M8DBOID EC001The New York Stock Exchange started off quietly but it started moving briskly. Too bad that the movement was volatile and didn’t really decide on a direction soon enough or for much of a duration. As much as I would have liked to trade the market continuously, I know that it’s just best to leave these types of days alone and move on to the next order of business. In this case, the next order of business were other asset classes that I had my eye on since Thursday to trade. I did keep checking on the Dow but as much as I was hopeful, I saw that my decision to not trade anymore was vindicated.

I saw price action on Orange Juice that I liked on Thursday and I felt like it would carry through in today’s market. Additionally, I liked the way that Feeder Cattle was shaping up so I prepped myself as to what strategy I would take today.

I think it was Mike Tyson that said “everybody’s got a plan until they get punched in the mouth”. I think this day describes that pretty well. Thankfully, I didn’t get punched in the mouth. Rather, I just suffered the indignity of the market not moving much at all. Orange Juice is something I don’t really expect much out of. It really is a supply and demand kind of thing where the moves I like are predicated on news and shocks to the system. Feeder Cattle though, is something where I go in and expect to make money gloriously – or lose it violently. Once those late morning hours hit it’s either you are positioned well or your PnL is going to hemorrhage cash. Today, neither happened and I was just left there sitting in my desk like “duhhhhh…”

I can’t complain. Days like this where nothing happens is a good thing however, I obviously can’t afford to have a lot of days like this because the business is dependent on making as much money as I can on as many days as possible. This is a reason why I don’t really go “on vacation”. My vacations are more like excursions with my laptop in tow frantically searching for a 1st , 2nd and third option for free wi-fi (this reminds me, I have to go and research turning my phone into a 4G hotspot). The most of my action was centered on the New York Stock Exchange open. In this case, I’m glad that I didn’t overtrade and that I dug out whatever I could dig out. As much as I didn’t like the back and forth volatility, it was probably saving me from my bad reads on the market. I made my decisions quickly, I did whatever I could do to save capital and keep business expenses low. All in all, I’ll take a neutral day over a losing one any day of the week…as long as I don’t have too many of those days.

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2 thoughts on “All Quiet, No Motion Detected

  1. Discretionary trading is a grind. You will have some easy trades that will make you fell like you have it all figured out, then their will be the streaks if bad market conditions mixed with bad or worse trading. A mental break/vacation is necessary if not deserved. Perhaps scheduling vacation time around FOMC days or worth planning a break around.

    Good trading!

    Liked by 1 person

    • thx for visiting trin!

      I actually implemented that rule 3 years ago about FOMC days. on the Monday & Tuesday I am drastically scaled down on all my trades. i’ll pick a couple here and there to take size in. on Wednesdays, I only take one very quick position if at all.

      the business is definitely a grind. but i’d like to think the grand prize is worth all the struggle.

      Like

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