I received this note from an excellent trader about the market before today’s open:
Won be trading for the rest of the year. Tired of this (insert cuss word- deleted) trading. debating on even coming back till earnings season.
I can certainly understand those thoughts after struggling through a tough trading market to start December. I have had those thoughts and said those very things. You just have to be careful about making such bold assertions about what is to follow. While trading can offer us a lot of freedom we must also stay connected to the markets and ready to trade easy opportunity.
Today after the close I received this snippet from a trainee b:
Its funny when I look at today and yesterday… I leave today (nicely profitable- edited) so much moredisappointed with myself then yesterday ending the day flat. Today was the best trading day inweeks and a day to really make a significant amount of money.
And then this comment from a new trader:
I should have made more but I stopped trading at one point to work on other things
and to lock in a positive day since the last couple of days have been somewhat flat/tough. I figured,
buying into pull backs hasn’t been working and since I caught the first move as planned, and traded,
as I said I should have in the last few reviews, I would lock in my day. This was what I learned over
the last few days. Unfortunately, I was on the right side of the trades, and the Fed announcement was
a catalyst for these second moves to work out. This is why I am very disappointed in myself today and
should have really capitalized more, this is not OK. None the less, I finally traded this market the way it
is supposed to be traded, size up and take small trades with low risk and high reward. It worked out, but
I should have recognized that because there was more volume because of the fed meeting, I could have
traded the continuation plays and doubled my earnings into the close for the bigger moves on less size
even. Need to understand when to switch strategies. This was one of those days.
So this was one of those days after we just announced yesterday we were in a tough trading market. Lesson? Do not overvalue the past. Be ready for new opportunity. Take breaks in your trading but stay connected for easy opportunity. Part of our job is just to show up and be ready. Never convince yourself there is no opportunity coming.
My response to trainee b:
good job being a pro today.
pros show up even after tough trading days and are there for the easy days.
Bella
2 Comments on “Trading lesson of the day”
What you say is true, but its not fair to call any day easy after the fact.
If it was easy, you’d be worth 10 billion.
You’re not.
My point was that some days are easy when you do not expect them to be. And a trader should be careful to conclude there is no opportunity a coming. Our blog is for people who make a contribution to the trading community. Your first sentence makes a contribution and we appreciate. The other sentences are outside the trading community we have built. If you continue with personal attacks, more importantly non productive contributions, you will be blocked from visiting our blog. Disagree all you want and add your point of view. But we do not demean each other on the SMB Blog.