Tuesday, November 8

Why is it so hard to be inactive in trading

An insightful post from Dave Kelly asks the question, *"Why is it so hard to be inactive*?" in markets.  Many a trader I've known has traded very well and profitably, only to see those profits vanish through unnecessary trading.  They have trouble with patience, with the not-trading that is every bit as important to success as the trading of one's edges in markets.
 
But just as nature abhors a vacuum, people dislike boredom and non-activity.  There is always movement in markets and, out of a dislike of inactivity, it's easy to latch onto movement as a reason to trade.  That is why truly patient traders get away from their screens.  You can't feed the slot machine if you step off the casino floor.
 
Most importantly, I've never known a good trader who is inactive when he or she is not trading.  They are active in different ways.  They're consulting

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