Fear of missing the news candle

[Fairman]

Fear of missing the news candle

A big number is coming at 8:30. The chart is quiet. The trader sits with a finger over the button, afraid that if they look away, the candle will fire and the move will be lost.

The fear is understandable. The move can be 50 pips in seconds, and the opportunity seems enormous.

But fear drives poor decisions. The trader either enters on the first tick, at the worst possible price, or freezes and then chases late. Neither works.

It helps to reframe. A news candle isn't a unique opportunity. The market produces tradable moves every day, and missing one has no lasting cost. Another comes in the afternoon, tomorrow, next week.

There's also the asymmetry of costs. The fills on news are bad. A missed trade costs nothing. A bad fill costs real money.

Planning a response in advance can reduce the pressure: decide whether to trade the event at all, and if so, how, with what size, and at what point after the release. If the plan is to skip it, stepping away from the screen is the best defense.

The ability to watch a big candle go by without acting is a real skill.

What's the plan for scheduled news, and how often does it get abandoned in the moment?