We spend so much time trying to identify high odds setups and trades that we sometimes may end up looking for something that just isnt there or see what we want to see and only once you have been stopped out and looked back on the trade and thought "why the hell did I even open a trade there?"
Whilst yes we must develop our skills on when to trade we must also have an eye for when the markets arent doing much for us and sit on our hands, read a book or watch Masterchef (this show makes me hungry).
I posted a chart above where looking at the current price action is of no interest to me as the way Im looking at it its currently in the middle of a range and the odds of it going up are no better than it going down. I dont like these odds so I would rather sit aside than gamble on a trade trying to hope that I can score a few pips.
Its a hard thing to learn in trading to sit on your hands and trust me I still have troubles with this but if you can identify when NOT to trade and then have a clearly defined edge and trade that only when it provides its signals you are on your way to consistency.
Remember something that is very important that I think soooo many people including myself sometimes forget: Trading is not like anything else you have done in your life/career and is not like a job. Dont think because you sit in front of the markets for 5, 6 or 10 hours a day you have to be paid for that effort today.
If you're after a job that pays you an hourly rate go get it but I think you will struggle to get that from trading FX.
J
No comments:
Post a Comment