When should you not trade?

Save your money and nerves by not trading at the wrong time. While understanding the best time to enter your trades is very important, knowing when to step away from trading is just as important.

There are two main characteristics of bad timing:

Low market activity

Irregular direction of trades

Low activity: An inactive market (often called “light”) offers smaller price movements and therefore smaller potential profits. Due to lower liquidity, a light market also comes with higher commissions (spreads) per trade. In simple words: If you want to sell a coin in a light market, it is difficult to find potential buyers, so the commission goes up

Chaotic Markets: A good example of chaotic trading is around and during important news events. In these times of uncertainty, currency prices can swing wildly and unpredictably, disrupting trading by creating execution delays, triggering stop-loss orders, etc.

So, here are some examples of when you should at least be careful when trading:

Friday afternoons and weekends.

Trading session closing time.

Issuing important economic data.

Bank holidays.

Prime time television events.

Asian sessions.

After a big loss