This is why you should be nimble when trading

It’s been a nice day for DAX traders as political volatility provided some nice opportunities. Below you can see the 5 minute chart of the DAX where I marked the two main headlines that triggered the biggest moves.

I thought this was a great example for new traders on being open minded and nimble when conditions change. The fear of political instability triggered by the failure of the first voting round sent the DAX lower.

But when we started to get more and more news of support for a second round as soon as tomorrow, the fears started to ease and the dip-buyers started to pile in.

It’s critical for a trader to be open minded and not get attached to his/her own bias when conditions change. If you took a trade because of X and something invalidates the original reason, just get out. This will not save you money in the long term, but might also improve your performance if you can also take the other side.

This article was written by Giuseppe Dellamotta at www.forexlive.com.