Hi, I just wondered what people think about leaving trades open over the weekend? Sometimes I have an open trade that is heading strongly towards my profit target but it is nearing the Friday close, so I tend to close the trade rather than leave it open over the weekend.
What are peoples views on this, does anyone leave a trade open over the weekend?
Throughout the week, I don’t mind keeping my trades open overnight. But personally I don’t keep trades open from Friday-Sunday. It’s just a preference
I never make a point of closing trades over the weekend. I set a stop which in the past has been TA-based but is now volatility-based and forget all about it. The stop is set when the order to open the trade goes in: I would make the stop narrower if the TA justified it or as I pyramided the position. I only trade long-term and only in trend-following.
I appreciate there’s a risk of events occurring over a weekend that can cause price to gap past a stop-loss level, no matter how wide its set. But consider what sort of events occur at weekends, if its going to be significant at all its generally going to be because its bad news. And its hard to think of good news events that might occur over a weekend. But in forex trading, bad news for one currency is potentially good news for the other. So if you’re long USD/JPY and something bad for the JPY happens, you’re going to miss this added bonus if you closed out on Friday afternoon.