EASY THERE NOW - There have been many times over the course of my career where someone comes along and trades like the wind....only to get blown away by it sooner than later. One of the most dangerous things about the type of trading we do, is that it's a type of trading that people associated with always needing to be doing. That's of course a mistake. We don't need to be doing it all the time....at least in the way that many might understand it. I put something out over the summer on psychology of trading with reference to the actual word 'trading' itself. The point is that many people who get into trading are already setting up for failure because they assume by definition, they need to be actively trading. If not, how can they be called traders? But this is not what trading is about. Trading is about always be there, always knowing what's going on and always being in position to take positions. But never to just 'trade.'
SIDELINER - The funny thing about this, at least from my experience, is that I will often see others spinning their wheels with trades, only to get to the same point, if at all, when the end of a week or month or year goes by. I think it's clear that it's better to be trading less than more, if the results would be the same either way. The more you trade, the more you subject yourself to the market's whim. The more you trade, the more you open yourself up to mistakes. I have been lucky enough to get to a place where I can appreciate this and I feel blessed that I can make a living doing something I love, without needing to be doing much at all (in the sense that I'm not taking a million trades a day). There is a level of calm that sets in to your life when you take on such an approach and you almost feel like a kind of sniper who has every confidence in what they are doing but don't need to make any waves about it. So while we sit back and wait on those next moves, make sure you are processing this idea that you can be a trader without needing to live up to the word used to describe the profession. I always say...Sideliner would be better...but I recognize it doesn't have the same ring.