This past week was a slow one for my strategy. Out of all the stocks listed in our daily trading plans, only one triggered an entry, OPRX.
Nothing else throughout the week met my criteria for an entry. But despite the lack of action, it was a profitable week putting me back to green for March.
When nothing meets my criteria, I simply sit on my hands. I trust my strategy, and I don’t deviate from it. You don’t have to trade every day to be profitable. The market is a long-term game, and those who force trades in unfavorable conditions often find themselves stuck in a cycle of giving back profits.
Markets naturally go from hot to cold. In January and February, we saw tons of action and great setups nearly every day. Now, we’re experiencing a cooldown period. That’s completely normal. The mistake most traders make is feeling the need to trade every single day, even when conditions aren’t favorable. This often leads to unnecessary losses.
One of the worst things you can do in a cold period is give back all your hard-earned profits trying to force trades. Why? Because when the market heats up again, instead of capitalizing on the fresh opportunities, you’ll be stuck trying to recover what you lost. It becomes a never-ending cycle of spinning your wheels, making money when conditions are good, losing it when they’re not, and ultimately going nowhere.
I’d rather stay on the sidelines if my setup isn’t there, no matter how few times it appears. I know that when the right trade does come along, that’s when I’ll make money again. This mindset keeps me profitable and prevents me from falling into the trap of overtrading.
A week like this proves the importance of waiting for the right opportunity. Trading isn’t about how many trades you take, it’s about taking the right ones. Stick to your plan, stay disciplined, and when the market heats up again, you’ll be ready to maximize your gains.
Happy trading!