To trade or not to trade? This is a question that traders always keep in mind before they are making a decision.
You’ve probably heard of the saying that 90% of traders fail in their first year. I’m not sure how accurate it is, but I have to admit that I’m leaning toward thinking it’s true I myself have blown up a fair share of accounts, committing all the mortal trading sins in the process just because of ignoring my guts and all red flags during trading.
But this will not be your case. Today, I will share with you some cases that you’re better off sitting tight and waiting on the sidelines instead:
Table of Contents
1. You don’t have any solid plans to deal with
Remember that a goal without a strategy is nothing more than a desire. Trading troubles should not be treated as New Year’s goals, which you forget about practically as soon as you put them down in your diary.
Whether it’s as basic as not establishing stops or jumping on a trend too soon, or as complex as cutting winnings and letting losses run, you must have solid strategies if you want to effectively tackle your trading challenges.
Set attainable trading objectives. Make a list of specific measures you can do and a timeline to ensure you follow through on them. If it helps, create metrics to assist you measure your progress.
2. There is far more uncertainty than you are able to deal with
Of course, there is always some level of uncertainty in trading, but there are times when it is much more than you are used to.
If you’re feeling out of sync with what’s driving the markets or unable to keep up with sentiment-changing stories, you may be better off simply watching price movement for the time being.
There is no shame in acknowledging that you are missing out on something or that you need to perform more analysis before taking more prudent trading risks.
Don’t worry, the market will never run out of ways for you to expand your account!
Accept that losing is a part of trading just as much as succeeding. If you believe your system and look at the long picture, one or two losses won’t matter.
The only way you can put more of your attention on the process than on profits is to become accustomed to losing.
Traders disregard missed deals because they cannot see its consequences. Missed deals, unlike lost trades, aren’t frequently tracked in spreadsheets with the purpose of decreasing them. Unfortunately, what you can’t see can’t be improved.
3. Your system isn’t worth the work it takes to run
Is it necessary to remain awake 24 hours a day, seven days a week for your plan to be profitable?
Is it necessary to review 45 indications before confirming a signal?
Is your plan requiring you to face the sun and sing the alphabet backwards at 6:00 a.m.?
It’s definitely time to look at alternative choices if you don’t feel comfortable utilizing your method consistently for extended periods of time or if you believe you would earn about the same amount of pips without it.
If you don’t have time to monitor your charts or are unavailable when excellent possibilities arise, consider employing price alerts or entry orders for your trades. One of the best supply-demand indicators you can use is the Supply Demand Pro for TradingView by Indicator Vault.
With this indicator, you can:
- Detect all the strongest supply zones and demand zones for you.
- Use these supply demand zones as BOTH entries and exits.
- Get timely alerts and suggested stop loss and take profit.
4. The bottom line
The above is 3 warning signs novices should be aware of to prevent blown trading accounts. We’ve also put up the articles 4 Trading Tips That First-Time Traders Frequently Ignore and 4 Questions About Technical Indicators You Should Ask Before Trading to help you out a little. Check it out now!
Join Indicator Vault, utilize the variety of trading instruments offered, and establish yourself as a market power!
What do you think? Do you have any other red flags that you want to share for others
Comment below to share your idea!
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