Talking Points:
• Trading should be a process where opportunities are vested through the analysis as part of our strategy
• Many times, both beginner and experienced traders enter the market out of boredom or to 'keep a pulse'
• It is better to pass on a trade that doesn't meet quality tests and wins than jump blindly into a loser
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.
What would you do if half of your strategy's requirements were met for a setup and you haven't had a new trade in a while? Sometimes after a drought of good trade setups, traders - both beginners and experienced - can grow antsy about finding something to place a trade on. Whether we consider it trading out of boredom or 'keeping engaged', taking positions after lowering our threshold for a good setup is always a shift to risky trading. We discuss why sometimes it is better to remain on the sidelines as well as general guidelines for defining for ourselves the tipping point between setup and active trade in today's Strategy Video.
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