This Is Sometimes The Best Thing To Do When You Trade
Running an account is by no means a simple process, and trying to figure out what pairs work best with you, or what strategy seems to fit with your style are some of the most difficult things for traders to work out on their own. Usually when people think of a good method of trading, they think about someone taking very frequent trades that are mostly successful. But, in reality, some of the best trading strategies are infrequent entries that must be clearly lined up with certain conditions.
Even some of the best strategies go through periods of dry spells or drawdown. In changing markets, it's hard to find that one method to follow in all market conditions, and it's also hard to stay consistent when the process can't always be. Every trader experiences this, and anybody who studies the market in depth will realize that knowing exactly what to do at the right time is virtually impossible. However, sometimes the greatest move when trading these markets does not always have you trading. Sometimes, the best thing to do is nothing, meaning, knowing when to not take a trade.
As a trader, I can attest to the level of difficulty of maintaining consistent profits. And a younger, less experienced me used to always want to trade. If I wasn't trading, I felt like I was wasting my time. And this led to a handful of blown accounts at one point or another. There is not a worse feeling in the trading journey when you see the perfect setup but don't have enough funds because you spent most of your time hunting down trade after trade which eventually accumulated to a big enough loss where my account needed more funds.
What I'm trying to say is that there is nothing wrong with taking time in between trades. You don't have to have one open every day of the fiscal year. Waiting does not make you a bad trader or unable to find good setups. Waiting on the setups you want is more important than trying to catch every move. Patience is a big factor in this. Things must look good enough for you to open a position, without needing to be forced or justified. Waiting is the ultimate money saver, it keeps you from taking trades you wouldn't normally take, and it allows you to think more about your trades.
Knowing when and when not to take trades will greatly increase your performance in the long run. Waiting for your perfect setup beats trying to chase a big move, especially during the holidays when volatility becomes sporadic. Keeping a level head and not getting ahead of yourself will take you to the next level, from the average investor to an advanced one.
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