Hey Guys,
The market is still down this morning. The S&P 500 worked its way above the 3800 mark early on but has since tumbled back down and is around 3760 at the time I'm writing this.
There are no new trades yet today. This marks two weeks in a row of very light trading activity.
It can be downright boring when there are no trades to be made. And sometimes the boredom can lead to frustration. But if we make trades just because we're bored, then the odds might not be in our favor for being profitable.
My whole objective with trading is to ensure I make educated trading decisions. I want to make trades where I have an abundance of data that suggests there might be an edge in my favor. If I look at a stock and I don't know of any back-tested edge for trading it, then I simply don't trade it.
And the trades I don't make are actually just as much a part of a trading edge as the trades I do make. We're using intentional discretion here. We don't want to jump on any old trade willy nilly. We want to focus just on the trades where we believe there could be a bonafide edge in our favor.
So with that the case, I know that it's ok and normal for there to be periods with no trades, and I remind myself of that if any emotions start to come up at times like this (such as boredom or frustration). It helps me stay grounded.
Monday is a holiday, so the stock market will be closed. Happy 4th of July!
If you have any questions or feedback, I'd love to hear from you.