If it isn't perfect, don't trade it
Stay away from trades you just like
Only take positions you love
DON'T DO IT! - Today is a perfect day to get sucked into a bad trade and regret it in a big way. Many of you may be looking at the recent pullback in AUDUSD and bounce in USDCAD as missed opportunities. And it's possible they may prove to be missed opportunities. But the fact is, the trades weren't really there as extended as they were the other day, and we didn't get that one more push I was looking for that would have had me taking a shot. That's OK! We can't catch every trade and every move. Our job is to keep waiting for the trades that we feel great about so that we can be in the best possible position to profit when these trades play out. If I would have jumped in and sold Aussie today after it had pulled back and it would have ended up making a profit, I still would have been uneasy about the profit given the fact that I deviated from my methodology and discipline.
WRONG KIND OF SHOT - Sometimes you can hit a shot but it's still the wrong shot. The damage that would have been done had I taken a trade like this that wasn't there, would have been far worse than any possible upside. It's imperative that you understand this fact as a trader. You simply can't catch every move and there will be moves that you thought were going to go a certain way that you didn't capitalize on and that's fine! You need to determine what it is that you want out of a trade set-up and make sure you NEVER settle (I'm talking about trade entries). The set-up has to be gorgeous and nothing short of that. Otherwise, if it isn't gorgeous and you take it and it doesn't work out, you will kick yourself and tell yourself you never should have taken the trade because you only liked it and it wasn't the beauty you were really waiting for. At that point, you just end up saying 'F&%K it' and trading recklessly. If you can get a handle on this, you will be in great shape and well on your way to that next level as a trader.
This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.
Recommended Content
Editors’ Picks
AUD/USD stalls ahead of Reserve Bank of Australia’s decision
The Australian Dollar registered minuscule gains compared to the US Dollar as traders braced for the Reserve Bank of Australia monetary policy meeting. A scarce economic docket in the United States and a bank holiday in the UK were the main drivers behind the “anemic” AUD/USD price action. The pair trades around 0.6624.
USD/JPY extends recovery above 154.00, focus on Fedspeak
The USD/JPY pair trades on a stronger note around 154.10 on Tuesday during the Asian trading hours. The recovery of the pair is supported by the modest rebound of US Dollar to 105.10 after bouncing off three-week lows.
Gold rises as US job slowdown dampens Treasury yields
Gold price rallied close to 1% on Monday, late in the North American session, bolstered by an improvement in risk appetite due to increased bets that the US Federal Reserve might begin to ease policy sooner than foreseen. The XAU/USD trades at around $2,320 after bouncing off daily lows of $2,291.
TON crosses $200 million in Total Value Locked as its network integration continues to scale
In a recent development, the TON network surpassed $200 million in total value locked on Monday after seeing a major boost through The Open League reward program.
RBA expected to leave key interest rate on hold as inflation lingers
Interest rate in Australia will likely stay unchanged at 4.35%. Reserve Bank of Australia Governor Michele Bullock to keep her options open. Australian Dollar bullish case to be supported by a hawkish RBA.