Thinking about entering a trade, but I’m stuck on direction. Any tips for how you usually decide—especially when the setup isn’t obvious?
There are times when the TA, possibly combined with other information, tells you that a significant move is likely but the probable direction cannot be reliably identified. It’s always possible to simultaneously set a buy order and a sell order and let the market decide.
When you cannot easily tell the market direction, the best course of action is to sit on your hands. That is also a trading decision.
Hellooo!
Definitely agree with what Tommor and Torch have said above.
Sitting back and watching is something I also do. I go weeks without trades just because I’m not confident with the setup.
Apart from that, I also check higher time frames just to see if there’s a broader trend I can maybe use as a guide too. ![]()
Totally relate because higher timeframes add a lot of clarity when things feel mixed. If the structure isn’t clear, waiting is usually the better decision. Sitting out and letting the chart speak first ![]()
I’m honestly confused. I’m stuck on “whether to reply”! How can a trader be thinking about entering a trade if he doesn’t initially have any directional bias? I’m not trying to be funny - I honestly don’t understand this. ![]()
By being willing to go either way, depending on what happens in the short-term? For example, if you watch opening ranges, you might be willing to enter long by buy-stop if the price goes above your range, or short by sell-stop if it goes below?
If I were asked to define compulsive gambling then I think the best answer I could come up with would be:
Unless one is trading options, entering a trade means having an analysis which suggests a) price should be somewhere other than where it is now, and b) whether it should be higher or lower, and possibly c) how far should it move.
If one wants to place a trade but has no idea of direction then it is a bet and not a trade.
Using bracket orders - setting a buy above price and a sell below - is sometimes justifiable if a significant news event is due or even just anticipated. So you expect price to react dramatically but as the news is not yet known, picking the right the direction would be a gamble.
The problem is of all the possible trades across forex, stocks, indices, commodities etc. it shouldn’t be very common to find that a bracket set-up is the best available use of funds.
Absolutely…but this is a clear and specific strategy, designed for a clear and specific set-up, with a clear and specific objective, and with clear and specific risks.
Good for experienced traders with a clear strategic plan - but does it match the question:
A bet is a bet, a trade is a trade…
If the set up isn’t obvious don’t take the trade. As @Torchwave says ‘sit on your hands’.
@SovoS Very seldom would I disagree with you but a trade is a bet - just not a compulsive gamble.
Please let’s not get into the semantics of ‘betting and gambling’. ![]()
Believing that claim is why 90% of retail traders lose their money…
90% of traders lose because of hope and fear
The old cliche ’ let your winners run and cut your losers quickly’ is not adhered to because losing traders fear having their winnings taken from them and cling to the hope that their losses will turn in their favour. They don’t win enough when they are winning and lose too much when they are losing.
We should be assessing the probability of a move occurring then bet accordingly when the odds are in our favour. Taking an ill-judged trade is gambling and can even become compulsive gambling, which can lead to over trading and revenge trading. Far removed from astute betting. ![]()
So when a bank carries out its business in assessing you for a loan and estimates you as a risk, they are simply betting… I guess the whole global commercial industry is just one big bet.
I guess some people do see it that way! ![]()
Yes, of course - I think they would see me as bad bet at the moment! ![]()
Perhaps you should enter trades on demo to gain your confidence on what you should be doing in clueless moments.
Clueless moments are the perfect time to horn your skills and if nothing comes out of it, then you know what to do: NOTHING
I really don’t see how simply entering a trade is going to somehow resolve a clueless moment. Unless, of course, one is a gambler, in which case one might argue that if 90% of traders lose all their money then a 50/50 trade has much better “odds”.
This is the ONLY sensible answer to the OP’s question. As is often said, “no trade is also a trading decision”
I find it so frustrating that most traders treat trading as a gambling casino where one just stacks the odds and places a bet. Nothing makes trading more sordid and disrespectful than treating it as a casino.
Trading is not for gambling. It is a business. And should be run by like a business in every respect.
For example, an import/export firm buys and sells based on estimating the cost and potential sale in order to gain a suitable profit. If they can’t determine the profitability of a certain product they simply don’t buy it - there is always something else around the corner. They do not just trust their luck and buy - and then end up selling at any price just to avoid a loss (due to the uncertainty creating exactly the situation @Johnny1974 mentioned above):
For goodness sake, why can’t traders learn to trade as a business, take a pride in being self-employed, celebrate their success, and study how their business works - properly! No business succeeds with laziness and ignorance.
And entering a position when one doesn’t have a clue is about as opposite to running a good business as it is possible to get!
Stay focus
Still don’t see how you hone your skills in clueless moments. If one wants to hone one’s skills/strategy then backtesting in various active sessions might be more productive than during the clueless times?
Whatever, “stay focus” means, I’m sure it means something.
I mean, really, the guy just wants to trade “something” BUT, by his own admission, simply doesn’t have a clue what do to. The only answer is do nothing until your strategy DOES give you a clue. It is pretty obvious and basic, why is everyone trying to make it sound like something sophisticated! ![]()