When is not a good time to trade? | Forex Factory

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When is not a good time to trade?

  • #1
  • First Post: Jan 19, 2017 8:56am Jan 19, 2017 8:56am
Some people dont like when the market is open to trade, but is there a golden rule that is consistent not to trade?
  • #2
  • Jan 19, 2017 4:41pm Jan 19, 2017 4:41pm
I don't think there is any golden rule like that, but we just have to study the market and know when it will be suitable for the strategy/plan we have. That is why it is vital to study all there is about the market to a good extent.
  • #3
  • Feb 1, 2017 7:07am Feb 1, 2017 7:07am
One "golden rule" is to look for liquidity. For example, at the end of the day the liquidity is inadequate, so the spread is wider and the risk of slippage is greater. On the other hand, at the beginning of the New York session, the liquidity is very good.

Another moment that you need to avoid is when a big new comes out. NFP, for example. The slippage in this moment is impossible to handle.
  • #4
  • Feb 3, 2017 2:19am Feb 3, 2017 2:19am
Monitor the spread widths. If they're too wide, your transaction costs will be a significant percentage of your trade. For example, if the spread is 5 pips wide and you have a 10 pip profit target and trading 1 lot.
  • #5
  • Feb 3, 2017 5:04am Feb 3, 2017 5:04am
90% of the time, there is no real momentum in the market.
It's not worth taking any trade and risk, but noobs do it and always burn.
  • #6
  • Feb 3, 2017 6:04am Feb 3, 2017 6:04am
Quoting The-Flipper
90% of the time, there is no real momentum in the market. It's not worth taking any trade and risk, but noobs do it and always burn.
how do i see if there is real momentum into the market?
  • #7
  • Feb 3, 2017 6:58am Feb 3, 2017 6:58am
Quoting testcenter
{quote} how do i see if there is real momentum into the market?
That's the One Million Dollar question!

From experience and knowledge, from feeling and from watching the market over many many years.

It's definitively not found in the sub-pip "moves".
  • #8
  • Feb 3, 2017 7:10am Feb 3, 2017 7:10am
Quoting The-Flipper
That's the One Million Dollar question!
thats exatly what i was expecting

Quote
From experience and knowledge, from feeling and from watching the market over many many years. It's definitively not found in the sub-pip "moves".

  • #9
  • Feb 3, 2017 7:20am Feb 3, 2017 7:20am
Don't trade when you're poor.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #10
  • Feb 3, 2017 12:56pm Feb 3, 2017 12:56pm
^^^^ TITCR
  • #11
  • Feb 3, 2017 1:08pm Feb 3, 2017 1:08pm
In order to my trading experience, it’s really thought to use 1st session of Monday as well as last session of Friday! Personally I always avoid these 2 sessions in my live trading! On the other hand, if you are a newbie and don’t know enough news trading, then please don’t trade in high voltage news session like NFP, FOMC!
  • #12
  • Feb 10, 2017 4:11am Feb 10, 2017 4:11am
The worst time to trade is when there is no liquidity in the market. Thus, it means the time when market includes less no. of traders. Usually it happens during the weekends like on Fridays or at the end of year like in the last few trading sessions of December month.

Please note: Trading in Forex carries high level of risk & it may not be appropriate for the investors. The possibility is that you can lose more than your deposit amount. Moreover, the high leverage can work against you.
  • #13
  • Feb 11, 2017 8:27am Feb 11, 2017 8:27am
NEVER ever trade after having a fight or argument with your significant other. You are not in your right mind and you will behave irrationally which usually means losing big chunks of money. If you have an argument before you trade - take that day off and recenter.
  • #14
  • Feb 13, 2017 6:01am Feb 13, 2017 6:01am
Quoting enochben
NEVER ever trade after having a fight or argument with your significant other. You are not in your right mind and you will behave irrationally which usually means losing big chunks of money. If you have an argument before you trade - take that day off and recenter.
Good point. I’d expand it to never trading when something very stressful has happened to you, for whatever reason. One needs to be calm and focused to trade well.
  • #15
  • Feb 13, 2017 6:19am Feb 13, 2017 6:19am
Quoting mounir90
Some people dont like when the market is open to trade, but is there a golden rule that is consistent not to trade?
I'm a newbie and I'm still demo trading. you see, from my demo experience , I have come to discover that Mondays are no good trading days for me. since I have been demo trading, most of my losses come from my Monday trades. like today, I have lost 180 pips in the present ranging EUR/USD. Although I envisage a breakout soon from the Bollinger squeeze plotted on 5 Mins EUR/USD chart, I still can't decipher which way to go because there's no news to give me a sense of direction ......ain't trading the range mehn,...lol
  • #16
  • Feb 13, 2017 8:44am Feb 13, 2017 8:44am
Times of mental issues aside and reduced to market related times:
There is no golden rule as we have different strategies. Speaking from the perspective of a "high leveraged, precision oriented, short term trader" (I believe other people would call that "Scalping") times of wild market behaviour are a problem (news), times with tension in the market (talks) and times when liquidity is commonly low (after NY close or UK/US overlapping bank holidays).

As a consequence the perfect market would be with permanently working UK and US financials, no bank holidays (total disaster), politicians mouths shut with duct tape and Donald without Twitter *scnr*
  • #17
  • Feb 14, 2017 3:19am Feb 14, 2017 3:19am
Quoting The Fool
Don't trade when you're poor.
Some traders are rich financially but are mentally poor inasmuch as they lack the knowledge and discipline required to trade successfully. Don't trade until you learn to imbibe this requirement.
  • #18
  • Feb 14, 2017 7:05am Feb 14, 2017 7:05am
The worst time to trade is after you have lost and want to take your money back. Your mind is blurred and you trade without any proper signal which turns to even more losses. Basically every time you are stressed out its not a good time to trade.
  • #19
  • Feb 14, 2017 7:10am Feb 14, 2017 7:10am
Quoting DwainUK
The worst time to trade is after you have lost and want to take your money back. Your mind is blurred and you trade without any proper signal which turns to even more losses. Basically every time you are stressed out its not a good time to trade.
Basically, if you can't shrug off a loss, you're not mentally fit to trade. I believe many retailers should print that out and have it on their monitor ...
  • #20
  • Feb 14, 2017 7:27am Feb 14, 2017 7:27am
Quoting JamesFx007
{quote} Some traders are rich financially but are mentally poor inasmuch as they lack the knowledge and discipline required to trade successfully. Don't trade until you learn to imbibe this requirement.
I agree in general, but the original point wasn’t bad. One shouldn’t risk money on Forex trading that they can’t afford to lose.
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