South African traders often struggle with one question during high-impact news events: should they increase their trading activity or play it safe and reduce risk? The answer is not found in guesswork or market noise, but in your own trading data. Your profit chart can act as a reliable compass, showing you when to step up and when to step back.
If you are involved in forex trading, you already know how much volatility can affect the markets during global and local news. But what you may not realise is how these events specifically impact your own trading results. That is where your profit chart becomes a valuable tool. It tracks your performance across various market conditions, helping you make smarter decisions in the future.
Why Profit Charts Matter More Than the News
While most South African traders keep an eye on economic calendars and press releases, many overlook the value of their own trading history. Your profit chart shows when you made money, how much you risked, and whether the market was stable or highly volatile at that time.
This is important because not all traders perform equally during news events. Some may thrive on fast-moving markets, while others struggle with emotional discipline or technical slippage. If you have never compared your profit patterns with major news announcements, now is the time to start.
Identify Your Strengths and Weaknesses
Your profit chart is not just a record of wins and losses. It reveals when you trade best. For example, you might find that you make consistent profits during non-news periods, but suffer losses during announcements like US Non-Farm Payrolls or South African Reserve Bank (SARB) interest rate decisions.
This pattern gives you a clear signal. If your chart shows that you regularly lose money during news-related volatility, it may be wise to reduce your lot size or stay out of the market during those periods. On the other hand, if your profits increase during specific news events, you may choose to trade with more confidence while still managing risk carefully.
Key News Events That Affect South African Traders
Not all news is relevant to South Africa, but several events have a direct impact on ZAR-based currency pairs. These include:
- SARB interest rate decisions
- South African unemployment and inflation reports
- US Federal Reserve policy statements
- US CPI and Non-Farm Payrolls
- Eurozone GDP or interest rate changes
Each of these can cause significant movement in pairs like USDZAR and EURZAR. The trick is to analyse how you have performed during these events over time and use that data to inform future decisions.
Trade More When the Chart Backs You
Your profit chart gives you permission to be aggressive but only when the data supports it. Let’s say you consistently do well trading the reaction after US CPI news. This could be a sign that your strategy works well in that specific context, and increasing your trade size may be justified.
However, don’t jump in just because the event seems important. Your profit chart will tell you if it was historically a winning time for you. Use it to make informed decisions instead of relying on market hype.
Trade Less When Risk Increases
There is no shame in sitting on the sidelines during difficult conditions. In fact, many experienced traders in South Africa choose not to trade at all during certain news releases. If your profit chart shows frequent drawdowns or losses during specific times, reduce your exposure or take a break from trading.
This does not mean abandoning the market. It means protecting your capital by avoiding the times when your performance is at its weakest.
Avoid Overtrading Based on Emotion
High volatility can trigger excitement and fear. These emotions often lead traders to overtrade, taking multiple positions without a clear plan. Your profit chart helps you avoid this trap. It replaces emotion with evidence.
If the chart shows that you typically lose when markets are moving too fast, resist the urge to chase trades. Instead, wait for the volatility to settle or focus on strategies that have worked for you in calmer conditions.
Combine Your Chart With a Trading Journal
To get the most out of your profit chart, pair it with a trading journal. Write down details of your trades i.e. why you entered, what happened during the news, how you felt, and what the outcome was. Over time, this data becomes invaluable.
You’ll be able to see not just what worked, but why it worked. You’ll understand which strategies and setups are solid, and which ones break down during unpredictable moments. This kind of insight gives you an edge.
Forex Trading in South Africa Requires Discipline
With global markets becoming more interconnected, South African traders are exposed to both local and international news impacts. Discipline is what separates consistent traders from gamblers. Your profit chart helps you stay focused on the big picture.
Instead of reacting emotionally, you respond with clarity. Instead of guessing, you trade based on what has proven successful in the past. Whether you are a beginner or an advanced trader, this habit strengthens your long-term performance.
Final Thoughts
Using your profit chart is not just a good habit, it is essential for long-term growth. For traders in South Africa, where news can affect the ZAR within minutes, knowing how you’ve handled such situations in the past is key.
Do not guess when to trade more or less. Let your data speak. Let your own trading history show you when to step in and when to step aside. With discipline, self-awareness, and a reliable profit chart, you will trade smarter and grow more consistently.
