Cherry-picking is an essential part of professional trading. While it may seem easy to just jump into a random trade and hope for the best, an experienced professional trader knows that this can lead to catastrophic losses. The best traders are able to cherry-pick their ideal setups and take advantage of a given market situation, profiting from it rather than leaving money on the table.
At the core of it, cherry-picking is all about selecting the right setups from the available opportunities. It comes down to finding the right combination of technical analysis tools, indicators, and approaches that can be used to identify the best entry and exit points in the market.
Experienced traders will use different sources of analyses to determine the foundation of their setup. For instance, they will look at chart and pattern analysis, daily support and resistance levels of different instruments, and price action to ensure that their setup aligns with the current market conditions.
Traders may also look into fundamental analysis, such as news events, economic data releases and any changes in macroeconomic trends, as well as market sentiment. All these factors can help inform the decisions and inform traders of potential turnaround or breakout points in the market.
The best traders are those who are able to delicately balance the technical and fundamental frameworks of a setup. By finding an ideal combination of indicator synchronisation and fundamentals, a trader can arrive at an ideal scenario in which they have an edge in the market.
This approach takes creativity, an analytical approach and feedback from the market to truly cherry-pick the most attractive setups. It requires traders to not only have strong analytical skills, but also be able to adapt to changing market conditions quickly because no two trades will ever be the same.
Ultimately, the best traders always cherry-pick their setups. This requires analytical prowess and an understanding of both technical and fundamental analysis. To succeed in the markets, traders must stay up to date with the current market conditions and be willing to adapt and adjust their strategies as needed. Ultimately, understanding the concept of cherry-picking and the skillfully adapting it can help professional traders take their game to the next level.
