Just as a skillful soccer player knows when to run with the ball and when just to hold the ball, a skillful trader should know that there is no need to always trade, and the need to know when to trade, and when to just observe the market. knowing that can also help to improve the profit they make by reducing the losses they can make by trading at wrong times.
Another time to avoid trading is during holidays.
That is a good point, traders are used to take action whenever they see something happening on the market, so eventually this becomes their default reaction to anything, but this is a mistake, there are market conditions that should not be traded and the best thing you can do is to simply go out and do something you enjoy instead of staring at your screen, however for a trader this is something very difficult to do, so they will try to trade during those difficult market conditions and lose a lot of money they could have saved themselves by literally doing nothing.
If you develop addiction in trading, then all you want to do is just to trade even when the market is not suitable to trade. Instead of just observing the market or enjoying your other habits, but because of greed you insist to keep on trading and see yourself losing in the end. This is not actually good, but if losing could be the only way to learn your lesson, then probably it will help you instead to realize that trading all the time is not a must. You must know when to trade and when not to, that’s the only way so you can maximize your gains and at some point, lessen your losses as well.
Losing, or should I call it failure in trading and in life might be a reason for some people to learn more and be more adequate next time. But this is not always the case in trading as it might ruin some people due to its addiction and they might have the motivation every now and then that it would change and they would be better, but such might never happen.
I was in a similar situation many years ago, and for over 10 years I was just wasting my money. This is because I believe that I always know the mistakes I made that caused the previous losses. I would try to adjust but make a worse mistake the next time, and it went on like that until I discovered that my problem was psychological, and we all know it, psychological problem is not easy to overcome. This is the problem of many traders losing today, only a very few will actually make it while others will continue to lose money.
Should they now quit? The answer solely lies with them.