I have lost my feel for the market while being away for the past two weeks-
pre-wedding, wedding, honeymoon. I sit with a terrible case of jet lag, disconnected from the markets, and out-0f-shape trading skills. I am sure many used last week to catch up with family and friends, rest, and truncated your trading week. For me two days away from the market leaves me off my game and with adjustments required. So there are probably plenty like me with a reduced feel for the market with that Monday bell hours away. How do we get back into trading shape?
1) Brush up on the technical levels for the major indices
2) Rip thru charts to see what has been hot
3) Lower your tier size and intraday stop loss
4) Limit the stocks you will trade
5) Map out the best setups For You for Monday and stick with them
6) Lower your expectations
I will draw an analogy to basketball here. Let’s say you are getting back to the game. When you first return, you set some picks, only shoot open looks, and let others on your team do more. You need to get your game and legs back. So Monday this is what we can start doing as traders.
I will not have a feel for the markets since I have missed two weeks of screen time. I need to sit, watch and regain my timing and touch. Three days of simple plays, with smaller size, and lower expectations will return my trading legs, feel and form. But Monday is a day to stay out of trouble. And overtrading, not acknowledging my diminished trading feel is a mistake.
Author, One Good Trade