Just because you can trade something, doesn't mean you should

Brokers will offer you anything under the sun to trade so they can earn fees, you name it; synthetics, thematics, baskets etc. But should you really trade something just because you can? I have been trading for 8 years now and I consider myself qualified enough to speak on this topic.

1.You Need Data

Before embarking on a journey/trade you should have a map of what the terrain looks like and the fundamental factors that ultimately drive price action. if you don't have sufficient fundamental data on an instrument, your odds of winning are considerably low. Yes you might get lucky a few times, but your net outcome will still likely be loss. Today we see traders who don't even carry out research beyond drawing lines on a chart and listening to CNN.

2.Price Action is King 👑

Price action is widely misunderstood with many thinking it is just about drawing support/resistance lines and waiting for price to reject at a key level where they place pending orders but it is way deeper. I have found that price action has to do with looking at historical charts and deciphering hidden repeatable price behavior. if you are the kind of trader that does not journal, you will find it hard understanding price action because price action has to do with looking back in time at old charts and observing behavior that repeats itself.

You could also pay for a TradingView subscription plan which is like time travel machine so you can go back in time. many traders do not even consider paying for a TradingView plan as important so they have no window into the past except they journal everyday. Price action will always beat any basic technical analysis any day because technical analysis is actually a subset of price action.

3.Synthetics Are A Trap 🪤

I consider trading synthetics as just gambling because they are not based on any real market instrument, so I wonder why so many people are trading it. Brokers designed synthetics to trade during weekends to take advantage of traders who trade out of boredom or traders who are trying to revenge trade to recover losses from Friday. I prefer waiting till Monday to trade a real market.

4.Crypto Weekend Trading is a Trap 🪤

Weekends are notorious for poor liquidity so when I trade it I always have to keep the trade running for long hours thus increasing the risk of reversals. I realized this early enough and stopped. I believe traders should rest over the weekend and use that time to review the week's activity and sharpen their edge. The brain also needs to rest during weekends as mental fatigue is real.

5.Just because Everyone is Trading Gold Doesn't Mean You Should 🐺

Apart from crypto, gold is the most volatile instrument I have ever traded. It is also the most profitable instrument but you need to have a good strategy and a good hedging plan to trade gold. There are other less volatile instruments you can trade like EURUSD.

6.Only Trade At Market Opens 🕰️

I learnt to only trade during market opens because that is where you get the most intentional movement and breakouts. Most traders don't even know when the market for the instrument they are trading, opens. If you are trading indices, the market opens when the stock exchange opens etc.

7.Minor Pairs are Minor for a Reason

Minor pairs are more volatile because they lack the US dollar which is a stabilizing force. Trading minor pairs without adequate data insight can be unproductive, I would rather stick to the major ones. the goal is to make money and not to show off how many pairs you can trade.