Much is said about the challenging holiday period: It is the same every year, the gurus and talking heads warn of the thin holiday trading and increased risk.
A quick look at the markets shows us that we could have taken advantage of nice moves last week in several markets. The oil sector provided nice trades to the downside with a strong likelihood of at least a nice tradable bounce coming our way.
For very short term intra day traders the opportunities are plenty. Opportunities in the metals, oil and the indices, I managed to take several of them this week.
The real issue as always is timing:
In the thin holiday markets you need the extra discipline to hone your patience muscle and your mental awareness muscle. The markets can range for longer than usual with sudden whip saws on break outs.
Mental flexibility is key. Mental flexibility is a matter of working on your inner game, freeing yourself from pre-conceived ideas about what the market has to offer.
The key to good trading is not in the markets but in your ability to adjust and align with the energy of the markets. It is a two way street.
Most traders lack the connection
Traders look at the markets instead of “flowing” with the markets.
When you learn to align your energy with the energy of the markets you will spot the right trades.
Using both your mental abilities together with your intuitive creative side is the key to all mastery. Trading is no exception.
Allow the market to come to you
Allowance is a form of acceptance. When you accept that the rhythm of the market changes all the time, just as your own bio rhythm changes during the day and during the different seasons you will get a sense of what I am talking about.
Learn to relax into you trading, as you would when going out for a nice meal with a friend. Trading need not be hard, you just need to know the rules that matter in life, they are more important than your trading rules.
