Tag archive for ‘Risk and Reward’
Do you hear the people sing?
As the day wears on, my blog post takes shape in my mind.
Why?
So I can think rationally, unemotionally, and intuitively about what I could possibly say that was the true dynamic of the day’s activity.
Also…it helps me see the trade setups better.
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Here is a sampling of today’s key thoughts for me, based on the evolution [...]
The Middle is the Middle
Wild day.
That’s all I can say.
This market is not for the faint of heart; nor anyone without seat belts or stop losses.
How many ways can it trick us? More than I can tell you, that’s for sure.
Selling highs, buying lows, that’s all I know. The odds are better there.
What’s high?
What’s low?
Everything is relative.
Keep it simple, [...]
The Wake
Ace Greenberg was on Bloomberg this morning, and he didn’t paint a pretty picture.
In his opinion, “Wall Street is dead” he pronounced.
Maybe, maybe not. Markets have a way of misbehaving and creating their own rules.
We have come a long way down in the last few months. Price won’t go to China. Bounces and failures will [...]
Emini Free Trades
Austin Passamonte has written a great article, and I pass it on to you.
Continue to study the “experts”, realizing that there is always room for us to grow in our understanding of trading the Emini s and p successfully.
A site we referenced the other day, emini addict, has drawn some attention from the “newbies”. At $29.99 [...]
What is your Definition of “is” ?
Bill Clinton popularized the notion of defining “is” when he was under siege for hanky panky with Monica the harmonica.
If you see it as “what is the market going to do?”, score a few points.
If you see it as “what are the two letters that make this word meaningful to me as a trader”, score [...]
Look kids, there’s Big Ben
Chevy Chase at his finest.
Round and round we go. Market bottom is in. Housing crisis solved. Etc, etc.
What can Mr Bernancke and the government cook up now?
We’ll just have to wait and see. The market loves to squeeze the shorts. When The Boyz run out of gas, re -enter until it stops working.
Meanwhile, looks like taxpayers [...]
Feeding ground
“Amity Island had everything. Clear skies. Gentle surf. Warm water. People flocked there every summer. It was the perfect feeding ground…”
At 11:30 I suggested to colleagues to take their short profits off before noon today. It could have gone to any day low, but I felt the weekly shorts should capture their profits early after such [...]
Risk and Reward
Sloppy and choppy trading for the vast majority of traders unaccustomed to sequence trading.
Plenty of setups today in both directions if you know what you are looking for.
Grabbing the majority of the move and leaving the last tic or two for the greedy usually works best for me.
That’s the essence of risk and reward; where do [...]
Is it time for some R and R?
Zones of support occur at many different levels, depending on the time frame that you are trading.
One of the best trading analogies I ever read about was in Trading for a Living. Dr Elder likened these areas to “snowfences”. For those of you who live in a warm climate, devoid of snow, a snowfence has [...]
The Banana peel trade
The banana peel trade occurs more often in schizophrenic markets.
I guess we could say that means all the time.
There is a definite timing pattern I have noticed lately.
The technique currently being used is the alternating squeeze on both sides.
At least the market is fair; it messes with everyone as it regresses to the mean.
The early shorts were squeezed [...]
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