It’s not your system what makes you a better trader, its this…
I few days ago I got an email from a desperate trader, it was something like this:
“It doesn’t matter what indicator I use to trade the market, it always seems to move against me”
Think about it… What would you say to this trader?
My response was something like this:
Look at it this way…
If the market is going down… It doesn’t matter what tool, indicator, system, methodology you use to go long, the market will stop you out.
It doesn’t matter if you trade off the 1 minute chart or off the daily charts, if you keep going long when the market is likely to continue its way down, the market will get your stop loss level.
You can even be the most mentally fit trader in the world… but if you keep going long when the market has a bearish sentiment, you will most likely get stopped out.
Our job as traders is to trade is not to trade every day… Our job as traders trade only when the market has a good possibility of moving on one direction over the other.
So we need to be able to analyze the market and determine whether it is more likely to go up or down.
Now things are different
When you know what the market is likely to do:
It doesn’t matter what tool, indicator, system, methodology you use to long, if the market is likely to continue its way up, and you go long… you are more likely to win that trade.
You can trade off the 1minute chart, or the daily or weekly charts… but if you keep going long when the market is moving up, you are more likely to win that trade.
It doesn’t even matter if you are the least mentally fit trader in the world, if you go long when the market is likely to move up, there is a possibility that you will that trade.
So it all comes to this…
Find a way to analyze the market and trade only the ones that have:
- The clearest market condition
- And the most profit potential
And always trade in the direction of the market condition. Never forget that.
What do you think about my response to this trader?
Are you doing your own analysis?
Let me know in the comment section.