A quick look at this week’s trading makes it abundantly clear: Most of the market players are away on holiday. Chances of being stopped out are higher than usual, as market makers can move the price around, quite easily hitting your stops.
Trading is addictive.
One of the greatest challenge for traders is to stay out of the markets when trading opportunities are thin, while remaining alert and focused ready for action when the right opportunity finally presents itself.
Right now the markets are ranging and the likelihood for a substantial, sudden drop is high.
Thin volume makes for erratic moves. While the institutional players are enjoying a break the junior traders and retail traders are in charge changing the dynamics of the markets.
Does this mean that you should not trade? No, it means your modus operandi needs to be adjusted.
There is always opportunity.
Right now the slow markets are giving you ample opportunity to observe your inner trading game: Notice how your thoughts are creating your trading reality. Observe your feelings before you enter a trade. Observe your patience levels or lack thereof as the urge to enter a trade takes over.
The “sitting around” while you are waiting for the right trading opportunity can be used productively. Yet most retail traders lack the ability to make productive use of their time.
Learn waking meditation. It’s the most rewarding thing you can do with your “spare” time.
This is a state of high alert and soft focus in the theta brain mode and will help you hugely to improve your trading game. Everyone can and should train their minds to enter this state at will while they are waiting for the right trade.
With practice your mind will lose the need to act on learnt impulses which are conditioned into your brain often from childhood. The inner calm an alien experience for most traders is the biggest gift you can give yourself. Granted, it is not a one day wonder. Good trading habits are not developed over night. It takes commitment, discernment and constant practice. Now is the perfect time to start developing new habits as the holiday markets give you plenty of chance to go within.
For the skills and strategies to develop good trading habits, Click Here
