Trading Is Waiting
2020-06-10 | Simpler Trading Team
Trading Is Waiting
As the Nasdaq closed above 10,000 points for the first time, it’s important for traders to maintain fundamentals with all the market excitement.
Professional level skills keep traders from acting on impulse. No need to chase the next higher level in the Nasdaq when the market presents a variety of opportunities.
Trading is waiting.
Traders who missed the rise to 10,000 can wait for the next setup.
We’re excited about the milestone, but want to find quality setups in stride.
Waiting separates winning trades from those that can drain an account.
Whether it’s hours or days needed to wait, the key is to be patient. Find the right entry with an exit plan for gains. Chasing the excitement increases the odds of a losing trade.
Have you developed a set of rules within your trading plan to manage your positions?
Two practical tips can summarize a helpful set of rules.
First, try cutting position sizes and doubling stops as a level of risk management.
Second, instead of a handful of trades each day make it a habit to focus on executing two well-planned trades each week.
Encourage yourself to develop habits that direct you toward consistent profitability.
For Simpler Trading, this allows our full-time traders to focus on limiting risk and protecting capital.
We Saw: Nasdaq close above 10,000 mark for first time —
- Fed delivering dose of reality about economy
- Dow down despite news of future economic strength
- Hint of more stimulus money to fuel economy
We’re Watching: … the staying power of key sector stocks —
- TSLA showing its strength, closing above $1,000
- Fed not considering raising interest rates
- Bank stocks taking a hit on news of low rates continuing
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