Does the Market Really Trade Against You?

Does the Market Really Trade Against You - Quantum Strikes
Does the Market Really Trade Against You - Quantum Strikes

Have you ever noticed the price moving against you right after you enter a trade? Or seen it hit your stop loss levels only to bounce back to your original profit targets? If so, congratulations! You’re experiencing what every trader goes through.

But what if this keeps happening to you? You’ve done your homework, followed your trading plan, and still, you lose trades. Can you then say that the market is against you?

Can the Market Really Trade Against You?

Remember, price action reflects the collective decisions of thousands of traders – both institutional and retail – who don’t even know you. They may have information you lack or need to adjust positions that are unrelated to your charts.

These traders don’t care about your credentials, your biases, or how sophisticated your indicators are. They’re not out to get you. The market, like Mariah Carey famously said, “I don’t know her” – it’s indifferent to your trades.

If It’s Not the Market, Then It’s You

More often than not, losing a trade has more to do with how you handled it. Perhaps you weren’t as prepared or focused as you thought and missed a key catalyst. Maybe you failed to hit your stops when necessary, ignored signals, or the market environment changed and your strategy no longer fits.

What Can You Do?

If you’re following your trading plan and still losing trades, consider these steps:

Lower Your Risk Exposure

If there’s a disconnect between the market and your trading plan, lower your risk exposure until you figure out what’s going on. Adjust leverage and position sizes if you’re not ready to change your biases or trading system.

Re-read the Markets

If the market isn’t behaving as expected, step back and reassess. Read the news, forex blogs, or analysts’ opinions to see if you missed a fundamental catalyst. Use multiple time frame analysis to check for missed technical support or resistance levels. Align yourself with the current market sentiment before making more trades.

Adjust Your Strategies

If your research supports your biases, you might need to change your strategies. Are your stops too tight? Are your indicators still effective in the current market environment? For example, using a trend-following indicator in a sideways market could be counterproductive. Ensure your profit targets are realistic given the asset’s average volatility.

Personal Insight

As a trader, I’ve often felt the market was personally out to get me. But over time, I learned that the market doesn’t have a vendetta against me or anyone else. It’s a complex interplay of countless decisions and actions. The key is to stay adaptable, continually reassessing and adjusting your strategies to the evolving market conditions. Remember, it’s not about being right all the time; it’s about being flexible and taking advantage of what the market gives you.

We are traders, not investors. Our job is not to be right but to profit from what the market offers. Plenty of trading opportunities are on the horizon. Be prepared with thorough research, maintain a focused mindset, and stay flexible in your execution. This approach will improve your odds of winning your next trades.

Trading our dreams into reality,
Mihai Paul Olteanu