I had a sucky trading day yesterday. Not only because I didn’t make any money, but I just didn’t feel comfortable with any of my trades. I thought I was caught up on my metrics (I collect them weekly to create my own indicator), but I was itching to trade. Itching to trade is always a bad sign. That itch is typically a sign of greed, which typically turns into fear pretty quickly when the trade doesn’t move in the preferred direction.
My desire to trade should only be dictated by the market, which in my case is the combination of the charts and the fundamentals in the context of several days of information accumulation (i.e., today’s volume at the open, is it strong relatively to the last 6-10 days? Was the drought news surprising or consistent with previous info, hence discounted? Any market value assessment is relative to its context!). Each day spent away from the screen breaks the flow of information accumulation and requires a few days to regain it. Patience, patience, patience. Do not act on the itch.
I don’t take many breaks, but those I take I value deeply, because my family is far more important than my trading. I will have to create a new “rule” for myself that involves not trading, but only watching, reading, and listening for at least 1 day for each 3 days away from the screen.
There is always another trade. There is always room for improvement.