One of the things that traders want to know is the best market to buy and sell their positions. But unknowing to all, there are other important things in trading rather than buying and selling. To know where you should enter a position is a vital aspect of trading. You might find it the same at first, but it actually isn’t.

Learn more about the best and worst time to do FX trading here.

Before or After Hearing a High-Impact News

Volatility is something that gives traders money. Nonetheless, you cannot profit from the market if it doesn’t move. We’ve also been in the position wherein the favor is on us and we don’t want to stop trading. After just two days of trading 300 pips, you get to enjoy a boatload of profits.

Those were considered good weeks. But these times can also be treated as dangerous especially if you are a new trader. You may have witnessed the effects of the increase in volatility and the profit that it can give you out of thin air.

But what can be the effects of that high-impact news to the market’s volatility? It’s totally dangerous. Volatility surely makes us money, but if you attempt to trade following an event with an uncertain outcome, then you should worry about the outcome of your trades. This is even true to price action traders. The trading edge is coming from the signals generated by the market, particularly from daily charts.

To set it straight, there is no such thing as an edge when trading the news. This also applies when you enter a position right after or before an event. So, what should you do with it? It is very simple! Wait until the session closes at 5 pm EST before making any other considerations. That is all you have to do. This is called the settlement period and it will resolve this issue with ease.

The First Day and The Last Day of the Week

Take note of this, the first 24 hours of a trading week is usually slow. This could be due to the fact that market participants are still getting on the track after being inactive for 48 hours. This is also the time when the market figures out its direction for the new week.

On Mondays, it is better to keep yourself on the sideline unless you’ve got an established position last week. On Fridays, at the end of the week, it is mostly marked with much lower liquidity. Technical analysis is working so much better for those markets that are highly liquid. This is one of the reasons why a lot of traders switch to FX trading from equities.

When You Are Not Okay Mentally

Mental discipline is very important in trading. Those traders who are in control of their emotions tend to get ahead of the game. But despite being in control and discipline, there will be those days when you are feeling out of the weather. Maybe you just don’t feel well or you haven’t had a good night’s rest. During these times, it is better not to trade or lose the profits you made from the previous week.