Still, better late than never. I pointed out last week that many of my recent losses were a case of good trades gone wrong. At the same time, I've made a mess of things on more than a few occasions. It was pretty obvious that some time out was called for so that's what I did.

I'm too much of a market junkie to avoid my computer completely. In fact, I've probably done a bit more chart watching than usual. I've been looking back at past trades as well as examining some trades that I missed out on. I'm not usually the sort to torture myself with those infantile "If only I'd bought XYZ two weeks ago I'd be a zillionaire" thoughts. It was hard not to do so when looking at some of the recent big winners, however.

Look at the momentum stocks driving the NASDAQ bull run. Apple is up 50% in the last two months. Research in Motion (RIMM) has nearly doubled since the day I got stopped out in mid-August.

Baidu. com . . . the so-called Chinese Google . . . has gone from $160 in August to $380 this week.

What about commodities? Things have been going bananas there. Since breaking past its all-time high of $78 in September, crude oil has barely paused for breath, hitting new highs day after day. In after-hours trading on Wednesday, prices went above $96 a barrel. Gold . . . which this not-so-smart Monkey shorted not that long ago . . . is trading above $800 for the first time since 1980.

What's the point, one might ask?

Certainly, I'm not berating myself for my lack of psychic abilities. In fact, it was nothing short of cruelty that I was stopped out of RIMM just as the stock was about to take-off.

I've been harping on about this trade for weeks now and I'm aware that it's a bit pathetic to do so. I really should get over it.

Unfortunately, I find it hard not to dwell on what would have been the biggest winner of the year.

As for gold, I think I was trying to be too smart when I went short a few weeks ago.

Sometimes, I'm shocked by the sheer predictability of the market. Everyone was harping on about the inevitability of rate cuts in the US, how this would further weaken the dollar and how traders would rush into gold as a safe haven play. It all seemed too obvious. Besides, I was getting tips from some truly clueless individuals on the basis of the above information. They were the type of people who buy into markets when they top, the type who buy stocks when they've already doubled or tripled. If you look at various internet message boards, you'll see posters rabbiting on about how commodities are the 'next big thing' or asking questions as to the best way of getting exposure to oil. To me, it seemed that the dumb money was getting long.

The thing is, dumb money doesn't always lose. Gold continued to rise this week, partly on the basis that this week's rate cut would further pressurise the dollar. And yet, everyone knew a cut was coming. In a truly efficient market, this would have been already reflected in the price. I'm used to traders selling into good news in the stock market. With commodities, however, trends tend to be more powerful and long-lasting I thought I was being a right smartypants by going against the herd. I'd have been better off holding my fire.

There's not a trader on the planet who would have caught all of the above big moves.

Quite a few, however, would have caught a couple.

The best environment a trader can operate in is a trending environment. That's when the big money is made. A couple of great trades can make the difference between an average year and an incredible year. If you're not making money in such an environment, you're doing something wrong.

That includes this humble monkey. If you're not trading right, you shouldn't be trading at all.

So what's the plan now? I expect to be trading within the next fortnight, possibly earlier. A smaller bankroll is certain. I don't envisage any huge changes in my trading methodology. Buy strong issues that dip to support, sell weak issues that rise to resistance.

Define your risk at all times. Take profits at appropriate junctures whilst allowing a portion of one's profits to run.

There will be some changes. For index bets (not individual stock bets), I'm prepared to average down in certain circumstances. Ed Seykota, the great trend trader, once said that his trading rules were to cut losses, ride winners, keep bets small, follow the rules without question and, finally, to know when to break the rules. I think he's right. A trader without rules is a trader headed for oblivion . . . to use another Seykota quote, there are old traders and there are bold traders but there are no old, bold traders - but a trader without flexibility is taking things a little too far.

Doubling down on a losing position is one of the most destructive trader habits. It's an awful idea, particularly with individual stocks.

Even an awful idea can have its moment, however. If the occasion merits it, I'll consider it.

Other changes? There may be more day trades in some of the above-mentioned momentum stocks. My smaller account balance, coupled with the steep share price rises, means that holding overnight may not be practical if one wants to minimise one's risk.

For now though, I'm on leave from the markets. Trading is a great business but sometimes, it's good just to watch.

Market Monkey is a recreational trader trying to expand /25,000 to /100,000 so he can give up the day job and trade full-time. Send your thoughts or questions to marketmonkey @ tribune. ie, with 'Monkey' in the subject line