It is better to know when not to trade rather than the right
time to trade. This will always help you in minimizing your losses, the
preferred winning strategy behind every Forex trading activity.
To determine the time that you should not trade the forex
market, let us first go through the reasons behind that. There are two things
that need to be taken care of with one involving you and the other the market
itself.
Trade restrictions
due to individual cause:
Distraction happens to be one of the most important reasons
that affects the Forex trading session for anyone. Even on a fine single day,
staying concentrated and watching the market for hours will be more tiresome.
So, it is better to optimize the trading time by dividing the whole day into
little sessions that you want to trade. During these chunks of time, take some
regular breaks and refresh your mind. And about the distractions, lock yourself
on to these small allocated trading sessions during which never allow any
environmental distractions to disturb you.
Never trade during time testing hours with those emotional
conflicts of losing someone near and dear. This is the negative moment in your
life that you will have no control of and you will be bound to take some false
moves in the market.
Trade restrictions
due to market conditions:
Avoid trading Forex during those bank holidays, during which
the trading volume will be lower or the exchange rates will be erratic.
Traders should be aware of the scheduled press releases and
economic news happening on the globe. Since these factors affect the trade
instantly, updating the information is vital for making trading strategy. Even
though there are numerous economic calendar available, I would recommend the
economic calendar in Greenvault FX since it is more accurate and also
convenient to understand.
Avoid trading during the hours of the ISM Manufacturing data
report, since the market would be speculating more at this moment and it can
tumble down or move up during this time.
Look out for those speeches of the Governor of International
banks and the Feds since their speech on economic and political factors will
have a great impact on the market sentiments.
Also restrict trading during the erratic period of the
market with the market throwing more spikes. You may not really know the reason
behind the unexpected movement of the Forex market and it is safe to watch than
trade.
It is also ideal to stay off during the closing session and
the weekends, since the market will be highly volatile and will fluctuate to
any side which you cannot easily speculate.
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