Cyclical nature of Trading

OK, now we have had a few very very good days in the US e-minis with some massive profitable trades, we must keep an eye on the Cyclical Nature of Trading.

Too many amateurs wait for a few good trades before they take place their trades, but then a few losses come along so they stop, then they see a few good trades so they start again, then a few losses come round. In other words they do exactly the wrong thing !

Once you understand the Cyclical nature of Trading you will understand that you should be come cautious about trades after a good run, and then get keener to place trades after a run of bad trades. This is what professional do, because they understand that profits and losses come round in cycles.

The amateur tends to do exactly the wrong thing at the wrong time... because they do not understand how markets unfold in the “real-world”. So my advice, is to be slightly more cautious now as we have had a run of very good trades...............

Thanks, Steve