The Cyclical Nature of Trading

Hi Everybody,

The last few days have been very hard in the US e-minis with few setups as the market pushed higher with little or no reaction down. When a market does this, it does not give us a chance to enter on any ABC (3-swing) correction. But this is all right, because we had a good few days before this, so this is just the natural cyclical nature of trading, where we are now in the quiet period.

All professional traders know, and accept, that trading goes in cycles, where the good (profitable) times are followed by quieter times where a few small losses can unfold, before the good (and profitable) times come round again. It is only the Amateur (who does not understand how the markets really unfold) that demands the market give them money every day. This is simple not how the markets unfold in the “real world”.

This is why I will have to keep on reminding you all about the Cyclical Nature of Trading, and remind you all that there will be quiet days. But this is good, because after a few quit days, we should anticipate that a few good, and profitable days, should come around. Remember all professional traders must have the patience and discipline to succeed.

So let’s see how the next few days unfold

Thanks, Steve