When not to Trade in Stocks,Commodity

By | February 23, 2013 10:00 am

Traders who trade financial markets should also know when to stay out or not to trade. Trader should trade when opportunity arises based on his trading system and trading strategy. Knowing when not to trade is also a vital part of trading plan .Wait for opportunity to come think of Sachin he does not hit 4 on every ball but when he sees an opportunity he goes ahead.

  • When you are confused and don’t know what to do, do nothing.
  • There are no set ups on your watch list, then don’t trade.
  • You are a trend trader and there is no trend to trade.
  • The market is extremely volatile due to headline risk.
  • You want to make an option trade but the options are illiquid with a huge bid ask spread.
  • If you are trying to trade supply and demand but the government keeps interfering with your market, pick a different market.
  • Your stock reports earnings the next day and you expect a powerful move but it could easily go either way, wait until after earnings to trade.
  • You are a momentum trader but their is not momentum, then wait.
  • You play the long side only and the market is in a correction or a bear market, wait for a new trend to the upside.
  • If you are not at your best mentally and emotionally then don’t trade until you are

 

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4 thoughts on “When not to Trade in Stocks,Commodity

  1. s.c. mittal

    Dear Sir,
    You have described every minute lapses committed by small traders and have overcome them by your excellent power of expression in your well worded in simple and common language.
    But still the problem is as how to control the temptation and avoid losing money relentlessly.
    Should I stop trading or try to follow the tips given by you in various write ups?
    Regards,

    Reply
  2. sanjeev jain

    I hav read many books on stock markt right from baffatology to remminence to financial wizard but felt ur writeup hav real extract and understanding and agony of trader.I m regulr reading your articles and its grt,pls if possible can u send all ur articl if possible in word file or pdf format so that can read whenever possible I can’t take printout and neither save from ur site u r the best writer I hav read so far and understandanm

    Reply
    1. Bramesh Post author

      Thanks a lot Sir !! Sir you can Bookmark the article page. I have disabled the copying part as many people copy the article on their own site.

      Hope you understand..

      Rgds,
      Bramesh

      Reply

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