It’s tempting to try and catch pips from all the top tier catalysts ahead of an eventful week in the economy. But could this do more harm than good?
In fact, sitting still and forgoing setup can be a trading decision in itself.
This is true for catalyst hunters trading news events. Just because a tried and tested economic calendar marks a particular report as a potential market mover doesn’t mean you absolutely have to trade it.
To trade an economic event, you must first do a good amount of research and observation about it.
- Have you considered different scenarios?
- How would you manage your trades if one of these potential scenarios were to occur?
- Have there been similar events in the past? If so, how has the price reacted?
if you These questions are still unanswered or if you are uncomfortable exposing one’s position to highly precarious situationsthen it might be better to watch as a bystander.
But instead of watching Netflix during the event, you can take note of the market impact, trade setups you had in mind, and how you were able to make a profit. It’s part of practice!
Taking advantage of market opportunities is a big part of being a consistently profitable trader, but that doesn’t mean you have to trade to get a trade.
Sometimes it is better for your account and trading confidence to sit on the sidelines and cherry-pick the optimal setup.
Don’t worry. The Market offers many opportunities to grow your account!