Trading to win using the Secret Code of the Illuminati

Lots of Luck

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Stop Losses

This is a business where you need some skill, patience, discipline, capital and a bit of luck.

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“Skill is hitting the golf ball onto the green; luck is when it falls in.”

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Winning consistently is a dream most traders aspire to achieve.

“Do you think ¬†you could earn just two points a day?” was a question thrown out to the twitter world last week.

That’s one way to look at it, but it is not as simple as that in my opinion.

Momentum being a curious beast, runs until we decide it is safe to take the trade, then it reverses on us.

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Over a period of X number of days, are we profitable is perhaps a fair question.

Did you ever play in a ball game where you just were “off” and played awful? On other days it was effortless and you did everything right?

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The luxury we cannot afford is continuing to be wrong, averaging in to losers that compounds our mistake.

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We had MATD, and emphasized several major ideas to our members today.

  • It is MORNING after trend day, not ALL DAY after trend day
  • There will be confusion over the settlement price, be conservative today
  • If we get to the conservative 87 half gap, consider it done
  • 82 is support until broken, and bias is bounce day, especially since it is the beginning of the month
  • Once bouncing, it can go to any day high

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The low volume push at lunch was ridiculous, and caught some aggressive shorts off guard.

Their problem becomes ours when we try to fade their pain.

“Guessing resistance” is not easy; it is part art and part science.

“Let’s use 1202 to 1203 as resistance, and scalp only can be assumed. I prefer to scalp short rather than buy the high. It is against the trend, and only a guess, but I think late longs are equally risky, so at least there is better risk/reward ratio, just like this morning’s 82 support.”

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An inside day leaves calls for the 1270 in place by the Champions of the Longs.

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If you think we can catch all the moves, all the swings, make every play right, lots of luck.

I am happy to take high odds trades like the half gap this morning, or some reasonable scalps overnight or late afternoon. I dislike lunch time trading normally, and often have no problem taking a break to have a life.

If trading is so all consuming, we lose sight of the people and activities that give us perspective.

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