Look, I get it. Trading is exciting. And sitting out can be boring as hell.
But does that mean you should be trading all the time?
I’m not sure.
So far I have been out of the market a total of 9 weeks while it trades beneath it’s 50 day moving average.
During that time I have been putting up what would have been my stock picks and have had the following results:
After 9 weeks I have 4 winning weeks, 4 losing weeks, 1 flat week and a gain of 10.99%.
So far, my results seem to be saying yes, I should be trading all the time because the goal of trading is to increase equity, and that is what I’m doing.
Of course, this flies in the face of conventional wisdom, and also in the face of results I’ve had in the past.
For sure I will know at the end of 1 year.
Another thing to consider when looking at whether or not you should be trading all the time — burnout.
Heck, trading is hard, and looking at the markets every week all week can lead to fatigue.
So whether or not we should be trading all year, it’s also a good idea to give your self some time off.
Go read a book. Go to the beach. Sit on your porch. Whatever. Just give your self a break.
You’ll be glad you did!