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With the US dollar and global stock markets that have a major declining reaction to “Tahrir Day” in Trump and Gold rises to new standard levels againIs it still worth jumping in these big moves, or is it too late?
Here are some quick questions that you can ask yourself before you think about chasing the step:
1. Are the factors that caused this step still to play?
As the proverb says, the only constant thing is change. And when it comes to trading, changes can occur very quickly.
Before trying to go with the flow, make sure the tables are not about to spin. Other useful questions include:
- Has the market environment and risk morale have turned since the step started?
- Are there any new factors for changing the game (for example: organizational change, market circuit boycott, trading restrictions) that appeared?
- Are technical indicators, candles or market size show any signs of fatigue?
2. Can I jump at a much better price?
It is easy to engage in excitement in procedures that may overlook potential entry points that may provide you with a much better return.
Do you have a good opportunity to move back, even in short -term time frames? Are psychological levels detained and allowed for a rapid bounce where you can enter?
If so, you may be better to wait patience for the price of the deal that may allow you to better manage your risk as well.
3. How will I manage my risk correctly?
Now that I concluded that it is still worth chasing the big step, the next step is to know how you will do Protect your account and reduce your losses Only if the price falls against you.
There is no such a charity in trading, right?
As I learned in PIPSOLOGY SchoolTrading is not different without any kind of risk management Gambling.
Exit levels while hunting sharp market movements can become difficult because high fluctuations can easily lead to any tight stop, so you cannot be very conservative.
Of course, you should not trade without any Stop the losses also!
Also, consider trading in sizes smaller than the usual positions, then scaling if the trade is on your way.
Although you might not get home with a small position immediately, you can go to knowledge that you cannot explode either if you are completely wrong.
4. Am I just feeling Fomo?
No, Fomo does not mean “focus and motives.”
Fear of losing (FOMO) is a very common emotion among merchants, and this may be something that you need to be aware of before trying to join any major moves.
Anxiety about the inability to capture a potential sudden is not a sufficient reason to jump on a blind trade. Who knows if this step is already Way Overdone or if it is likely to be the price Whipsaw?
If you attract yourself often, you feel sorry for the inability to ride hundreds of marches or drops, this may be an invitation to wake up to re -evaluate Trading strategy.
Instead of getting involved in Negative feelingsBegin by reviewing these major moves and knowing indicators, reflection points or economic events that you should look at instead.
