Consolidation is perhaps one of the most confusing and challenging business environments.
More new and novice traders still have not figured that there is a time for trade and time to stay outside local markets. Trading is not a Sprint to quick profits, is a marathon to build financial wealth.
It is important that you keep always in mind one of the most important rules of trade which is to preserve capital.
If your trading system starts to break and encounter failed trades occurring with greater frequency, but staying true to your trading method and rules, this would be a very strong signal that we need to stop trading. What should you do when you stop trading?
When I experience changes in the market due to the uncertainty and lack of direction, can I still show up in my Office to negotiate the same number of hours five days a week during the session, London and New York but I watch market without placing live trading.I watch to see how they react traders in economics and the comments made by analysts distinct market.
Consolidation often means different things to each dealer consolidation resulted in a short timeframe yet still show a tendency to post about the bigger time-frames as charts four hours or daily.However when there is consolidation that is displayed even on four hourly or daily charts, time to be careful. very cautious.
Lack of volume and lack of commitment by dealers can cause price to retrace or reverse quickly, often times before profit targets are standard in most trading systems.
When markets Move sideways inside the unification, the good idea to stay out and wait until a clear sense of direction is beginning to unfold or receive less profits and prepare to close a trade quickly if necessary.
Realize that by trading on this type of environment fundamentally change your trading strategy and your original plan.It could be argued that it is difficult to maintain discipline for your marketing strategy and ultimately could affect the performance of your changing profit targets and unnecessarily stop loss levels.
Thus, the question is, should your transactions when there is great uncertainty in the markets and integration?
Regardless of whether or not you can place a trade, it takes the same amount of analysis to determine that it should stay outside a trade that may be against your marketing strategy, as to find a trade that honors each rule is your challenge, you have a trading plan that includes how to monitor your behavior when they begin to move in such a way that you are not familiar with the markets?
If you are a new or inexperienced with certain types of market environments can be a good idea to start with a simple rule that says when you lose more than two or three professions on a single day, but I follow every rule and price moves with oblique unpredictably, stay out until you have analyzed which made the mistakes and there is a sense of direction and you can assess the market sentiment.
When uncertain times beginning to develop, sometimes you need even more time for the majority to accept the reality of changes in the markets.
So the problem recurs, we can negotiate uncertain previously trading environments that could cause earned profits to give back?
Yes and no; It depends on several factors:
Your experience (have you handled through this type or market environment before?)
You can stop when your trading strategy is not providing any trademarks?
(this is important! must have a strategy or routine, which will help you overcome the urge to trade when you should negotiate anything based on market conditions)
Your business plan and strategy is both a detailed "blue print" with exact entry and stop loss, target, and criteria for specific transactions that marks a Commerce. Once you have a complete draft negotiation will make Finding your transaction errors much easier to identify and then you can work to correct the behavior.
Keep in mind (as you know already) negotiation not gambling is treated like any other business and maintain capital is one of the most important rules of any commercial project or system.
Ultimately, your ability to remain sensitive to market changes is what you'll be able to make any necessary changes fast enough to avoid giving back profits earned. this sensitivity may be exercised even without Live trading.
Thank you for reading and good luck trading.
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