Monday, 23 January 2012

Trading what is moving

I'm a trader and I trade what moves. I need volatility to make money, so I go where the action is. In the pit, we traded "our" market. We belonged to a "crowd" - guys who I stood next to every day and against whom I competed. If our pit had a quiet day, that was reflected in my earnings.

Moving upstairs, the world became my oyster again and I could trade what was moving.
I am an advocate of 1 chart and 1 market until a trader masters his craft. After that, be a trader. Trade. Trade what is moving.

Today I'm showing my Light Crude action. A good day, whether you traded the London or U.S. morning.


5 comments:

  1. Hi EL,
    A while back you mentioned you were looking at Volume Strips. What did you think? I've been in touch with Steidlmayer Software after seeing the video but didn't get a reply.
    Is it similar to the Volume at Price profile on MD Trader and some other DOM's?
    Thanks,

    Nick

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  2. Anon 12:31. Volume Strips are nothing new although the VS app does present the information diffeently. If you are using MarketDelta then you have that and a lot more.

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  3. What is the best way to determine where the action is?

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  4. Anon 11:31, I usually look at what happened overnight. Another thing is what there is going on in the news. When I hear the word OIL a lot, I pay attention to CL. hen it's EUROPE, the Euro is what I pay attention to.

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  5. Is it possible to get the chart definition for this chart in Trade Station ... thank you Sir.

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