Consistancy

Foolish consistency is the hobgoblins of little minds.

Ralph Waldo Emerson

Ducati and I were having a discussion about Trader blow ups. We both agreed that it was a lack of Flexibility, or that it's human nature to do the same thing that has worked over and over. What traders will do, is come up with a theme that works for a few months, or years.
They will make money... and a good bit of it. But as the market evolves suddenly that same theme won't work. As a trader You have to realize when it's not working, because you will continue to revenge trade the same theme over and over again Until you are either flat, or losing money. It's a flexibility in trading that keeps returns coming.

That lack of flexibility, and constant repetition that is ingrained into our learning, and how we do things. That is Destructive to trading. An ability to look beyond "What is working now" and figuring out how it's evolving, that is the Key to making money.

Earlier in the month I proposed that selling tech and Retail was the move... But, Retail has remanded strong, and tech super weak.... So abandoning the retail theme and sticking with Tech, has been the move. My capital is better put to work against tech, and providing superior returns.... Maybe retail will break down... or maybe the financials and early cycle stocks bottomed together...... But you can't deny what is working now. But.....

Once again... "Some day this war is going to end"

And sure, Short materials and tech and oil, is working now.... But the question is .... When will it stop working....