77sigmatrading
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An extract from a post, hoping it will help:
Someone really good at trading once said: “There is time to go long, time to go short and time to go fishing”, and from today up to Sunday is time to go fishing for me.
As a trader you are free, you could trade 24/7, at anytime there is an underlying that you could trade. It’s up to you to decide what is good for you. As I said in one of the previous posts you have to ask yourself, what is in your best interest. Why do you think professional poker players are not playing all the hands? The answer is easy, they know when to fold.
And this is for us time to fold, triple witching day, elections in Greece these are all variables that come into play in our game. It’s important to understand first of all the difference between an investor and a trader.
The investor has a different time horizon than a trader, both study the political framework, the underling economics and once he made his/her mind he/she will pull the trigger, but the investor will stay in the position as long as he/she thinks that the underlying assumptions have not changed. On the other side we as short term traders we play the probability of a move intraday or on a time span of few days if we are swing trader, but we never keep a position longer than that. Because we are surfers and we know that the shore is near, have you ever seen a surfer who start riding the wave miles from the shore?
We play based on the assumption that “there is a random distribution between wins and losses for a given set of variables that define an edge”. Therefore if there are new variables in the game the probability that our edge works decreases exponentially.
Someone really good at trading once said: “There is time to go long, time to go short and time to go fishing”, and from today up to Sunday is time to go fishing for me.
As a trader you are free, you could trade 24/7, at anytime there is an underlying that you could trade. It’s up to you to decide what is good for you. As I said in one of the previous posts you have to ask yourself, what is in your best interest. Why do you think professional poker players are not playing all the hands? The answer is easy, they know when to fold.
And this is for us time to fold, triple witching day, elections in Greece these are all variables that come into play in our game. It’s important to understand first of all the difference between an investor and a trader.
The investor has a different time horizon than a trader, both study the political framework, the underling economics and once he made his/her mind he/she will pull the trigger, but the investor will stay in the position as long as he/she thinks that the underlying assumptions have not changed. On the other side we as short term traders we play the probability of a move intraday or on a time span of few days if we are swing trader, but we never keep a position longer than that. Because we are surfers and we know that the shore is near, have you ever seen a surfer who start riding the wave miles from the shore?
We play based on the assumption that “there is a random distribution between wins and losses for a given set of variables that define an edge”. Therefore if there are new variables in the game the probability that our edge works decreases exponentially.
