How I know when NOT to trade.

30 Sept 2026 · 1 min

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In this segment, the speaker stresses that long‑term trading success hinges on knowing when to stay out of the market. He outlines his profitable trend‑following system, explaining that it excels when the market moves clearly in one direction (a strong uptrend or downtrend) but is quickly destroyed in sideways, ranging conditions. He notes that once the market returns to a strong upward move, the system will be easier to apply, but until then traders should avoid trading during choppy periods. The core message is strategic patience: avoid the market when it lacks a clear trend, and deploy the system only in unidirectional environments.

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Eventually, the conditions where the market is just pumping straight up is going to come back and things are going to be a lot easier. But part of what it takes to succeed in trading, especially in the long term, is learning when you should stay out of the markets. And for this system in particular, it absolutely just gets destroyed when the market is in ranging conditions. After all, this system that I'm trading right here, which by the way is a really profitable system, but at the end of the day, it is a trend trading system, which means that it's optimized when the market is moving unidirectionally, which basically means like it's going in one direction. Now it doesn't need to be fast, but it needs to be clear and trending. And that is when this system performs the best.