One of the surest ways to have a lot of bad trades is to try and trade in a choppy market.
So how do you know when the market is choppy?, one of the simplest tests is to look at some simple moving averages, a common one is the 50 SMA, the test is that if the the 50 SMA is flat then there is a good chance that the price action will be irratic and difficult to trade.
Learn a lot more about how to avoid choppy markets by reading this guide:
[tags]choppy markets, bad trades, simple moving average[/tags]
Related posts:
