Trading - when to sit out

As a trader, making the right decisions at the right time is fundamental for our success. There are times where the best decision can be to sit out of the market and not take any trades. To me, right now is one of those times. I base this decision on the fact that we are in the midst of earning season and the market seems to be actively ignoring central bank policy, in short, it seems to be fighting the Fed.

1. Reduce risk: One of the main reasons for sitting out of the market is to reduce the risk. When the market is uncertain or volatile, it is best to avoid making trades until there is more clarity and stability. This help to prevent you from making impulsive decisions based on emotions. - Which is one of the critical errors for a trader.
   
2. Wait for better opportunities: By sitting out of the market, you have time to research and analyse the market trends and conditions. This will help you identify better trades and make more informed decisions. When the market conditions are favorable to your methodology, you can make trades with confidence, knowing that you are taking advantage of the best opportunities.
   
3. Maintain perspective: Taking a break from trading can also help you maintain perspective and avoid becoming too caught up in short-term gains and losses. By stepping back and re-evaluating your investments and goals, you can ensure that you are staying on track and making decisions that are in your best interest.
   

To my mind (and Jesse Livermores + Many others) sitting out of the market can be a valuable strategy for traders. By reducing the risk of loss, waiting for better opportunities and maintaining perspective, traders can make more informed decisions and achieve their financial goals.