To Trade or Not to Trade

Do you know when not to trade in the Forex market? All traders come to Forex for profit and get frustrated when getting losses. Naturally, everyone wants to earn more and quickly but often this idea turns out to be not the same results. Today I want to understand what causes lie behind the failures of traders.

When a trader opens deals rashly, he is likely to receive a loss. Or maybe you will recognize yourself in this situation: you come home tired and sit down at the computer to trade. But trading does not bring the desired results. I’ve been trading for 3 years and surely I faced this at the beginning of my career in trading. There are also unfavorable days on Forex when it is better to wait and to refrain from trading. Let’s investigate when not to trade Forex.

The reasons why traders fail can be divided into psychological and market ones.

Psychological reasons not to trade

Most newcomers believe that their failures are caused by the drawbacks of the trading strategy. But in fact, the trader`s psychological state also has an impact on trading efficiency.

Do not trade when the emotions contribute to your trading activity

Emotions can lead the trader astray. Traders often give vent to their emotions during the uncontrolled pursuit of profits and just ignore the money-management rules. The excitement after the profitable trades or the desire to win back after unprofitable ones are the reasons that ruin the trading.

Do not trade when you are tired

When you feel overwrought or are puzzled by some important issues, take a break. Trading requires high concentration, fatigue leads to loss of attention. And this means that the tired trader has more chances to make a mistake, for example, click the "Sell" button instead "Buy".

Do not get distracted when trading

Unfortunately, we all suffer from trading distractions. It may be incoming messages, an annoying barking of neighbors dog or new episode of the favorite serial on TV. Distractions affected our work significantly. I think you understand what kind of effect it has. Sure, negative.

When trading you should be concentrated and not distracted. Get rid of the possible distractions when making trade orders: put aside your phone and other gadgets, switch off TV, radio, log out of social networks. Distractions take our mind off trading – what we should focus on at that moment. So, before starting trading, deal with all your potential distractions.

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Hello! My name is Mohammad Hafiz. And recently I became a blogger