Kardec Trader explains why successful trading requires switching between aggressive and defensive modes. When markets offer repeated setups, attack. When they don't, sit on your hands and protect capital. Overtrading on quiet days is how traders burn money.
As a trader, you must know when to be aggressive and when to play defense. So in the past three months, we've had great couple of days where the market has given us a lot of opportunities over and over and over again. Yet again, I've also had days in the past couple of months where the market has given me absolutely no trade opportunity at all. Now, the problem is, when there are opportunities in the market, you must know how to be aggressive. You must know how to take advantage of these opportunities. Now, when the market shifts and there's no opportunities that exist here, you now need to know how to protect your capital, how to be patient and just basically sit on your hands. This is a key place where I see a lot of traders mess up. They'll start trading and then when the market isn't giving them opportunities and the market is dead, which is normal, guys, just once again, going back to another point, it's very normal for the market to not give us opportunities every day. So when it doesn't, just be patient, just sit on your hands and say, today's the day. Even though I showed up for four hours and nothing happened, that is still better than me going on tilt and this burning capital.
