You’ve probably heard the advice of professionals telling you should not “overtrade”. The question is, how much trading is too much? Is it true that the less time you spend trading forex the better? Do you need to stop trading as soon as the price reaches your take profit or you need to monitor the market all day so you do not miss a good trade?
How much time should be spent on trading?
Trading in the Forex market is a risky business and while some say that the less time you spend trading, the more secure your profit is, others argue that in order to earn you will need to constantly be in the market. In essence, it does not really matter how long, when and why you will trade. It all depends on your trading style.
And since all traders are different, only you can answer the question of how long the trading should take.
From experience, we can say that if you follow the price all day long, then nothing good will come of it. If you spend a lot of time at just watching the market sooner or later you will be tempted to open a trade that may not be profitable. Maybe you will have profitable trades, but in the end you will lose, because of fatigue, boredom, fear or even greed.
Related: How to Trade Using Fibonacci levels
We spend an average of 6 to 8 hours on trading and improving skills. But we do not trade all the time. Generally we can divide the time we spend in the Forex market in 2 stages:
- Active trading (directly opening, monitoring and closing trades)
- Training (analyzing graphs, reading books, forums, blogs, news and so on)
Trading in the morning or after dinner depends on the movement of the market price. If there were big price movements in the morning, then usually the session after lunch will be sluggish. Conversely, if the morning turned out to be monotonous, then most likely, after dinner, you will see some good movements.
It is important to learn to be on the same wavelength with the market and to feel the mood of the day.
If you can learn this, then it will not be a problem for you when you close a trade and exit the market.
Patterns affecting the time spent on trading
In addition, the time spent for trading also depends on what is the pattern of a specific instrument price: trend or flat.
If the day is trendy, then you need to stay in the trade as long as possible and try avoiding short-term kickbacks. Such transactions usually do not require much time, the main thing is to put a stop-loss and the rest can be dealt with.
If the price of an instrument shows flat pattern then the price will bounce in the same corridor all day long. On such days, trading takes more time, as there may be several transactions per day, and deals require attention. Scalping may be very good choice for such days.
If you understand the nature of the market, then it’s easy enough to trade. Of course, it’s not always possible to immediately identify a trend or flat day. Sometimes there are days when there are no potential trades at all and the market needs time to decide on the direction and nature of the movement. Do not be disappointed if you do not immediately get it.
Experience will help you develop your skills and understanding.
Each trader has his own trading strategy and approach to the market. Use your experience to earn. Remember that the most important thing is not quantity, but quality. In the end of the day, the main thing is not how much time you spend trading, but how profitable you are.