No trade = Good trade?

No trade doesn’t mean a missed opportunity. If you are new to Forex trading or if you feel the urge to trade after a loss, you may feel very anxious about scouring the charts for trading opportunities.

Last week, I was quite optimistic about the direction of one trade, and have done my calculations, but stopped short of placing my orders due to impending economic release from the US. You know what? I’ve saved a lot of money by withholding from placing that trade after all.

There will always be times when you don’t see any opportunities that suit your criteria, and there will always be times when you do see opportunities that fit most of your criteria, but are still quite risky. My advice is to stay out when that happens! When you have doubts about placing a trade that has been calculated and all, most likely that instinct is right. But it also depends on who’s having the doubts. Someone who’s very experienced and successful with trading will have acquired unconscious competence (see my page on Trading Smarts), and all of his/her analysis will have rolled quickly into something called instinct. As for a new trader who’s having doubts about placing a particular trade, it may be due to other reasons such as fear of pulling the trigger, or he/she may be truly uncertain about that trade.

Quite simply, when in doubt, STAY OUT! Sometimes, no trade can definitely be a good trade.

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