DISPOSITION - If it ain't moving, you don't need to be trading. The biggest luxury we have as traders is the ability to sit back and wait for the market to come to us. Just because it's there every day, doesn't mean you need to be trading every day. I suppose this can be a stumbling block for many aspiring traders as most people aren't dispositioned to think this way. For most of us, it's natural to think that if you are working at something, then you should be working at it every day you are on the job. So what's different here?
DIFFERENT GIG - Well, for one thing, trading isn't like other day jobs. In fact, as you all well know, trading currencies is certainly more than a day job. The market is constantly moving and an opportunity can present at any moment. But more importantly and to the point, trading isn't only about taking positions. Research and analysis is a big part of trading. Waiting and being disciplined is another big part of trading. Trading is more than the action of taking positions. In fact, there are some days I feel I had the greatest day ever because I held off taking a position. So
COIN TOSS - I'm sure there are many of you out there that have extended yourselves so much with a trade you should never have been in the first place, that you then just basically say f%$k it and trade anything you think may have a chance of working out. You go into coin toss mode where every trade is just a 50/50 chance. And I'm also sure that after you have done this and blown up your account, you finally see a trade that you really love, that you wish you had waited for. So make sure you don't make the mistake of being impulsive. Knowing how to sit back and wait is knowing how to trade.
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.
Editors’ Picks
USD/JPY drops toward 142.00 ahead of BoJ policy decision
USD/JPY has turned south, approaching 142.00 in the Asian session on Friday. Markets turn risk-averse and flock to the safety in the Japanese Yen while the Fed-BoJ policy divergence and hot Japan's CPI data also support the Yen ahead of the BoJ policy verdict.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold price holds steady near record peak amid bets for more Fed rate cuts
Gold price hovers near the all-time peak touched earlier this week amid a bearish USD and rising bets for more upcoming rate cuts by the Fed. Moreover, concerns about an economic downturn in the US and China further underpin the safe-haven XAU/USD.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV
Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD (RUSD) stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.
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