'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Friday, February 24, 2012

What's That Pattern?

Sometimes the market gives you a puzzle that you can't ever imagine how the h??? the market is giving.

Like this Friday's early trading as shown below.

By just looking at it, unless you are a computer HFT or a Quant maybe - you can possibly trade it.

But for a discretionary, it needs a lot of guts and a suicidal to trade it?

That's where you can exercise discipline.

If the market showing you that you can't figure it out and you don't know what is giving you - "then don't do anything" as one great trader profess (Jim Rogers).

Stay on the sideline, find other instrument that you are capable to trade but don't make it a dozen.

Unless you are a fund manager, you can diversify.

But as a trader, just explore from a few probable instrument that you can master/familiarize and stick with it.

Don't be jack of all trades, master of none!