There are certain market conditions that will force you to the sidelines. There, I said it.
Thus, to begin this discussion, the trader pedigree is divided into three very distinct grades, the scalper, the swinger, and the investor. The next question to be approached concerns the pedigree of internet-trader law and the latter’s natural affinities. There is a real stink about a person who is in every move and magically free of the natural process of losing. Arguably more painful is seeing someone press a method that is not bearing fruit. This comes back to knowing your risk.
You must embrace change because the market will ultimately ensure you do—or leave with a frustrated look about yourself.
I have not done much to capitalize during the latest movement in stocks. The only shares I was brazen enough to procure during the #knifeparty were shares in GNRC. Those have rewarded me handsomely, but I assure you the trade was executed on smaller size due to overall market conditions.
The best traders I know have conditions they sit out. This is a huge part of their edge. I know a fantastic day trader who is bored and meditating most of the time when the market enters a grind up. I know another trade who whips that move 10 different ways and extracts milk and honey. I know traders who crush swing trades when price action becomes fast and furious, keen on price levels and legging into their trades as part of their management.
Monitoring continuation is without question my strong-suit. I am not a knife catcher, I have many deep scars to prove it. I enjoy the anticipation trade with a touch of predominantly favorable order flow. Being that the bulk of my trading career is post 2011, most of my experience is on the long side. I need to improve my short game, even on the intraday scalping level.
Something about the nature of support after a thrust is much more in my wheelhouse then working a resistance even though the behavior is a symmetrical inverse. Perhaps I will take up standing on my head while I trade.
Needless to say, this grind-piece of an auction is where I thrive. I measure midpoints, I buy dips, I scale, all very methodical and profitable. This week has been about making hay while the sun shines and the weather stays oddly elevated over 70 degrees in the murder mitten.
I managed to win today, even while losing in TWTR common. CLR, purchased the day before the gut check, came back a bit for me. GOGO, hangs in there, consolidating inside of consolidation, not moving, causing much a tension! The drama! I kid, I love this type of compression. BLOX, and old swing hold, again is knocking on the gates of a big-ass gap. It might not rip, but it might. And Elon decided he had shareholders’ backs which was the proverbial cherry on the pumpkin cheesecake
In short, I am grateful for these conditions, armed with a few new tools for faster conditions, and comfortably in some cash ahead of the popped-corn Wednesday Fed event.
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What new tools? I focused on scalping TF today.. racked in the bucks. Hopefully tomorrow brings more of the same grind.
Malice, that’s a nice, thin market, I like it. I am going to lay out my tools in a series of blog posts soon
Love this post. Even the most exceptional traders have limitations.
stubborn me, i have to see it to believe it, and I have seen zen-like patience play out as a huge edge enough times to know it is a big part of having consistently profitable trading. Know your strengths and drop the hammer when the conditions present themselves
you started in 2011? wow.
let me tell you about 2008. People were able to score a year’s worth of gains in 48 hours.
The best, and worst thing that ever happened to me was having my little $10k account ALL-IN on spy and q puts the day they passed TARP.
that ought to put some led in your pencil 🙂
I remember seeing those 400, 500 point dow days and knowing I wanted a piece of the action. I imagined fortunes being made, oh how naive I was, it could have either turned out really good, or bad, likely would have learned something regardless
Yeah, I hear you, I’ve watched some of these large past moves and wished I was in, but now that I am trading more and more and inside some big swings it feels more like 60% education, 20% preservation, and 20% earning.
truly, although the volatility makes day trading a much more worth will activity