The index trader and the index investor are getting a bad deal right now.
These trading conditions are prime for error if you only trade an index.
Ranges are tight. Every globex session is normal. Rotations rarely have follow-thru.
The action is slow and getting caught full size into the lunch lull is a recipe for disaster.
Your sugars tank then little things can irritate you. Objective thinking is abandoned and gut decisions override your plan. Maybe you trade more size than normal since range is so small. Then poof, two-months of gains given back in one trade.
Trading from the outside-in usually works best in these conditions–fading the big moves using market profile levels.
Or you can switch over to trading stocks. I have not put the work in yet to get back into trading stocks, but if I even thinking about buying a stock I would be taking advantage of the free After Hours trials going on this week.
It is iBankCoin’s daily broadcast where Option Addict lays out a contextual framework then sets up stocks to trade. Members have been killing it in this slow, trending tape.
I will stick to NASDAQ futures because my planning and statistics and charts and order flow feel give me an edge. When it’s slow I just back off. But soon, when I’m ready to commit more time to work and grind out stocks, you best believe I will be watching After Hours. You should too.Comments »