“Patience, Grasshopper” Sometimes Less is More For Traders.

When I was a kid one of my favorite shows was a TV series called “Kung Fu.”  When the student played by actor, David Carradine wanted to rush his education; the Kung Fu master would say “patience, grasshopper.”  The phrase is so popular it has become part of the US lexicon.  However, I’m not sure many fully understand it’s context.  What the master wished to confer was that the desire to accomplish was not enough.  The real message was that with patient dedication, hard work, thoughtful study and repeated practice that success or mastery would be the result.

I think that kind of thinking applies well to trading and the current condition of the market.  Sitting in front of our computers we often tend to rush in, but the desire to hurry the process most often produces an undesirable result.  The trader with the patience to prepare, watch and wait for the best time to act will most likely succeed.

On the Calendar

Today on the Economic Calendar we have the ADP Employment Report, ISM Non-MFG, Petroleum Statis Report and the release of the FOMC minutes.  A big day for news to be sure.  Of those reports, it’s the report on the oil supply and the FOMC that have the most chance of moving the market.  On the Earnings Calendar, there are 23 companies reporting today.

Action Plan

I have mentioned in my morning notes and several times during the Right Way Options sessions that we should expect choppy price action.  Not that I want to be repetitive, but I believe we can expect more of the same the rest of this week.  After the morning rush, you should not be surprised to see the volume to become very light as we wait for the FOMC minutes.  After their release, there will be a flurry of activity that new or inexperienced traders would be wise to avoid.  Keep in mind the big Employment Situation report will be out on Friday morning.  The market will likely once again become choppy until it’s release.

Having said all of that my plan for the day is to be very patient watching, waiting and preparing for my next trade.  I have only made two entries this week, and that number may not grow at all today.  I don’t trade just to trade I will follow my rules and remain in control of my emotions.

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Trade wisely,

Doug