The Waiting Game Goes On

by Olivier on April 11, 2011

As much as I’d like to, in my book there is not much out there to get exited about. Over the years I have come to respect the market’s message. I simply listen to the markets and not to what people might say or think. I have seen so many traders come and go I have stopped counting. One of the reasons so many get killed in this business is their inability to sit on their hands. Deep inside they crave the action. When the markets are not conducive to trading aggressively or do not warrant having more than average exposure you absolutely have to respect that and stay on the sidelines. If you trade although your trading skills do not match the current trading environment, or put another way, if you have no edge in a certain market environment or your strength requires specific set-ups that aren’t there, odds are not in your favour. If odds are not in your favour the smart thing to do is to wait for these external factors to set up again.

The goal is to do everything in order to stay in business. If you can manage to do that, over time you will be able to profit from countless opportunities. Never chase. Never force trades. Learn to accept there are times when it is best to do nothing. Remember: To be successful doesn’t require you to trade the markets at all times.

That being said, I am still 100% cash, neutral and I do remain in a defensive position. Preservation of capital is paramount. Everything else is of secondary importance. Although there is not much out there I am interested in I am starting to see some stocks setting up again. As soon as the market shows its hand I might buy some pilot positions in order to test the waters. This week will probably give us plenty of clues as what to expect next.

Patience is a virtue.

My public list with all my charts can be viewed here:

Buenas noches!

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