When Not to Trade
A 1-minute lesson from the MarketPro academy, one of 22 in risk management.
Not trading is a decision with an expected value, and it is often the best one available. Professionals are distinguished less by spectacular entries than by everything they decline.
Flat is a position
Not trading is a decision with an expected value, and it is often the best one available. Professionals are distinguished less by spectacular entries than by everything they decline. There is no fee for waiting.
Market conditions to avoid
- Major news minutes: around central-bank decisions and top-tier releases, spreads widen, slippage grows and price whips both directions. Unless news trading is specifically your tested strategy, stand aside.
- Dead liquidity: late Friday, market open on Sunday/Monday, and major holidays produce erratic moves on thin volume.
- No-man's-land price: when price sits mid-range far from any level, there is no structure to define risk against. No level, no trade.
- Regime mismatch: a trend strategy in a choppy range will bleed. If conditions do not match your system's requirements, the system says wait.
Finish this lesson in the MarketPro app
4 more sections of When Not to Trade, plus all 320 lessons, the quizzes that check each one landed, and the streak that keeps you coming back. All of it is free on any account, including a free one. There is no paywall inside the academy.
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Not investment advice. Past performance is not indicative of future results.
Lesson 5 of 22 in Risk management
Run the numbers while this is fresh
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The whole academy is free in the app
All 320 lessons, 12 guided paths, quizzes and a daily streak. Free on every account, with vetted free signals alongside it.
Not investment advice. Past performance is not indicative of future results.