Hello Babypippers, Please my question is to Swing Trader or Position Trader. Do you still keep open position on during fundamental news that can move that pair against your analysis? Do you leave it open after the news direction, will still reverse to your direction? Experienced Traders please enlighten me on this.
Hey Deo…
I’ll tell you what I think.
First off, you always have to ask yourself what the plan was. Like, it’s best to have the plan laid out before you pull the trigger. How far are you willing to let it go till you think it doesn’t fit your analysis, and therefore you need to be out. What’s that price?
It’s just smarter that way, instead of basing your decisions on how the market reacts in certain situations.
That kind of makes me think you’re hoping for it to come on back to the direction you want. Man…hoping…is not a good thing. You need to be committed. Look. You can always get in it a little later on, if it comes back your way.
But, after a while, fundamental news usually picks the right way. And I’m talking about a few hours afterwards. Time is the crucial aspect here. And moreso, I think, the end of day price is a good tell of where price generally wants to go. And since you’re talking about swing and position trading, definitely bank more on where price ends up at the end of day.
Know what I mean?
So, don’t be a hope r .
Do the best analysis you can, beforehand.
Set up your stop loss, take profit places, and let it go. Stay committed.
There are always plenty of chances later on.
Hope this helps.
Mike
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Thanks sir! It really helps. So you’re saying as a swing Trader with good strategic layout. You don’t give emotions to news, so after news direction for a while, the price will still follow its normal pattern it suppose to pass.
While I agree with Mike’s logic and experience with my small account I would not dear to do that because of my risk aversion if a major news goes against as it may not leave me enough equity in my risk rules to wait out or trade out of a negative position. That said I will get out of my trades before a major news that might affect my positions, and reenter after all settles.
Right Deo.
But, it would be prudent to have a heads up on what kind of economic news will be on it’s way. In conjunction with what your plan is. Like where your stop loss should be placed.
Now, don’t forget, you can’t always assume that your analysis of the direction is correct. Cause what if the news turned the tide, or direction?
I’m just saying that there are many factors that we must consider. And the news can surely be one of them. But, regardless, you would have implemented all of that into your diagnosis, placed a large enough stop loss to cover it, and just let it run. Know what I mean?
As long as you think that price is within the confounds of a normal pattern, then stay with it. But, if price gets outside of the normal pattern, have that contingency plan in place (stop loss).
So, you’re thinking Deo.
Also remember, emotions should not affect our plans. We think, diagnose, plan it out, let it run. That’s it. When we alter things because of emotions, that’s not good. That is what separates a good trader from a bad trader.
Mike
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Yes I got that… Risk management large stop loss
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Thanks for the insight… Why I asked this question, I checked some pair such as GBPUSD, EURUSD, I checked the news candle direction (opposite) to normal pattern. Later on it followed the normal pattern even news candle doesn’t reflect much on 4hr and Daily time frame. This brought my question if swing Traders always hold on their positions during big economic data release.
when you say “swing trader”, do you mean slow-moving trades, open for a few days or more, rather than fast-moving trades?
(it isn’t really what “swing trading” means, at all, but in this forum i know some people use the words “swing trading” in a timescale sense)
i wouldn’t do what i think you mean by “swing trading” or “position trading” if i weren’t prepared to ride out any reasonably foreseeable fundamental news fluctuations - if they would make me close, i wouldn’t be a swing trader in the first place
you need a wide stop-loss for such trading
but never be tempted to trade without a stop-loss at all - that would be crazy
Yea… Slow moving trades open for days, weeks. That’s what I mean by “swing trading”
I do understand your concept, Actually I want to become a swing Trader, so there’s no how, fundamentals wouldn’t move price in opposite direction in its real direction. So my question which @MikeWolski gave me real insight. Does experienced swing or Position Traders neglect fundamental news due to risk management stop loss you have laid down with your whatever strategy you’re using. I hope you get the pont
as mentioned above, you need wide enough stop-losses to ride out any reasonably foreseeable movements due to fundamenntals while you have the trade open
but small enough stop-losses to be taken out of your position as quickly as possible if something really unexpected and unforeseeable happens
so it needs judgment, in other words, and experience, but that’s true for all trading, in various different ways
don’t try to do trades that last weeks ignoring the wide movements that often happen over such durations, anyway - i hope that answers your question
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