Tuesday, 25 October 2011


The Transition is continuing as I have written now a number of times. I keep reminding myself of this as the markets react wildly to rumours, news, hopes and the activities of the HFTs.

As someone said not long ago, this is the new normal. At least for now.

Traders must continually adjust to the changes that are taking place. It's an evolution, not a revolution.

The stock indices have a lot more noise. Experimenting with longer range bars may help, but that has a price. As I have written, my stops are far away and that is a must for me in these markets. I stop myself out well before my hard stops are hit when the market tells me to.

The trades below show the importance of discipline. The first trade was fine. The 2nd and 3rd were small losses or scratches, 4th was OK, 5th and 6th went nowhere and the 7th was a nice pay. I don't know which trade will be my pay day. I know over time I will make money with a high win rate. So I have to take every trade in my trading plan and manage it. If I cherry pick, I'll pick all the bad cherries and miss the good moves.

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