With an extra busy trading weeks filled with central bank decisions and top-tier economic data releases, should you really be attempting to trade all these potential market movers?
Contrary to the “always be trading” mentality that floats around like bad advice, staying on the sidelines doesn’t necessarily mean that you’re a lazy trader.
In fact, there are cases when sitting tight and refraining from taking any setups is a trading decision in itself.
Think of it this way: A professional hunter doesn’t shoot at every rustling bush.
They wait for the clear shot. Your trading account deserves the same patience and respect!
The News Trading Trap
This especially applies to all you news catalyst-hunters out there.
Just because your calendar has slapped a “high impact” label on an event doesn’t mean the market gods have personally sent you an invitation to trade it.
Consider this: Would you jump into a swimming pool without knowing how deep it is? Of course not! So why jump into a trade without proper preparation?
The Pre-Trade Checklist You’re Probably Skipping
Before trading any economic event, ask yourself these crucial questions:
- Have you mapped out different potential scenarios? (Not just “price go up” or “price go down”-actual detailed scenarios)
- Do you have specific trade management plans for each of these scenarios? (Entry, exit, what happens if the market glitches out…)
- Has a similar event happened before, and how did the market react? (History doesn’t repeat, but it often rhymes!)
- Can you articulate your edge in this specific situation? (If not, you’re basically gambling!)
If you can’t answer these questions yet or if you’re uncomfortable subjecting your positions to insanely volatile conditions, then you might be better off watching by the sidelines.
Turn FOMO into Growth
Instead of sulking and binging Netflix during these untradeable events (though no judgment if that’s your vibe), use them as live market laboratories.
Watch how prices react, observe the volatility patterns, note when the dust settles, and imagine where your hypothetical trade would have ended up.
This is deliberate practice at its finest! It’s like getting all the education without paying the tuition fees in lost capital.
Quality Over Quantity
While catching market opportunities is essential to your journey toward consistent profitability, there’s no trading police that will arrest you for not having an open position every hour of the day.
Remember this trading truth: Your most powerful tool is sometimes your ability to do absolutely nothing.
Cherry-pick only the setups that align perfectly with your strategy, like a perfectionist at a buffet who only takes the prime rib and leaves the questionable potato salad.
Don’t worry about missing out. The market is like that friend who overshares, it will ALWAYS give you more opportunities than you can handle.
Tomorrow brings fresh charts, new setups, and another chance to grow your account with patience and precision.
Just remember: Sometimes the best trade is the one you never take!
