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.
Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.
Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]
With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]
As the fiscal year comes to a close, consumers will likely finish shopping for the holidays, and traders and investors will get some respite thanks to a long weekend due to bank holidays around the world. While concerns about further stock market selloffs may be lingering in the minds of some, a promising set of […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here