Learning When Not To Trade

I've found for my system that the MACD histogram of the daily VIX (12,26,9) is a very good indicator. If it is positive I shouldn't go long. If the VIX is below 25 I can ignore this rule. I was reminded of this during the last three weeks when I conveniently "forgot" about it, trying to impose my "thoughts" about how the market should go,... with predictable results.


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Dear Lord, I've been asked, nay commanded, to thank Thee for
the Christmas turkey before us... a turkey which was no doubt a
lively, intelligent bird... a social being... capable of actual
affection... nuzzling its young with almost human- like
compassion. Anyway, it's dead and we're gonna eat it. Please
give our respects to its family...
Berke Breathed, Bloom Country Babylon

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:)
 
Quote from bobcathy1:

When is it not a good idea to trade?

1. Low volume times
2. Choppy Markets
3. Day before and after Holidays
4. Lunchtime
5. When you have problems at home.
6. When you feel ill.
7. ?????
More...

Depends completely on your system and what it's weakness would be. A trend or MA cross system would get hurt in slow choppy markets, but a scalper might thrive in these times.

Generally I don't like to trade when:

I haven't had enough sleep.
I'm feeling an emotional high or low.
I'm talking on the phone or have guests.

otherwise, all market conditions are fair game to me.
 
Another great time not to trade (if not previously mentioned) is, IMO times like right now.

Divergent markets. Dow down, Nasdaq up. (and to make it worse, S&P unchanged).

These are, to me, the worst possible set of circumstances to trade. Better to do just about anything else than to attempt to daytrade. Add in weak volume...well, as bad as it gets.

This is when it really pays to be in Florida. Why I am at my desk is a mystery even to me. Going back and forth between Freecell and ET.

Peace,
Rs7
 
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