Don't Fear Retracements

by newuser09876 11. May 2010 19:54

Retracements in the market can be very tricky. A novice trader may mistake this for a reversal in the market and try to trade against the trend. Remember, "The trend is your friend! ...Until it bends." Try to stick with the trends to make the most out of your trades, and when you see a retracement every once in a while, do not fret. Understand the daily ranges so that you will be prepared and keep your eye on the prize. Even when the market retraces, if you know the market will finish its movement in the daily trading range, you can stay calm enough to stay in your trade. The market moves in waves, and you must learn the language of the movements.

To learn more key fundamentals of trading, visit one of MTI's free live trading demonstrations.

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