I find it interesting that when the market action goes against us, we need to find someone or something to blame. However, I rarely hear from traders when the market action is going their way with those same ‘blame game’ comments. 

My typical day involves firing up my trading system and trading the first half of the session.

After that, I begin answering calls and emails.   A regular conversation topic is who’s to blame for the “ridiculous”, “out of control”, and “just plain stupid” market action for the day. 

Of course, I ask why it was ridiculous, out of control and just plain stupid and receive a variety of responses.  One trading buddy was very frustrated with algorithmic traders “who just don’t understand” and “should be shut down for manipulation.”  My response was – then who would provide all the consistently huge volume we all appreciate especially when the market action is going in our direction. 

“Yeah, but it’s nothing more than manipulation” my friend retorted with anger.  How so I asked? A computer only performs its prime directive and doesn’t realize when a market is overbought or oversold.  So when that instruction includes buying or selling “size” in an otherwise thinning market, the trade will always go to volume. 

“Come on man – since when did you become Mr. Go with the Flow?” the tone was quickly moving toward defensive anger.  Since I came to the conclusion, it was much easier to “join them” rather than “fight them”.  They will always be bigger than us and since we already know the market action doesn’t care why we are buying and selling – stepping in front of an avalanche is not an intelligent move.  This answer is not what he wanted to hear.

I do understand the emotion of dealing with a “one-way market.” The problem is that to trade intraday; traders need to build a solid sense of market direction awareness.  Starting the day with preconceived notions helps on occasion, but typically it does not serve me well.  I have found attempting to fight a move because I think I know better, usually ends with me taking a larger loss than I bargained for.  Leaving my opinion outside of the “trading arena” before I sit down to begin my day allows me to approach each trading day fresh and better prepared to accept what will come my way. 

Even though I may be using sophisticated technical analysis tools, the playing field will always tip in favor of the players with larger accounts.  Whether those accounts are their personal money or a huge fund, I can’t nor do I desire to prove myself right against a speeding train on its way to a massive wreck. 

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