Trading to win using the Secret Code of the Illuminati

It’s Just a Flesh Wound

Stop Losses

There is a thin line that gets all too blurry when we are caught up in the emotions of trading.

Predetermined circuit breakers are required to save us from ourselves.


Roy H Williams is one of my favorite authors. He is as real as it gets. His ideas will make you brain weary, but better off for the thought process.

Deep do-do is a topic for another day, but let’s just say that is the difference between success and failure.

Not just in trading, but in any endeavor.


The skills that make you a rock star in the business world will not necessarily provide you with instant gratification in trading. More likely, those same skills will be a detriment in the illusionary world of investing.


Why did the market make such a bold move south on May 6th?


Were you able to process it, understand it, act on it?

Did you know how to stay out of trouble on that momentous day?

Some of the best and brightest traders on the planet lost big time.

Did you follow the star or find your own path?

Did you whine about your results?




More importantly, if you have survived, how can we learn from that experience? How can we understand the comings and goings of price?


How do you see it? Feel free to post your own ideas in the comments.


Here is a question to ponder: What is my best strategy; the one I am most confident in playing, where I just know what is going to happen, even if it’s only for two or three points?


To avoid Black Nights, focus on your highest odds trades… and use stop losses to protect ourselves for when we get it wrong.


Today’s market action was a great example of remaining flexible in our thinking.

One-way traders are at a big disadvantage to those who can see the action as a test of key ideas rather than as random activity.

The half gap and gap play got us going in the right direction, and we caught a lucky break when the Boyz continued south.

Sensing the turnaround today was more art than science; understanding the 1113.75 level that the longs wanted to defend was the key.

Option expiration this week; don’t be surprised by shenanigans.

The Angel at 16.5 coincided with s1, and we suggested shorts not to get get caught there. We played both sides today, and advised caution late today to allow the big Boyz to resolve the major battle.

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