{"id":162229,"date":"2019-12-20T15:40:11","date_gmt":"2019-12-20T20:40:11","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=162229"},"modified":"2019-12-20T14:40:41","modified_gmt":"2019-12-20T19:40:41","slug":"when-not-to-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/when-not-to-trade\/","title":{"rendered":"When NOT To Trade"},"content":{"rendered":"
December 20, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

So much of our research and analysis as forex traders focuses on figuring out when to get into the market. That\u2019s why we often neglect to consider when staying\u00a0out<\/em>\u00a0of the market is a better option.<\/p>\n

In fact, learning how to handle when\u00a0not<\/em>\u00a0to trade and avoid taking unnecessary risks, for a lot of forex traders, is the key to success.<\/p>\n

The simple answer for when you shouldn\u2019t trade is\u00a0when your strategy says you shouldn\u2019t.<\/p>\n

There are a lot of\u00a0circumstantial reasons why you should stay out of the market at particular times. After a while, you get a handle on them. But there are also some general guidelines that might help most FX traders avoid being in the market when they shouldn\u2019t.<\/p>\n

If it Doesn\u2019t Feel Right, Don\u2019t!<\/strong><\/h2>\n

This might sound like common sense. But, especially for newer forex traders, there is this drive to jump on every opportunity. Even if you\u2019re not sure about it!<\/p>

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No one has a gun to your head to trade. And there will always be another market opportunity coming up.<\/p>\n

If you absolutely\u00a0have<\/em>\u00a0to trade and can\u2019t let a potential trade go by, then there\u2019s probably something wrong with your money management strategy.<\/p>\n

For many FX traders, it takes some convincing to get them to accept that they can let a trade opportunity pass and hold out for better circumstances. It\u2019s almost like you \u201clost\u201d when you decide to not jump on a trade.<\/p>\n

However, a very important part of forex trading is risk management. And if you are unsure about a trade, you\u2019re better off passing on it.<\/p>\n

High Volatility<\/strong><\/h2>\n

Unless you have a strategy that is specifically oriented towards trading in periods of high volatility, then you might want to stay away from the markets when there is increased erratic movement in the markets.<\/p>\n

This is different from generally increased volatility due to more traders, for example, during the London-New York session. If there is a major geopolitical event, such as a war, or an election, the markets can react to rumors and incomplete information that can render an otherwise good strategy useless.<\/p>\n

News Releases<\/strong><\/h2>\n

Again, unless you have a strategy that is specifically built around certain news releases, major economic data can cause the market to veer into a new direction.<\/p>\n

Many technical FX traders hold off on trading ahead of major fundamental events. These can cause high volatility and typically include interest rate decisions, NFP and GDP figures.<\/p>\n

Holidays<\/strong><\/h2>\n

When countries go on holiday, usually the major FX traders from those countries won\u2019t be active in the market.<\/p>\n

If a significant number of countries or a major economy\u2019s markets are closed for holidays, it can pull a lot of liquidity from the market. This causes it to act more erratic and uncertain.<\/p>\n

Usually, in the two weeks around\u00a0Christmas<\/a>\u00a0and New Year\u2019s, most major forex traders take a vacation.<\/p>\n

This means that many trading strategies won\u2019t perform as well during that period. Other major holidays\u00a0that sap liquidity from the markets<\/a>\u00a0include Easter, May 1st and Thanksgiving.<\/p>\n

Many forex traders also avoid trading on those days.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex So much of our research and analysis as forex traders focuses on figuring out when to get into the market. That\u2019s why we often neglect to consider when staying\u00a0out\u00a0of the market is a better option. In fact, learning how to handle when\u00a0not\u00a0to trade and avoid taking unnecessary risks, for a lot of forex […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-162229","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=162229"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162229\/revisions"}],"predecessor-version":[{"id":162260,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162229\/revisions\/162260"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=162229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=162229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=162229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}