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I am short (either with shorts or puts) MWP RYL KBH BSC GS NYX and soon ICE

It depends. If I were still holding onto the GS puts I had last week, I would cover first thing in the morning. However, I also have short positions in downtrending stocks that will probably continue falling even if a rally occurs. I will hold these. It depends on your overall view of...

The people at institutions who derive strategies and execute them are the very few, like the ones who run an entire trading desk. I have a friend who works at Lehman as a financial engineer, and many of the people in the "trading" departments do financial modeling, etc. Or they're on the trading...

I really hope that a lot of these hedge funds get caught up in the mix. In the last decade or so, the hedge fund industry has gotten huge. There are now tens of thousands of hedge funds, everyone wants to start one because its the way to make quick money. Take 20% off the top regardless of...

Financials. Pretty much anything overbought at 150+ levels you can bet I will have puts on :)

Easy, stock prices are just a manifestation of supply and demand. Nothing more, nothing less.

Few people understand what it is to be trading for a living. Hell, my own mother doesn't want me to be a trader.

Yeah it's a strong signal, but I think it's not as rare as people make it out to be. It's common enough that it finds use, but the indicator itself is more reliable if it's in the direction of the long-term trend. ie. positive divergence at the bottom of a short-term pullback in a longer term...

Yeah it's doable, I know one woman who made a decent living focusing on breakouts and swing trading plays while having some position trades on the side. In my opinion, 50-100k in a nonmargin account would be too difficult to make yearly expenses. Really you want to increase capital to make it...

every contract should be less than 1k

I would watch to see if it bounced off the major trendline tomorrow to confirm before putting in a trade. Not a bad trade if you think about it, I'm bullish on tech still.

go fishing! lol take up video games? thats what i do

I agree, you'll probably make more money this way than going in and out on day trades. Essentially you'll be doing what Livermore and Darvas did, position trading and holding until market sentiment changes. You probably wouldn't make money in a consolidating market, but like Livermore said...

Edit: It could definitely be a cup and handle, but the pattern has to complete until it actually is one.

That's a big part of the journey as a trader, everyone goes through what you're going through. It's the search for the holy grail. Ultimately, you're looking for a consistent method that fits YOUR personality. The only advice I can offer is to keep looking and taking bits and pieces from...

I don't want this to come across as an argument, and I apologize if it sounds that way. In fact, we are all entitled to our own opinion and good traders need to be able to be confident and stick with their own convictions instead of giving in to other people's opinions. Difference of opinions is...

Bearbelly, you say the markets are bullish right now but in my opinion there has been technical weakness for some time. See NASDAQ and S&P500. Neet, it is rare something like that happens because the two emotions in play in the market are fear and greed. Fear, in my experience, is a stronger...

Thank you very much for the elaboration OldTrader. Like he said, crashes come after a sign of technical weakness because someone always knows about the crash beforehand and positions himself for it with selling. I wouldn't be surprised if many people knew about 9/11 before it happened...

There was a descending triangle leading up to September 10th.

IMO If you are caught in a major downside break, it's your own fault because someone always knows about the market crashes ahead of hand (crash of 87', 29', 9/11, etc), causing technical patterns to form. Follow the smart money since the markets will give you plenty of time to react before the...