We are in the toughest trading markets in the last 35 years. And since September is traditionally a largely negative market, even during the Bull, in-action may be the best answer for traders.

If the Pros are getting crushed, this is an important lesson for those of you that trade.

Today's title is an old proverb from western culture. It is also an important realization for many developing traders as they develop.

There are two common problems for developing traders. First, is a lack of patience and discipline. Second,

is not having the ability to know when doing 'nothing' is the correct, best, and most profitable option. 

These problems can show up in two very major ways. Both of these are common to new and even to seasoned traders.

First, traders with the above problems will overtrade. The lack of patience and discipline causes them to take a trade before it has developed properly, or to take one that was not even in the plan at all. Many traders feel the need to be doing 'something' to put their skills to use. Many fail to understand that sometimes, 'that something,' should be waiting for the next real opportunity.



Second, traders in low odds market environments with the above problems will have a tendency to enter and exit trades early without a good technical reason. How many times have you entered and exited a good trade for partial profits, and watched from the sidelines as the trade went on to its original target? Or worse yet, re-entered at a poorly planned entry and stopped out? Traders who have the need to do 'something' all the time often over manage trades. When they look back, they often had no reason to exit or no reason to enter but may not see this as a problem because they were 'managing' the trade. 



Part of your decision making process will come from your planning and the simple understanding of what time frame you are trading. Traders who are open to multiple time frames (i.e., day, swing, and position) will have the flexibility to find more plays. If you are swing trading only, for example, you need to accept that it is more likely that there may be periods of time when you should not be trading.




There are three things that will help. First, just accept the title of this memo. The decision to stand aside IS a pro-active decision. Second, a well-laid out trading plan will give the foundation to your trading to stop making decisions from 'boredom'. Third, just ask yourself this question. Am I buying or selling here because this is the proper action based on my plan, or am I just looking for something to do?

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