Staying on the "Sideline"

To become a consistently profitable trader, one has to know when to stay in cash or on the sideline and when is the right time to take those trades. SPY traded sideways today, not enough conviction for it to go up or go down but been consolidating the entire day, thus forming a Doji for the day. It opened at $410 and closes at a whopping $412.93, I know it's ridiculous. 

Traders always have three positions in trading, long a stock, short a stock or in the sideline also known as being "flat". What new traders do not realize is staying on the sideline is part of a disciplined trader's strategy. 

There is no rule in trading that you need to be in the position all the time, retail traders are not algo's that has to be in the trade continuously. We are like guerrilla traders that only attacks if the reward to risk ratio is on our side and the probability is slightly higher in our favor. 

Consistency in day trading means having the ability to read the price action, this gives us the edge to know whether the market is conducive enough to give us profits for the day. If it does not give us the setup, then no need to take the trade. 

Capital preservation is one of the key in becoming a consistently profitable day trader.