The virtue of not trading

This week I didn’t trade a lot and what little I did trade ended up being another losing trade. It proved that often times, the best trade is not taking one at all.

Instead of exposing yourself to risk, in certain conditions, it might be the better choice to let trades go. This was definitely the case this week and perhaps should’ve even been applied to the one trade we did go through with.

At the start of the week, most likely due to BTC price movement, most alt setups looked like this in our TrendMaster bots:

Not looking too good at the start of the week…

Because of this sea of red on the daily charts, I needed to drop down to the 4H timeframe to find some trades. This is normally not a timeframe I’m a huge fan of due to the increased volatility, but I can’t do a trading series without actually trading, right? Wrong! I should have let it slide because almost all of the 4H signals before it got stopped out or invalidated fast. Why would this one be different?

Almost everyone gets bored at some point and might enter a trade simply to be doing something. However, every trade you take should be in line with your strategy, trading method, and personal preferences. You should feel comfortable when taking it. Even though this OST trade was taken from a valid TrendMaster signal, the time frame was not the correct one to be taking a signal from at that point in time.

It is better to miss a good trading opportunity than to make a bad trade. These crypto markets aren’t going away any time soon and there is an opportunity regularly. It also takes time for a major trend to form, which is why I usually take 1D setups because of the added confidence it gives me. If you want to catch a big piece of a trend, you have to wait for it to blossom into one.

Obviously, you cannot prevent a losing trade from happening, that is a fact that you should always keep in mind. As solid as set up might seem, it is not guaranteed to do what you think it will. That is where risk management comes into play. We covered position sizing, but taking your time and working towards a “less is more” mentality is definitely also an important part of it.