What to do on a day when, after two hours of trading, the Dow has changed only about 10 points? And what if the other futures are about the same?
This is a rare event, when most of the futures markets are under an umbrella of low volatility and are trading mostly sideways. Sometimes it happens prior to a major news event, when traders are unwilling to commit to any action, so the market trades sideways, with low volume, or in an erratic fashion. This sometimes occurs prior to a major Fed decision or in anticipation of the NFP or a crop report.
However, I usually keep some good trading books near my desk, including all the ones I've listed in the right column of this blog. Phantom of the Pits recommends keeping a good book nearby to read on a day when trading goes poorly. This helps to prevent negative thinking and a poor attitude from becoming entrenched. I use this same tactic on days when the financial markets show relatively stagnant activity. I like to use the time productively, even when the financial markets are difficult to trade.
Rarely do I read for an entire day, however. There is too much going on in the world's financial markets for them to remain stagnant for more than an hour or so. There is the temptation to walk away from my desk and do something else, even if for a few minutes. However, it seems that there is a gremlin that seems to know when I am away from my desk, because inevitably when I am away from my desk, something will happen that will cause the markets to take off, and that little gremlin makes sure that always happens when I am away from my desk.
The market gremlin always knows! Darn his hide!
This is a rare event, when most of the futures markets are under an umbrella of low volatility and are trading mostly sideways. Sometimes it happens prior to a major news event, when traders are unwilling to commit to any action, so the market trades sideways, with low volume, or in an erratic fashion. This sometimes occurs prior to a major Fed decision or in anticipation of the NFP or a crop report.
However, I usually keep some good trading books near my desk, including all the ones I've listed in the right column of this blog. Phantom of the Pits recommends keeping a good book nearby to read on a day when trading goes poorly. This helps to prevent negative thinking and a poor attitude from becoming entrenched. I use this same tactic on days when the financial markets show relatively stagnant activity. I like to use the time productively, even when the financial markets are difficult to trade.
Rarely do I read for an entire day, however. There is too much going on in the world's financial markets for them to remain stagnant for more than an hour or so. There is the temptation to walk away from my desk and do something else, even if for a few minutes. However, it seems that there is a gremlin that seems to know when I am away from my desk, because inevitably when I am away from my desk, something will happen that will cause the markets to take off, and that little gremlin makes sure that always happens when I am away from my desk.
The market gremlin always knows! Darn his hide!
