Thread: Does it make sense to operate during central bank speeches?

Hello community, I wanted to open this thread to discuss an issue that gives me many doubts: is it worth operating during the live speeches of central bank presidents (such as Powell, Lagarde, Bailey, etc.)

In my case, I learned the hard way not to operate speeches. An unexpected comment can throw a perfect position overboard. I prefer to wait until the event closes and see the consolidated reaction of the market. The price always gives you a second chance if you know how to read it.

It's pure noise. The price moves more by misunderstood headlines than by actual content. If you want action, perfect. If you want constant profitability, better off. My opinion.

I operate them like I'm scalping with emergency stops and reduced take profit, but only if I have previous experience with the bank in question. It's not for rookies or cardiacs.

Once I got long in EURUSD just when Draghi said �whatever it takes.� Result: +100 pips in minutes. The next day I tried to repeat and I lost twice as much. It�s unpredictable.

Thank you for the answers. Do you think using tools like squawk boxes or real-time news feeds can help you have an advantage during those speeches?

Yes, but you need to have almost institutional reaction speed, and even if you have the data, if you doubt half a second you're out. Sometimes even with all that, you can't avoid the brutal slippage.

For me the key is not the speech itself, but the previous expectation. If the market is positioned for a hawkish message and comes out dovish, the reaction is violent. But if it is discounted, it may not even move.

I focus on pure price action. I expect the first jolt, let it form a clear candle (ideal in M5 or M15

I have a rule: �If the market doesn�t understand the banker, I don�t have to try either.� Outside during speeches, always.