A Hunch or a hunchback?

Yael Warman

New traders will often get these hunches, these gut feelings, these irresistible and emotional charges pushing them to trade a certain way. This can be a great thing to happen to you, it means that as a new trader, you’ve been hooked and you are passionate about trading, but be wary of the risks of […]

New traders will often get these hunches, these gut feelings, these irresistible and emotional charges pushing them to trade a certain way.

This can be a great thing to happen to you, it means that as a new trader, you’ve been hooked and you are passionate about trading, but be wary of the risks of emotional trading.

If you find yourself pushing that BUY button in pursuit of the great trade without validating them first, you might be turning into a tradoholic.

So in order to follow your gut without risking breaking the bank, make sure you follow these simple steps:

1: Match against your plan.

If there is a correlation between your potential trade and your trading plan or system you may be onto something, but if it is completely disconnected, then your hunch might be off.

2: Keep it within comfort.

No matter how sure you are of this trade, there is always a possibility that it may go wrong. How much money are you comfortably willing to lose if the trade went sideways? Trade within your limits of what you would be ok with if you lost.

Check on a clean slate.

You may have been looking at the same chart for days, you are starting to see things that are not there or perhaps you have too many lines making things messy. Before you hit that buy button, open up a clean, new chart and redo your plan for this trade.

4: Don’t forget to set your stop loss or take profit.

I know, I know, you have a good feeling about this one, you are sure it’ll go through the roof. Stop. Right. There. No good feeling is worth getting overconfident and losing a load of money over. Make sure you put your SL/TP orders and whatever you do, do not move them mid-trade.

Now go ahead and follow the pot of gold next time you get a hunch.

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

<