The Worst Times to Trade Cryptocurrencies
Cryptocurrency trading may be exciting and offer great possibilities for making a profit in trading online, but are you supposed to trade on any underlying asset?
Since the whole process of trading is simply to predict where the rate of the asset is going you want to avoid assets where making this predict is virtually impossible.
Thou it sounds easy when I say it is just about making the prediction, but this is whole
secret of this form of trading, it can be very hard, even almost impossible for certain assets to accurately predict where they are going.
So if you choose an assets where you actually have no clue as to what moves the market then you are simply gambling and throwing your money away.
When should you not trade Cryptocurrencies
Just before, during or right after and a large news announcement. Extreme volatility that could follow these events and the market will go so rapidly either direction that it is impossible to tell where it will be heading in a short term position. So many traders will trade the news and follow the trend, enough do the other direction just for the same reasons believing that the market will invert itself. Wait till the dust has settled and then go for the direction that you believe the market will go. Avoid the time of announcement to open a position.
When you plan to trade stocks, the rule above is even of more importance, since when it comes to stock is all about perception it is very hard to predict where the rate will go and even when it is clear on a larger chart what the overall trend indicates, for the 60 seconds trades it will always be a coin toss.
This also means that you want to keep the amount you are trading during the more volatile times lower (never exceed the 5% of your portfolio as smart money management)
So in short, every broker in general has an economic calendar in their website and make sure you check the announcement scheduled for the time you are planning to trade. Avoid any of the assets that have themselves or in relation an announcement for the time you plan to trade.
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Trading Forex, Stocks and CFDs carries risk and could result in the loss of your deposit, please trade wisely.