Sometimes the Best Trade is No Trade
The difference between consistently profitable traders and those who are not is the subject of this post “sometimes the best trade is no trade”. Successful traders understand this, it is about being patient and ensuring that the conditions are exactly right for a trade, ie a valid signal to take an entry. Traders who are not so successful feel that they need to be in a trade all the time to be successful and will think that a setup is ‘almost right’ and therefore happy to jump in early.
Being patient and waiting for the right time to enter a trade is indeed an edge. Waiting for the most opportune time to enter is essential for money conservation. Profitable traders do not gamble their accounts by taking wanton risks, they stalk and wait for the right moment where probabilities are in their favour.
A successful trader is lion that stalks it’s prey and waits for the right time to strike. This ensures that minimal energy is expended whilst it catches it’s prey. If a lion were to run directly in the open to chase it’s prey, how often is it going to end up with dinner? If the lion expends all of it’s energy and not have a meal to replenish itself afterwards, what happens to it? Think of the energy as your money pot and just learn to be very selective in your trades.
