Trading Frustration
Have you ever been frustrated by the market? Trading frustration happens to everyone. One of my greatest trading frustrations is to have a very good idea about what the market is going to do, but it doesn’t give me an entry. Friday was a case in point.
Friday Trading Frustration
Thursday was a narrow range day. When a market trades in a range-bound manner, that can be frustrating, too. But, at least we know that the next day is likely to break out of the narrow range and we’ll get a good trading day. When the market does break out as anticipated the next day and doesn’t give a clean entry, however, that’s when trading frustration can mount. And that’s what happened on Friday.
I was anticipating a move to the upside to continue the daily trend. The 1-point Point & Figure chart showed a possible run up to 2094 on a conservative count, higher if the market could sustain a good rally.
By the US open, the market was showing a good rally–demand was evident. Despite the obvious demand and a good target objective from the P&F count, I couldn’t find an entry. Nothing set up that favored my play. I stood on the sidelines watching the market reach my anticipated 2094 objective.
How to Handle Trading Frustration
Missing a strong move like Friday’s morning rally is frustrating, but there is nothing to gain by kicking yourself. Over the years, I’ve learned that even though I missed a good trade, another good trade is right around the corner. And, that’s exactly what happened.
As the market was reaching it’s P&F target projection, I watched carefully for signs the trend might begin to turn. No sooner did it hit 2094, than it created an UpThrust, showing signs of selling right at the top. The first move down showed a shift in the wave structure, so holding the short even though there was no large downcount on the P&F chart was the right thing to do. A weak rally invited more sellers, and a strong move down set up both a decent P&F count to 2084 and a second entry. The market made its way to 2082 before becoming oversold.
Trading Frustration Lesson
Had I been kicking myself because of the trading frustration, I likely would have missed the good short trade. Worse, I would not have been thinking clearly and made poor trading decisions, perhaps resulting in a loss. Patience and the ability to keep your head in the market (and not focus on the internal state of frustration) are the mental keys to trading a frustrating day.
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