I’m watching Meta aka Facebook (FB) stock! Check out the chart HERE. Are you wondering how or what trades you could possibly make during these unpredictable times?
Risky market with all the current underlying fundamentals. But I’m seeing a nice conformity in technicals to previous price points and trends. This could be forming a bottom if the fundamentals go along and now might be a great time to pick up some shares of those companies on your wish list.
In these extremely volitile and bearish markets I like to play it safe. If you have any losses caring over from last year, it’s important to re-evaluate those positions. Right now, I am particular to trade only in companies that I would also want as a part of my investment portfolio for the long run. If you’re fully confident in their long-term performance potential, then it shouldn’t be an issue if your position turns against you in the short term.
Like I wrote in my book, “Forex Destiny Trading Complete Training System”, every trader wants to find the top or bottom of a trade and have a “perfect entry”. Is it possible? Yes. Does it happen more time than not? No. And even if you manage to grab an entry in that elusive perfect entry, there’s one thing ALREADY against you. The spread! If price is perfect, the spread is higher (Hint, hint). But your position at the moment of entry… it’s going to be red. Sorry to break it to you. Look at the spread as a negative number. When you enter at the bid or ask price on a trade, it will be that price minus the spread, automatically putting your trade in the red.
This is why it is so imperative to do your due diligence and understand your risk. If we look at risk as a percentage, we then can determine a risk to reward ratio and make better decisions about our potential trades. As you grow in your ability to trade and start recognizing both wins and losses, your focus should be on what technicals, and fundamentals are or were occurring from start to finish of that trade.
What signs were there that it was a winning or losing trade? Were there any signs of confluence before the trade began? How about after? The more you ask these types of questions after a trade, the more you will begin to apply those questions BEFORE you make a trade.
If we execute our proper risk management techniques, like dollar cost averaging and calculating margin ratios, incrementally purchasing based on your particular risk aversion, or establishing our stop-losses, there really is no reason to be worried about a trade. But it is important to have a clear understanding as to the confluences present that have provided the confidence to make that trade or an investment.
Stick with it. Monitor your trades for conformity to your confluences. Understand and be confident in your analysis and yourself.
If it was easy, everyone would do it. You got this. I’m here to help.
If you’re struggling in your trading during this dynamic market, I encourage you to take my trading training course available on Udemy. You’ll learn from start to finish, pre-entry to exit, a proven profitable trading system and how you can apply it in your own trading. For more information on the course and about all the services I offer, visit ForexDestiny.com
Here’s to discovering your own Destiny!