3 reasons why I’m going to stop trading right now (and why you should too)

mexcar

Alright, it’s not like I’m going to stop trading for ever, it’s just for the rest of the week.

If you were thinking about taking some days off your trading, this one would be the perfect week to do it.

And here is why:

Reason #1 There are plenty of important fundamental announcements

Just take a look at the next screenshot:

forex news

Screenshot taken from: http://www.forexfactory.com/calendar.php

Thursday and Friday will be probably the two days with the most important news releases in the whole year!!!

You know what that means right?

A lot whipsaws, market going crazy, etc.

So I think you and me are better off doing something else…

Reason #2 Technically speaking, the market isn’t that clear

If you have been reading my posts for a while, you know that I like to trade when the probabilities are on my favor, when the market conditions are clear, when the market swings make sense, you get the point right?

Well, right now… the market conditions are not as clear as I would like them to be in order to trade them…

In fact, I think its just the opposite:

  • No clear swings
  • S&R levels are all over the place
  • Tight ranges

Why is the market like that?

Could be because of the fundamental announcements later this week, but the truth is that, no now knows, and you know what, I dont really care about the why.

The only thing I care about is that the market conditions are not ideal to trade, so I will go with that.

Reason #3 I could use a couple of days off

You know, I like to play guitar… And its been a while since the last time I played it, so these two days might be just what I was looking for.

:)

Seriously… As a trader you know that you should trade only when the odds are in your favor, when there are low risk trade opportunities… and you know what, today is not that day.

So I think I’m better off not trading for the rest of the week (and you should do the same thing), take the rest of the week off, do something that you enjoy and go back to trading early next week.

Not trading is also a trading decision.

Your Turn

What do you think about the market in the last few days?

Are you going to trade on Thursday and Friday

What do you do when you are not trading?

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Angel Tee

    Raul, I do have a few set ups not in the forex but in futures market for the past weeks. However none was triggered. Like you’ve said, probably market is not favorable for trading right now.

    • Raul Lopez

      Yep, next week should be ok though.

  • Eviano

    Hello, Raul, please can you activate my email to start receiving you analysis once more. Thank you.

  • Chandana

    Hi Raul,
    Your idea makes sense.
    According to my analysis, any strategy has its favorable market conditions. It’s stressful to trade in unfavorable conditions.

    However, there could be some strategy which can benefit from choppy and volatile markets as well. So there could be some traders out there who like the present market situation.
    It just happened to be not our way of trading. Isn’t it?

    • Raul Lopez

      That’s right Chandana… I was talking to a fellow trader and he said just that: he has been waiting for a month for these two days…

      good luck!

  • Carlo Roger Weins

    Perhaps a dip on some of the Aussie and Kiwi pairs especially vs the Yen will give us an opportunity to execute some entries, perhaps..Thank you for your insights Raul.

    • Raul Lopez

      You are right… the NZDJPY is probably the only pair I’d feel comfortable trading right now… Unfortunately it is too close to the resistance level already…

  • Himanshu Dutta

    to not to trade is very wise decision , often people dont focus ! I appreciate your decision , I would do the same !

    • Raul Lopez

      Agreed!

  • Waqas khan

    thank you so much for keeping us up to date

    • Raul Lopez

      No worries Waqas…