Summer times are hard for traders. The is an ever lasting discussion about what a good trader is supposed to do. The world, as always, is divided in between discretionary traders and systematic ones. Two different universes with different characteristics and behaviors. But with the same problems as long as the sun arrives to shines the trading landscape.
If you are a discretionary trader holidays are really hard to deal with. Markets are seldom in a trendy mood and for the most part of the time are in congestion. So that theoretically holidays are not allowed: if you are on holiday and the trend comes what the hell are you losing such a rare opportunity to make money ? You will reply that never happened a bull market in stocks in August, there is nothing more true than “Sell in May and go away”.
But I correct you: it was true up to 2007, then seasons were broken and nowadays you are witnessing a bull market that looks like something never happened so far. So what to do ? To go on holiday or to make money ? Hard to say, if you are a scalper this really does not matter since trends are always in the market, but if you are a swing trader the temptation to stay home or to return from holiday will really be strong.
There will be a little difference if you are a futures and commodities trader: commodities more or less trend all the year long, that is there is always something that show a big trend so probabilities are really low that you will miss a big trend if you go on holiday for 3 weeks.
Then let’s come to the systematic case. If you are a systematic trader you are professionally dealing with probabilities and you well know that opportunities should be taken all, not just one and the other not. No second guessing is allowed.
No choice among trades. Trading should go ahead all the year long, without stops, without pauses, without hesitations. So what to do with your systems while you are driving towards Greece, Italy or South France with your family ? What to do while you are sailing with your 30 years younger girlfriend towards the Greek islands ? You need a buddy, you need a fellow trader that places the orders for you. But you decided to become a trader because you did not want to have partners, secretaries, customers and providers.
So you are in a mess, you would like to go on holiday, you esteem you deserve them, but you cannot avoid to have a partner. Or worst you would not avoid to sit in front of the screen. At this point your choice is only one: you need to have a summer house, equipped like the winter one, where you will do the same that you were used to at home: trading.
No psychological cut from the ordinary life, no relax, in conclusion no holiday. Otherwise you can decide to have a secretary that places the order for you. But secretaries sooner or later will become pregnant, will divorce, will go on holiday them too. If you decide for a partner sooner or later he will steal some money, go on holiday and you to stick to the guns, destroy your capital with poor execution skills.
Trading is a difficult job where profits can be huge but also the problems a man should overcome.