The importance of doing "No Trade"

Australian cricketer-turned-commentator Dean Jones, in an interview for Wisden, observed that two-thirds of Sachin Tendulkar’s game is based around defence. Most of the shots in any Sachin century, he says, are based on forward defence, back-foot defence and letting the ball go. As any coach would vouch, letting the ball go is possibly as important as hitting good shots in the career of a batsman.

With analogies from the world of sports, we discuss why “doing nothing” is just as important a strategy in the world of trading as action.
In the trading there are huge incentives to make correct decisions. Trading can be simple or complex based on the trading strategy you want to follow. After the 2008 financial crises modern information economy is constantly throwing out gigabytes of data, coaxing the receiver of this information to react. The institutional imperative for professional trader as recipients of the information stimuli is typically to react by trading in the markets. You have emerging country crisis, Fed Tapering China data to digest all ..

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