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WHY I TRADE LESS SOMETIMES, and why you should aswell
THREAD
I will take the current BTC range as example, the ONLY goal I had for this range, was to preserve capital. I don't need to make money in these conditions and I don't intend to.
[1/x]
THREAD
I will take the current BTC range as example, the ONLY goal I had for this range, was to preserve capital. I don't need to make money in these conditions and I don't intend to.
[1/x]
As you can openly see on my Twitter I posted 1 possible entry and that was a hedge short at the range high. Only reason I took that trade was so I could be protected against downside and I have clear invalidation/stop loss levels.
[2/x]
![As you can openly see on my Twitter I posted 1 possible entry and that was a hedge short at the range high. Only reason I took that trade was so I could be protected against downside and I have clear invalidation/stop loss levels.[2/x]](https://pbs.twimg.com/media/Eo4cCI1XcAA2X7q.jpg "As you can openly see on my Twitter I posted 1 possible entry and that was a hedge short at the range high. Only reason I took that trade was so I could be protected against downside and I have clear invalidation/stop loss levels.[2/x]")
[2/x]
So why didn't I take any other trades?
I have no edge inside the range, that's it.
I don't trade when I don't have an edge. I have an edge at the boundaries of the range where I know I can get my advantage because price reacts predictable and I can get a good stop loss
[3/x]
I have no edge inside the range, that's it.
I don't trade when I don't have an edge. I have an edge at the boundaries of the range where I know I can get my advantage because price reacts predictable and I can get a good stop loss
[3/x]
Inside the range, price isn't going anywhere. It's not making any news highs or lows and it moves freely between the boundaries of the range. There is not alot of edge to get there for me, no clear stop loss placement etc.
So I focus on not losing money
[4/x]
So I focus on not losing money
[4/x]
Not trading = not losing money. Easy as that.
And no edge = no trading.
I literally just wait for better market conditions and a clear trend to be determined, and that's where I go hard. I use the capital I preserved to my advantage and trade when I know I can get ahead
[5/x]
And no edge = no trading.
I literally just wait for better market conditions and a clear trend to be determined, and that's where I go hard. I use the capital I preserved to my advantage and trade when I know I can get ahead
[5/x]
Alot of people will just keep on trading without edge and lose continously, they will earn their money back when market conditions are better but in the long run they hardly have anything left when the fun starts.
[6/x]
[6/x]
To summarize:
- Go hard when there is a clear trend/you have an edge
- Don't trade when you can't find your edge
- Preserve capital in bad/uncertain times.
- Avoid trading chop
Your goal is to make money in the long haul, not to trade all the time or be profitable every week.
- Go hard when there is a clear trend/you have an edge
- Don't trade when you can't find your edge
- Preserve capital in bad/uncertain times.
- Avoid trading chop
Your goal is to make money in the long haul, not to trade all the time or be profitable every week.
