Ah, finally something Forex related!  I have previously posted about getting your start in Forex.  You can check out that link for some info on how I feel you should start your journey in this world.  And, if you already started, it can’t hurt to go back and learn some shit!  Now this is something that is probably the most simple topic in theory, and the most difficult in practice.  Not trading.  That’s it.  It sounds so easy.  Right now you are reading this so you aren’t trading.  That’s how easy it is, right?  Wrong.  This is probably the biggest mistake people make especially when they are new traders.  I won’t lie, this was something I struggled with when I was first learning the ropes.  I would sit there at my computer looking for a trade even though I knew I had to be out the door in 5 minutes.  The problem was that I made money so if I just got to get in on a deal I could make some quick cash.  More often than not it screws you over.  You force a trade by seeing something that isn’t really there.  You see it because you want to see it.  Trading is all about pattern recognition and if you really want to you can make a chart look like anything.  Not trading is something that must be practiced.  I know that sounds weird.  Practice not doing something.  It actually works.  If you trade with a demo account you need to work it like you would if it was real money.  I know nothing can actually simulate the feeling of using real money, but use your imagination.  Practice firing up the charts when you are in a bad mood or when you are rushed for time and force yourself to not make a deal.  You will try to rationalize it sometimes and say it is only fake money.  Slap yourself on the wrist and try not trading again!  You have to think that you aren’t paid to trade.  You are paid to wait for the perfect trade!  Waiting for that perfect setup is your job.  This isn’t like using a machine gun, trading is like a sniper rifle.  One shot.  That brings me to my next point.  Rebound trading.  You just screwed the pooch on a trade and you bailed on it.  You are sitting on a loss for the day.  This is probably the hardest time to not trade.  It is for me.  The problem is that you know you have a winning strategy.  Odds are your next trade will score you money.  Let’s get right back in there and make back what I lost.  Hell no!  This is the best way to drain your account dry.  This is gambling and not trading.  It sounds similar, doesn’t it.  Only one more.  Let me win my money back.  This is why most people kill their accounts within 6 months.  You can have five and a half months of wins and 2 weeks where you attempted trade after trade just to win back any losses.  At the end you are broke!  A loss is a loss.  Walk away.  You are paid to wait!  The last reason not to trade has to do with outside forces.  Anyone who has read my blog for a while knows that I avoid news announcements like the plague.  Some people trade these times and make a lot of money.  It is way too risky for my liking.  The spread goes up and you can jump 50 pips a second.  I can’t handle that roller coaster.  I like smoother movements.  So, anytime a news announcement is scheduled I stay away for 30 minutes leading up to it and 30 minutes after.  Sometimes more, sometimes less.  You can tell when the impact of that news is no longer driving the pattern.  Staying away from the news announcements was a bigger issue when I was trading in the mornings.  Since I switched to the evenings it doesn’t affect me nearly as much.  The best way to find out when all these announcements are coming out is by going to Forex Factory.  That link gives you a daily calendar with everything you need to know.  They even rank the impact of the announcement which is a great thing.  Low impact announcements are fairly safe to be in on a trade at.  Don’t even think about going in when those impact symbols are red!  Once again, this is all based on my style of trading.  I don’t like risk.  I don’t need Forex to provide me with excitement.  I am getting plenty of that with my attempts to become a firefighter.  Forex is my little cash machine.  Part of keeping myself in the black is knowing when not to trade.  There is a reason why my account hasn’t taken any hits this year.  I know when to stay away!  Learn that skill and you will find your win percentage will shoot right up!