Suddenly I Suck at Trading!
Have you ever said this to yourself?
The market has been a total chop fest since Labor Day. The earlier you recognize underlying changes in the market, the better off you’ll be. Remember, the definition of insanity is doing the same thing over and over and expecting a different result.
When a trade setup stops paying you, stop trading it. I’m pretty sure the market is in a holding pattern until the FOMC decision next week. Times like this are tough, not only for longs, but for shorts as well. A choppy market will frustrate all participants. So what should you do?
First, stop trading or at the very least, TRADE LESS! Cut your position size down if you must trade. Most importantly, recognize that your account balance looks better right now then if you take a bunch of losses trying to trade this chop. A week from now you might be praying that you could go back in time and have your account balance be what it is right now.
I’ve been running this website since 2004. I’m in front of these screens every single day. I watch traders of all levels in my chat room. The most common mistake I see in struggling traders is over trading. New traders always want to be in a trade. I prefer cash to being in a losing trade. If the market is not offering A+ setups, hold onto your cash until it does.
You can’t get out of a hole by digging deeper. Use periods like this to educate yourself. This is a great time to read some good trading books. Pick a good traders brain. Take a trading course. Even the best traders in the world are still learning every single day. Do yourself a favor and step away from your trading platform during times like these and STUDY STUDY STUDY!