My question is in regards to Economic News with a definite time table that can be followed on an Economic Calendar.
How do you trade around such news? For example today at 8:30 am the Non-Farm Payrolls came out worst than expected causing a downward spike in the USD.
I trade the USD/JPY pair and usually set a trailing loss of 20 pips before major Economic News comes out. I figure if I’m wrong it will cost me only 20 pips in the direction I’m betting, but if I’m right I stand to gain more.
Is this correct approach? Or am I better off just not having a position when Economic News is about to be announced? For the more experienced traders out there, how do you handle Economic News?