27/01/2023
Know when to stay out!
Here’s the deal:
A trading strategy is built to exploit certain “patterns” in the markets.
Thus, it’s important to know when to stay out of the markets when market conditions aren’t favourable, or you’ll risk losing more money.
Now you’re probably wondering:
“But how do I know when to stay out of the markets?”
That’s a good question..
This week is a bloody week, and yesterday there was news on GBP I didn’t even notice until a friend asked me if I was going to trade CPI (consumers price index) new I said yes
Why? Because I love trading news..
When I got to the charts to check out the news, I saw it was GBP news so I just told myself it’s not my trade.
I didn’t look at the chart throughout yesterday because I already identified the right opportunities for my edge, that favours my analysis.
So,
#1: Identify the market condition which causes your strategy to lose money
Now what you need to do is to identify the market condition which is unfavourable to your trading strategy.
By testing and back testing find out what pairs exactly works for you, and your confidence would grow
#2: Develop a filter to avoid trading in unfavourable market condition
You need to de disciplined enough to avoid the urge of trading in a market that doesn’t favour you.
Conclusion
If you want to succeed in trading, you must think independently and not take anything at face value.
Know when to stay out of the markets especially when market conditions aren’t favourable to your strategy
Now here’s what I’d like to know…
What’s the #1 thing professional traders do that losers don’t?
Also, do you know how professional traders trade?
Leave a comment below and share your thoughts with me. #𝓛𝓻𝓲𝓬𝓲𝓷𝓫𝓮𝔃𝓽