Is It Better Not To Have A Position Before Important Economic News?
It seems to me that the best path to take is not to have a position before important economic news because it’s very hard to predict how the news is going to turn out and what the market’s reaction to it will be. I find that for me it’s better to sit back wait and gauge the market’s reaction, and if the news triggers a strong trend development, I will go with the trend and make a few pips.
Do you think this approach is better than having a position with a trailing stop, or stop loss set up before the important economic news breaks?
I use to setup a position 5 mins before important breaking economic news such as Non-Farm Jobs data for example, only to find that I was wrong in my predictions more often than not.
that is gambling! but you are not alone…:17: i used to do that to seek thrill, i was right on one third of the time, and that’s enough to wipe out my profit for the past year.
btw, i observed the chart of a pair and see what the big sharks are trying to do. if you noticed GBP pair, the data usually goes along with what they do, another words, they seem to know the results before it’s published.
try to take position only after data is out, give time range of 3 minutes.