18/ 1 / 2013 - January

Top 11 time markets are warning you against trading. 

Sometimes this feeling of wanting to trade just wakes up and then we just have to trade. And most of the time when that feeling is around we are going to be successful. But sometimes there is no way we are going to succeed. That is why it is important to know when not to trade. and sometimes the markets can tell us – trading today is a bad idea, come some other time.

And in case that happens we need to know and understand this kind of signal. So, when is it a bad idea to trade?

 

1. When the market doesn’t play with your system.

2. When you are about to make emotional decisions.

3. When you want to go in with no analysis.

4. When a trade is not in your plan.

5. When you are about to follow someone’s advice.

6. When the markets seem too high or too low to you.

7. When you couldn’t catch you perfect entry price.

8. When you feel sick or have personal issues.

9. When you need to think about the trade.

10. When you are too focused on a goal.

11. When you can’t spot a good stop loos.

 

system

 

1. When the market doesn’t play with your system.

Sometimes everything goes smoothly, but sometimes everything goes to hell. Markets are so shaky that your strategy that was working yesterday may already be faulty today. And you need to see that exact moment and pull out. No matter what your system is – whether you are looking for a downtrend or trading off momentum – no matter the ways, markets have the right to stop following your plan.

When that happens you need to just stay out – trading is not going to be easy.

 

decisions

2. When you are about to make emotional decisions.

Has that ever happened to you? You come in to close your current trade and you just feel that urge to go into another trade? That is the exact moment to shut off your device and just get away from trading. That is your greed and risk hunger talking. And that is simply not the company you want to stay in while trading.

Emotional trading is not regularly successful. That is the kind of trading you need to stay away from.

 

amalysis

3. When you want to go in with no analysis.

Every trade requires analysis and thinking. And going into trades without having done one is just trading suicide. What if the assets haven’t been doing great while you were away and you are going to go in hoping for the best? No. Better not to go in at all. When you simply want to trade and you just do not have any time for analysis it is better not to trade at all.

 

 

plan

4. When a trade is not in your plan.

Developing a special trading plan is something of a ‘must do’. And you need to think through all of the trades that you would like to go through in a particular trading day. But what is that? Is that a trade that does SO good you simply must go in?

No! That is a biiiig no for us as traders. Do not go into the trades which are not on your plan. Your trade plan is mandatory and you must obey it.

advice

5. When you are about to follow someone’s advice.

Well yes, it is common to have an advisor. And it is common to ask for people’s opinions. But in the end it all comes down to you. Especially if that advice goes against your trading signals and your personal opinion and feeling. You can of course listen and ask for other people’s opinion, but in case you were not planning to trade, but someone told you about this forex option, it is better to stick to your own personal feeling after all.

 

high low

6. When the markets seem too high or too low to you.

When you need to use that ‘too’ word, somewhere deep you must understand that soon you are going to see the reverse movement, right? Too high of the markets is on obvious signals for a future down trend. And you can never guess what you are going to see in the next 15 minutes before it has already happened.

So, if you have to describe the markets as too high or too low, better stay away from trading at all – that is clear DO NO TRADE signal from the markets.

 

 

entry price

7. When you couldn’t catch you perfect entry price.

Sometimes we just couldn’t see a perfect entry price and sometime we just miss it. in this case it is better not to chase it. Missed is missed – deal with it. After all, that is going to happen. In this case it is better to turn away to another trade. Better than chasing you best price that is.

 

 

 

issues

8. When you feel sick or have personal issues.

That goes without saying – personal issues are the reason not to sit in your trading zone at all. Deal with your issues and only after that, if your head is clean you may trade. It is as simple as that.

 

 

think

 

9. When you need to think about the trade.

Or when you have to convince yourself to go into the trade. That is clear signal that you are not going to be extremely successful as your heart is clearly not into it. With time you have probably already learned to see trades which are going to be successful and the ones which are not going to be profitable. And you need to listen to that feeling.

 

 

goal

 

10. When you are too focused on a goal.

We all need to have a trading goal for the day. But sometimes we are so set on reaching it that we totally forget about the means that we use to reach our goal. And we can setup trade after trade with no or negative result. When you feel too focused on reaching your goal stay away from trading. you need to be focused on the trades themselves and on nothing else.

 

stop loss

11. When you can’t spot a good stop loss.

Even stop loss can be a show-stopper for us. When you see a great setup. But still can’t find a perfect stop-loss level that is your cue not to go in at all. When you don’t see a good level or you have to set it too far away from your entry level you are not going to have a high reward-risk ratio.

 

These are the points that you have to look for when deciding whether to go into the trade or not. If you spot at least one of them, you need to think – is it worth right now?

 

 

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