Trading to win using the Secret Code of the Illuminati

Fail Safe

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Stop Losses

Many traders probably lost today, and likely because they didn’t know how to fail safely.

Probability always enters the picture.

More importantly, education, discipline, and capital are required.

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“Short side” I hollered. Pre set target was 97, then 95 area. 94.5 is a high value target achieved. Jump in and give it a few minutes for the directional trade… capture the gift is best.

Why? Probabilities.

At the open, too low to short, stand aside or give it a long side scalp.

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The eyes have it.

Conservative traders, be patient and wait until you see the whites of their eyes. It may take several attempts…

Understandable if you didn’t. Pre market weakness suggested hit bounces til it didn’t work. It turned out that it didn’t work until it did.

456 traders assumed the 1302 was the initial stall zone on the rebound… and the quick deep breath push south was taken out in short order at the end of the hour with an “I got you bar” meant to squeeze the early aggressive shorts.

A normally high odds reversal I felt was at the completion of that half gap, and we suggested longs be careful as we approached that area.

No man’s land is always the hardest zone to play, at least for me.

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The 8 zone I felt was the right short as the back up. It always looks easy in hindsight, but in my opinion it wasn’t like shooting fish in a barrel.

The General seemed to favor the long side… and I advised the room of his posture.

“He obviously sees something I don’t.” “I could be wrong, but I think the Boyz are messing with us. Tells are the low volume squeeze and the high tick readings.”

“He thinks the Boyz are in the Hamptons already… and the newbie interns will over react on the gas pedal and we get a melt up.”

“Not interested”.

Confidence, tempered with humility.

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“If it hits 1311 I am wrong.”

Trade logic said to me the smart weeklies already captured their profits, leaving the afternoon to head south again. “If I am right, we will continue rotating into an arch, and then the umbrella opens up.

Let it Rain.

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Partials were called along the way, and I wanted to see  the four magnet tested before anything else.

“1301 needs to get tested…and break. If it does, we can then test any low.”

99/98, and capture all by 97 for profit taking bounce.

1303 resistance… close it out by 4 pm if trailers hit.

Why mess up a great day and commit to being around at 6 pm Sunday if caught with some nonsense bleed-back?

Day traders ran out of time for the EOD finish.

Not necessary to catch every little wiggle, right?

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Don’t average in; accept small scratches and stop outs. Try again at a new level. Avoid being stubborn.

Learn to fail safely, then we can succeed in this challenging business.

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Destiny says 91 gets tested.

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@vkligys @RobSpainTrading @Marketrend @chewtonic @faaaal @pingpongtrading   Thanks all  I appreciate your  #EMWS mentions and  posts 

@eminiwizard Great tweets this week chief..very, very helpful. Thanks for posting them #EMWS / u welcome Chewy

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If we don’t want a lunatic driving our car, why let him or her behind the wheel of our trading account?

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