I did not take a trade today. On Mondays I am cautious of the early price action because I’ve been burnt so many times. But on reconsidering my beliefs about Mondays, it is completely inaccurate of how trading works.
Every moment in the market is unique, it has never happened before, hence anything can happen.
As you may noticed by now I still hesitate, and doubt can hold me back from entering or exiting early. This is a disorder that affects all discretionary traders. For the novice/struggling trader this can lead to all sorts of bad behavior which ends up with terrible mistakes that can cause a major dent to the trading account.
The difference with the seasoned trader like myself - those bad tilting days are gone. Once the market takes off and we are not in it, we leave it. We know there will be another opportunity in the afternoon or next day or the day after. There is no need to chase the market by taking a terrible trade that does not fit the system.
If you can eliminate this problem, you would’ve done a lot in becoming a much better trader.
About today’s market action my edge/setup showed up perfectly at 10.07 a.m on the ES chart. The NQ had already formed the cusp trade 18 minutes earlier at 9.49 a.m. Once the ES lifted there was a level to level move from ONH- overnight high to PDH - previous day high, and 30 ES points were there for the taking.
As always, I hope you the reader captured some, if not all of it. The rest of the day was range bound with one exception of a headline from Israel that sold the market off quickly, but it was bought right back.
Earnings season started last week. BAC 0.00%↑ GS 0.00%↑ and JNJ 0.00%↑ report before the bell tomorrow. NFLX 0.00%↑ and TSLA 0.00%↑ after close on Wednesday. Any anomalies in earnings from major companies should give us some vol.