A common theme I have seen while studying rich traders and I have experienced in my own trading is that more trading is not necessarily the path to making more money. ” Great traders tend to be patient and pick their trades carefully.“Some will go long periods of time without even making a trade waiting for the environment to become more conducive to their method. Others will not trade until their specific set up is in place. Some only trade break outs and others wait to buy at support but these are the things that give them the edge and makes them successful: patience, focus, discipline, and only taking trades when the odds are in their favor.
Ten Times When A Trader Should do Nothing
- When you are confused and don’t know what to do, do nothing.
- There are no set ups on your watch list, then don’t trade.
- You are a trend trader and there is no trend to trade.
- The market is extremely volatile due to headline risk.
- You want to make an option trade but the options are illiquid with a huge bid ask spread.
- If you are trying to trade supply and demand but the government keeps interfering with your market, pick a different market.
- Your stock reports earnings the next day and you expect a powerful move but it could easily go either way, wait until after earnings to trade.
- You are a momentum trader but their is not momentum, then wait.
- You play the long side only and the market is in a correction or a bear market, wait for a new trend to the upside.
- If you are not at your best mentally and emotionally then don’t trade until you are.