We work very hard all week. The weekend is our time to enjoy the fruits of our labor. Do not ruin your weekend by losing your arse. Also; the last three hours of trading on Friday are the final three hours of trading worldwide. 2/3 of the players are either sleeping or enjoying wine over dinner. The trade is thin and unpredictable. Do not give your hard earned money away on a crap shoot.
I cannot stress enough the importance of Singles Only Fridays. Almost every Friday the market gives you one good move. You have to get it through your head…you are there to trade that one move and then you’re done. You are only looking to make a little bit of money and go home early. Remember; when the working class hero can throw around the kind of numbers you do, he too can work 4 ½ days a week.
One of my original readers after noticing that I wrote the same Ps. every Friday thanked me for opening up his eyes to the fact that his worst trading days ever were Fridays. He knows now, when he walks into work; he will not allow himself to get caught up in the hoopla of it all and all of a sudden have a bigger position on than he would prefer. It is all about getting it into your head that it is Friday. Singles only. No home runs.
I have a dear friend and colleague that is one of the best Monday-Thursday traders. This gentleman has not only given back a whole week on a Friday, I have watched him give back a whole month on a Friday. I do not know why we get married to positions on Fridays, but we do.
I signed up an office of ex floor traders a long time ago. These were seasoned veterans and some of their junior traders. As I was delivering my words of wisdom with regard to Fridays one of the seasoned veterans spins in his chair and states, “Where were you 10 years ago when I needed you? I’ve lost at least $5 million on Fridays.”
The first six months of 1994 I had a very profitable trading run. This trading run culminated with ten straight profitable trading days in July of that year. On the 10th day of that two-week trading run a Thursday; I had the best trading day of my career. The following day Friday, was the worst trading day of my career. That is why thirty-plus years into a trading career, RULE #1 remains RULE #1.