You need to be able to concentrate on the charts and not get caught up with other things going on. For instance you might be waiting for a trade and marimar forex market you get distracted and when you come back to your chart you have missed the trade or you buy instead of selling etc. However, life is full of distractions so put the cat in the hall and shut the door. If something emotional has happened, and you can’t be subjective, then do not trade!
This could be any number of things that had a negative impact on your day. The personal times that you shouldn’t trade can really be summed up as times when you are out of synch with your normal body rhythm. These are times where your emotions or environment can negatively affect the way you trade, and can seriously hamper the likelihood of a successful trade. The good news is these tend to be things that you can control or have some degree of control over. The market reasons for not taking a trade are a bit different. These are scheduled and there is nothing you can do about it.
If there is an USA or UK Bank Holiday I don’t bother trading. This is because the Banks are the biggest participants in the Forex market. If they are on holiday then the volume of transactions being carried out is greatly reduced. This can lead to either really static markets or on occasion erratic markets. Either way it does not follow the normal pattern, so I stay clear. If however, it’s a Bank Holiday in another country such as Japan or Australia then I wouldn’t trade currencies that belong to those countries, e. There are scheduled news releases, and economic news, that is due to be released throughout the day.
These can be found, in advance, in a number of places but the most popular one seems to be the Forex Calendar, provided by Forex Factory. Each has a different impact and is all explained in the calendar. There tend to be folders that generally are not a good idea for a new trader to try and trade. High impact, red folders, can really move the market, sometimes spiking in both directions, before settling done. These are high risk times where a lot of people get stopped out. The one’s I specifically avoid would be the ISM Manufacturing data, interest rate announcements and NFP related news announcements.