Time to Avoid When Wanting to Trade Forex, You need to know, there are several times to avoid when you want to trade forex. Because even though trading can be done at any time, there are rush hours and times that can lead you to lose many times.
The time discussed here is also not only about what time it is not allowed to trade, on what days it is not allowed to trade and so on. But it’s also a time when your psychological state and mind as a trader are not good.
For more details, let’s learn together about the time to avoid when you want to trade forex in the following article.
Times to Avoid When Wanting to Trade Forex
Now for those of you who plan to trade in the near future, make sure to avoid the hours and moments listed below, make sure beginners always pay attention to this so you don’t lose your trading capital funds.
First Day and Last Day in 5 Working Days
The first day when the new market opens, which is Monday, and the last day when the market closes, which is Friday, are times to avoid when trading forex. Because these two days have the least significant market movements.
On the first day when a new market opens, the movement of exchange rates and figures is usually still uncertain. Many traders consider the first hours after a new market opens are the hours where the market is still looking for its direction for the next week.
The same thing happens in the first 24 hours of the last day of work. At that hour, the market movement has not had much impact anymore and traders and investors prefer to prepare for the next week’s market.
Trading on the first day of 5 working days is very risky, unless you have very strong technical analysis. Meanwhile, trading on holidays seems like a waste of time.
On International Holidays and Long Holidays
Just like on the first and last days of the week, holidays also often have market movements that are difficult to predict. So that trading on international holidays can be said to be just like luck and not much different from gambling.
A few days before the long holiday is also a very risky time to open a trading position. Because like weekends, market movements on long holidays are also very unpredictable.
After and Before the Latest Economic News Release
The time to avoid when you want to trade forex next is when the economic news hasn’t been released and it’s only been a few minutes. Hours like this are very influential if you trade using the economic calendar.
When the economic news has not been released, of course we do not know at all how the market will move in the next few hours.
Meanwhile, when new news is released, in the first 5 minutes there will be many traders who open their positions according to their respective analysis. This sometimes makes market movements so out of your predictions. In fact, the first 5 minutes is a deceptive move and often fools traders.
Therefore, the most appropriate time to open a position when trading on the economic calendar is 5 to 10 minutes after the release of economic news.
After Experiencing a Loss Streak
This time to avoid when you want to trade forex next can actually happen at any time. Because the so-called analysis and forecasts, can still be wrong even though it has been calculated very accurately.
That’s why you can experience a loss streak at any time not trading forex. And when you experience that moment, we highly recommend taking a break for 2 days or 1 full week to make an evaluation.
In that 1 week, you can develop new analytical techniques, find out where the error lies in the analysis used previously, or just to calm your mind.
When The Mood Is Not Good
Still related to the previous point, mood and emotions are also an important influence on your trading results. Therefore, we strongly discourage opening positions or even entering a trading session when the mood is not good.
A bad mood isn’t just when you’re sad. But also when you are nervous, when you are angry, when you have family or relationship problems, and much more.
Because at these moments, you will expect entertainment by getting a win when trading. Meanwhile, if it turns out that what must be accepted is a loss and even a loss streak, it is likely that you will take revenge by continuously opening positions without good analysis.
That’s it at any time that should be avoided when you want to trade forex. If there are things you want to ask about the world of forex, don’t hesitate to use the comments column below.