Should I close my position before high impact news?

iMusingKiMi

Sergeant
Messages
896
The most successful trading method is to look for breakouts and place orders right after the news. Stop loss should be tight and Take profit should be much larger. Trading right after the news also helps in avoiding high spreads and slippage, not to mention that we can now have more chances in spotting the right direction of the trend by mixing the news outcome with technical analysis skills.

In my point of view, trading breakout is the most basic amateur trading. Never ever chase on breakout trading. 80% of the time it will breakdowns.
 

downtrend

Sergeant
Messages
876
I don't give too much importance to news but some important news like Fomc and nfp are the ones that really cause some big moves so I avoid trading on such days.
 

Aaron Dias

Recruit
Messages
108
I don't give too much importance to news but some important news like Fomc and nfp are the ones that really cause some big moves so I avoid trading on such days.

I am also of the same view and trading in the High Impact news is unstable as the markets will have Spikes and move both the ways so that it will not become clear to us.

Today is FOMC and i am not trading :)
 

ForexVerified

Private, 1st Class
Messages
582
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?

It depends on your trading style. If your trading charts are set on daily, it won't really impact your position since you'll probably have a higher stop loss and long term take profit goal. however, if you are looking to profit on a smaller time frame, closing the positions should be the safest option as your losses might be bigger than your stop loss (if there is a sudden spike) if you are wrong.
 

EuroTrader

Sergeant Major
Messages
1,046
It depends on your trading style. If your trading charts are set on daily, it won't really impact your position since you'll probably have a higher stop loss and long term take profit goal. however, if you are looking to profit on a smaller time frame, closing the positions should be the safest option as your losses might be bigger than your stop loss (if there is a sudden spike) if you are wrong.

Many traders are not able to locate the clear trends in the markets. Thus as a result they cannot say if a particular trade is going to give them income and this means that they will certainly fail in their trading and will be unable to generate any profits :)
 

EURUSD

Sergeant Major
Messages
1,133
I am also of the same view and trading in the High Impact news is unstable as the markets will have Spikes and move both the ways so that it will not become clear to us.

Today is FOMC and i am not trading :)
So many trader that based on technical analysis they stay away from the market because they have reason on news high impact often price movement become rapidly and randomly, miht will faced more pressure if they trade n news high impact, but actually not always news high impact will influenced on the market.
 

kingsman

Corporal
Messages
194
Actually there are some traders who wait for the news because these set or break the trend and they play on those news, but generally we should avoid trading in those hours.
 

JenalAripin

Recruit
Messages
10
Actually there are some traders who wait for the news because these set or break the trend and they play on those news, but generally we should avoid trading in those hours.

Correct, those new traders would likely to place an order an hour before the news are taking place.
 

mlawson71

Corporal
Messages
188
I've been trading for a few years so I don't really consider myself a newbie anymore, but I too tend to close my positions before such events. Sometimes the market becomes too volatile for my comfort.
 

EURUSD

Sergeant Major
Messages
1,133
I don't give too much importance to news but some important news like Fomc and nfp are the ones that really cause some big moves so I avoid trading on such days.
News high impact still considered as important indicator for currency for many big trader, I think as trader also they need pay attention with another kinds of news high impact like as interest rate decision, maybe some technical trader they prefer closed order before news high impact released.
 
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