Try to sit still for 3 minutes. Completely still. No phone, no computer, just you and your thoughts.

It is a much more difficult task than I bet you imagined. Sitting still is one of the most overlooked skills in life and in trading. Being still has more benefits that a lower heart rate and being in a relaxed state.

Sitting stills allows you to reflect, development and improve your mental well-being. If you were unaware, I had my wisdom teeth removed this morning. So, as I sit here on the couch for hours on end this couldn’t be more true. I am able to sit back, relax (with pain medications) and reflect on my goals, strategy, health and everything else in my life with limited distractions. This would not be at all possible if were up moving around going about my daily routine – there is no down time in this case.

Back to the markets, as we all know the market is trading within a range, which is frustrating to many traders. As for us, we still do not see the quality of set ups needed to initiate new swing trades in this area. We have been speaking about this phenomenon for about a month now, with no improvement in the quality of set ups. To us, this either means the market is in a distribution stage in the rally (sell-off comes next), or in a consolidation period in which many stocks just form bases to breakout from in the future. Whatever the case, it does not matter to us, the one and only thing that ever matters as a swing trader is taking the trades you are given, in this case, there are none.

So, we sit and watch. Sitting and watching the financial markets is just as difficult as trading them. The concentration level is the same, as it is vital you do not get sucked in to a trade that is not a part of your process.

Knowing when to sit and when to run is a skill that will serve you will in your life and within your trading career. Take it easy, you are in it for the long run. This is not a good rich quick scheme, it is a consistent profitable business we are trying to develop.


The Skill of Sitting & Watching