This morning I read some taunts about the idiots not going long into the FED, regardless whether they were at the computer or not. According to this chatter, it was quite obvious we would rally after the FED.
Well I was away and I would not dream about being long or short into the announcement. Same for Non Farm payrolls or any other major announcement.
One of the priciple rules when you become a daytrader is to accept, that when you finish trading you are flat. You don't hold overnight, you don't hold a position while you are away for some hours. It's just part of the job description.
If you do, if you swing trade, if you allow yourself to take the risk of major announcements going against you, you are a swing trader. And as such you need to use different money management and also trade management rules than you use as a daytrader, who is capable of reacting immediatly.
The worst thing you can do is switching roles because usually you do that, when a trade is going against you and you hope it will come back, if only you hold it 'till tomorrow or the end of the week.
Swing trades follow different rules than daytrades, so don't mix them.
