What to do when the markets are quiet?

Filed under: Learn Forex Trading |

There will be times when the forex market is not doing very much and you will not have many trade setups lining up. This is something that we are currently experiencing right now on our ‘live trades’ commentary. Some days, there are four or five setups, and this can happen every day for several days in a row; and then other days there is absolutely nothing lining up, and this can also happen for several days in a row. So what exactly should you be doing (and not doing) during one of these barren spells?

 

Well, the thing that you shouldn’t be doing is to try and see trades that are not really there because you want some action. Often, when there hasn’t been much market movement for a few days, beginner trading who are craving action will jump into a trade that isn’t really there. They will convince themselves that there is a setup there when it is really a very weak setup, and as a result, they will inevitably take a loss. This process can then snowball because they will want to make up their loss as quickly as possible – and so it goes on…

 

What you should be doing is either:

 

a)     Stepping back from the market and enjoying some well earned leisure time. It is important to recharge once in a while and come back with fresh eyes – and this would be the perfect opportunity to do just that.

b)    Reviewing your trading performance. If the market is not moving, you could take the opportunity to review your past trading performance and see if you can learn anything or make any improvements.

 

This article highlights just a couple of things that you could be doing if the markets aren’t moving, but of course, there are other things you can do too. The important thing is to make the most of your time, and to not force trades that are not really there.

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