Holding on Weekends

[DenisJ]

I'm a position trader using technical signals, but relatively new to Forex. I was advised that it is very dangerous to hold a position over the weekend (which surprised me). Of course I use stops etc, but was wondering if any of you are in the same situation. So far I haven't experienced any major problems, but there's always a first time. I ususally trade the US pairs.

I would appreciate any guidance!

Denis

 

[rezo_s]

Hi Denis,

If you are a position trader, you have nothing to warry about it. I dont knwo who told you that is very dangerous to hold a position over the weekend , but I wouldnt say its more dangerous than in any other markets. Gaps happen on currency market, but its not a rutine. Same as any other market I would say.

Actually, I would say its more rare here than in other markets, because its a 24h market, and the only gap you get may happen over the weekend, which (I repeat) doesnt happen too often.

Good Luck!

Rezo

 

[DenisJ]

Thanks Rezo, I was of a mind that it wasn't unduly dangerous. The person who told me that is primarily a daytrader, so very small moves against her psotion probably seem huge. To be candid, it seeems much of the interest in Forex is around daytrading, when I think postion trading is simpler and the payoff seems to be quite substantial if you follow a good strategy.

Denis

 

[ptc]

IMHO as a newbie to forex it's dangerous cause any political or economical event could make your stops not to be honored and ending loosing a lot of money, but if you are a position trader you should deal with it.

 

[ampro]

The person who told me that is primarily a daytrader, so very small moves against her psotion probably seem huge. To be candid, it seeems much of the interest in Forex is around daytrading.

as Rezo commented, it's a rare occurance. An individuals stance regards position timing (to hold or not to hold) is usually, if not wholly, related to capitalization. Many non-commercial speculators are heavily underfunded, and a good percentage max out the leverage. Not condusive to running positions on the overnight.

currency speculation has a sexy allure, and is dressed up in sheeps clothing by all & sundry. Fact is, much of the big money is returned via the long haul participants. Nothing wrong with playing the short end game, a decent strategy with sensible risk-stake gearing will purr along contentedly, and contrary to popular belief, currencies spend a heck of a lot time ranging. But when they do break into a sprint, compounding into cent runs & managing the profit stops will add cream to the pie.

Intraday speculation is part & parcel of the canvas & sensible operators (with lower budgets) will adhere to strict trading parameters relating to stake-risk ratio's & slowly build a capital base. But ill prepared & inadequately funded day trading is akin to tossing the christian into the currency lion pit.

 

[DenisJ]

I want to thank everyone again for your ideas. One thing I did was to contact my broker fxcm and they assure me that my stps will be honored, even if a gap is evident. I know that there is some queasiness about stops and just how safe they are, but I was at least happy to hear that they intend to honor them. It means that really crazy events on weekends must be somewhat rare. I have to admit that my current bias toward postion trading (really using only 4 hour bars), is related to the fact that this is not yet my full time vocation. I'm also happy to admit that I use a conservative money managemtn scheme. Things are better now but at first it was a bit ragged aftr I started live trading. Thanks again!

Denis

 

[gus]

Denis - since you michigan folks forgot how to play good football how can you hope to win at forex,lol

just kiddin my friend 🙂
GO BUCKS

eurusd and gbpusd --- stand by for a buy signal this week, should be fairly soon.