Knowing When to Step Aside

                Having a good trading system is important, but it is equally important to know when to step away from the computer screen.  Sometimes the markets just aren’t trending well.  They are volatile and that makes it very difficult to trade.

                During times of uncertainty it can be very difficult to make good trading decisions.  You might see stocks rally 4% one day only to fall 4% the next.   You might see huge gaps and days with wide trading ranges only to level of neutral.

                These are the times every investor hates.  The uncertainty in the economy and crazy price patterns can be overwhelming.  What can you do during a situation like this?  The answer is simple, take a break.  When the market is hard to trade try not trading it for a while.

                Take a break walk away from the computer screen until the world seems to be going one direction.  Many traders will only trade when the market is trending.  Whether the market is trending up or trending down it is just easier to trade when there is a defined direction.  Some traders take that even further and only trade when there is a bulls market happening. 

If you feel inclined to be in the market you could even paper trade for a while to keep yourself sharp.  This way you can learn in a stressful environment without having to worry about losing your shirt.

 If you do trade with real money it can be helpful to only trade good set ups.  If you are finding a lot of Ok set ups where you do not get excited about them but they would pass you’re trading rules, don’t trade them.  Some of my best months have been when I only took trades I was in love with.  Trading only great setups is especially true when the markets are uncertain.  

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