DISASTER Recipe for trading destruction (5 Points)

by | Jun 12, 2024

Do you ever try swimming upstream?

Unless you’re doing to for exercise and for the strain.

You’ll know it’s exhausting.

And if you go against the direction of the waves, you’ll get no where very slowly until you reach the destination Give up.  

Well, I find that trading against the trend is just as bad.

When you trade against the trend – your EGO starts to talk.

Your opinions start to enhance and your  irrational mind begins to take over.

I feel I need to explain why it’s so dangerous to go against the trend.  

Let’s dive.

 

  1. Never Force a Trend

The worst thing you can do is bottom or top pick a market.

What makes you feel that you know the market is about to turn?

Do you have inside information?

Do you have a stronger intuition?

Did you do some crazy future analysis?

And what’s the point? Let the market reach its bottom or top, turn around – Move a bit in the new direction until you have confirmation.

And then POUNCE.

You only need 30% of the trend and then close for a profit.

  1. Patience Pays Off

The market moves in cycles.

Sometimes it’s a roaring bull, other times it’s a sulking bear.

And other times, it’s a bladdy tortoise – Going sideways to Timbuktu.

The best thing to do is to wait for the market to move from an unfavourable environment and into a favourable time for your system and strategy.

Reassess and wait.

There’s no rush in trading.

  1. Adjust and Act

Also, the markets are ever evolving.

You need to continuously adapt and act on:

  1. New markets to add

  2. Old markets to rid of

  3. Strategy tweaks to improve your win rate

  4. System considerations to boost your winners and cut losses.

Flexibility within your trading strategic framework is key.

  1. Flow with Momentum

Ever noticed how surfers ride waves?

They don’t fight the ocean; they flow with it.

Traders should do the same with market momentum.

When the market is going up – Go up with it.

When the market is going down – Go down with it. (I mean short and sell of course!)

When the market is moving sideways – Observe, report and wait for better conditions.

Align your trades with this sentiment.

Going against the current market mood can be disastrous.

  1. Never Predict

Everything you see in the charts and with fundamentals are based on past data.

So, it’s IMPOSSIBLE to make a prediction with certainty where a market will go.

Hence you need your risk management rules and stop losses with EVERY single trade you take.

You can’t predict BUT you can probability predict.

And that is the difference between knowing and potential.

So NOW You know how to avoid the recipe of disaster with trading.

Here’s a quick recap to keep you on track:

  • Never Force a Trend:

    Be patient and wait for the right market conditions.

  • Adjust and Act:

    Regularly review and tweak your strategy with new information.

  • Flow with Momentum:

    Align your trades with the current market sentiment.

  • Never Predict:

    React to market conditions rather than trying to predict them.

 

READY TO UPGRADE TO SUPREME MATI TRADER?

 

Click here to SIGN up and join now. 

 

Trade well, live free.

Timon Rossolimos
Founder, MATI Trader

 

CONNECT WITH US:

 

Facebook Group:
http://www.facebook.com/groups/matitrader

Website:
https://timonandmati.com

FREE MATI Trader Chat Room – Discord:
https://discord.gg/c8f37kyv35

Trade well, live free.

Timon Rossolimos

Founder, MATI Trader

 

Not sure the best way to get started with MATI Trader?

 

Follow these steps to start your successful trading journey.

 

Step #1 – Get The FREE MATI Trader Resources:

> MATI Trader System Programme Lesson 1

> Articles

Step #2 – Own The Complete MATI Trader System:

> MATI Trader System Programme

Step #3 – Become A VIP:

> Premium MATI Trader Service

Step #4 – Connect With The Community: 

> Facebook

> YouTube

> Instagram 

Where can we send your FREE "24 Chart Patterns and Candlesticks Book"?

Trade well, Build Wealth.

Check your e-mail now - You'll love it!