reasons make traders cautious about news events:

• High volatility: News releases often cause rapid, unpredictable price movements that can trigger stop-losses quickly.
• Wider spreads: During major announcements, brokers often widen spreads, making entries and exits more expensive.
• Slippage: Fast markets mean traders may not get filled at their expected price, increasing losses.
• Emotional stress: The speed and drama of news-driven moves can cause panic and impulsive trading decisions.

These risks are real, and traders must respect the increased danger — but they can be managed intelligently.

Why Avoiding News Completely May Not Be Ideal

While it is wise to be cautious, avoiding all news trading means missing valuable opportunities:

• Major trends start with news: Many lasting trends are sparked by surprise economic releases or geopolitical developments.
• Clear direction after news: Once the initial volatility settles, strong directional moves often provide high-probability trading setups.
• Learning opportunities: Trading around news — carefully — improves a trader’s skills in managing volatility and quick decision-making.
• Not all news is equal: Some events (like minor data releases) have very little lasting impact, and fear of all news can lead to unnecessary inactivity.

Thus, avoiding trading around news completely can limit a trader’s growth and potential profits.

How to Trade Around News Safely

Rather than avoiding news altogether, successful traders adapt their approach:

• Know the calendar: Always be aware of major scheduled events, such as interest rate decisions, GDP releases, and employment reports.
• Reduce position size: Trade smaller around news to account for higher volatility and risk.
• Wait for confirmation: Instead of trading the immediate spike, wait for the market to show a clear direction and structure before entering.
• Avoid trading right before major releases: Being flat before big news protects you from unexpected gaps or slippage.
• Use wider stops if appropriate: Allow for normal post-news volatility while managing risk proportionally.
• Adapt risk-reward expectations: Realise that volatility can both help and hurt — structure trades accordingly.

Flexibility and caution are more effective than total avoidance.

Examples of Trading Successfully Around News

• Post-NFP trend continuation: After a strong Non-Farm Payrolls beat, a trader waits for a clean breakout and enters on a retest, catching a sustainable move.
• Interest rate decision breakout: A trader patiently lets volatility play out for a few minutes, then rides the breakout direction once a trend is established.
• Avoiding initial chaos: Instead of reacting instantly to a surprise announcement, a trader waits for confirmation candles before making decisions.

Each example shows that trading around news, when done thoughtfully, can be highly rewarding.

Conclusion

It is overly simplistic to believe that you must avoid trading around news completely. While caution is necessary, and reckless news trading can be dangerous, major opportunities often arise from news-driven moves. By approaching news events with preparation, risk control, and patience, traders can turn volatility into an advantage rather than a threat.

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