Trading is about skill development and discipline. A huge advantage that intraday traders have over most is our trading skills. Most can’t grind it out and make the spread. Most traders can’t play the momentum, exit, and then flip their positions. But we are also judged on our discipline. And certain days call for restraint. And we must recognize such days. Today was one of them.
When you first learn to play golf, you try and perfect the 150-yard shot. So with a 9 iron you practice at your local range on this distance. And finally you develop this shot. And then you play. But not all 150-yard shots are created equal. Sometimes the weather is perfect and your ball is in the center of the fairway. And we then fire right at the flag. And sometimes there is an annoying gust of wind in your face calling for an adjustment. As a trader we must always make adjustments.
There are very few trades with a 9 iron in our hands, with the ball in the center of the fairway, and no wind. When we have this easy shot or trade we are aggressive. But when our ball is in a divot we aim for the center of the green. When the market is not offering excellent risk/reward opportunities we must be cautious. For us, we make few trades, with less size. This is how we aim for the center of the green as a trader.
Today was a day for restraint. And as a trader you must be able to recognize these days. This was not a day to be shooting at every flag. There were few excellent set ups. This was a day not to lose money. What did I see? I saw little institutional buying. I saw stocks that could not follow through. I saw lower volume. I saw market leaders not trading as they should when SPY moved significantly. So I sat on my hands for a good part of the trading day. I kept my gains from previous trading sessions. I traded with restraint. I was disciplined. I have not agreed with those who have said trading has been void of opportunities until today. Until today I found many excellent risk/reward opportunities intraday. But not today.
Learn to identify when a day is different. Understand when to be aggressive and when to back off. Learn when to fire at every flag and when to aim for the center of the green. Can anyone tell I am still bummed that I didn’t get a chance to play golf last weekend?
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7 Comments on “Center of the Green”
Bella, i am agree with you. I didnt find good patterns. I closed day with a plus, but it wasnt not quality plus. I shorted some financials stocks on overall sector strenght.
Bella, i am agree with you. I didnt find good patterns. I closed day with a plus, but it wasnt not quality plus. I shorted some financials stocks on overall sector strenght.
9iron =150 – easy on the roids arod.
im a 7 or 8iron by the end of the summer. dial the power back for more accuracy.
i shanked my 7iron all day right in the lumber yard today danny.
9iron =150 – easy on the roids arod.
im a 7 or 8iron by the end of the summer. dial the power back for more accuracy.
i shanked my 7iron all day right in the lumber yard today danny.
Hit the weights Pete. Grip it and rip it. Funny comments. Thxs.
Bella
Hello Bella,
I read your post several times and think again and again. You are right, a trader must be able to recognize these days that should step back. And soon, I come up with a question, how do I recognize these days?
When you said you saw little institutional buying, would you mind tell us how did you recognize that?
Hello Bella,
I read your post several times and think again and again. You are right, a trader must be able to recognize these days that should step back. And soon, I come up with a question, how do I recognize these days?
When you said you saw little institutional buying, would you mind tell us how did you recognize that?