Hey everyone, fairly new here but been trading FX for a bit. Still trying to dial in my risk management, especially when something like $EURUSD suddenly rips or dumps on news. Do you guys scale in smaller during those initial volatile minutes, or just wait for things to settle before putting on your usual size?
Ah, the classic 'suddenly rips or dumps' scenario. My usual move is to wait for the dust to settle, because trying to catch that knife often feels more like a game of 'pin the tail on the donkey' with my entire trading account at stake. Good luck with your risk management, it's a lifelong quest.
Ah, the classic 'suddenly rips or dumps' scenario – my personal favourite is when it does both within five minutes. Many of us prefer to wait for things to calm down before committing real capital, unless you enjoy the thrill of your stop loss being hunted by algorithms having a field day.
For me, waiting for things to settle usually pays off. Trying to catch those initial moves often leads to getting whipsawed, and the risk/reward just isn't there for my strategy.
Honestly, trying to scale into those initial news-driven moves is usually just gambling. The spreads are wide, and stops get hunted. I'd wait for things to settle and for a clearer direction to establish before putting on anything close to full size.