Home
WHEN NOT TO TRADE
Very Important
Contrary to popular belief, much of trading time is not spent
frantically making trades. The greater part of trading time is
spent studying the charts, searching and waiting for high
probability opportunities.
Not every day is a good trading day and sometimes it is better
to accept that than try to jump into a poor set up and put your
capital at greater risk than necessary.
Never rush into a trade without checking that all of the trading
system rules have been met.
It is better to miss a good trade than to enter a trade badly
set-up
DO NOT ENTER A TRADE IN THE FOLLOWING CIRCUMSTANCES AS
YOUR SYSTEM MAY NOT FUNCTION CORRECTLY - YOU MAY GET
FALSE SIGNALS AND YOU COULD LOSE MONEY
1. When VOLUME is low. Volume is represented by a series of
green vertical lines at the bottom of your price chart (referred to as grass).
If the grass is short...you may get false signals and there may
not be enough profit potential to be worth the risk of entering
the trade.
If you can barely see the grass or if the grass is at a low but
equal height, like a perfect lawn, this is a do not trade signal.
Sufficient volume should be the first and last thing that you
check for, before entering a trade. With a little experience you
will instantly know if there is sufficient trading volume. (SEE
attachment picture below)
Also make a study of how price has been moving during the
past few hours. There can be periods when price moves
sideways in a very tight range. These are difficult trading
periods and may be unsuitable even to make scalping trades.
2. Do not trade on Fridays after 4 pm GMT or on Sundays
(before 2 am GMT Monday), unless you are position trading.
Also remember that most brokers will not guarantee to honor
stop loss positions while the brokerages are closed
(the market may still make moves during this time).
Unless you are a position trader, make sure that you exit all
trades before the brokerages close for the weekend.
3. If you suffer more than 3 loses in a row (it can happen)
take a break from trading. When you return re-read the system to make sure that you are not overlooking something.
4.Never try to take revenge on the market. Losses are as much a part of trading the Forex, as are wins. Learn to accept your losses without anger or dismay. If you stick to the system, over time, you should have many more wins than losses.
5.Trading takes time, patience and discipline. Do not jump
into a trade just because price has made a sudden large move.
Always wait for the proper signal.
Likewise do not worry about trying to capture every last cent of a price movement.
Traders who become obsessed with always trying to trade the
whole move usually lose money.
6.Never use leverage above 100:1 – Even 100:1 is extremely
high As your trading account grows, consider using less leverage.
Very Important
Contrary to popular belief, much of trading time is not spent
frantically making trades. The greater part of trading time is
spent studying the charts, searching and waiting for high
probability opportunities.
Not every day is a good trading day and sometimes it is better
to accept that than try to jump into a poor set up and put your
capital at greater risk than necessary.
Never rush into a trade without checking that all of the trading
system rules have been met.
It is better to miss a good trade than to enter a trade badly
set-up
DO NOT ENTER A TRADE IN THE FOLLOWING CIRCUMSTANCES AS
YOUR SYSTEM MAY NOT FUNCTION CORRECTLY - YOU MAY GET
FALSE SIGNALS AND YOU COULD LOSE MONEY
1. When VOLUME is low. Volume is represented by a series of
green vertical lines at the bottom of your price chart (referred to as grass).
If the grass is short...you may get false signals and there may
not be enough profit potential to be worth the risk of entering
the trade.
If you can barely see the grass or if the grass is at a low but
equal height, like a perfect lawn, this is a do not trade signal.
Sufficient volume should be the first and last thing that you
check for, before entering a trade. With a little experience you
will instantly know if there is sufficient trading volume. (SEE
attachment picture below)
Also make a study of how price has been moving during the
past few hours. There can be periods when price moves
sideways in a very tight range. These are difficult trading
periods and may be unsuitable even to make scalping trades.
2. Do not trade on Fridays after 4 pm GMT or on Sundays
(before 2 am GMT Monday), unless you are position trading.
Also remember that most brokers will not guarantee to honor
stop loss positions while the brokerages are closed
(the market may still make moves during this time).
Unless you are a position trader, make sure that you exit all
trades before the brokerages close for the weekend.
3. If you suffer more than 3 loses in a row (it can happen)
take a break from trading. When you return re-read the system to make sure that you are not overlooking something.
4.Never try to take revenge on the market. Losses are as much a part of trading the Forex, as are wins. Learn to accept your losses without anger or dismay. If you stick to the system, over time, you should have many more wins than losses.
5.Trading takes time, patience and discipline. Do not jump
into a trade just because price has made a sudden large move.
Always wait for the proper signal.
Likewise do not worry about trying to capture every last cent of a price movement.
Traders who become obsessed with always trying to trade the
whole move usually lose money.
6.Never use leverage above 100:1 – Even 100:1 is extremely
high As your trading account grows, consider using less leverage.
