Easing back into trading this week

Well the holiday is over, and now I need to refocus myself in preparation for trading again this week.

After an extended break from the market (and in these conditions I consider 3 weeks an extended break), I find that it's important not to rush back into trading. Even though the process hasn't changed, I think that even those few weeks is enough to create a disconnect from the market. For me, just looking at charts isn't enough to give me a true "feel" for what's been happening.

Part of my trader's edge comes from having a clear picture of how the market is reacting in given circumstances. Are tight range breaks moving explosively? Are stocks kicking on after a break of recent highs? How are news plays behaving? What sectors are hot? While charts can tell you some of the story, for me, only time watching the market can tell the true picture.

So tonight I'll start my market scanning and preparation process. I'll set alerts and create new watch lists for tomorrow, as I would always do. But as the market opens I will try not to rush into positions, and will probably also try to keep position sizes down a little.

As the market tells me more about it's state throughout the week, I'll ramp back up into full trading capacity.

One thing a break does allow is a fresh start with a fresh attitude. It's a great chance to reaffirm all the positive trading habits that you want to pursue. I'll be particularly focussing on making sure I'm trading to plan, and keeping my discipline where it needs to be.

If I continue to focus on the process, the profits should take care of themselves.

Alan