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Know When to Trade, and When to Go Fishing

"There is a time to go long. There is a time to go short. And there is a time to go fishing." - Jesse Livermore

If there is one thing that I have in common with the late, great speculator, Jesse Livermore, it is that we are both "daffy about fishing". Like most great traders, Livermore knew the importance of taking a break from the markets. 

Livermore's preferred method of relaxation was to head South for the coastal waters of Florida and do some saltwater fishing from his yacht. I'm a humble trader/writer, so I usually prefer to head out for an afternoon of fly fishing for warmwater species (crappie, bass, bluegill) in the local waters near my home. There's a nice hybrid bluegill (below) that took my fly on a recent outing. 


Lately, I've seen evidence to suggest that a lot of investors and traders are struggling to make money in this market. Experienced traders may be better at managing their losses and avoiding marginal trades in times like these, but even star traders and hedge fund managers can get the blues.

Whether you're a short-term trader or a long-term investor, there's bound to be a rough period when the market is not offering the opportunities your method requires. Maybe you're out of sync with the market and struggling (it happens to the best of us). Or maybe you've had a big winning streak and decided to take a well-deserved break before success goes to your head.  

Either way, there is no bad time to take a much needed break from the markets and clear your head. Maybe it's time to head out for that week-long fishing trip you've been planning (or putting off) for some time.

After all, when you have no move to make, the best thing to do... is nothing.

Related posts:

1. Your Job as a Trader: Manage Your Equity Curve.

2. Paul Tudor Jones and Peter Borish on Trading.

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