I haven't traded this week. I placed ii trades concluding calendar week too unopen them out quickly, i for a pocket-size winner; the other for a pocket-size loser. So this volition perchance brand ii weeks where, basically, I haven't swung the bat too haven't made whatever coin trading.
I'm fine alongside that. And therein lies a lesson.
When I began trading belatedly inward 1977, I made a witting decision: I would pursue the markets, only non for my main livelihood. My marketplace activeness would ever live on to supplement my income, non establish my income.
Because of that decision, I've ever had savings form out from my trading capital, too I've had investments form out from my trading capital.
And that gives me an of import option: the pick to terminal trading.
My trading is by too large inward the S&P 500 Index. Over the concluding 20 trading sessions, the median daily high-low attain inward SPY has been 1%. That is downward 50% since June. Daily trading book is downward past times a comparable percentage.
Here are the daily closing prices for SPY over the concluding 20 sessions: 111.11, 111.14, 111.14, 110.02, 109.41, 111.00, 110.80, 111.27, 109.44, 109.55, 111.25, 111.36, 110.81, 111.11, 110.93, 109.82, 109.81, 110.71, 111.05, 111.78. That's a niggling fleck to a greater extent than than a 2 betoken range.
If I'm sitting at the poker tabular array too croak on drawing pitiful hands--a pair of depression cards, unsuited--will I live on placing large bets? No. I'll muck paw after hand. Eventually I'll depict cards worth playing.
If I'm a practiced baseball game hitter too a pitcher is pitching approximately me, volition I firstly swinging difficult at pitches exterior the strike zone? No, I'll stand upwards at that topographic point too await for my pitch. Eventually I'll larn balls worth swinging at, whether it's during this at-bat or a afterwards one.
And eventually I'll larn marketplace moves worth trading for my trend of trading.
But i primal to longevity inward markets is beingness able to stand upwards aside when markets aren't giving you lot practiced pitches. It's the majuscule I don't convey at opportunity inward markets that allows me to croak on my trading majuscule out of unnecessary risk.
To convey a passion for trading--but non a need to trade: that's a non bad house to live on if you're going to concluding inward the markets.
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