When people become interested in Forex market, they became very happy. They think that they have got a market where they can trade for all day long and make profits from their home. There is no need to go to an office. There is no need for fancy furniture. What you need is only some computer and internet connection to place your trades on the market. Don't you have money? No problem, the Forex brokers are here for you. You will be given the ultimate advantage of leverage where you can trade the market like a big, rich account holder and place trade for thousand dollars.
All these things only do one thing to the traders, to make them trade all time in the market. This market, although it’s always open, is not profitable every time you are trading in the market. There are different trading sessions in the market and you need to know sometimes when you need to avoid placing trades on the market. The professional trader at Saxo is well aware of this dangerous trading hour and most of the time they sit on the sideline until the market offers them the better trading opportunity. Unlike the professional traders then novice traders execute random trades and ultimately blows their entire trading account in the market.
Time to avoid trading
Most of the novice traders in the forex market thinks that the more they will trade the better chances they have to make money. But when it comes to real life trading you must be extremely careful about the trading hours. These are the times you need to look out in the market. If you see any of these time, you need to stop trading in the market.
Holiday’s seasons: never ever trade the market in the holiday season. They are the worst time to trade the market. Everybody sleeps in their holidays and there is no money. If you think small traders will make it easy for you to make a profit, you also need to know, it is these traders whose money are coming to your account from the market. If there are no traders, you cannot make money. Most of the professional traders never execute their trades in their forex trading account during the Christmas holiday as there is not sufficient liquidity to make a decent profit. Always trade the market when you have better chances to make a profit.
In major events: Do not trade the market if you heard the US just have been bombed. You need to give the market some time before it can stable the market price level. In any major events, do not place trades on the market. You will find the result deadly and catastrophic to your account and also to your profit. To be precise you need to stay away from the market during the political instability. Most of the time the market exhibits lots of false spikes and the novice traders often blows their entire trading account.
Political speeches: During the political speech the forex market often becomes extremely volatile. Some of the novice traders think that this is the perfect time to make money in the online trading world. So they execute high lot size trade and within a few minutes, they lose a huge amount of money. It’s true that sometimes they will make a decent profit while trading this wild market but in the long run they will become a loser in the financial market.
Conclusion: Trading the financial instrument is one of the most sophisticated business in the world. If you think that trading is the perfect profession for you then you need to avoid this trading hour in the market. Always focus on quality trade execution and don’t execute any trades based on your wild assumptions. Use your rational logic to find the best possible trade setups in the market.