About a year ago I wrote a blog on the "silly season," as I call it. The silly season starts on December 15 and extends through the first week of January. The silly season has nothing to do with telling jokes and laughing at funny things, but everything to do with trading.
Trading is a serious business. If you want to be successful you have to practice, just like an athlete would. I don't think there is an athlete out there who just woke up and said I'm going to be a world-class athlete and achieved that goal without practicing.
After December 15 most successful traders who made their money during the year are headed to either Florida, Palm Springs, or just taking a break to spend time with family.
What makes the silly season, silly?
It has everything to do with the lack of volume in trading. When you have very little volume it is easy for markets to be, forgive me because I am about to say the M word - manipulated - by just a few traders. You do not want to be ending your year at the mercy of markets that are erratic at best. You may as well just head out to Las Vegas and take a shot at the roulette wheel.
So how can you avoid this trading trap? Here's what I do every year: [Read more...]