Should I close my position before high impact news?

Bordux

Recruit
Messages
45
I'd like to think of high impact news more as a gamble; US NFPs (non-farm payrolls) for example usually trigger a powerful one sided move and if you have an open position at the time, you have about 50% chance to extract a decent amount of pips.
 

margin

Private, 1st Class
Messages
53
It depends on several factors. If your trade is running in good profit then you should book some profit. I will close some part of my position and move stop loss to a safe zone. Closing the entire position may cause frustration if news move the price in your favour.
 

downtrend

Sergeant
Messages
876
It depends on several factors. If your trade is running in good profit then you should book some profit. I will close some part of my position and move stop loss to a safe zone. Closing the entire position may cause frustration if news move the price in your favour.

I guess news have different effects on different types of traders. Those who trade on high time frame don't remain on charts all day long. They check for setups, make an entry and then leave the charts for market to do its game. Its the scalpers and inter day traders that need to focus on such news impacts.
 

nahiyar

Private, 1st Class
Messages
815
I try to save my side before high impact news, News can favor us or totally change our positions . That is why I usually close my positions or use stop loss and take profit . It helps me to remain in limited loss. I avoid trading just on the moment of news release.
 

Froso@FXNET

FxNet.com Representative
Messages
395
I try to save my side before high impact news, News can favor us or totally change our positions . That is why I usually close my positions or use stop loss and take profit . It helps me to remain in limited loss. I avoid trading just on the moment of news release.

Its wise decision . no one indicator or technical methods in analyze the market will work properly when news released , we will see surprise movement where at the time the price move up and down sharply , so its will very dangerous if not have basic knowledge about fundamental analysis
 

arigoldman

Recruit
Messages
169
Sometimes i leave an open position before high impact news just to see how well i cope with tension and emotions, but it is always a small position, because that's close to gambling.
 

Whitesnake

Corporal
Messages
428
I remember my first few days of trading, i didnt knew the impact of news and i was trading in GOLD. Not even few minutes, my entire account got wiped out because of the high impact news and only then i realized that news have such impact on the market price movement. Hence, you decide if you want to keep it open or closed.
 

AliKhan

Private
Messages
54
Hi, I'm new to forex and currently practicing on demo account. I noticed that once a high impact news is announced at forexfactory, the price suddenly rise or decline up to hundreds of pips. Which makes me wonder, is it safe to keep my position open? Or should I close the position before the news is announced?

I think, its better to reduced leverage than get out of trades
 

shanelong

Recruit
Messages
3
Hey mate,

I think in the situation mentioned by you, I would suggest you to put a stop loss. This act of having a SL will secure your position.
For example you are trading EURUSD pair and you have gone short on it i.e you expect it to fall and it will only fall if USD performs better.
You are expecting Major macro US economic data. You can check its expectation, if the expectation is more than the previous result,
you get a positive signal for a particluar data and accordingly place your stop loss. Now, if the US economic data comes negetive or below the
expectations EURUSD will rise and in your case, you will incur loss.In order to limit the loss, Stop loss can help to minimise the loss. If the
US data had come out positive, EURUSD wouldve fallen and you have high chances of earning huge profits which you wouldnt have if you had closed
your position before the major news. I hope, your quiery is solved.

Happy trading!! :)
 

iMusingKiMi

Sergeant
Messages
896
It is still depends on what type of news. For instance ECB, NFP, BOJ, BOE conference, I will close it rather than keeping it. Just my personal opinion.
 
Top