A common belief among new traders is that news events make forex impossible to trade — that markets become too erratic, unpredictable, and dangerous during high-impact releases like NFP, CPI, or interest rate decisions. While it’s true that news events bring volatility, the idea that they make forex untradeable is a myth. In reality, news events create some of the most powerful opportunities in the forex market — for those who understand how to prepare, manage risk, and trade them correctly.

This article explains why news doesn’t make forex impossible — and how experienced traders use economic releases as high-probability catalysts, not chaos.

Why people believe this myth

1. Extreme price spikes
Major news events often trigger sharp, fast moves — sometimes within seconds. This can cause slippage, stop-outs, and emotional panic for unprepared traders.

2. Past losses during NFP or rate decisions
Many beginners have lost trades around big events — usually because they were overleveraged, caught on the wrong side, or had no risk plan.

3. Whipsaws and fakeouts
Markets often spike in one direction, then reverse aggressively. These “stop hunts” lead traders to think news is manipulated or random.

4. Fear-driven narratives
Forums and influencers frequently tell traders to “avoid news at all costs,” reinforcing the belief that it’s untradeable.

5. Difficulty interpreting data
Even when numbers are published, the market doesn’t always move as expected — confusing traders and making them distrust fundamental releases.

Why news doesn’t make forex impossible

1. It creates predictable volatility

• Events like NFP, FOMC, or CPI are scheduled — traders know exactly when to expect volatility.
• This makes it easier to reduce exposure, step aside, or prepare to trade the aftermath.

2. High-impact news offers major catalysts

• News events often trigger breakouts, reversals, or trend continuation — ideal setups for swing or momentum traders.
• Once the initial spike clears, structure often forms cleanly around key levels.

3. Most market reactions are logical

• CPI beats? USD strengthens.
• Rate cut surprise? JPY and gold rally.
• While the initial move can be chaotic, the directional follow-through often aligns with expectations — especially over hours or days.

4. You don’t have to trade the spike

• Professional traders often wait for post-news structure to develop — e.g. retests, liquidity sweeps, or breakout confirmation.
• You can avoid the wild initial seconds and still catch the bigger move.

5. Smart risk management makes it tradable

• Lowering size, using wider stops, or trading smaller timeframes after the event makes news trading manageable.
• Many traders simply stand aside during the spike and enter with defined structure.

How professional traders handle news events

1. Know the calendar

• Use Forex Factory or a macro calendar to track upcoming events
• Colour-code based on impact (red = high, yellow = low)

2. Mark key technical levels in advance

• Identify support/resistance zones that may get tested or broken during volatility

3. Avoid trading minutes before major releases

• Spreads widen, slippage increases, and execution becomes unreliable

4. Watch the reaction, not just the result

• Sometimes the data beats expectations, but the market sells off. Focus on price response, not just numbers.

5. Trade the aftermath

• Some of the cleanest setups come after the event — when emotion clears and trend structure returns.

When to not trade news

• If you don’t understand the event or its implications
• If your broker has wide spreads or poor execution
• If your strategy isn’t built for volatility
• If you’re emotionally reactive or lack a plan
• If you don’t use stop-losses or trade with high leverage

Conclusion

No — news events don’t make forex impossible. They make it different. Volatile, fast, and sometimes messy — but not untradeable. In fact, news is one of the most reliable catalysts in the forex market. The problem isn’t the news — it’s the lack of preparation, patience, and process. The traders who succeed with news are those who treat it like a weapon, not a threat.

To learn how to build news-based trading strategies — and turn market volatility into structured opportunity — enrol in our Trading Courses at Traders MBA, where fundamentals meet execution.