Newcomers to Forex have boiling blood and they cannot wait to deposit money. As soon as people begin to get a wind what is waiting for them in return if the decisions can be taken right, waiting becomes a luxury. Despite terrible perils, investors are eager to throw away capital even when not having any idea. They simply gauge the prices are going up and down due to market volatilities and there are no correlations. It is random and it moves this way due to its own free will. Well, currency trading is not a human being who possesses their own judgmental decisions. We are sorry to break this harsh truth from sugarcoating but the reality is much more different than expectations. Just because an industry is open 24 hours around the clock does not mean people should keep on trading without breaks. This is a global market where traders from the globe participate.
Moreover, not all time sessions are profitable as certain overlapping periods are the most popular. From this context, turning into a spectator rather than participating is a good idea. In this article, we will explain the situations during which you should not even think of putting capital at stake. No matter how lucrative the opportunity seems, this is not a good idea. Go through this post carefully and you will discover many time frames that are usually best avoided.
Doing less is more
To be the best trader in the CFD trading industry, you have to become a good observer. Observing is considered one of the most important skills to survive in any form of business. No need to rush and take decisions. The pro-Singaporean traders at Saxo also follow this rule. For this, they always pick the best trade setup even though the market is extremely unstable. You might think it’s an easy task but trust us, it’s very hard to overlook the low-quality setup and look for the best signals. But if you devote yourself properly, you can do this like a true professional without risking too much money.
During choppy trends
Choppy movements are the most dangerous trends in the history of trading. Though they seem immensely profitable at first glimpse, this is a confirmed way to lose capital. Thousands of investors have tried their luck but all had the same outcome. Hold onto the trades if the volatility is exhibiting such patterns. Short-term traders may invest as their fundamental concepts vary from the regular market. As it is not possible to correctly guess the future destination of the trend, spectating the market will protect the fund. If you think to learn about hidden dangers, simply observe and notice how people are losing capital. Before they can even understand, a swift blow takes away all the cash store in the repository.
Brokers and professionals alike agree on this context so be rest assured this is a muddle that the majority do not want to get in. If the condition exists for weeks, simply don’t trade. The solution to this problem is effortless yet still, people want to experiment.
During major financial events
Economic decisions that likely to effect CFD market usually take place in big global seminars. As this sector is globally spread, local news does not have the strength to have an impact. As significant decisions are taken, it is safe to observe before and after a few days. If you are not sure where to find news, keep an eye on revered websites that cover regular economic updates. However, many scalpers try to use this opportunity by placing orders. They exist as soon as they made a profit but this calls for expert knowledge. Beginners are forbidden to participate as this will only bring losses. Wait until the situation becomes clear and only invest as before. Do not take hurried decisions.