Patience

Patience is not just a card game, but a requirement these summer days.


As volatility drops, I find that I need to be more patient than usual (difficult for me) and wait for that trading picture to evolve. There are few of them on most days.


I know that when a market opens and there has been overnight activity, it can be out of balance and if it is, there's a trade.


I know that when news comes out that is unexpected, the market has to find a new balance, and there's a trade.


I know that as the market sets up for the close and there has been a good move during the session, there's a trade as others catch up or day participants exit.


Because I know all that, I've learned to be more patient. It's the invented trades that cost money.


It's going to be a long summer with days of huge activity as the economic situation either clarifies or becomes more obscure. Either way, I know I need to take advantage of those great days and just make sure I'm there when the market makes its balance moves on the other days.