Dangerous moments of trading.

Surprisingly, stock trading isn't as complicated as people say. Most traders trade successfully for a while, but then an unpleasant event occurs that causes a significant drawdown of their deposit.

It's common for the losses of one unsuccessful trade to easily outweigh a dozen successful ones, sometimes leading to a complete loss of the deposit.

To reduce the risk of dangerous situations when trading Forex, it's best to avoid trading altogether during these moments.

When do drawdowns and deposit losses most often occur?

• During news releases - it is at these moments that the price can make a jump of tens or even hundreds of points, in the best case, this leads to the stop loss being triggered, and in the worst case, to the deposit being drained, if the stop loss was not set.

Therefore, try not to open new transactions before the news release, and move the stop loss to the break-even zone for already opened ones.

• When transferring positions - especially if you transfer positions across weekends or holidays, the longer the break between trading days, the higher the likelihood of a gap , and there is simply no worse event than this on Forex.

After all, during a price gap, stops are not triggered, and if a gap occurs against your position, the order will not close earlier than the first available quote, this is spelled out in the terms of any broker.

Therefore, try not to leave positions on weekends and holidays, including pending orders.

• Advisors - are leaders in draining deposits, you placed a bet, went to bed, woke up, and there are only a couple of dollars in the account. A fairly familiar situation for many traders.

To prevent this from happening, you should use advisors with mandatory stop orders and limit losses within one day. In addition, it is advisable not to leave robots unattended for long periods.

• Lunchtime and the end of the working day - at these times, the trend is not always amenable to technical analysis; false breakouts often occur, and, accordingly, false entry signals are sent.

Therefore, it is advisable not to rush into new trades at this time.

• Overlapping sessions - the first two hours of a session are just such a time; the previous session has not yet closed, and the new one has already begun. Typically, at these moments, market volatility and the risk of sharp movements increase significantly.

This does not mean that you should completely abandon trading at these times, but you do need to be more vigilant.

Preserving your earnings is the most important task, especially since taking into account the above does not require much effort from the trader, but it allows you to significantly reduce the risk of large losses.