Staying Out of the Market

Discussion in 'Risk Management' started by Discipline101, Jun 11, 2012.

  1. Do most people here subscribe to the idea that there are times when you should completely stay out of the market? I was reading an article about it, and the guy said just don't even trade for long long periods of time.

    Is that true?
  2. I tend to do that mostly when I am asleep.
  3. Div_Arb


    Absolutely. There are certain times when an edge simply doesn't exist. you can force a position, but usually the market just chews you up and spits you out. My edge diminished right after April option expiration to May expiration. As a result, i only take A++ setups and risk a quarter to a half of what I usually do. Jessee livermore has some good quotes on staying out fo the market that i am too tired to type here. Do some searches and I'm sure you'll find them.
  4. achilles28


    Indeed. Trend followers get chopped up in ranges. Range traders get chopped up in trends. Usually, the best advice is to pullback and trade higher time frames (10-15-30 mins etc). The sub 5 minute time frames alternate between trend and chop throughout the day and can trigger many losses. Best to trade RMH, during peak volatility.
  5. ==============
    Neat words.:cool:
    amen on the higher time frames[10-15-30]

    Ten, fifteen, thirty[Also,10 years, 15 months,30 days];
    can include some great trends./low comssions/costs. Some 30 minute ''ranges'' or sideways trends i name them , are just a pause on a great up trend or great downtrend.

    Most of the money made in markets[past 200 years, in US];
    is made in investnents, not trading .

    But by definition;
    a trading time stop gets hit:D . So yes, i sometimes use ''time stops''. 'Disciple 101, good question, not that trading research stops...................................................
  6. achilles28


    Nice post, Murry. Thanks for hint on time-stops. Makes perfect sense. Never really got that aha until now :D
  7. lindq


    At the top of the list of personal qualities a trader MUST have in order to succeed is: PATIENCE.

    Patience to wait for the right market conditions.

    Patience to wait for the right trade setup.

    Patience to wait for the trade to play out.

    Now, I didn't say it was easy. But it is necessary.
  8. Absolutely true.


    If your trades are based on objectively measurable market factors and they say to go in, then you would only be psyching yourself out not to take your signals. Of course, you then have to ask yourself constantly if you are measuring the right things or not, but that's a completely different aspect of trading.

    Also, don't get so focused on only one market that you lose sight of the fact that there are many markets out there to trade. When one is in a funk for you, perhaps another would be giving you good opportunities and vice versa.
  9. ============
    I was riding along with a female driver several years ago.She paused at a red stop sign[or time- stop,LOL] Also i noticed this was a pattern, with her.

    I casually mentioned it, not wanting to start a fuss; a pause is not a stop at all ..No response at all from her...

    Within several months later;
    a policman wrote her a ticket, explaining a ''time stop/stop sign.''LOL:D ,She told me.

    I guess all have run a stop at some time:cool:
  10. vinc


    definitely yes! I'd even go a bit further - stay completely out of the market ALL THE TIME !
    for a majority of people it's an EDGE takes patience indeed :)
    #10     Jul 12, 2012