When NOT to Trade

The Discipline of Sitting Out

Amateur traders look for trades. Professionals look for reasons NOT to trade.

Red Flags: Don't Trade When...

1. Regime is Unclear

• TRANSITION state in SYZYG
• Mixed signals across timeframes

2. Data Quality is Poor

• Safe Mode active
• Stale prices

3. Major Events Pending

• FOMC announcement
• Earnings (for the specific stock)
• Jobs report, CPI

4. Personal State

• Tired, distracted, emotional
• On tilt from recent losses

5. Technical Setup is Weak

• No clear levels
• < 2:1 R:R

SYZYG Helps You Skip

• < 60 conviction = Consider skipping
• Safe Mode = System says skip
• Mixed lights = Wait for clarity

What Happens When You Trade Too Much

1. Death by a thousand cuts - Small losses accumulate
2. Emotional fatigue - Bad decisions compound
3. Missing the big ones - No capital when A+ setup appears

Key Takeaways

• Not trading is a valid decision
• Use SYZYG scores to filter opportunities
• Quality > Quantity always