InvestorQ : When we can decide not to trade?
Radhika Arya made post

When we can decide not to trade?

Dawn Cherian answered.
1 year ago

Whether to trade or not to trade in the market is a decision that you need to take based on whether the market is volatile or not. Normally, it is best to avoid trading when the market volatility is too high. In such cases, the stop losses are most likely to be hit. Also look at trading from your own risk appetite perspective. For example, if you don’t have the risk appetite to take on larger losses, it is best to stay out of the market in such volatility and then take a fresh view after the market stabilizes. The second thing you must avoid is trying to short stocks that are new highs and buy stocks that are at new lows. That is going against the market and best avoided.