You will learn about:
- Comparing Previous and Current Trading Idea
- Understanding the Market
- Reevaluating the Trade Plan
- Adjust Trade Plans With the Experts
Whether we’re new to trading or not, we should know that things sometimes don’t go as planned. If we don’t constantly update and fine-tune the trade plan, risks increase, decreasing the potential for profit.
Using NASDAQ 100, Joshua Martinez highlights the need to adjust trade lines and trade channels based on the continuously changing market. Read the following to see how this works, helps lessen the risks, and increases profit potential.
Comparing Previous and Current Trading Idea
In a YouTube episode dated March 23, 2021, Joshua Martinez of Traders Agency talked about fine-tuning overall trade plans. An elite Forex trader, Martinez has over 10 years of trading experience. Meanwhile, Traders Agency is a renowned trading education company that helps us learn how to do successful trading in the financial market.
Martinez first compared the previous trading idea for NASDAQ 100 and the week’s trading idea:
- Previous week: Bearish trend
- Current week: Bullish trend
There’s a change in the market analysis because there are some additional pieces of information that were not present in last week’s analysis.
Understanding the Market
First, we need to understand the market. We can compare it to some puzzle pieces, where images continue to change. This means that we also have to investigate continuously.
Analyzing the market is like looking at a picture that gradually changes. We get our clues but not in one go. Instead, we can collect these clues along the process. That’s when we analyze what we’re looking at.
When the clues are enough, the images become clearer and more straightforward. Once we understand all the elements in the image, we can now make a decision. In trading, that’s when we can make our prediction, like whether or not NASDAQ 100 is in an up channel.
Reevaluating the Trade Plan
Martinez emphasizes the need to constantly reevaluate the trade plan and see where the mark is. In the previous week, we were looking for an upward movement. In the current week, we are still looking for an upward movement but with a different range.
The general information may be the same, but there is new information to analyze. For instance, there are added highs and lows. As Martinez highlighted, when we’re looking at shorter-term movements, it’s a wise decision to revisit our analysis.
We don’t necessarily have to scrape off our analysis of the market. We can open another chart and raise the question: if we were to analyze it today with today’s information, would we arrive at the same analysis? We’ll be surprised to see that general information remains, but the analysis is now different.
NASDAQ 100 follows the Nations’ top 100 companies. However, the following can affect NASDAQ’s overall trajectory:
- Daily company news
Given these factors, we need to constantly update and fine-tune trend lines, channels, and overall trade plans.
Adjust Trade Plans With the Experts
The trading idea on NASDAQ 100 shows that nothing is ever certain in trading. That is why we need to learn to adapt and adjust trade plans following changing market conditions. For more tips subscribe to our desktop notifications or sign-up to our daily newsletter.