Should I close my position before high impact news?

JoJos

Recruit
Messages
11
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?
If you are sure about your predictions and analysis - why not? Especially on demo. Give it a try and see what happens. However be careful about the real account the predormance may seriously differ so you may encounter a compeltely different chart responce.
 

mlawson71

Corporal
Messages
188
I agree about being careful with doing this on a live account. I've actually had brokers cut off the connection right in the middle of the greatest volatility, though their demo account remained active. And they were legitimate brokers too.
 

qitiandasheng

Private, 1st Class
Messages
59
I think we should close position before high impact news issues, that's really high risky trading on high impact news if you just judge according to news from internet. Now everyone will know that news at first time once issued.
 

EuroTrader

Sergeant Major
Messages
1,045
I think we should close position before high impact news issues, that's really high risky trading on high impact news if you just judge according to news from internet. Now everyone will know that news at first time once issued.
It is actually true that whenever we see a very high impacted news in the market we cannot decide if the trade will give us some income or not and that is the reason we need to remain careful :)
 

carnelian

Private
Messages
202
Yes it is a very safe act to close your position before any high impact news. No one knows whether the news outcome will move that pair in your favor. You running profit may reverse or at worst case your SL may get hit.
 

ForexVerified

Private, 1st Class
Messages
582
Yes it is a very safe act to close your position before any high impact news. No one knows whether the news outcome will move that pair in your favor. You running profit may reverse or at worst case your SL may get hit.
Sometime your SL may not get hit, depending on the news and the impact it has on price. There may be a gap, or just the slippage could close your position at a lot worse level than you wanted, especially if you're a scalper and use bigger lots.
 

carnelian

Private
Messages
202
Regarding safety measures I'll suggest that you should close your trade. Even if you break even your trade or save some profit you'll still lose a lot of pips when price reverses on you.
 

EuroTrader

Sergeant Major
Messages
1,045
Regarding safety measures I'll suggest that you should close your trade. Even if you break even your trade or save some profit you'll still lose a lot of pips when price reverses on you.
If we will be able to close our trades when the markets are moving very fast then we can avoid the losses easily :)
 
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