Trade What You See, Not What You ThinkJanuary 26th, 2021
One theme echoed by successful traders is to avoid emotional trading. In other words, no matter how you might feel about a given market and what it might do, it is best to focus on other criteria when forming a trade thesis.
According to Gary of Shrewd Trading, trader opinions do not matter, and using a rules-based system is a much sounder approach to gaining consistency in the markets.
Often times traders will trade emotionally after a losing or winning trade because of the emotions stirred by such events. However, it is best to keep emotions out of your trading decisions and stick to the price action and technical/fundamental analysis to find new trades.
As a tip, ask yourself before each trade:
- What is the setup?
- Does it meet my criteria?
- Am I acting emotionally?
Learn more in this 1-minute video:
If you liked this clip, be sure to check out our webinar archives for more free trading videos!
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