Trading is a 50/50 split between knowing what not to do and knowing what to do. You must learn to avoid scenarios where risk cannot be properly managed. Knowing when not to trade is one of the most important skills for a consistent winning trader.

I always try to avoid situations where the market may have a big unpredictable outcome. Some examples are trading just before major economic reports like the Employment Report, trading ahead of the Fed meetings, or stocks ahead of earnings.