{"id":63387,"date":"2014-11-09T18:49:22","date_gmt":"2014-11-09T23:49:22","guid":{"rendered":"http:\/\/countingpips.com\/?p=63387"},"modified":"2014-11-09T18:49:22","modified_gmt":"2014-11-09T23:49:22","slug":"when-it-pays-not-to-trade-forex","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/11\/when-it-pays-not-to-trade-forex\/","title":{"rendered":"When It Pays Not to Trade Forex?"},"content":{"rendered":"<div id=\"inves-1884869840\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">November 9, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p class=\"zw-paragraph\"><span class=\"zw-portion\"><a href=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2014\/11\/thumbs.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-63391\" src=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2014\/11\/thumbs.jpg\" alt=\"thumbs\" width=\"450\" height=\"309\" \/><\/a><\/span><\/p>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">With the 24 hour availability of the Forex market, some traders think that they need to be in it all of the time. You know who you are. You\u2019re the Forex trader with black circles under his eyes from not sleeping, and no social life left to speak of. And although you figured those sacrifices would pay off in huge dividends, your Forex account does not look any different <\/span><span class=\"zw-portion\">from<\/span><span class=\"zw-portion\"> the next guy<\/span><span class=\"zw-portion\">\u2019<\/span><span class=\"zw-portion\">s, maybe even a little worse.<\/span><\/p>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">Why is this? Because there times when you need to pull out and take a break. Remember, the key to making money in Forex trading is learning how not to lose any. This not only means having great money management skills, but also having the presence of mind to know when it is just not time to trade.<\/span><\/p>\n<h3 class=\"zw-paragraph\"><span class=\"zw-portion\">Personal Reasons<\/span><\/h3>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">Attitude means a lot in Forex trading, as well as your emotions. Sometimes you will need to look at your own to decide if you are in the right frame of mind to make the right decisions about your trading. Ask yourself the following questions if you think that your state of mind may be messing with your trades:<\/span><\/p>\n<ul data-level=\"0\">\n<li>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">Do I feel greedy? Greed is not a trait that works well when trading Forex. Greed usually comes from a desperate desire to make money, and it is that desperation which will encourage you to make bad choices. If you are trading today because your car payment is due tomorrow, stop right there. <\/span><span class=\"zw-portion\">Deal with your financial problem some other way and pull yourself out of the market until your greed dies down.<\/span><\/p>\n<\/li>\n<li>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">Am I over confident? This will usually surface after you have had a few successes in the market and suddenly think you deserve a super-trader cape. This cockiness will spill over into cutting corners on your analysis, thinking you are too good for stop loss orders and <\/span><span class=\"zw-portion\">taking bad risks. If this sounds like you, step away from the platform and come back down to reality. There is no such thing as luck in Forex. Your successes happened for a good reason. Study your journal and the market charts to find out what that was and make a strategy around it before you put that cape on.<\/span><\/p>\n<\/li>\n<li>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">Do I need a break? Some of us, myself included, get so caught up in the trading that we forget about our personal needs. There is absolutely nothing wrong with answering this question with <\/span><span class=\"zw-portion\">a yes, and then closing the lap<\/span><span class=\"zw-portion\">top and grabbing a fishing pole instead. I have found that taking a break makes me a better trader the next day. After days upon days of looking at charts and <\/span><span class=\"zw-portion\">analyzing data, it all just starts to melt into one. When I come back from a break, everything looks fresh again and I make better decisions.<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\"><a href=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2014\/11\/boat.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-63390\" src=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2014\/11\/boat.jpg\" alt=\"boat\" width=\"450\" height=\"300\" \/><\/a><\/span><\/p>\n<h3 class=\"zw-paragraph\"><span class=\"zw-portion\">Market Reasons<\/span><\/h3>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">There are certain markers in the market and with a currency pair that also tell you that now is not the time to get in on a trade. Many good traders <\/span><span class=\"zw-portion\">believe that learning these not-to-<\/span><span class=\"zw-portion\">trade signs is even more important than knowing when to jump into the market.<\/span><\/p>\n<ul data-level=\"0\">\n<li>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">Weekend trading. Don\u2019t leave your pair open over the weekend. Yes, the market is closed, but a Saturday night speech by Obama can change everything you thought should happen to change in a second. Unless you are long term charting and trading, you should plan your exits before the weekend begins.<\/span><\/p>\n<\/li>\n<li>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">Entering with a news release. Economic news reports will cause the market to go volatile as traders struggle to figure out what it means for their pair. When economic reports are getting ready to be released, stop your tradin<\/span><span class=\"zw-portion\">g and wait until they have been<\/span><span class=\"zw-portion\"> and everything has calm<\/span><span class=\"zw-portion\">ed down before jumping back in<\/span><span class=\"zw-portion\">.<\/span><\/p>\n<\/li>\n<li>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">Breaks in resistance and support. The support and resistance lines on Forex charts are very important, as they help visualize a trend. It may seem like a good idea to enter when those <\/span><span class=\"zw-portion\">lines are crossed, as you know a pivot is inevitable. This is not the best time though as there is likely to be a stall while traders rush to get out of position. Again, wait for all this pressure to calm down before investing any of your money back into the pair.<\/span><\/p>\n<\/li>\n<li>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">No obvious trend. Volatile markets make it very difficult to spot trends, even on long term charts. If you are noting <\/span><span class=\"zw-portion\">that there is no peaks or valleys, but rather a steady stream of upward and downward movements than you can\u2019t logically enter the market, as you can\u2019t figure out what it\u2019s going to do. Trend spotting is the backbone of charting and successful trading, how can you then justify entering a trade if you figured out which way the pair is trending?<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"zw-paragraph\"><span class=\"zw-portion\">Hand in hand with learning when not to trade is learning how to not lose money. If you have any hope of building a large Forex account, you must figure out how to make sure it doesn\u2019t get depleted. This means learning not just the market signs of when to get out and chill, but also your own personal signs. Take stock of both of these everyday and you will see how sometimes it actually pays for you to not be in the Forex market.<\/span><\/p>\n<p class=\"zw-paragraph\"><em><strong>About the Author<\/strong><\/em><\/p><div id=\"inves-168613602\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p><a title=\"\" href=\"https:\/\/plus.google.com\/u\/0\/+CaseyStubbsprofile?rel=author\" target=\"_blank\" data-type=\"1\" data-href=\"https:\/\/plus.google.com\/u\/0\/+CaseyStubbsprofile?rel=author\"><span class=\"zw-portion link\">Casey<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">Stubbs<\/span><\/a><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">is<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">the<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">founder<\/span><span class=\"zw-portion\"> of <\/span><a title=\"\" href=\"http:\/\/www.winnersedgetrading.com\/\" target=\"_blank\" data-type=\"1\" data-href=\"http:\/\/www.winnersedgetrading.com\/\"><span class=\"zw-portion link\">WinnersEdgeTrading.com<\/span><\/a><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">which<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">is<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">one<\/span><span class=\"zw-portion\"> of <\/span><span class=\"zw-portion\">the<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">most<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">widely<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">read<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">forex<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">sites<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">on<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">the<\/span><span class=\"zw-portion\"> web. <\/span><span class=\"zw-portion\">Winners<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">Edge<\/span><span class=\"zw-portion\"> Trading has <\/span><span class=\"zw-portion\">trained<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">thousands<\/span><span class=\"zw-portion\"> of <\/span><span class=\"zw-portion\">people<\/span><span class=\"zw-portion\"> to <\/span><span class=\"zw-portion\">trade<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">the<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">Forex<\/span><span class=\"zw-portion\">\u00a0<\/span><span class=\"zw-portion\">markets<\/span><span class=\"zw-portion\">.<\/span><\/p>\n<div class=\"refDiv\"><\/div>\n<div class=\"refDiv\"><\/div>\n<div class=\"refDiv\"><\/div>\n<div class=\"refDiv\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>With the 24 hour availability of the Forex market, some traders think that they need to be in it all of the time. You know who you are. You\u2019re the Forex trader with black circles under his eyes from not sleeping, and no social life left to speak of. And although you figured those sacrifices [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-63387","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/63387","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=63387"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/63387\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=63387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=63387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=63387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}