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Always Be In the Market

I have always characterized trading the trend as “keeping your costs down while

waiting for the big move.” We know that to trade profitably, especially for trend

traders, you need to be in the market for the big move. Many traders stay out of

the market when it’s quiet and try to predict when the big move will occur. These

people invariably miss the big move.

Instead of trying to predict when the big move will occur, your task becomes to

minimize your losses and drawdown while you are waiting for the big move to

occur. This is a different way of looking at trading that focuses on managing cash

flow and risk rather than finding magic indicators and making good predictions.

Trading thus moves from a hobby to a business.

The only way to ensure that you won’t miss the big move is to always be in the

market.

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