Sunday, 4 March 2012

IF YOUR TRADE IS NOT GOING ANYWHERE IN A GIVEN TIMEFRAME, IT’S TIME TO EXIT






This rule relates to the theory of capital flow. It is trading capital that pushes a
market one way or another. An oversupply or imbalance of buy orders will push the market up. An oversupply of sell orders will push the market lower.
 



When price stagnation is present (as typically happens many times
throughout the trading session), the market and its participants are
telling us that, at the present time, they are happy or satisfied with the
prevailing bid and offer.
 

You dont want to be in the market at these times. The market is not going
anywhere. It is a waste of time, capital and emotional energy. Its much
better to wait for the market to heat up a little and then place your trade.

1 comment:

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    ReplyDelete

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