In the last couple of days the market has been very very slow. If you try to find trend trades you are going to get burned…
The thing is, as always, you need to adapt to the market conditions.
The key is to find currency pairs (or any other instrument) with a clear range. Once you find it, pay special attention to the the market reacts at both extremes of the range.
Adapt, market condition, range
Once Charles Darwin wrote something like this:
“It is not the strongest or the most intelligent who will survive, but those who can best manage change”
And you know something, I believe the same is true for traders:
“Traders that can adapt faster to the market changes (condition) are the ones that get consistent and positive results”
Look, from my point of view, trading is about adapting your strategy to the market condition.
It’s about trying to understand what the market is doing and what it is likely to do.
Once you have that information, you’ll feel confident about your trading plan, because you know what the market is likely to do.
That’s one of the reasons I believe robots and automatic trading systems are NOT the way to go.
Adapt, forex, market condition
Seriously, I want you to stop for moment and think about the currency pair you are about to trade.
If you are taking your trade off the short term charts, take a look at a higher timeframe and ask yourself:
forex analysis, market condition
Ahhh man, I thought that after the NFP announcement last Friday we were going to see more trading opportunities, but that’s not the case. Last week most pairs ranged, in the first two days of the week we have more ranges, just one opportunity: Short USDCAD (we wrote about this yesterday), but in the others… nothing for no one….
USDCAD – Short
Trading at an important level:
Not clear market condition:
However, remember we got 6 pairs trading at important levels, as soon as they get out of the short term range, we’ll be trading them. Anyway, remember we are not supposed to trade every day, we are supposed to trade when we really have a good chance to win.
EURUSD Analysis, GBPJPY analysis, market condition, USDCAD Analysis, USDCHF analysis