When to Close Charts for the Day

First of all, why do we stare at charts?

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We stare at charts to:

Analytical side

  • To be aware of the big picture for various currency pairs.
  • To scan the market for trade opportunities.
  • To make plans for our trading decisions in the upcoming future.
  • To practice & upgrade our chart analysis skills.

Trade management side

  • To enter trades.
  • To cut our losses quickly.
  • To move our stops to breakeven.
  • To add to our positions.
  • To close positions.

But often tend to stare at charts because:

  • We love trading.
  • We are worried about our trades. We want to save our trades.
  • We feel guilty about not being in front of charts.
  • We get emotionally attached to a pair and feel like we should be entering trades when the market is moving.
  • We want to feel high from seeing profits increase.
  • We feel like we should get in because we are unsatisfied with our progress.
  • We have nothing else better to do.
  • We are lazy to stand up and do something else.
  • We feel like some kind of a part of the trading process is incomplete. (open trades, partial analysis etc).
  • We hope and anticipate for our trades to turn into bigger profit due to luck.

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But when will this madness end?

When should we close the charts for the day? And how to draw a line and close the charts for the day?

A normal answer to this would be:

We should close the charts when we have accomplished our trading goals for the day or if we need to work on things with higher priority in our lives.

But well… look at the lists above and you will see that unless we:

  1. Have higher priorities in our lives than trading.
  2. Have small trading goals that are accomplishable within the day .
  3. Feel satisfied about our trading progress.
  4. Keep calm and unattached to the market.
  5. Schedule other activities into our schedules.
  6. Fall asleep, tired or become otherwise uncomfortable with watching charts.

…Unless we do these things above we will just keep staring at charts forever and ever.

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SpacePip’s TradingCave↓

www.SpacePipEN.wordpress.com

Twitter: @cannamellia

 

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