Should I close my position before high impact news?

[Ethan.ishere]

It's a bit of a gamble, but you can definitely make some serious money using those gaps. It is, however, all reliant on your knowledge of analysis and risk management. You need to be sure of how the market is going to be moving, as some of those gaps and changes happen in a repetitive order. It can take some time to get to know all about it, but in the end, it's for sure worth the effort. As far as your trades go during such times, just put on some stop losses if you want to keep them open, and if you are not that confident about them, closing them is the safest option.

 

[Spellkiller]

That I would say depends entirely on your analysis of that certain news, when you are not sure about ending up with profits or on a loss the smart move will always be to close those positions, but there are traders out there who are experts on news trading so if you spend some time on that and go about researching about the matter, I feel like that would clear up this issue for good.

Sure, the point is to understand the level of "impactfulness" of the news released. For instance, some major ones like a typical FRS meeting are crucial for the market and depending on the decision of the FRS market reacts differently.
My friend once had a chance to leave opened positions shortly before the meeting... What do you think? He was thrown away by stop-loss

 

[Benjihenco8219]

Sure, the point is to understand the level of "impactfulness" of the news released. For instance, some major ones like a typical FRS meeting are crucial for the market and depending on the decision of the FRS market reacts differently.
My friend once had a chance to leave opened positions shortly before the meeting... What do you think? He was thrown away by stop-loss

Of course, one can never be entirely sure of anything in this market, and I do agree about the importance of the news with you, but many more factors can drastically affect your trading style and force you into moves you shouldn't be making. Your friend sure was unlucky on that one.

 

[bigdolly]

If I hold position long-term I simply adjust stop loss if price is close enough to current stop loss level to avoid unexpected spike pushing me out of the market. Otherwise I keep position open and wait for the outcome to understand how it changed market sentiment.