We've seen what both US bearish new home sales and the Canada interest rate release did to USDCAD today.
I'm a newbie when it comes to trading news and i have a question concerning these huge sudden moves. Is it wise to place both a buy and a sell order a minute before the release with a stop loss for both of them a couple of pips above and below the previous 10 minute range for example?
The upside would be, the second the news hits, 1 stop loss is triggered by the big move while the right buy or sell order is still in place and would be highly profitable.
But - the bigger the news, the more chance of a gap. Like this USDCAD move just yet. And when you have your stop loss in that gap range, it isn't triggered.
In the case of this news, your sell order would have made huge profits but your buy order would still be in place because it skipped the stop loss, making a huge loss. Right?
I'm a newbie when it comes to trading news and i have a question concerning these huge sudden moves. Is it wise to place both a buy and a sell order a minute before the release with a stop loss for both of them a couple of pips above and below the previous 10 minute range for example?
The upside would be, the second the news hits, 1 stop loss is triggered by the big move while the right buy or sell order is still in place and would be highly profitable.
But - the bigger the news, the more chance of a gap. Like this USDCAD move just yet. And when you have your stop loss in that gap range, it isn't triggered.
In the case of this news, your sell order would have made huge profits but your buy order would still be in place because it skipped the stop loss, making a huge loss. Right?