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A Good Trader Knows How to Sit Tight

August 29, 2012

Knowing when to sit on the sidelines and not to trade is a large part of the challenge that new traders face.

The market seems to be incapable of producing the kind of sustained trending movements that I need to turn a profit at the minute, so I am now in a more defensive mode, and my main priority is to protect the gains I have accumulated. Put simply, this means that I need to see a move with some real conviction before I place an order.

One stopped out trade for today. Tomorrow will be the same drill – unless the market really moves in a stable and obvious trend I won’t be interested. I’m not just looking for a new swing high/low to define a trend, but also new highs/lows on the day.

(-1.50)

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