Practical foreign exchange trading experience-should I hold positions overnight?

In the foreign exchange market, especially recently, various black swan events have emerged one after another, and gold, crude oil, etc. have experienced huge fluctuations. We often encounter such confusion: should we hold positions overnight? Can the list be kept overnight or over the weekend?

For those of us who do foreign exchange transactions, some sudden risk events that are likely to occur overnight, and some heavy data will cause unexpected results, take crude oil as an example. If you hold an overnight long order of crude oil, and the international market just announces some important data in the middle of the night, which causes the crude oil to fall, then your crude oil is likely to leave the market at a loss at the opening of the next day.

For those traders whose mentality is not stable enough or whose trading system is immature, there are uncertainties in holding positions overnight, and intraday trading is safer and more controllable. My suggestion is not to hold positions overnight. Holding positions overnight may cause you to worry about being swept away. loss, affecting the quality of sleep and the trading status of the next day.

For friends with a better mentality, if they feel that they are swept away, they can accept it, and if they think that waiting is a more cost-effective opportunity to make profits and stop profits, then continue to wait. When the market is good, holding a position overnight is likely to allow you to catch a wave of big market and get a bigger wave of profits.

If you decide to hold the position overnight, here are a few practical experience tips and methods for your reference.

In actual combat, the method and technique of holding a position overnight is divided into 3 steps:

Step 1: The overnight order and the mid-level trend of the market must be in the same direction;

Step 2: The whole day time sharing is generally a unilateral market, that is to say, the order you enter this morning or afternoon is profitable;

Step 3: The market is going up in heavy volume, and at the same time, it must remain strong in the evening;

To hold a position overnight, it is best to meet 4 conditions:

The first condition is that the position is profitable. If your position has already reached fifty or sixty points of floating profit, then a small drop of more than ten points in the morning will not affect you much. But if you don’t make much profit by holding warehouse receipts, and you don’t have full confidence in the market, then I don’t recommend you to hold positions overnight.

The second condition is that the volume and price must match. That is to say, your transaction price and transaction volume must cooperate with each other.

Condition three, the general trend is good. this point is very important. You have to have an overall grasp of whether the current market is biased towards the long side or the short side, and it is best not to make orders against the trend. For example, it is obviously a short market, but you leave long orders overnight, and it is obviously a long market, but you leave short orders overnight. Doing so is very likely to be a dead end.

Condition four, the price in the last five minutes. In the last five minutes of the day when you stop trading, the price movement should be in favor of your own position.