Trading has become "Boring"

Trading has become “Boring”

May 3, 2017

Trading has become “Boring” to me (and I’m not trying to be conceited or smug) Sure I could use a better word than “Boring” but I wanted to catch your attention and boring seemed a good word to do that.

So what do I mean by “Boring” ~~ I mean ROBOTIC which is good … By boring I mean you are Treating Trading like a JOB…

This is what you want. You want on every trade no matter the time-frame of the chart or the length of the trade to see the indicators you use on your charts and make that buy or short based on the indicators you use.

When you take this trade if someone were looking over your shoulder you would be able to explain to that person and show them the reason for the entry.. You must be able to explain the trade.

You know once you take the trade no matter how good a setup, it can go against you and not work but you’re fine with that because you have the proper position size for that scenario. You don’t let anyone trade kill you. If the trade goes against you, you can pinpoint what you were off on. Perhaps the time of day was off or the SPY was moving down at the time etc.. Not to say a trade can’t work even if SPY is moving down such as a momentum trade. But this must be in your thoughts on a trade. Market conditions are important.

If you’re day-trading, time of day what the market is doing volume in the stock you’re trading are so important. If you don’t have these things in your favor your trade may not work so you’ll have to remember that the next time you go long at 12:15 pm et on a trade; “Time of Day”

Many times someone will ask me what do I think of XYZ stock. First thing I do is look at time of day; what is SPY doing and look at the chart set up …. Are we above the moving averages is the stock getting volume does it have r/s(relative strength ) or weakness? Is this a news related trade are we breaking above a base or a hod (high of day )or is this a stock that has gotten hit that day and trying to make that 11:00 is turn around?

After taking the trade and it works you expect this because you checked off all those important things above when taking the trade. When it works you don’t get too excited because this is your job – to make winning trades. (When it works your mind should go into take some off the table perhaps in 1/3 rd’s and use your indicators to keep you in the trade as long as possible) By that, I mean for me if I’m day-trading, is it holding above the 8 ema or 20 ema or vwap on 5 min chart (or whatever your indicator is.)?

Each day as a trader you start the day at zero and your job is to get to green. { If a new trader, some green is always good} if you are a seasoned trader, you have a daily goal but know all green is good and your daily goal will depend on the markets and how they’re acting that day or week. Over time it becomes easier to get the feel for the markets for each day.

How many have gone on vacation and come back to the markets – it takes time to get a feel for it again

As a seasoned trader you want to make that goal as fast as possible (with limits to risk) to be done trading for the day. There is nothing like making your goal in the first hour of the day and then being able to shut it down. You have made money in the prime market hours with volume time of day and your system worked. You know not to push it and keep your money.

If new to Trading, have a mental checklist. Is this the setup I like? Is time of day good? What are the market conditions? What is the SPY or IWM or QQQ doing? Are we in a down trending day, a strong upside day ? Am I able to explain this trade? Is my share size proper? Am I chasing an entry?
I’m treating this trade in a boring “Robotic” way. Am I treating my trading like a JOB??….