17 & 18 /3/10 – Being flat is a position

So no trades for me the last two days despite there being some big moves overall. 

Both yesterday and today during the very early morning there were no set-ups for me on either a system or discretionary basis.  With hindsight it was obvious that there were some good trades later in the day but by that time I was quite happily moved on to other things.

Now there might be some people reading this thinking,  ‘Calls himself a trader eh?  He should be scouring the markets looking for something to trade etc’.  The honest truth with me is that I do nothing, absolutely nothing unless my set-ups appear.  And if that means sitting on my hands for two days like this week then so be it.

Remember we have 3 options in a trade:

To buy or go long

To sell or go short

To stand aside and do nothing. Being flat.

Those are our three options and you would do well to remember that being flat is a position.  The best trades will leap off the chart at you.  Forcing a trade because you feel the need to do something is a sure-fire way to ruin as a trader.

We have the conditioned response from the rat-race that we need to be doing something, we need to be placing trades and managing positions etc.  This is all well and good when you’re a corporate warrior looking to justify your salary but will get you into big trouble as a trader in the markets.

So remember that being flat is a position.  Having the patience to wait for your set-up, even if that means waiting for a few days is what marks a professional from an amateur.  Trading for tradings sake because you feel the need to be doing something is a sure-fire way to lose capital.  To finish up I came across this quote from the legendary Jesse Livermore which resonated with me and I now share with you.

After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting.

Trade well!

FXTrader Paul

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About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

View all posts by FXTraderPaul

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One Comment on “17 & 18 /3/10 – Being flat is a position”

  1. Jimmy_FX Says:

    Spot on – well put and thanks.
    Jimmy

    Like

    Reply

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