Monday, 26 April 2010

As Penn said, or was it Teller....

What the big print giveth, the fine print taketh away. And what the market gave me in the morning (London time) it took most of it away in the afternoon. I was a little preoccupied and not as focused as I should be and I woke up  late to what was happening.

These tight ranges mean you have to go into scalp mode and trade outside in, fading the market with delta divergence and scalping techniques. Kiki headed out shopping as she said it was cheaper than giving it to the market. I don't use delta divergence by itself nor do I use it much on days when the swings are long enough to give me a decent scaleout.


  1. Hello Tom,

    this is something I often thought about:
    Is it worth to try trading a market like this,
    or isn`t it better to do something else on those days?
    The problem is, I think to know, when to stop trading.
    Do you have criteria to stop trading?

    Awful Blog and really great posts on orderflow!

  2. Why no outside in trades?

  3. Tom, after learning so much about market profile and important levels from your posts I would like to ask you - or start a discussion - about "noise" and if it's needed to eliminate it.

    Earlier noise was a big problem for me. I tried to enter on the best potential spot just to get stopped out by a few ticks. But MP, the context and the appropriate levels together with experience can provide you with an advantage to do what everybody tells you not to do: To take a trade without confirmation directly at the level.

    I think the advantage is pretty clear, you can have a tighter risk management and one can switch to free ride mode earlier when the trade off is ok. On the other hand the risk of a lot of small stops and the potential limitation of profits is there.

    At the moment I'm trying this on the euro with a 4 tick stop and the first scale at 4/5 ticks. 4 ticks is the maximum I will "allow" the market to "breath".

    So in general it would be great to hear your opinion.