Trading Ideas: The Complex Art of Learning to Not To Trade

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To know if someone actually trades daily in the financial markets, rather than asking the question “do you know how to trade?”. One should ask “ do not know when not to trade?”

In fact, learning to trade is relatively simple.However, learning not to trade is something that has a strong link to our ability to control emotions, and that is much more complicated to assimilate.

Patience before the incessant movements of the candles in the charts is a virtue that every winning trader must be able to develop. It is frequent in the initial stages of the intraday trading to see possibilities to open positions almost in each of the sails that are drawing the graph. And as you may suppose, in reality 85% of those opportunities are nothing more than noise.

The ability not to make trades for as long as necessary is something that not everyone can master. I know, it’s complicated to be on the screen for an hour without making a trade. Often, we end up making a trade simply because “some will have to be taken, right?” Well, no. Hands in the pockets, which is often said.

The really good opportunities to take positions in the market are detected in an almost involuntary way. I mean, do not force the interpretations or twist the readings of what is happening in the market to discover the right trade. It is easy to fall into the trap of over-interpreting the graphs to justify a dubious trade, and that happens almost always when we feel the imperative need to trade.

You have to be able to wait for a good opportunity to make a trade, even if that means spending hours watching green and red candles without even touching the mouse to enter orders. It’s part of the game, and I dare say it’s the most important part of the game. If you are not able to be out of the market when you have to be, your chances of making losing trades increase exponentially.

Like many other things in trading, the pulse of the market is caught with hours and hours of screen and to see how the markets that you are trading are moving. If you want advice when planting your computer to start an intraday trading session, always face that session with a resounding “I will try not to make any trade.” Do not start predisposed to shoot everything that moves, but rather, quite the opposite. That way, you will you make only those trades in which you will be unable to justify not making that trade.

Always remember that it is much better to be out of a good trade than to be in a bad  one. Therefore, if you’re even in the slightest doubt, do not enter into this trade. The good ones will never give you any doubts.

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