Everyday isn’t the Same

As Mario posted earlier today, what a boring day to trade.  Sure there were some pockets of opportunity in Newmont (NEM),  Research in Motion(RIMM), and the gold sector to name a few.  But I think today taken in the context of yesterday was a great educational experience. 

One of the hardest things for traders to figure out is that everyday is not a day to push it.  Some days the best trade is to scan your list and realize your plan is not playing itself out.  I know the hardest thing for me to do is to sit on my hands when I haven’t had the best day.  Saving money on days like today and not overtrading will pay off in your check at the end of the month.  The flip side to this is when the market gives you a great opportunity and leaves money sitting in the corner you have to be aggressive and take it.  When your pre-market plan is playing itself out like Monday you have to push it and take on as much risk as you can handle. 

On Monday are plan as a firm was perfect.  But I know personally I didn’t have as good of a day as I should have.  This is my fault and its my job to find out why.  I took notes of what the market looked like and next time the well-defined levels in our plan are playing themselves out I will look for spots to add-on more size to my trades.  I also will look to have more positions in a broader range of sectors, so as to catch more of the move.   When the market pulls back into support and pauses I need to be more confident to put on more positions.  As traders we need to take advantage of days like Monday because days like today are always right around the corner. 

Nothing that happened today fit my plan.  I let the algos in RIMM chop me up even though I had the right side.  The volume was lacking in many of the moves today and it was very evident early in the day that it was going to be a tough day.  The key is don’t let these days go by without learning from them.  Learn to be disciplined when your plan isn’t playing itself out.  The disciplined trader will be around to take advantage of the good days and the gifts that the market sometimes provides.  Best of luck and have a great night. 

Kyle