“Masterful Inactivity” and “Inactivity”

Trading and Masterful Inactivity
Learning to be masterfully inactive doesn’t come easily, but it pays.

The master himself said:

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.”

The Difference between “Masterful Inactivity” and “Inactivity”

Inactivity means putting your feet up on some tropical island and wondering how the ocean got to be that beautiful shade of green-blue.

Masterful inactivity means that you’re not acting like a headless chicken, wasting your time and energy on dozens of trades. (Not unless you’ve got a computer program executing them.) If you take on too many trades, there’s a danger that you won’t see the forest for the trees.

Masterfully inactive traders listen, read, research and learn. Masterful inactivity means only taking trades where the risk-reward ratio is strongly in your favor. It means waiting for the trade to come to you rather than taking trade out of boredom or urge to do something as you as trader are sitting ideal.

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