Last week, I told you how my Trade Monster was trying to rear its ugly head so I knew I had to do something to tame it. For me, it means getting out on the lake. For you, it may mean something else. Ultimately it’s just about doing something that will center yourself. I love the stillness of the lake first thing in the morning with the mist coming off the water, just as much as I love the sunset over the fall trees.
I may have told you at least once that I’ve been working on my fishing skills, and I’m so proud of myself for making two new strides: one, we caught our biggest fish yet (a nine-pounder) and two, I learned how to fillet it myself!
But this newsletter isn’t about my fishing skills.
It’s about finding the calm in the storm and recognizing the importance of taming your Trade Monster…
While I’m out fishing, I may lose out on some great setups. But more importantly, I also miss out on trades that could wipe out my account.
We as traders have to understand that we can only trade what the market gives us. Since the COVID crash, IRS has shot straight up, but just like a runner who needs to take a resting break, the market is doing the same. For momentum traders, this can be a bit boring but it presents an opportunity to reset.
Also, when the market trades sideways, there is great news — that means squeezes are setting up all over the place. So, right now, it’s quiet but I don’t anticipate that’ll be the case for long. Tell me how you’re taking your trade monster… because I want you to be ready when this consolidation breaks. I don’t know when it’ll happen, but I know I want to be in on the move!