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I'm sitting here getting frustrated, waiting for my reversal, and I'm just not getting it. |
But you know what? I'm not gonna force anything in what is a fairly slop marketplace. |
That's the thing nobody tells you about professional trading - sometimes the best trade is no trade, and it pisses you off. |
Right now, I'm looking at my screen and it's pure slop. Tech is slopping around. |
The advance decline line could probably be six stocks. |
Hell, it could literally be Apple, Amazon, Microsoft, and then we're done counting. Even Broadcom isn't exactly moving things out there. |
And here I am, admitting something that'll probably shock you: I just paid a dollar nine for a 682 put in the XSP, knowing absolutely nothing. |
Yeah, you heard that right. |
A professional trader just told you he made a gamble based on gut feeling. Does this mean the market has to reverse? Hell no. But if it does, it would be something spectacular. |
The Portfolio Margin Reality Check |
I was looking at Costco earlier - oversold, begging for a bounce, perfect setup for a bullish trade. So I start pricing it out. |
The spread I wanted? Trading for $2.60, but only worth $2.50 intrinsically. That's not a good price. Even an out-of-the-money spread is trading for $2.05 for a $5 wide spread. These prices are egregious. |
But here's the kicker - even if I wanted to force this trade, it would eat up too much buying power for the reward. |
You know what I said? "Forget that crap." |
That's the difference between having portfolio margin and actually using your brain. |
Just because you CAN make a trade doesn't mean you SHOULD make a trade. |
The Chicago Trading Floor Revenge |
You know what this reminds me of? Back when I was getting tortured on the Chicago trading floors. Those guys made life hell for anyone trying to learn the game. |
I'm looking right at you Todd… |
Well, this patience when markets suck? This is our revenge. |
While retail traders are panic-buying every dip, we're sitting here saying "nope, not today." That's the difference between floor pressure and professional discipline. |
The Discipline That Separates Professionals |
Here's what separates the pros from the amateurs - we get frustrated too. The difference is what we do with that frustration. |
Yesterday we rallied 90 points, completely reversed, rallied again, completely reversed, rallied again. You can't make this stuff up. That's not a market - that's a pinball machine. |
But you know what? |
That was actually a great trading day. Multiple opportunities if you had the patience to wait for them and the discipline to take profits when they appeared. |
Today? Pure slop. And instead of forcing trades that'll lose money, I'm sitting here telling you exactly what's happening. |
The Real Cost of Impatience |
Look, I get it. You see other traders making money, you see opportunities everywhere, you want to be in the action. That's human nature. |
But here's the math that'll save your account: If I can be up 50%, I can be down 50%. That's just a very simple argument. |
The XSP put I bought? Down 46% right now. Does that bother some people? Sure. Is it the end of the world? Nope. Because I sized it knowing this was speculation, not strategy. |
The Bottom Line |
Professional trading isn't about being in every move. |
It's about recognizing when markets are giving you nothing and having the discipline to wait. |
Yeah, I'm getting frustrated. Yeah, I want my reversal. But I'm not gonna blow up my account chasing ghosts in a slop market. |
The advanced decline line hasn't budged this morning. Ticks are completely flat - scattered and broken. There's nothing going on right now. |
That's the real edge - knowing when not to trade is just as important as knowing when to pull the trigger. |
Don's getting frustrated, but Don's staying disciplined. That's why Don's still here after all these years. |
To your success, |
Don Kaufman |
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