When to avoid trading

Traders who trade financial markets should also know when to stay out or not to trade. Trader should trade when opportunity arises based on his trading system and trading strategy. Knowing when not to trade is also a vital part of trading plan .Wait for opportunity to come think of Sachin he does not hit 4 on every ball but when he sees an opportunity he goes ahead.



  • When you are confused and don’t know what to do, do nothing.
  • There are no set ups on your watch list, then don’t trade.
  • You are a trend trader and there is no trend to trade.
  • The market is extremely volatile due to headline risk.
  • You want to make an option trade but the options are illiquid with a huge bid ask spread.
  • If you are trying to trade supply and demand but the government keeps interfering with your market, pick a different market.
  • Your stock reports earnings the next day and you expect a powerful move but it could easily go either way, wait until after earnings to trade.
  • You are a momentum trader but their is not momentum, then wait.
  • You play the long side only and the market is in a correction or a bear market, wait for a new trend to the upside.
  • If you are not at your best mentally and emotionally then don’t trade until you are


  1. Durga said:

    Yes it takes years to become Dr/Er- but they are something . A trader is nothing to say . No innate knowledge/ professionalism. He is subject to anxiety related disorders. If yu trade in small – its not worth the salt. Pls notice market stalls frequently at Important junctions. Algorithms calculate trapped traders value n volume n create a mo e thats beneficial to an institutio

    Also note at each tick some buyer n seller exist. Its the computers tht mselles n buys– wn yu enter in between yu r flgged. Like this trade positions are analysed. Yur setup r created by big boys tht traps traders.
    If yu still have time – become areal pro- in any field . Yu will earn by yur knowledge not by somebodies foolishness

    May 16, 2015
  2. @ Shree it takes years to become a doctor/engineer or any other professional, ditto with the stock markets, just because one completes the kyc norms to open an account that does not gaurantee success, it is easier to give advice that to actually follow it. My personal opinion when you hate the sight of a business paper at least 2 times in your life its only then that you get confidence (hate because it reminds you of your loss or it becomes un affordable).

    May 14, 2015
  3. rajveer said:

    great points, i think this market pays you for volatility so i think it is better to be two sided, I am using a put call strangle approach, but some times better to be patient and wait for the opportune moment as you say.

    May 14, 2015
  4. Shree said:

    Sir, whatever you say is always 100% true and applicable to all traders, but then why it is so I am not able to follow even if I know everything. I know the when to trade and when now, I can exactly predict the next move but when it comes to buying, i don’t trust on myself and buy very small quantity. When trade goes wrong, I know I am loosing and my brain keeps fighting with emotional body that shree don’t do..still I do that and eventually I loose big sometime everyting.

    Is there a solution to stop this please? I know it requires and strong will power, but sir it is tough when you are in front of trading screen?

    May 14, 2015
  5. Most of your articles’ underlying message seem to be meant for me. Thank you for all the efforts.

    May 14, 2015

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