Generally, when traders start learning about how to trade, they also want to know when to trade. However, it is also important to know when to stop trading?
Yes, it is….
No doubt it is difficult to understand. Because if you quit soon, you will miss many winnings. Similarly, if you don’t stop trading in time, you may lose winners also. So, it’s essential to know when to stop trading?
You can stop in the 5 main conditions when trading continuously. These are when you are losing money frequently, trading on borrowed money, trading on emotions, stressful dealing, and addiction to trading. Just keep these conditions in mind and stop trading accordingly.
Forex trading is a professional adopted by the elite class. Without a large amount of investing money, you can change your life by trading in this financial world.
You need to read this article to get help for survival in the forex market. Don’t skip any point as incomplete info will bring nothing for you.
So, start reading with great interest!
When to Stop A Hard Session
Many traders find it difficult to balance between continuing trading or stop trading. They are confused to follow trading strategies in the hope of positive results and cutting losses.
Unluckily, there is no rule to solve this problem because it is largely emotional. Now there is a big need to question How much investment you have? What is your risk ratio? And How much money can you lose? How much attention and emotional strength do you have?
If you have experience and proper knowledge about this trading market, You will feel better about when to stop and when to start.
Here the most important point is that never spend all your investment on one trade, manage the risk possibilities and so you will live for trading the next day. You can follow Forex compounding plans.
There are two viewpoints to avoid overtrading. Many traders want to get big profits on a single trade or few trades. They will spend more time on such trades to become big winners of this market.
On the other hand, some traders prefer the big number of small trades. Where they can get profit adding up over time.
Whichever you select from the above strategies, the main purpose is not to overtrade. Before trading, always make a plan and set your goals. Control your submission to the market. When you have completed your goals, stop trading.
Start a new day with a new trading. Generally over trading results in losses.
When to Stop Trading Completely (5 Hints)
No doubt, the starting part of your trading life is very easy. You can develop yourself as a successful trader by accepting challenging tasks. Except following all the basic rules of trading, you have to lose money.
You have to read the following reasons very carefully because they will help you to know the best time to stop trading and avoid the worst time to trade forex.
There are five main reasons to stop trading. Let’s discuss them in detail:
1. Frequently Losing Money
As you know anyone who starts trading in the forex market, wants to live off forex trading. But there are a number of traders who frequently lose money even they have detailed knowledge about the market.
The truth is that they don’t know the proper way to control their emotions and in this way lose a large amount of their investment.
You adopt trading as a business to get profit for a better lifestyle. So, if you continuously lose money, there is no need to keep trading on.
Even after a hard struggle, if you feel there is no more progress for you in this field, stop trading and try to find another profession.
2. Trading on Other Person’s Money
Many of you think about finding perfect ways for trading on this online platform. But because of low investment, you can’t make any profit in this trading market.
At that stage, you start borrowing money from someone else.
Always remember that trading depends upon possibilities. You can’t get any success in trading unless you face losses in trades. If you continue trading on other’s money, it may take no time to lose all of your investment.
So, the experts advise you never to trade with the money that is unfordable for you after losing. If the invested money does not belong to you but someone else, stop trading the real market.
3. Emotional Trading
Control on emotions is very important while trading forex. If you can’t control your emotions, your account will soon blow up because of your rational decisions.
The new traders are often confident that they know all the perfect ways of trading in the forex market. No doubt their trading career reaches the top at starting stage, but after losing a few trades, they face frustration.
Now, emotions involve too much in their trading and as a result, they explode their trading account in a very short period of time. Never start trading in the market, unless you will be able to control your emotions.
If you continuously break the rules, you will never become a successful trader.
4. Dealing with Stress
A stress-free environment is an important part of successful trading. If you are thinking about taking a huge risk to change your life, you are wrong…
Perfect trading is to find the best trades by managing risks. Do you want to become a successful trader? It’s easy!
Make sure you will not mix personal issues in real-life trading. Regard it as a business and try to follow all basic rules of investment.
When you will be able to differentiate your personal life and professional life, you will see a big change in your life.
5. Getting Addicted to Forex
There are a number of cases that show many traders become addicted to trading. The reason is that they know all the perfect ways to trade and become experts.
So, if you feel you are addicted to trading, take a short break and stop all your trades. Because it’s human nature that wants to enjoy the shades of life regularly.
Don’t live like a robot because it makes things worse.
Try to trade the market in trending ways. Do you feel addicted to market trading? Stop trading at once and take a break.
When should you stop trading?
There are specific times to quit trading. When you find no positive outcome for trading and continuously feel overwhelming, stop trading instantly.
What is the best time for trading?
Actually, there are three markets for trading. The pre-market trades from 4 am to 9 am ET. The regular market trading time is 9:30 am to 4:00 pm ET and after-hours market trades from 4 pm to 8 pm ET.
Can you do a stop loss after hours?
You can’t execute stop orders during extended hours. Pre-market or after-hour sessions can take effect when the stock is not trading.
Finally, we may sum up by saying that breaks are necessary in the trading world because as a human being you need some rest.
Stop trading will give you relaxation, comfort and recharge your working energy. Save some investment, and your goals, and reflect on your success and failure.
This formula will help you in new trading strategies while working honestly. After taking a rest, you will be ready again to get more profit to make your life better.
Hopefully, this post will prove informative for you. Share it with your friends who have closed their accounts and encourage them to trade again.