In my recent S.C., article I talk about the herd's need for action. There are people that are in this for the thrill of the emotional highs and lows, and then there are people who are serious about making money.
Since we belong to the second group, we recognize there is a time to be aggressive and a time to be conservative. Until conditions improve dramatically, we will continue to be conservative. This means SELECTIVE. This means not taking every signal, trigger, candle pattern or any other rationalization to "catch" the next move.
Yes, there is nothing exciting or glamorous about waiting. Our capital is preserved and prepared for deployment when the infrequent but high probability setups appear. The price action at the moment is random, it can go either way and there is no distinct advantage to buying here. 50/50 trades are not conducive toward building accounts over time.
In the market timing arena, the player defines the game, not the other way around. We like to compare this to the types of poker players that you will find at the average table. There are loose players who play every hand for the thrill, and there are conservative players who are there to make money and will throw away hand after hand until a more favorable opportunity unfolds. An opportunity that fits their criteria for their style of play.
In summary in order for us to take on new risk, particular scenarios need to materialize (shared with our members). The scenarios we anticipate are ones that offer a clear and natural advantage. Whether they pay off or not is a function of probability, but when you have pocket aces, you bet on them. Every time.
We employ multiple styles of trading and investing, neither of which come anything close to day trading. High frequency will fulfill your need for action, but the high costs will not fulfill your trading account. The occasional wins that do come out of such strategies are no different than the small rewards that come out of a casino. They are just enough to encourage you to keep betting, which is what keeps the house in business. Can you clearly articulate your style of trading?