Hi, I missed closed today Friday May 17th, 2019 and have a few positions open. All are short, and my lowest one is 200pips in my favor with the currrancy’s trades being AUDUSD, NZDUSD, GBPUSD. I went long to long on GBPUSD last few days and came uo quite short since the economy is in free fall at the moment, but made a bit on the recovery today on the short. However, I am in the short position going into Monday. The down pressure economically suggests it should trend downwards on Monday providing the gap on Monday allows for it. My questions are 1) I lost some miney and position at close, if short continues do I get that back (money, and position difference)? 2) What probalistic chances are their that yes the AUDUSD, NZDUSD, and GBPUSD trend down from todays close on Monday May 20, 2019
@needtipsforpis, Weekend news events can have good and bad outcomes for weekend holders…
Australia is going to the polls today to vote for a new Prime Minister (~every 4 years), so depending on which party is victorious, either Liberal (Coalition Right) or Labor (Union funded Left) will have an effect on the AUD, subsequent AUD Pairs and may even have a knock-on effect to the closely related NZD.
Liberal has been the Governing party for the last couple of years so a win for the right shouldn’t move the AUD too much as the status quo will continue… if Labor succeeds and forms Government, Australia will have a change of fiscal outlook for the next 4 years…
Has the Market already factored in the possible winner? Hard to say… But the AUD has been strong EOW… so is this a possible signal that the Coalition is expected to remain in Government?
Or is the Market setting up a big payday on a Labor win… either way it’s going to be close…
I estimate the AUD to drop on a Labor victory (unstability) and slightly gain on a Coalition win (stability).
So we will know in roughly 24 hours from now… FYI, I hold no AUD Positions at this time.
There is down pressure from the Chinese as well with trade war suppressing the dollar. Thank you for letting me know there was an election in Austrialia i had no idea.
@needtipsforpis, The Left wing Labor Party has snatched defeat from the jaws of victory and the Liberal Right has come from behind to win the Election…
Possibly making it harder to pass legislation lowering leverage on financial products.
Strong AUD…on Monday… Boys & Girls.
It can be said lot of things but the main point from all of it will be: Better do not stay with open positions during the weekend.
Barring elections, I never close any forex positions for the weekends. Its rare for an isolated news event over the weekend (or any time) to reverse an existing long-term price trend, it would usually reinforce the trend. Plus if you’re holding a designed long-term position, i.e. not a day-trade that you have let run because it was in profit and didn’t give an exit signal yet, then the stop-loss should be far enough away that it will not be affected by the extra volatility and wide spreads when the Asian markets re-open without direction from London.
But extending the holding period of an intra-day trade into long-term just because its doing well is a bad bad policy. A random result is probable.
Holding stocks, commodities and indices over weekends (and over multiple week-nights) can be more problematical. They can be negatively affected by news, whereas in a forex pair, bad news for one side is often good for the other. And in the stock and commodity markets, good news over weekends is rare, if there’s any, it would usually be bad. Still, with a reasonably distanced SL, the probability still favours profit.
I think I agree with this.