Friday, 27 January 2012

Tough Trading?

The Transition continues. Lots of changes in the market, still. There are a number of people telling me how tough it's been this year. Yes, some markets are suffering from the way that the transition is going but others are not. You can't be just a one trick pony in these days of electronic markets.

I wake up early and part of my morning routine is to scour the overnight news and the overnight markets as well as the Forex Factory's economic calendar. All this, to get a handle on what markets I should focus on for the day. I turn CNBC on while I'm doing this - I switch to music later - so I can see what subjects are interesting people.

From all this, I pick what I will focus on. I am a trader. Not just an ES trader or a DAX trader or a Crude trader. If it has volume and volatility I can trade it. Being market agnostic is important for longevity in this biz.


  1. Transition and changes? In volatility not methodology correct?

  2. Anon 07:53 Yes, volatility. Methodology stays the same. Identify the trend and trade the pullbacks. It works!! The chnages in the world economic and geo-political situations has put the market activity in a state of flux. There will be a new normal. We're not there yet unless you say that teh transition is the new normal.

  3. jenrique42, this is just the process of the trends changing in your periodicity and what enables us to make money.

  4. jenrique42
    q is the fourth time I reread your blog, and every time I read it I take a more nuanced and valuable information, previously I had missed, including some questions he asked, and then did not seem relevant or not the wise answer, such as that by February 12, 2010.
    What would be the next way, did increase the size of the position or learn new setup but more difficult to read, already CP?
    well past the time and the experience I jPod obtain for me the next step would be to increase the size of the position, with the goal of bringing the bill to the point of no return, and it is here where I could add new set-up without compromising the account and as these new set-up would be the smallest possible size of the position
    Incidentally, this increase would make the positions according to the method of Ryan Jones, called "fixed ratio trading" described in his book MONEY MANAGEMENT

    es la cuarta vez q releo tu blog, y cada vez que lo leo le saco mas matices e informacion valiosa, que antes se me habia pasado por alto, incluso algunas preguntas que hacias, y que por entonces no me parecieron relevantes o no la sabia contestar, como la que hacias el 12 de febrero del 2010.
    Cual seria el siguiente paso, ¿incrementar el tamaño de la posicion o aprender nuevos setup pero mas dificiles de leer, siendo ya CP?
    bien pasado el tiempo y con la experiencia que he jpodido obtener, para mi el siguiente paso seria el incrementar el tamaño de la posicion, con el objetivo de llevar a la cuenta al punto de no retorno, y es aqui donde podria añadir nuevos set up sin poner en peligro ya la cuenta ya que estos nuevos set up serian con el menor tamaño posible de la posicion
    Por cierto este incremento de las posiciones la haria segun el metodo de Ryan Jones, llamado, "fixed ratio trading" descrito en su libro MONEY MANAGEMENT

    por cierto no tendras pagina en facebook?

  5. jenrique42, Good stuff. I recommend that you concentrate on one good picture to get to CP. Learning to do the same thing over and over again is easier than trying to do too much at once. Once you are at CP you then have time on your side as you are earning money. Sounds like that's what you are doing. For me, it's not just the fixed fractional but the risk of any particular trade. Once you are trading more than 1 contract, trade 50% or 25% on riskier trades. Riskier = trades that need a bigger stop loss.