8 situations when NOT to trade:
(99% of new traders fall victim to these…)
(99% of new traders fall victim to these…)
1. When you have to think HARD about a trade
The best trades jump out the chart at you.
You know you have a good trade just after looking at the market for a moment.
If a trade "just doesn't look right"...
Don't take it.
The best trades jump out the chart at you.
You know you have a good trade just after looking at the market for a moment.
If a trade "just doesn't look right"...
Don't take it.
2. You don’t know where to place your stop
Even if you find a good setup you MUST find a reasonable level for your stop loss.
If you set your stop loss too far away and your reward-to-risk ratio is too small, don’t take that trade.
Even if you find a good setup you MUST find a reasonable level for your stop loss.
If you set your stop loss too far away and your reward-to-risk ratio is too small, don’t take that trade.
3. When the market does not favor your system
The market condition needs to be in alignment with what your trading system does.
Is your system trend following?
Range trading?
If the current environment doesn’t support the premise of your system, stay out.
The market condition needs to be in alignment with what your trading system does.
Is your system trend following?
Range trading?
If the current environment doesn’t support the premise of your system, stay out.
4. When you want to revenge trade
Did you just lose a trade and immediately feel the impulse to get into the next one?
Do you want to make up for that loss?
Even if it looks good,
your thinking is clouded by your emotions.
Step away from the PC and walk away.
Did you just lose a trade and immediately feel the impulse to get into the next one?
Do you want to make up for that loss?
Even if it looks good,
your thinking is clouded by your emotions.
Step away from the PC and walk away.
5. If the price has already moved away from your ideal entry
Sometimes we miss trades.
The worst thing you can do is chase price and enter the trade late.
When you do that you will get a bad entry.
No one can catch every single setup.
But you can ALWAYS find a new one.
Sometimes we miss trades.
The worst thing you can do is chase price and enter the trade late.
When you do that you will get a bad entry.
No one can catch every single setup.
But you can ALWAYS find a new one.
6. When you haven’t done any analysis
Every trade should have been planned prior to you taking it.
If you didn’t plan it, it’s probably better to skip this one.
Amateur traders have no trading plan.
A trading plan is what separates the professional from the newbie.
Every trade should have been planned prior to you taking it.
If you didn’t plan it, it’s probably better to skip this one.
Amateur traders have no trading plan.
A trading plan is what separates the professional from the newbie.
7. When you got your opinion from someone else
As a trader, you should be playing your own game.
When you are spoon-fed signals you will not grow as an analyst.
Learn from your own mistakes.
You should also understand the reasoning behind the trades you take.
As a trader, you should be playing your own game.
When you are spoon-fed signals you will not grow as an analyst.
Learn from your own mistakes.
You should also understand the reasoning behind the trades you take.
8. You have a personal or job-related issue
Professional trading requires your full attention.
If you can’t focus 100% on your charts due to some kind of personal issue your trading will suffer.
Are your emotions clouding your judgement?
Skip.
Professional trading requires your full attention.
If you can’t focus 100% on your charts due to some kind of personal issue your trading will suffer.
Are your emotions clouding your judgement?
Skip.
TL;DR
1. When you have to think HARD about a trade
2. You don’t know where to place your stop
3. When the market does not favor your system
4. When you want to revenge trade
1. When you have to think HARD about a trade
2. You don’t know where to place your stop
3. When the market does not favor your system
4. When you want to revenge trade
5. If the price has already moved away from your ideal entry
6. When you haven’t done any analysis
7. When you got your opinion from someone else
8. You have a personal or job-related issue
6. When you haven’t done any analysis
7. When you got your opinion from someone else
8. You have a personal or job-related issue
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Thanks for reading!
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Also, if you found this valuable be sure to like and retweet the original post of this thread to help others. Thanks! 👇
Make sure you follow me @Trader_Theory for more epic content on creating financial freedom through trading.
Also, if you found this valuable be sure to like and retweet the original post of this thread to help others. Thanks! 👇
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