Understanding “When” to trade.
Understanding “When” to trade.
Knowing the HOW to trade is one thing, another is knowing the WHEN.
As a trader (crypto & forex), it is bad to trade every time the market opens up. The best and most profiting traders are not those that trade everyday, but take a targeted approach to trading.
For me, I know for sure that i do not like to trade on Mondays because that’s when i take analysis to know which way the market will go for the week. Trading days for me are usually on Tuesdays and Wednesdays, the market moves better on those days for me.
Some other times not to trade as well are;
– On holidays.
– During Major news events.
– When you are emotional unstable.
Yes I agree with what you said on the holidays. I realize that holiday is a risky day to trade and market usually go on one direction and stays on that direction almost all the day of the trading till the next day. It is risky because if you enter a wrong direction, you will not come out from it and can regret by losing your capital. The reason also for the market to stay one direction is no orders coming in from the opposite side and therefore no volatility is created to change the direction. Staying out is better during holidays.
This is a very important issue when you trade. You will only trade when you see that the market has moved down a lot and then the market has moved up a bit.Start your trading in such a situation. I have seen a lot of times the market goes up a little bit after coming down a lot.And especially when there is any good news you will start trading. People trade the most at that time.