A common question by many traders is what to do at a major news event when holding a open position in the market. That is a great question, in this video below I go over a recent email question at the website asking this very question and answer that question in detail.
As an example, say you held a Buy Aussie USD as an example before a major news release was coming out for interest rates as an example and expected forecast for that pair to be negative, then what to do? In particular what to do if the news event results is against the trend of that market and may effect your position.
Above – Image showing recent Economic Calender of The Aussie Interest Rates, no forecast of negative results was expected for this event.
Video Above – In the video above I summarize the options when holding a position before a major news event and the options traders have as well.
To summarize that answer, it all comes down to the time frame you are trading, if daytrading ( time frames below the 1 hour time frame ) then yeah closing is a good option as another trade is always around the corner. If longer term trading or you are already in profit decently in a established trend position then holding longer and locking in instead is generally more preferred.
Also like I say in the video as well it depends on forecast, if say forecast is positive to the trend of the pair one is trading ( meaning positively aligned to your trade ) then closing is up to the trader. Many answers I know as there are many variables.