How do you handle overnights? OCO? Stops?

Hi everyone. I'm new here and to forex trading and I had a question for you. In a 24/7 market I was wondering how everyone handles overnight positions (if at all)? I had an open USD/CAD position that I thought would do well in the overnight (and/or coming days) and I got stopped out while I was sleeping....so I was wondering how everyone else manages positions in the overnight. Attached is a chart of my losing position :-( Up arrow is buy, down is my sell stop....

I'm not an expert and don't like to leave a position over night but if I do, I place a stop behind a fibo retracement values,
major trend line or major resistance to give a trade a breathing space. E.g. I was short eur/usd since Nov. 10 @ 1.1700
and left it over night with a sl at 1.1815. I don't use such large stops everyday but if I'm confident with my position
I don't want to be stopped out while away, only to find my position closed and a pair moving in my direction.

This is exactly what happened last night. If I had my stop set lower, I would've been stopped out with a
70 pip loss instead of small 30pips profit I cashed this morning.

cad/usd is a very strange animal. I don't leave my workstation until I move my sl to BE.

It all depends on the trade situation, at least for me...There is no strict rule but to go to sleep with a stop placed, that's sure, but I might go to sleep without a limit, I might go to sleep with an OCO, I never go to sleep unless there is a stop placed, I even don't leave the screen without putting a stop even if the price is very far from it, shit happens and we are in an ultra-fast market...

The market and the situation of the trade defines almost everything for me...For example if the market is slow and I am expecting a large profit out of my trade, so it's probably gonna be the next day since the market is slow, so I just put a stop and go to sleep, who knows maybe when I wake up and see the price action, I find higher momentum and higher profit potential than I previously thought...

If the market is faster than normal overnight, I use an OCO even if I am targeting a large profit, I just don't want to miss my profit if the point comes while I am sleeping...

So mainly, it's the market which decide and not me, I just react


Thanks,

Nader

I trade a very short time frame so I am able to get my pips and get out...

I am not sure that I would like to leave myself exposed for a long period considering the volatility in these markets....

just my opinion

This may sound stupid but when I first started trading and held overnight I never used to place stops. However most of my trades were successful. On the other hand, I was a mini account and I only risked 50 to 100 on a trade. It was a trial period for me.

Now, I just prefer to sleep in peace. I would be nervouse overnight and just wouldnt get the same sleep. I would even sometiems get up once or twice a night and just take a glance at the chart. This would also affect me the next day, I would be all tired.

So in conclusion, sometimes a good nights rest can cost me a couple hundred to a couple thousand but I dont mind it.

bump

I think this really depends on what time frame you trade in. I am a longer term trend follower and leaving positions open overnight, even for weeks is a normal thing. By definition, trend following shouldn't use limits. My rules are very specific in letting me get the most out of a trade and when to get out, but i never use a limit


I did do short-term trading also and in those cases i would put both a stop and a limit overnight. I never minded leaving positions over night because my risk is well-defined and European sessions are great times for catching moves.

I find that as traders we should never fear the volatility. In a well defined risk management regime the downside volatility should always be managed. The upside volatility however is what you want and you often get it overnight