Trading to win using the Secret Code of the Illuminati

Madness…of Crowds

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Risk and Reward

Well congrats to the Huskies…

Both Men and Women’s teams had a good year.

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Today’s trading was a bit maddening… but controlling our emotions and discipline is part of the game.

Men’s team shot awful… but played well enough to win. That’s about all that can be said, other than “great defense”.

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Traders need to have great defense too.

I liked the long side edge this morning… guessed right. Half gap and gap play had reasonable odds… and the market has advanced FOREVER on trapping shorts and squeezing them.

Why change what has been working, especially in the first week of the month?

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What do we do with trapped shorts?

Always a dilemma when a 456 starts.

How high will it bounce; how high can they be squeezed?

The push through at the end of the first hour caught many traders by surprise, other than a few smart traders who thought momo. 

We thought sideways to squeeze during lunch; instead the Boyz put a jamma on breaking out the IB and ran it into the lunch trade, looking for sure like we were screaming higher.

Only experience gives us insight that maybe now it’s a contra time.

Always a dilemma when a 456 starts.

How low will it pull back?

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“Sometimes when we run up fast, no support is built up, and we run down the ladder.”

If we keep our head in the game, we can always find opportunity. Keep shooting, ACCEPTING stop outs rather than doubling up at  low odds times and prices, allows for hit and run, until a trailer takes root and gains traction.

Late longs buying the pullback were now vulnerable, and our system caught the high probability sequence reversal.

Like tossing a basketball into the air, we hope we have the zenith correct and that partials and trailers will work.

Some bounce off the rim, some are air balls, some go swish, nothing but net.

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Risk and Reward ideas are meaningful and can be quantified.

Look for the edge when taking a shot; in basketball it’s often in the paint, while in trading, most often it ain’t.

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Context helps see perspective … morning all #EMWS

@eminiwizard Good morning E. Up down, up, down.. Up?

@eminiwizard morning E, play well 😉

@yeeron @50Pips back at u :) #EMWS

Yeeron RT 08:52 E: so neutralize your negative bias this is a marginal bd so far 09:27 E: highest odds trade half gap #EMWS

09:45 E: my guess is too many thinking short short short #EMWS

09:51 E: got a few late shorts trapped already 10:31 E: use 32 as ressit for now 10:31 E: and this is squeeze #EMWS

11:37 Zeek: thinking short squeeze b4 lunch then pb 11:46 E: sometimes we get a new high normally best time for contra is lunch #EMWS

Saw the bounce coming but surprised by the stop run so early… #EMWS

@yeeron thanks for rt Dave :) #EMWS

Yeeron : Always a pleasure E :o) Opening & closing hr best odds for decent RR trading the theme lately @eminiwizard #EMWS

11:08 E: if cant break 29 much tougher 11:09 E: cuz then could squeeze higher #EMWS

Yeeron : RT @eminiwizard today was trap shorts & squeeze then fomc we shall c the character of this rally #EMWS anemic high w/ serious hangover :) GN

@yeeron just favorited your tweet: sequence traders found it was all about risk and reward today  #EMWS

@yeeron thanks Dave as always :) #EMWS

Yeeron: @eminiwizard A beautiful day E, TY for sharing your insights sir. Mind engaged in full sponge mode :o) #EMWS

Trangle was there but felt like it was squeeze type rather than solid…so then late longs turn to be hit #EMWS

@yeeron :) ty #EMWS

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