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About today’s action: took a small loss early and then watched as the market got away from me. Most importantly, I did not chase the market and take a trade that is not my edge/setup.
And that is a great lesson in trading discipline.
I have been wary of going long the last few days because of the high probability of a government shutdown. So when the market exploded going through ONH & PDH at 11.23 a.m. all I could do was watch with awe. There was no news of a deal being struck to keep the government open so I don’t know the reason for the rally. I sat it out and chalked it as a missed opportunity - it’s healthy to do that from time to time rather than try and force a trade that is not your edge.
“It’s better not to make money, than to lose money.”
If I look back on my trading career especially the first few years, it was riddled with random trades, trades which didn’t fit my edge/setup because mostly I didn’t have one. It was shoot from the hip approach and all of us know what kind of results that leads to.
But as I learned to have an edge/setup and then trust it by seeing it work, I became more and more patient and objective about the process of trading. I still have weak moments where FOMO takes over or I skip plump trades because my thoughts say something else, but these are a lot less than when I was a novice.
So, remember to have the self discipline to only take A+ trades and you’ll have a long and fruitful trading career.
Tomorrow is a blockbuster data day with Core PCE at 8.30 a.m. and Michigan Consumer Sentiment at 10 a.m.
Tomorrow is also the last possible day Congress can reach a deal to avert a government shutdown so watch out for breaking news that can roil the markets.