Economic calendar · Intermediate

The Risks of Trading the News

A 1-minute lesson from the MarketPro academy, one of 16 in economic calendar and news.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

Trading directly around scheduled news releases can be tempting, since these are exactly the moments when markets tend to move the most — but that same volatility cuts both ways and carries real risk. The core challenge is that price moves around news releases are often fast, large, and driven by factors that are difficult to anticipate precisely, such as how a headline figure compares to consensus, what details are buried in a report, or how a central bank official phrases a comment.

The core challenge is that price moves around news releases are often fast, large, and driven by factors that are difficult to anticipate precisely, such as how a headline figure compares to consensus, what details are buried in a report, or how a central bank official phrases a comment. Even a well-reasoned view on the likely outcome of a release doesn't guarantee a favorable trading result.

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Wider spreads and potential slippage can erode or reverse an otherwise correct directional call.
Volatility can spike and reverse within seconds, meaning positions can be stopped out before a longer-term move plays out as expected.
Position sizing that feels appropriate in calm conditions can expose a trader to significantly larger swings during a high-impact release.

For these reasons, many traders choose to reduce position size, widen stops, or simply stay flat through known high-impact events, rather than actively trading the release itself. There is no approach that eliminates this risk entirely — it can only be managed through awareness, smaller sizing, and clear risk limits set in advance.

Step 5 of 8 on Trading News Like a Pro

PreviousHow Markets React to News Releases NextCentral Bank Speeches and Forward Guidance

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Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

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Not investment advice. Past performance is not indicative of future results.