Restart 2021 – the Best Time for Your Start
It is believed that the periods when markets are under pressure of different economic and any other crises are the best time for consideration of so-called trading restarts. Crisis – if we want it or not – is simply one of the best moments when changes are coming and unique opportunities occur, coming again after many long years. This provides us the response for the question “WHEN?”. However, it’s also important to know the response for the question “WHY?”. And exactly about this is our article today.
WHY to do this trading restart?
From time to time, each trader finds some new trading strategy he tested at first and then, he would like to put it into operation in full. In these cases, a frequent mistake is that the trader let his new strategy to be run on already operating basis along with existing strategy, making the entire transparency of trades more difficult (if the strategies are traded on the same instruments), but at the same time, also variables from both strategies are reflected in the MT4 platform at back-tests, making a creation of high-quality analyses much harder for respective strategies. As you can see, trading restart (in case of new strategy) is really more than needed as such simple issue may save so much of important time for you in the future that you can invest elsewhere.
Changes to the placement of limit orders
Although it might look differently at first, changes to the position of limit orders (meaning naturally stop-losses and take profits in this case) are a big intervention into any trading strategy. There are even some traders that call any such intervention or optimization of already existing strategy a generation of a new one, not only its upgrade. However, in the event of restart, it does not matter if a person has this or that opinion. What is important is the fact that any change to limit orders affects the balance of trades in profit and loss markedly, what’s a reason not only to consider the existing trading positions, but also to restart the entire trading account. As mentioned above, high-quality and good trading analyses may be prepared only without mixing them with any other strategies.
Psychological effect – necessity to get rid of bad history
Each trader, having already some experiences in trading, probably knows best how hard it is to overcome failure. Unfortunately, failures with losses come hand in hand with trading as well as they represent portion of our lives. And if this unwanted fellow visits us in our life, with regard to human nature, we’re always trying to forget about it as soon as possible. In trading, it’s also the same, albeit bit more difficult. There, we’re also trying to forget quickly and move on. However, it could be very difficult to forget about trading failures when you see your financial loss on your trading account all the time. And right this tends to be the moment when it’s worth to stop and think about it, if it’s not the right time for your potential restart and new beginning, when you can come back to the trading party again, already this year.
If you would like to try out trading with top tier trading conditions and professional forex broker, don’t hesitate to try our demo account that may be open on our website completely for free and free of any risk: www.purple-trading.com/cs
We wish you many profitable trades!
Purple Trading team