Exit or Hang on?
fastest answer i can come up with is pretty simple --= if the news drives your currency price up, take profit as what goes up, will come down and return to its original trend line, leaving you a lot of time before you see that price again.
if the news drives your price down, hold your position IF YOU HAVE THE MARGIN TO DO SO ! as the price, within a few days, will go back UP to join its original trend line !
also, if it goes down, enter a counter trade to the one you have already (hedge) and take your first profit there.
Essentially, what Im saying is that Forex currencies, once moved from their original trend line, return to that trend line and continue on in the direction they were heading in, so take advantage of that desire to return to trend !
enjoy and trade well
m[
I've been researching this issue extensively. How does this approach sound? I'll be interested in any thoughts.
When you put on a trade, use multiple lots. It's easy for me, since I'm trading on a mini-account, at 10k lots. If your trade moves in your direction, and an economic announcement that will likely affect the respective pair is minutes away, scale out a part of your position, and then place a logical stop on the balance. The stop would either be placed at break-even, or at some logical support/resistance/Fibo/Pivot line. This way, you book a portion of your profits, and could become even more profitable if the announcement furthers the direction in which you entered. If the market moves against you, you're out, but you still have something to show. Also, by scaling back, you effectively align yourself with position-sizing, with the likely increase in market volatility pending.
One downside, is that if the market becomes extremely volatile, and your stop is kicked out by a spike, with massive brokerage slippage. Anyway, I supsect there is no easy answer, but any thoughts are appreciated.
BTW, thanks mp6140 for your comments. I've looked at past charts and what you say does often occur...retracement to the overall, underlying trend.
This becomes a difficult answer for me because for you to fully understand, you must first "understand" fully how the banks move the market.
Understand that the banks ALREADY know what the news will be -- they have massive research depts that follow the daily movement of payrolls, housing sales and anything else that is considered money moving news, so you can actually tell what they are doing by looking at the days previous to the news !
Is the trend moving up nicely ?? You can almost bet your life (yeah, the one with groucho marx) that the banks will finish taking the currency price to the top of the LRC and then DROP THE SUCKER like a hot potatoe, shorting their merry way down to the bottom LRC.
So while i tried to tell you it doesnt matter as long as youre willing to be patient, you desire yet more detail ---- if you see this happening and youre long, find your resistance area for the 30 min or H1 chart and set a tp at that point. NOW WAIT TILL 10AM EST and you will find the banks have reached their top price and are NOW SHORTING THE CURRENCY !
once again, LOOK at the charts and see if this is not what happens !
Im a trader, its what i do --- I cant make money if i dont understand how the market works and its taken a few years because i didnt have me to teach me --- youve got me, so just verify on your charts and youll understand the "realities" of what the banks are doing !
btw, reverse everything if the banks expect good news --- then they will DROP the currency price the week before !
oh yeah, once you verify you will begin to understand youve just gotten one of the greatest secrets of news trading, and it was free, nada -- a belated xmas gift !
it takes a while, but theres no need for philosophy, science or anything else !
forex is based on making money, and the banks do a good job at it !
and i havent even gotten into teaching you how to hedge a news report, which does wonderfully when used correctly !
enjoy and trade well
mp
I've been researching this issue extensively. How does this approach sound? I'll be interested in any thoughts. When you put on a trade, use multiple lots. It's easy for me, since I'm trading on a mini-account, at 10k lots. If your trade moves in your direction, and an economic announcement that will likely affect the respective pair is minutes away, scale out a part of your position, and then place a logical stop on the balance. The stop would either be placed at break-even, or at some logical support/resistance/Fibo/Pivot line. This way, you book a portion of your profits, and could become even more profitable if the announcement furthers the direction in which you entered. If the market moves against you, you're out, but you still have something to show. Also, by scaling back, you effectively align yourself with position-sizing, with the likely increase in market volatility pending. One downside, is that if the market becomes extremely volatile, and your stop is kicked out by a spike, with massive brokerage slippage. Anyway, I supsect there is no easy answer, but any thoughts are appreciated. BTW, thanks mp6140 for your comments. I've looked at past charts and what you say does often occur...retracement to the overall, underlying trend.
mp6140: Thanks very much for sharing your insight. I have much to learn. I will check out charts as you suggest. Same to you...Happy Trading, and the very best fortune!!
thank you -- im seeking somewhere to go more into detail the concept Im speaking of -- need to do it on this and a few other sites also
mp
Am studying and learning about Forex (working with MetaTrader4 and Navigator (EFX Group)).
I'll gladly ask questions when ready.
Again, Thank You.
papa
Fundamentals and technical affect the forex market.
They both affect the FX market in different ways & using them together is generally much more affective than just utilizing one or the other.
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
I'm more of a swing trader with positions lasting sometimes a few days. Would anyone have any suggestions/recommendations on if you are in a position, and a news announcement looms ahead, on what to do? Do you stay the course with the originial premise of your trade, or bail out with whatever profit [hopefully] you are holding, because that NFP report could wipe your gains out and send you into the loss column. And of course, that same NFP can catapult you into even more positive territory.
Any thoughts would be greatly appreciated, since I've thought about this quandary from every angle.