When not to trade

[Rob]

Ok, since nobody is brave enough to write the first post, I guess I'll get the ball rolling with a little excerpt from my letter that I sent out tonight.

One of the easiest ways to "know" when not to trade is to take a peek at a related market and see what it's doing. The principle is very simple. Lets' use today as an example. The dow was moving higher for the most part this morning, while at the same time the russell was moving down. There was not a broad based concensus as to where prices where likely to go. Since we are trying our best to capitalize on a trending market, we need to have EVERYTHING moving in the same direction at the same time. THAT'S a trend! When similar markets are fighting one another, step aside and let them go. Sure you will miss some great trades, but you will avoid account killers too!

Ok guys, there's your cue, start posting!
Rob