Question on news impact and managing open trades
Hey everyone, still relatively new here and trying to get a handle on managing risk around major news releases. I'm talking about things like NFP or CPI. I know the conventional wisdom is to either close out or drastically reduce positions before the announcement, but sometimes I find myself in a good setup that just happens to coincide with one of these.
For those of you with more experience, how do you personally handle this? Do you just avoid trading those windows entirely, or do you have a specific strategy for scaling out/in, or maybe even just widening stops significantly? Specifically, if you have a trade with significant unrealized profits, do you still close it out, or do you just ride the volatility, maybe with a trailing stop? Curious to hear different perspectives on this.
Ah, the classic dilemma: ride the news roller coaster or jump off before it inevitably goes off the rails. It's almost as if the market enjoys testing our commitment to not being wiped out on a Thursday afternoon.