Nothing to do but wait and watch

14.20 gmt

Good trading can get boring. In fact I use boredom as an indicator that I am trading well. There is nothing to do but monitor the market occasionally, read news and blogs. Act only when my system indicates a time to act.

Over-trading is the surest indicator that one is on the wrong path. In the past month my system had 14 trades in EURUSD, 13 trades in EURJPY and 10 trades in USDJPY. By comparison, my actual trading had 23 trades in EURUSD, 34 trades in EURJPY and 22 trades in USDJPY. And compared with my 12.6 % profit in February, my system had the following profit gains : EURUSD = 88.4%; EURJPY = 82%; USDJPY = 55.1%. We can see the correlation between the number of trades and overall profitability.

So I need to figure out what to do with my time (I’ve brought up this problem before in my posts ;-)). Trading a strict set of rules is a strange kind of job – I seem to be doing nothing, and really don’t have much to do, but I need to be close to the computer and need to monitor the markets every so often. So I cannot take a day off to go hiking in the hills, or a full 18 holes of golf (I don’t play golf, but I keep thinking I should start!). I need to get more comfortable with trusting the system 100% so that I may go play golf and only fire up the laptop every hour or so and spend 5 minutes monitoring the markets and the news.

Second to the psychology of trading I have found the lifestyle issues around trading the next hardest thing to manage well.

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2 thoughts on “Nothing to do but wait and watch

  1. HellboyFX

    Cant agree with you more on these issues Zen

    On the over trading – I think this is a common occurrence among traders trying to call the market…all the time.. myself having issues on this at times
    What I do to try and combat this issue is to keep the lot sizes small..trying to gain an idea of what the market wants to do
    Losses never big but so also profits…so it has its drawdowns – but at least i stay ‘in it’

    Regarding the lifestyle issues – got the same problem here

    Was set up from home but recently got a small office away from home..although it is nice to be at home – one needs to get away from the hassles over there from time to time – im doing roughly 60/40 office/home at current

    Thanks again for your posts!

    Like

    Reply
  2. Judy

    I have to second that. I did stupid tradings just because I was bored. I still do :-). The solution for me is to browse internet and do some work for the company.

    Like

    Reply

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