A realization dawned upon me in recent years, something that had been right in front of me but was overlooked due to a lack of perceived significance. I had been failing to take into account the importance of timing - the time of the day, the day of the week, and the rhythm of economic data - in my trade planning and execution.
Of course, I understood that an early trade has more time to progress, and that activity levels tend to fluctuate throughout the week. However, I hadn't fully appreciated the impact of upcoming economic indicators like the non-farm payroll numbers. I hadn't sufficiently considered whether it would be best to initiate a gold or stock trade before or after such data is released, or even exit just prior to the release.
It's critical to view our trading days, weeks, and months as an ever-evolving stream of information, where maintaining situational awareness is essential. For instance, why would I enter a significant trade late on a slow Tuesday without impending data? Is this decision thoroughly considered, or am I expecting it to behave like a trade executed early on a Friday following the GDP data release?
Such considerations are invaluable additions to any trader's toolkit. I'd recommend starting with a basic calendar. At the beginning of each month, jot down all the significant events over the upcoming month that could affect your asset classes. Then, assess your recent performance. Have certain days or hours yielded better results? Are your trades more successful around the release of data, or do they thrive in its absence? Answer these questions candidly and adjust your trading strategies accordingly.
This concept may appear simple but is frequently neglected, especially by crypto traders who often consider their assets as existing within a bubble, immune to the effects of economic data from the "real world." Of course, this is just a jest; we all know, WGMI
.
Good luck, and remember, always keep your seat at the table,
Jaymes R.