Action in Inaction

Another day of doing nothing. All of you must now be familiar with my STT and LTT. STT is long from 5393 on Friday. The sell level has increased to 5491 and I will cut my long and go short if Nifty falls below 5491. LTT remains short even now. It turns into a buy only if Nifty crosses 5610. This implies that only if Nifty crosses 5610 or falls below 5491 will I be doing anything tomorrow.

I guess the most important skill any trader needs to imbibe and develop is the ability to just be. A person who has a pathological need to do something or a person who believes that if he is not doing something then he is not working can never be a good trader. The "not doing anything" is not a passive state of inertia or a confused state of indecision. It is an active decision to refrain from doing anything. The former is a state of confusion, indecision and passiveness. The later is a state of activity in inactivity, a state of decisiveness and a state of clarity.

Man, I love what I just wrote. There cannot be a stronger case for doing nothing! This makes me thank my stars. What happy coincidence! That which comes naturally to me happens to be one of the skills that a trader needs to develop through hardwork! There are other skills that a trader needs too but that is for some other time. Let me revel in this belief- at least for some time- that I am a natural in something!

Coming back to the markets-because this is indeed a note on markets after all-the Euro has continued to yo yo in the last few days...highlighting the indecision in the markets. The way the Nifty and other markets have behaved makes me believe that we could be headed for a big rally if the Euro situation is resolved satisfactorily.

Current Position: STT Long    LTT Short

STT: Will cut long and go Short < 5491

LTT: Will cut short and go long > 5610