news trading

[OscarR]

Could you share your approach to handling the heightened market volatility that often accompanies news trading? How do you manage risk effectively in these situations?

 

[Imogen Beaumont]

It is good to handle heightened market volatility during news trading, it's crucial to set clear stop-loss and take-profit levels to contain potential losses and lock in gains. It's also essential to avoid overleveraging and to trade with smaller position sizes. Lastly, always stay informed and prepared by being aware of the news calendar and understanding the potential market implications of upcoming events.

 

[Polakandil]

News high impact usually the effect occurs after news has been released, in this situation is difficult because the liquidity is low meanwhile volatility is high, the spread could wider in this condition, so technical traders usually will wait and see and not entering the market rather than take a higher risk. But trading in this situation also become challenging. Some traders maybe take the risk. I see there are traders using trap strategy before news has been released with open buy stop and sell stop on above and below running price with the expectation after the news is released will hit one order to catch profit from this moment.

 

[OscarR]

It is good to handle heightened market volatility during news trading, it's crucial to set clear stop-loss and take-profit levels to contain potential losses and lock in gains. It's also essential to avoid overleveraging and to trade with smaller position sizes. Lastly, always stay informed and prepared by being aware of the news calendar and understanding the potential market implications of upcoming events.

I guess setting clear stop-loss and take-profit levels, avoiding overleveraging, and using smaller position sizes are smart strategies. Thank you!