Talking Points:
• Most traders will experience a time where they are 'gun-shy' or 'too hasty' with taking a trade
• For me, big drops in EURUSD and EURJPY have signaled trade potential but have yet to cue active trades
• The most important step to rushing or delaying a good entry is to always have a plan
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
The first step to any active trade is execution - and it is often the occasion for our first mistake to be made. Most traders will experience a period where they are too conservative ("gun-shy") with taking otherwise good trades and/or are too aggressive ("hasty") in jumping on dubious setups. The best solution to this common malady is approaching each setup with a plan - including a 'checklist' for execution. There are a few other aspects - the opportunity's time frame, your risk tolerance, viable alternatives - that go into the equation as well. We discuss conviction in trade execution using my views on EURUSD and EURJPY as examples in today's Strategy Video.
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