Trading Days with No Opportunities

Crude Oil futures have been a bit on the choppy side so far this week…but nothing like yesterday’s session was. Matter of fact, you might only see a chart like that maybe several times per calendar year, tops.

Crude Oil 5 Minute Chart

Now of course it is basic human nature to want => think that every trading session offers equal opportunity. After all, the market opens and closes at same times every day, right? Price moves up and down, right? So what’s the problem?

Well, just like all men, all trading sessions are not all created equal. Matter of fact, there is such a wide variance from one extreme to the other, each end of the curve stretches far out of sight in either direction. And that’s how yesterday went… farthest end of the outlier extreme possible.

The only saving grace we have in extreme adverse market conditions is aggressive risk management. Cut losses short, and cut non-performing trades even shorter. Let trades run when they will, but cut all losses short as possible. That’s how way too many turns yesterday that chopped the stops before price whipped in the expected direction resulted in nil losses chart link depicts.

Cut losses short. And cut non-performing trades asap. Don’t worry about what gets missed, focus on what can be caught when price action behaves somewhere in the middle of its normalcy curve.

Trade Well

For more daily updates from Austin, visit his blog at Coiled Markets.