Many traders are always in search of trades. This can lead to them making rash decisions and putting their trading accounts at risk.
It is never a good idea to trade without a plan. This is the number one reason why most traders fail. You must have a clear plan before you begin trading.
The best trades I have taken have simply appeared. I was not looking for them and instead was following the market. I followed the market and if a trade signal appeared, I would trade it. I simply stopped looking for trades and they started to find me instead.
I don’t think trades that are worth risking money on are obvious. I am not hunting for trades but I do look for trades that are most likely to be profitable. The trades that are the most profitable are typically easy to determine.
If you are unsure if your trade setup is actually a valid trade setup, then it is unlikely to work. The more you understand about the trading process, the more you can be sure that your trade setup is legitimate.
How to let trades ‘find you’
The market is always there
The first thing that you must remember when dealing with trades is that the market has been here before you and it will always be there. There is no rush and you are not in a race against time. The only thing you must do is focus on your trading mentality and ensure you have a strategy and follow it. If you feel like you are in a rush to make a trade, you are more likely to lose. Remember to keep your emotions in check and let the market do what it is designed to do; to generate profits.
The Power of Chart Patterns
Your focus should be on the daily charts, but you must be disciplined to not trade when you do not have a good trading plan. The way you do this is to make a trading plan, then stick to it and only trade when you have the plan in place. So, your plan should include what you are doing in advance, what you will do and what will happen if you do not follow the rules.
Don’t forget that you can change the timeframes you look at to see the best trades.
More thorough and slower analysis
Always look at the daily charts, but don’t forget to look at the longer term charts as well.
The slower you look at the markets, the less attached you will be to daily and weekly charts.
The basic plan is to find trends. You will then follow them by locating levels. You will then close out your trades when they reach a certain level.
Outro
If you are trying to decide you should take up a certain trade or not, it is important to consider if it is the best one. If the best ones are the most obvious, why not go for the ones that are the easiest to spot.
When you learn to not always be attached to your edge and instead be more fluid with your trading, the charts will become easier to read.