Cutting out all the noise.

As discussed earlier in the week, there are a lot of moving parts at the moment. It's very difficult to form a sustained conviction in the risk environment. Have bonds peaked? Will the middle east flare up? Why is the S&P under pressure even though earnings are positive?. And that's before we even mention the dollar yen. My hope is that the chart will sustain above 150. But a large spike of yen strength this morning doesn't give me confidence (regardless if it's intervention or algorithms). Do central banks interest rate meetings matter at the moment? With most banks at or very near a peak, my hope is that economic data begins to play a part in the strength or weakness of each currency. It's a very difficult trading environment and I'm finding it tough to form a conviction in a trade. Every day I must 'cut out all the noise' and focus on what I believe is 'moving the market'. Currently, I'm not sure, let alone have a conviction if it's likely to continue. Therefore, my 'decision' at the moment is the sit on the sidelines and wait for an obvious trade to fall into my lap. Will that be the Euro interest rate decision later? Possibly. But for now I'll simply wait and see.

I think it's important to stress that taking a no trade decision is as important as actually placing a trade. But it's much harder to walk away saying 'no trade'. Our desire to be active in the market combined with the desire to make money makes it very difficult to act on your thought that there isn't a trade. But suffice to say, if you constantly have a trade running, you are most likely overtrading, placing trades that you shouldn't really be taking.