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Should I close my position before high impact news?

Discussion in 'Beginners Bootcamp' started by Azlan00IM, Jun 25, 2015.

  1. dianajs

    dianajs Private, 1st Class

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    I am not very fond of placing pending orders before high impact news, they very often provoke whipsaws and one ends up with an open position in the opposite direction. It's not something that happens every time, but it does happen often enough to be a cause for concern.
     
  2. Ken Smith

    Ken Smith Private

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    It depends on your trading strategy. And if the market is in trend, eventually it will be in the trend, no matter what the trend is. It's the normal rule. But if the news data is too much unexpected it can give you a margin call as well. So it is better for newbie to stay away during high impact news.
     
  3. bigdolly

    bigdolly Sergeant Major

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    H
    How do you determine a trend? Your words make sense but some details need to be added to make it really valuable recommendation.
     
  4. nahiyar

    nahiyar Private, 1st Class

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    It is not necessary all the time to close positions before high impact news. However, it is better to close most of your high lot positions before news time. High impact news time is very volatile and your trades can get carried away easily.
     
  5. dianajs

    dianajs Private, 1st Class

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    If you're about to trade the news, then you don't have to close them, obviously. But if you're not sure what the impact will be it's better to wait them out.
     

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