By Andy Jordan on Sunday, 12 August 2018
Category: Trading General

Learn to Use Inaction in Trading

Inaction - not putting on a trade - is one of the greatest, most powerful tools you possess.

Many large funds have to always be invested with at least some percentage of their capital. Moving into or out of a trade, without their own actions moving the market, is much more difficult for them. They are usually not able to quickly jump in and out of a market. This is an important advantage a smaller trader has compared with the big ones.

Other than for his goal of making money, there is no need for a private trader to be invested in the market all the time. He can wait for the right opportunity to enter the trade, and, if wrong, he can usually get out within seconds.

We must all learn to be patient when it comes to trading. A good trader is observant, able to control his patience and his composure. He views not being in a trade in the same way as being in a trade, and understands that inaction is an important part of trading.

Many traders are losing there shirt right now because they don't understand that inaction - not putting on a trade - is one of the greatest, most powerful tools a trader possesses. 

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