Home > Lessons from the trading floor > Holiday Trading….

Holiday Trading….

In between Holidays after such a high octane year all traders need a break. The Vix has settle below 50, currently at 43, still very high historically but much better than the levels we have been seeing. The markets need a break, and so should traders. This year has been amazing in many ways… as intra day traders we need to learn from these events especially the speed in which events occur, so that we can take advantage of the markets once the volatility settles down.


Less volatility means more orderly order flow, less guess work. We need to recognize when we have an edge and when we don’t. Too many times we see traders enter a position for the sake of being in a position, or when we see a trader enter the most volatile stock in that moment… All the trader is telling us is the lack of discipline and the inability to do nothing when there is no edge. Trading volatility is almost equivalent to throwing a dart and hoping you hit the target. That is not a way to make consistent money.


During the Holidays recharge your batteries, get ready for next year, and write a plan. In our morning meeting today Pete said that we need to be prepared and get ready for next year. Somebody once told me that “luck is where opportunity meets preparedness”, there is no such thing as a consistently lucky person, only somebody who is prepared and ready to take an opportunity when it comes his way.


All the best for the Holidays and may Santa bring us patience…




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