I determine whether "today is a good day to trade" in three steps
Most people just want to know whether to go long or short today,
but I first ask myself a more fundamental question every day: Is today suitable for taking action?
My process is very simple, three steps:
1️⃣ Look at the volatility range:
If the expected volatility for the day is less than half of yesterday's, I directly reduce the frequency or even don’t trade at all.
2️⃣ Look at the structure:
If the highs and lows are messy and the moving averages are tangled, treat it as a consolidation day and only consider light positions at extreme levels.
3️⃣ Look at my own state:
Lack of sleep, two consecutive losses, unstable emotions → This day is automatically downgraded to an "observation day".
If any of these three criteria are not met, I would rather accept "missing out" than "acting recklessly".
True logical trading starts not with finding opportunities, but with filtering out the days when one should not take action.