Why you DID NOT take the trade - 4 REASONS
So you never took a trade again?
This could be where the problems are rising.
It’s also where you are probably missing out on what could help take your portfolio out of the drawdown.
And sometimes, despite favourable market conditions, you may find yourself still hesitating to enter a trade.
I want to explore four common reasons why traders fail to take the trade and how to overcome them.
#1: The market moved too much
One of the most common reasons traders hesitate to take the trade is that…
The market has already moved significantly, and they fear they have missed the opportunity.
However, it’s important to remember that the market is constantly in motion.
The train will move and there is always an opportune moment to get into a trade.
A sound trading strategy should take into account different market conditions, including volatile ones, and provide clear entry and exit points.
If the market lines up despite how high or low it’s gone.
Just take the trade.
#2: You’re scared to lose the trade
FOLO or Fear Of Losing Out is another common reason traders hesitate to enter a trade.
While it’s natural to want to avoid losses.
It’s important to remember that trading involves risk, and losses are inevitable.
A sound risk management strategy, including setting stop-loss orders and managing position size, can help you to minimize potential losses and build confidence in entering a trade.
#3: Too much money to spend
Traders may also hesitate to enter a trade if they feel they have too much money to spend.
Take oil for example.
Most market markets (brokers) offer you to buy Brent crude but you have to buy 100 contracts as a minimum.
In this case, it MIGHT be too much money to spend.
Not because of how much of your portfolio you’re using up, but also because the risk might outweigh 2% of your portfolio.
Then you get other markets like the JSE ALMI 40, where you’ll need to spend around R9,000 to enter a trade.
It sounds like a lot (especially if your portfolio is less than 10,000. But, that’s why one should start with a larger minimum account size.
I started with R30,000 in 2003 and even then it was too little to grow into a substantial amount.
Then when it grew to the first R150,000, I started feeling comfortable with the portfolio size and it opened more opportunities to trade additional markets.
So, that’s why if you want to take trading seriously, you got to cough up the cash into your portfolio and trade accordingly to strict money and reward management.
#4: No trust in the system yet
This one is a given and the most abundant reason to NOT take a trade.
You might hesitate to enter a trade if you don’t have faith or confidence in your trading strategy or system.
In this case, it’s essential to go back, review and test the strategy, ensuring it aligns with personal trading goals and is backed by sound research and analysis.
When you build trust in a trading system, and you take the time and patience to see the good and the bad, then your confidence will grow.
And that will be an essential step towards taking more trades to help grow your portfolio.
Why don’t you take trades when you should?
Is it because:
Find them, harness them, work on them and you might have your answer.
This could be where the problems are rising.
It’s also where you are probably missing out on what could help take your portfolio out of the drawdown.
And sometimes, despite favourable market conditions, you may find yourself still hesitating to enter a trade.
I want to explore four common reasons why traders fail to take the trade and how to overcome them.
#1: The market moved too much
One of the most common reasons traders hesitate to take the trade is that…
The market has already moved significantly, and they fear they have missed the opportunity.
However, it’s important to remember that the market is constantly in motion.
The train will move and there is always an opportune moment to get into a trade.
A sound trading strategy should take into account different market conditions, including volatile ones, and provide clear entry and exit points.
If the market lines up despite how high or low it’s gone.
Just take the trade.
#2: You’re scared to lose the trade
FOLO or Fear Of Losing Out is another common reason traders hesitate to enter a trade.
While it’s natural to want to avoid losses.
It’s important to remember that trading involves risk, and losses are inevitable.
A sound risk management strategy, including setting stop-loss orders and managing position size, can help you to minimize potential losses and build confidence in entering a trade.
#3: Too much money to spend
Traders may also hesitate to enter a trade if they feel they have too much money to spend.
Take oil for example.
Most market markets (brokers) offer you to buy Brent crude but you have to buy 100 contracts as a minimum.
In this case, it MIGHT be too much money to spend.
Not because of how much of your portfolio you’re using up, but also because the risk might outweigh 2% of your portfolio.
Then you get other markets like the JSE ALMI 40, where you’ll need to spend around R9,000 to enter a trade.
It sounds like a lot (especially if your portfolio is less than 10,000. But, that’s why one should start with a larger minimum account size.
I started with R30,000 in 2003 and even then it was too little to grow into a substantial amount.
Then when it grew to the first R150,000, I started feeling comfortable with the portfolio size and it opened more opportunities to trade additional markets.
So, that’s why if you want to take trading seriously, you got to cough up the cash into your portfolio and trade accordingly to strict money and reward management.
#4: No trust in the system yet
This one is a given and the most abundant reason to NOT take a trade.
You might hesitate to enter a trade if you don’t have faith or confidence in your trading strategy or system.
In this case, it’s essential to go back, review and test the strategy, ensuring it aligns with personal trading goals and is backed by sound research and analysis.
When you build trust in a trading system, and you take the time and patience to see the good and the bad, then your confidence will grow.
And that will be an essential step towards taking more trades to help grow your portfolio.
Why don’t you take trades when you should?
Is it because:
- You don’t trust your system
- You’re scared to lose money
- You don’t trust certain markets
- You don’t have enough money to trade different instruments
- You’re not ready with your strategy
- You don’t have confidence with yourself, discipline and emotions yet?
Find them, harness them, work on them and you might have your answer.
✅ Facebook:
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
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