It Pays To Stay Out Of Market Sometimes

One of the things that every trader must learn is when to stay out of markets. This is one of the keys that you must master if you want to become a successful trader. You have to be alert because it is easy and dangerous to get caught up in the excitement of trading.
The emotions you feel being an active part of the market dynamics can hurt your account if you are not able of stay out of the market in dangerous times.

i. Market Timing Tool:
The market has no mercy on the inexperienced traders who cannot swim in troubled waters. If you do not have a tool to give you warning signs that the market situation has changed, it will be very difficult for you to stay off the market when the situation requires. The more accurate this tool, the greater the percentage of winning trades that you are able to achieve in your trading. You must develop your own methods or rely on what others are willing to share with you, but above all do not trade in the stock market without a market timing tool to help you stay out of the market when bad times come.

ii. Trading Method:
Your trading method should tell you what conditions must be met in order to open a trade and what conditions are needed to close a trade. There is no place for emotions in the market. Follow a set of objective and well-tested rules to let the money grow in your account. With a trading method in which a trade must meet certain conditions before they can be opened, you will be able to stay out of assets that do not show enough strength. With rules that force you to close the trades when they start to lose money, you will go out off the market before suffering significant damage in your account.

iii. Understand the Market Behavior:
The Market Timing tools and the Trading Method will help you to understand the market behavior. One should abide by rules to succeed. You should understand the market to exit from the market in times of crisis. Else, you will not know when the storm comes until it's too late.