Do you know how the news impacts your trading strategy?

In trading, the high-impact news They can make the difference between a winning trade and a total loss. For funded or evaluating traders, understanding how to handle these events is essential to protecting capital and meeting funding parameters.

In this article, we explain what high-impact news is, how to read the economic calendar, and what strategies to apply to trade (or avoid trading) during these key moments.

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What is high-impact news?

They are economic or political events that can generate sharp movements in financial marketsThese announcements are usually scheduled and published in official reports.

Examples of high-impact news:

• Interest rate decisions (FOMC, ECB, etc.)

• Nonfarm Payrolls (NFP – USA)

• Inflation indices (CPI)

• Gross Domestic Product (GDP)

• Speeches by central bankers

• Employment or unemployment data

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Why do they affect the market so much?

The news generates uncertainty and volatilityMajor players (banks, funds, institutions) adjust their positions based on these publications, which results in:

• Sudden increases in volatility

• Gaps or price jumps

• Wider spreads

• Erratic executions or slippage

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How can they affect your funding evaluation?

If you are on a trial account, trade during these events can put your daily or maximum drawdown at riskSome prop firms even prohibit trading during specific news, since the results may depend more on chance than on a well-executed strategy.

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How to read the economic calendar?

Use portals like:

• Forex Factory

• Investing.com

• Myfxbook Economic Calendar

There you will see:

• The time of the event

• The issuing country

• The importance of the event (low, medium or high)

• The previous data, expected and published

💡 Tip: Filter only news from high impact (red color) if you operate intraday or scalping.

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Strategies for trading (or not) during the news

🛑 1. Avoid them completely

If you're in the evaluation stage, this is the safest option. Close trading 5-10 minutes before and resume trading 15-30 minutes after the event.

⚠️ 2. Reduce risk

Trade with smaller lot sizes, place wider stops, and avoid trading without prior analysis.

✅ 3. Operating the post-news

Wait for the initial reaction and look for technical confirmations after the main move. This is a good way to take advantage without exposing yourself to the chaos of the first minute.

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Conclusion

High-impact news can offer great opportunities, but it also represents one of the greatest risks, especially in funding evaluations. Learn to identify these events, prepare in advance, and make decisions based on your plan, not on the adrenaline rush of the moment.

En www.emergeprofit.com We teach you how to trade with professional judgment, protecting your capital and developing discipline. Become a well-rounded trader with a long-term vision and strategy.