Monday, 11 June 2012

The Only Easy Day Was Yesterday

Trading in hindsight is easy. I can look at a chart and easily see the "shoulda, woulda, coulda" trades. Making those same trades when they are on the right edge of the chart requires a lot of work. Using SIM and replays will speed up the process. Doing those replays in super slow speed is a PLUS. Read the references to this technique in the early part of the blog if you haven't already.

The other big issue for day traders can be focus. Sitting in front of a screen for many hours waiting for that trading picture to develop and being ready to pull the trigger in a timely manner is no easy ask. There's not much happening and then suddenly there it is. Being late in the trade is worse than missing it. Missing it means no profit but being late can mean a loss. If focus is an issue, break the day down into the most active parts and don't sit there at the other times. Focus.

I was right off the reaction to expect from the Spanish bank bailout news on Sunday. I was expecting a down market and was surprised to see the ES up. I don't have any positions, but my bias was wrong. I thought that after all the denials, Spain's admission that things were really bad would hurt the market. Anyway, I took advantage of the DAX gap up and made a few points before I stopped. I sold the pullbacks and covered at my FavFib.

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