And the Initiated Move Down from this Morning Finally Continues

The market showed its hand this morning when it broke down below the key support of 1094 but proved it wouldn't make it easy to capitalize on the expected continuation. Maybe you can blame it on supplemental liquidity providers (computer based algorithmic trading from such organizations as Goldman Sachs and Deutsche Bank) adding support to a selling market or maybe it really is just an indecisive market. Whatever the case, it can be difficult to maintain conviction in a trading decision as the market seems to do what it can to make the average trader change his or her mind. As we have made another new low in the final hour of trading, it still proves difficult to get sustained selling. The gap from Friday has yet to be filled (officially at 1089.25 on the ES), though it will be filled.

Like Herman Hesse writes in Siddhartha, waiting, fasting and thinking are his protagonists three best skills. These skills make a successful trader as well. Waiting or patience is necessary to avoid making hasty decisions out of greed or fear. They do call it a virtue. Fasting can be applied to holding a position without rushing to take profits. Go without profits in the short term and open yourself up for greater reward in the longer term. Thinking is obviously what ties it all together. Thinking is what allows you to analyse the markets effectively and give you the sense and discipline to fast. To fast you need patience.

Be patient and wait for the gap to be filled. Most likely, not only will the gap be filled, but we should see the ES trade down into the 1086s.

A Billionaire Said...

I read a quote of a quote on John Carter's website. He quoted billionaire Felix Dennis who said, “If you cannot treat your quest to get rich as a game, you will never be rich.” That simple statement struck a chord with me, not that my quest is to get rich, because it is not... but my quest is to put myself in a position where, with the help of having a large base of money, I can pursue other interests that I am passionate about. So, when I thought of treating this process of “working my ass of to get ahead, while putting myself at substantial risk” as a game, it made me realize that it can be fun more of the time. And, if Felix Dennis is right, it needs to be fun. Going forward, I may refer to trading the financial markets as a game...