Core Concepts

NO_TRADE

The decision to not enter a trade due to unfavorable conditions

NO_TRADE is a deliberate decision to skip a potential trade when conditions are not ideal. It is one of the most important skills in trading - knowing when NOT to trade is often more valuable than knowing when to trade.

How to Recognize

  • Market is in RANGE regime
  • Pattern appears at wrong location
  • Volume does not confirm the setup
  • Multiple conflicting signals

How to Avoid

  • Embrace NO_TRADE as a valid outcome
  • Keep a journal of skipped trades
  • Missing a trade is not a loss - it's capital preservation
  • Focus on quality over quantity