Yesterday‘s essay asked the question,
“What to do when there’s nothing to do?”
It’s a tricky question. There is always something to do. That doesn’t mean there is trading to be done constantly. But there are constantly trade-related activities that need to be done.
Consider this, in a 90-minute match, a professional soccer player has possession of the ball for about 60 to 90 seconds, on average. What happens during the rest of the match? He still playing soccer, right? Even though he doesn’t have the ball and therefore he cannot score he still has plenty of work to do.
The same is true with trading. Even when the market is not conducive to your style, even when you “don’t have the ball” there is plenty to be done.
Trading should be an endless learning journey. Always seek improvement.
So when the market isn’t right for your style, redirect your efforts.
Catch up on your trade journal. What setups are the most profitable? Can you find more of those?
Examine your stock screeners. Are they still effective? Can they be refined?
Reconsider your chart setup. What indicators are there? Do you need them?
None of these actions should be taken lightly. You don’t want to fall into the trap of perfectionism or system hopping. That can work against you just as fast as ever trading. But a periodic review of your system is a good practice.
These activities will help keep you busy, help you make improvements, and can also keep you from overtrading.
What would you add to this list?
What do you do while waiting to get the ball back?
Walk the dog, go hit golf balls for an hour, take the car for a wash, workout, prep a meal in the kitchen, write a chapter in your next book and enjoy the ride!
Love the soccer analogy. I like to cook