Trading to win using the Secret Code of the Illuminati

Yeehaa Day

If your system understood that today was a trend day wire to wire, congratulations, you made a lot of money. These days are even difficult for many professionals, because they defy gravity and our mind tricks us into thinking the market “has to pull back to some fib number” before moving on.

Dangerous thinking indeed.

I cannot stress enough how knowing the difference beween range days and trend days is so critically important to my success as a trader. Scalping against the trend can get you a few points, but ultimately is a losing game on these one way days.

Gap up or down days sometimes pull back and fill or partially fill the gap. On days when they do not, they will easily wipe out 5 days of gains if you fight it. They will destroy you financially if you “average” into your position.

Been there, done that.

If your methodlogy cannot identify the days when the odds favor the market moving away from the gap at the open, you are still missing a vital insight into how the markets really move. Read Jesse Livermore’s observations to grasp his philosophy on the folly of adding to losing positions.

If you have the correct stop and it gets violated in the first 30 minutes after the open, then reverse and get swept along to obscene profits. The rest of the stubborn traders who cannot turn on a dime will keep handing you their money.


Tagged as: , ,

Comments are closed.