It is not unusual, especially for new traders, to back off of the market for a few days when the market conditions seem remarkably unappealing. Some traders decide to take a few days off while others opt to sit and watch until they feel they can once again participate in the market as it is presenting. Some traders feel that backing off of the market is a lack of confidence while others feel it is intelligent trading. Deciding which of these apply to you requires a little bit of self discovery.



Sometimes we simply get ourselves into a habit. We dont necessarily think through our decisions to back off, we simply set that standard for ourselves in the early years and continue to respond in this manner without ever reconsidering whether it is really necessary or not. Establishing routines and habits is part of learning to work independently. If you feel perfectly comfortable taking a few days without trading, then by all means give it a go. But if you are in fact backing off the market for a few days without considering whether or not it is a good and strong option for the current development level of your skills, you might be cheating yourself out of a few good days of trading.

However, there are times when market conditions are shaky and it is definitely best to back off at the very least major trades for a few days while things settle down and you take some time to reevaluate the situation. This doesnt mean that you have to take a vacation for three days, but sometimes leaving things lie as they are until you are confident that you can negotiate the market better is the wiser choice.

So how are you supposed to know when you are lacking confidence and when you are making a wise decision? Only you hold the answer to that question. If you are apt to do things out of habit without thinking them through or evaluating whether your behavior needs to change at all, then you are most likely making the decision to back off the market without clearly identifying your reasons at the time. This would be a confidence issue. Does that mean you should trade through it? Not necessarily.

A lack of confidence is an indicator that you are not prepared either physically or emotionally for the trading day. Thus, if you are backing off the market because you dont have confidence, you have to address the confidence issue first in order to determine how to proceed with a higher level of confidence. If making smaller trades during times of market turmoil helps you to build your confidence level back up, then run and jump and go for it. If backing off and doing a refresher study stint helps bring your confidence levels back up, then you have your answer. Whatever helps you to elevate your feelings of competent and capable trading is the direction you should be heading when you lose your footing.

Naturally, if the market conditions do not match your trading style and you believe that any adjustments you would make would not be time consuming, then stepping off of the trading for a few days might help you more.

Of course, if you are only making excuses for yourself and are denying yourself a strong opportunity to grow, to master a fear, or to plow through your own issues then stepping off the market would not be in your best interest. How could it be? You are really in this game only if you are willing to take a few risks and to learn from your poor performances and to grow and learn and become more and more skilled at your chosen craft. So when you are considering shutting down the shop for a few days, it is vital that you look a little deeper inside and question yourself and your intentions.

If you woke up that morning really not feeling all that interested in trading for the day, you probably already know that youre making an excuse for yourself. If you woke up that morning barely able to contain your excitement about the trading day only to feel a sense of let down about not engaging, then you probably arent making excuses for yourself. Deep down we usually know these things and of course we have to be honest with ourselves if we want what is truly in our best interest. If it is in your best interest to take the day off, then go ahead. Just dont imply to yourself that it is because of the market. Being honest with yourself about your work day helps you to make real, authentic, and productive decisions.