Tough day today with summer price action doing what it loves to do. That is, chop around for a while in a tight range before suddenly making a rapid move in one direction when the liquidity is low.
Today it was hard to catch the beginnings of a move because there wasn’t really any of the typical bulls vs. bears battles we like to see at the potential decision points on the chart. Instead price just slipped around leaving most traders unable to take a worthwhile position.
Still, days like this are good examples of the importance of patience and making sure you follow your trading plan. By doing that today I didn’t have many trades overall, but I also managed to avoid taking any major hit to the account. Many traders on days like today will really end up hurting themselves as they search for trades that aren’t there. Don’t let that happen to you – follow your rules and take the trades the market offers instead of searching for them.
Here’s hoping for some better days ahead as August comes to a close!