Hey Guys,
Yesterday the market ended up dropping a ton. The S&P futures (MES) dropped over 200 points from its high earlier that morning. Today it opened up at about the same spot. The market is clearly in volatility mode right now and could make big moves in either direction.
Despite all the turbulence, I came out essentially unscathed. In fact I had two positions close for profits this morning. SJM reached its time limit and nudged out a small profit this morning. And somehow APA reached its profit target this morning even after the market's meltdown yesterday.
Sometimes it can pay off to be patient with trading. Many people (including me sometimes) want trading action. It can be hard to sit and "do nothing" at times when it comes to trading.
To my mind, though, making money as a trader long term might involve patience. In particular, tolerating periods without a lot of trading activity might be key. This week our patience paid off. We didn't force any trades and only took the trades that set up for the trading strategy conditions. Since there were only a couple, it set us up to be unharmed when the market tumbled. Back tests also suggest that patience like that can pay off over the long haul.
I haven't made any new trades today yet either. I'm just going to stay ready and when a trade triggers, I'll jump on it.
If you have any questions or feedback, I'd love to hear from you.