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“Active trading requires increased mental capacity. But your IQ doesn’t need to break the bank. You can increase your mental capacity through practice.” – Joe Ross
Traders often check the markets to look for trading opportunities. When a discipline trader fails to find a good setup in a market, she/he mayn’t trade or look for trading opportunities in another market.
It’s bad to attach ourselves to a single market, trading it when the market is choppy or trendless. When it’s not clear which direction the price may go, we shouldn’t trade, or we should look elsewhere. Yes, there are good trading opportunities elsewhere. It’s good to look for the markets that are easier to trade – the markets that are moving predictably. When we want to trade good setups, we’re not fearful, for we know how to control our risks. “Fear is one of the greatest enemies to success,” says Reginald Mengi. We want to trade in a way that enables us to have average winners that are much bigger than average losers.
It’s amazing that strategies with low hit rates can produce good results when winners are allowed to run. Super trades have made fortunes with strategies whose hit rates are low. Why would you be emotionally attached to a market that’s too difficult to trade? Why must you suffer in one market when there are wonderful opportunities in other markets? Our aim is to make money, not to attach ourselves to a market that’s difficult to predict. Attaching ourselves to a market is not sensible if we can’t make money from that market.
Those who transact in physical markets like automobile markets or cloth markets mayn’t be able to do this, but online traders can look for any markets where they find interesting opportunities. I laugh when news trading addicts ridicule chart analysts, for they tend to forget that the news releases they worship can’t guarantee what the market will do in the next moment. We’re not concerned with economic figures but we’re concerned with the effect those figures would have on the market.
This article is ended with the quote below:
“Every time I have lost badly, it was because I violated at least one of my rules.” – David J. Merkel
Source: Tallinex.com
Learn from the Generals of the Markets: Market Analysis
