What are the circumstances in which I should not trade? This is the fundamental goal of every trader: to make money. Many traders come to this field to become billionaires. However, the traders may fail as a result of this. If a trader trades less, he will find better results. Once you know when you should not trade, you will find better results.
If your mental health is not good, such as you are worried, stressed, or anxious, then you should first be calm and then start trading. So you can see the desired results. Similarly, there are many reasons why a trader should not trade. Some of them are as follows:
If the market does not favor your system
Most traders miss this point. The traders trade even if the system does not show the desired results. So check why your system does this. Are you using it in the wrong way or is there some problem in the system? Is there high volatility in the market? However, there are several reasons why your system will not work according to your desired goals.
So, what are your options at that point? You should refrain from trading until you have identified and resolved the problem.
When you think that markets are “too high” or “too low”,
As we already know, the forex market is the most volatile market because currencies change quickly in this market. Sometimes, they go up in price, and sometimes they go down. The InstaForex provide tools to predict volatility.
This can happen to some traders, especially those who make their decisions based on when stocks are overbought and oversold, and they lose money because of it. It doesn’t mean that the market is against you. But these are changing prices for currencies that will keep changing.
When you have personal, job, or health-related issues,
Trading necessitates the complete concentration of the trader. At times, the trader is unable to concentrate on his or her trades because he or she is having an argument with their supervisor, a domestic dispute at home, or is experiencing anxiety or depression.
As a result, you should avoid trading during that period because doing so could result in a financial loss. Trading mistakes are made all the time, but this is the most common.
Only trade when you run out of reasons not to trade.
Trading does not involve emotions. So the trader should be clear of these issues. If you think you are absolutely OK internally, then you can execute your plan and start trading. We are sure that trading at that time will give you a huge profit.
The best idea is to make 3 trades in a week. This is a powerful approach so that you will perform these trades with new enthusiasm and adopt strong approaches. Many successful traders adopt this approach. They trade fewer and perform trades more frequently, but with better technique and strategy. The result will surely be in your favor.