Ok, so I'm looking at the charts this morning and having gotten up a bit late I missed the GDP news spike. From the evening before I was following a 4 hour method that had prices dropping. The news completely changed that in an instant.
There are a lot of news items each month that have the potential to derail "trend" trades - at least under the 1 day period.
So what do you do to compensate for this? Do you keep exiting trades before a news event? Do you ride it out in the hopes that it will return in the original direction? Do you hedge your trade right before a news event?
I'm curious to know what processes people use in these cases.
Jason
There are a lot of news items each month that have the potential to derail "trend" trades - at least under the 1 day period.
So what do you do to compensate for this? Do you keep exiting trades before a news event? Do you ride it out in the hopes that it will return in the original direction? Do you hedge your trade right before a news event?
I'm curious to know what processes people use in these cases.
Jason