The problem a lot of traders have, including option traders, is over trading. Just because you are around the market or have your computer open, does not mean you have to trade. Trust me, this is easier said than done. Traders need a mental break from trading even if things are going well, and the holidays might be the perfect time for some downtime.

I have talked to plenty of option traders and investors in my career at different stages of their success or lack thereof and under different market conditions. But I have found this current market to be universally a little more difficult than most. For the most part, traders I talk to agree, asking me what they should do or consider, and I tell them not trading is always an option.

I find myself telling them that the market will always be there…I promise. But as a trader, particularly a full-time trader, you sometimes feel the need to trade every single day. You can’t make a lot of promises when it comes to trading. But in this case, I promise you that you do not have to trade every day. As traders, we try to always put the odds in our favor. If you do not feel the odds are in your favor, why trade?

Forcing trades or making trades that are more like guesses is not going to develop you into the trader you want to become. And let’s be honest, how many trades that you have forced, whether during uncertain market conditions or after a losing trade, have worked out? So, although it is not glamorous and you won’t be able to increase your P&L, sitting on your hands and doing nothing at times can save you a lot of money and angst – that I can promise you!

I truly hope you took some time off around Thanksgiving, and I don’t mean just Thursday. With December here, make sure you plan some days off and not just when the market is closed. There is a good chance your trading will improve.

John Kmiecik, Market Taker Mentoring