
Central bank announcements can double your account or wipe it out in 60 seconds. Here is how to survive them.
1. UNDERSTAND WHAT MOVES THE MARKET
It is not just what the bank decides. It is whether the decision matches what traders expected. If everyone expected a rate hike and it happens, the price might barely move. The surprise is what creates the spike.
2. WAIT FOR THE FIRST CANDLE TO CLOSE
The moment the announcement drops, price goes crazy in both directions. This is called a whipsaw. Jumping in during that chaos is like trying to catch a falling knife with your eyes closed. Let the first 1-minute or 5-minute candle close before you touch anything.
3. TRADE THE REACTION, NOT THE NEWS
After the initial spike, price usually picks a direction and holds it. That second move is cleaner and safer. Enter there with a tight stop loss above or below the spike high or low.
4. SIZE DOWN YOUR POSITION
News events bring higher spreads and slippage. Your broker widens the gap between buy and sell prices during volatility. Trade smaller than normal so one bad entry does not end your week.
5. MARK YOUR CALENDAR
Use ForexFactory.com to track upcoming high-impact events. Red folder icons mean serious volatility is coming.
Key takeaway: The traders who get burned on central bank news are the ones who rush in. Patience before, discipline during, and smaller size always.

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