I need some clarifications

Beginner Questions
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These are some questions bordering me so far.
(1) how long should I hold a position when trading on daily time frames?

(2) what to do when there is an upcoming news on the pair that am trading?

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  1. As long as it takes to until your desired level is hit - you can’t ‘rush’ or ‘move’ the market. If you’re adamant about focusing on the daily TF then i’d recommend making sure your price targets are well within the typical daily average price movements [you can use an ATR for this, or calculate it manually].

  2. That depends on your attitude to risk, belief in your trading system [which has been backed up by historical performance] and how big your balls are.

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Agreed. In reference to (1):
Until your first target is hit. Then take some profit(1/3, 1/2) and move stop to break even and continue to trail stop as it goes your way.

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"(2) what to do when there is upcoming news on the pair that is trading?"
If a trader is to trade the news there is a huge risk and the need for substantial equity to withstand the whipsaws or swings.

While Bacon makes a good point I do not think it is in the best interest of sustained profitable trading. Prudence would suggest that your exit any trades that could be affected by a major news event. Then wait for 15M to 1H after the event to enter back in.

Remember the number one rule is the protection of your capital and the number two rule is don’t forget the number one rule.

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When you’re trading off the daily time-frame its unusual for news event so cause such wide volatility that a logically placed stop gets hit by an intra-day spike. Likewise, if you’re going with the dailies trend, it would be unusual for a news event to reverse that: more usually news reinforces the long-term trend.

I only trade off daily charts with the trend and don’t generally find that setting profit targets is a great help to the bottom line. But I do like to exit if price suddenly accelerates, but with the proviso that I’m going to try to get back in asap. Profit targets generally come from the TA of entry signals on one-off trades: these features are not helpful in trend-following.

If you’re holding against the long-term trend, I can’t make any helpful comment…

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Actually the answers to your questions lie behind your financial capacities to bear risks and earn profit. Only you will know what is the best profit level for you, so wait for that and you must try to hold order until you are ready to lose, not beyond your ability.

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Thanks Nathaniel

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Thanks Sandwich

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Thanks tommor

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Trading the news _sounds _ like a good idea when you’re starting out - big moves, right, equal big profits, but news can move price oh so quickly, quicker than you can respond. On the daily TF, maybe your trade won’t be affected as much if you have a longer-term trade in mind. But if you spent any time following GBP in December, around all of the Brexit talk, you would have seen first hand what news can do.

Oh, and when Trump tweets about trade or China or imports/exports or Europe or anything…

I think if you’re just getting started, at least practice proper risk management in your trade setups or just stay on the sidelines and watch, digest and learn from the experience of being there.