Traders make trading harder than it should be – it seems that all traders move towards a point of maximum complexity, followed closely by maximum confusion. Listening to a lot of the chatter recently people seem to be trying to trade when there is no clear reason to be trading.
There is no rule that I have found anywhere within markets that says you have to trade all the time or that you have to trade every instrument all the time.
As an example consider the chart below of the All Ords – all I have down with this chart is to highlight the 12 month highs. There is nothing special about the number 12 it merely approximates a 52 week high on a monthly chart.
You can clearly see that there are times when the market is trending and times when it is not. If you are a long term equities trader you want to be in the market when it is trending and at present it doesnt seem to be.
A lot of traders worry incessantly about missing the turn in the market believing falsely that this is where all the money is made. The money is actually made as markets begin to trend not as they churn around the turn.