A trading mistake to always avoid

I’d like to share a quote I read last night:

“Indecision is a decision.”

It’s from a solo entrepreneur named Nick Saraev who runs a paid community where he teaches people how to create an AI agency business -- but that’s not important, the quote is.

It’s especially easy to see in trading.

Anytime we hesitate to make a decision on a trade, we are, in point of fact, making a decision on a trade. 

If I’m in the trade and I’m hesitant to get out, that’s a decision to stick with the trade. If I’m not in a trade and hesitant to jump in, that’s a decision to stay out of the trade.

Perhaps no other business is it more important to make quick decisions than in trading. (Of course it’s actually important to almost all businesses, but trading seems to be the most obvious one.)

Now, don’t swing the pendulum too far. Rushing a decision is just as bad (often worse!) than hesitating on a decision. 

When I need to force myself to slow down, here’s the cliché I remember:

Slow is smooth, and smooth is fast.

(not strictly true, but I find it helpful)

What's in focus for markets after lawmakers fail to find a deal against an imminent stoppage.

Why it matters …

From the article…

“Some effects are already in evidence in currency markets, but much of the market focus for now is on the government’s economic data, which will cease being published and gathered if a stoppage goes forward.”

We are going to hear about this for a while. The parties are at “loggerheads” so here we go again. It is almost comical that the worry in the article is the lack of flow of government economic data since most of it is inaccurate and will be subject to revision later. Nevertheless, it is a season of political posturing. Spending cuts and balancing the budget during times of peace will solve a great deal of this. (I feel better! ha)

Comments: The Almanac and history in general predict a bear day today. It’s the last trading day of the month/quarter so positions will be exited. (Tomorrow shows to be a bull day as that capital is reinvested for the last quarter of the year.)

Red is expected (it’s actually mixed right now, but basically flat), but fear is futile. Drink a good cup of java and go for a walk. If you have dry powder … not a bad day to pick up some juicy premium.

My Bravo scan picked up a trade idea with a 1.26% return on risk into this Friday’s expiration.