The biggest trading tip ever is nothing.
The hardest thing to do in trading is to do absolutely nothing.
Trading is one of these activities where less is most definitely more. Let’s face it, most people including myself, itch to be involved in the market, where that massive feeling of missing out lingers over you. That feeling of ‘crap, what if the market moves 100 ticks in my favour and I’ve missed the move?’ ‘What if I could make 5% off this move and finish my week by Monday lunch time?’
The truth is that there is a higher likelihood of this not occurring than the move going parabolic and making a load on one trade. Staying out is taking a position.
Let’s take a sports analogy. What do Barcelona do on the edge of their opponents area, when there are 10 of the opposition behind the ball? They wait, and they wait, and they wait, and 100 passes later they’ve drawn a tired defender out and play the ball through – a move which they have practiced 100 times and know that they have a high probability of scoring from. It’s exactly the same in trading. Wait for the best set ups, where everything is aligned; where you have done the same thing two, three, four hundred times before and it becomes second nature.
One minor tip: reviewing your journal allows you to see the best times that you trade at. You may have an edge at the 4pm fix or trade better during the range-bound Asian session. If you notice a pattern of heightened profits consistently during a specific period, only trade during that period!
Sitting out emphasizes the need to only bring your A game and to always bring your A game. Map your chart, know where you want to do business and only do business at the predetermined levels/zones if your triggers occur.
