Today is Monday December 28th a.m. and the market is in slow motion.
Have you ever thought of what a Sniper does. He waits patiently for the right moment to hit his mark. In the battle field of war, it is never an easy thing to do. You have so many distractions, but your training has called for you to mentally train your mind to block everything out that is not relevent to your task, hitting your mark, what ever that may be.
Just like a Sniper, the window is very small, with little room for error. The same is true when day trading the emini futures market. You should strive for precision entries, exhibiting the least amount of drawdown against your position.
Lowering and controlling risk is the key, but how do you do that. I believe, all traders need to be able to identify if they are in an up-trending market, down-trending market or choppy sideways market. Approaching the current price action in this fashion will give you an advantage by maximizing your potential returns.
Many traders do not like to trade counter trend and that is understandable. There is going to be larger moves in the direction of the predominant trend by definition. The problem is, that the market does not wave a flag announcing its intentions.
Another issue with that, is you need to have patients to sit through the pull back and it could be a long time. As frustration can often become your enemy, you can be tempted to take non-method trades and suffer a loss.
I feel it is better to be skilled in having the ability and training of a ”Sniper”. If he is called on, he can exercise his skills in a moments notice and engage.
If you have the time to trade all day, have the discipline and patients that will constantly be tested, then yes, you could have a better risk reward ratio when you pull the trigger. When you go to the bank, you don’t deposit ratio’s, you deposit currency.
Currently it is not my plan, intention or method to trade all day. I could and have the time, but I enjoy keeping the battle down to small skirmishes, instead of a ragging war.
These are all questions that traders across the globe need to ask themselves. It is fine, if someone wants to trade all day, but that is not for me. In a later post, I will go over the different stages and times it is best to trade. The benefits and advantages to trade during certain times. This has proven to be very consistent market behavior and will point it out for all to see in a future post.
The market is in post holiday trading mode and will take this slow time to post some thought-provoking questions in preparation for the new trading year.
Enjoy!
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Tags: Day Trading
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