Calling it - today was the low
- Thread starter SoyUnGanador
- Start date
I'm not sure why traders are worried about "finding the bottom." It could only mean it's swing traders talking, since they hold, not day traders. If you have the chops, what's not to like about day trading a bear market?
Bear markets have lower prices and greater volatility, creating a better daily spread. It plays on the emotional response from traders that "the market is reversing." Hint: we're in a recession, it's not reversing, so you trade "what is," what's in front of you.
Remove the anchor of needing to find the bottom, or for the market to "reverse" and instead, enjoy the upside benefits of the bear market. The lower the market goes, the greater % leverage (spread/gain) you have on every trade because of lower prices, which means risking less capital on the same number of shares for a higher % gain. With less capital at risk, when a trade goes bad, you have more reserve capital, making problems easier to fix.
With small intra-day flips, using sound technique, I have found it quite straight forward to produce consistent daily gains of 2-4% on my entire trading account without overnight holds. On a descending market, swing trading makes no sense at this point, which means wherever the market goes, let it, just play the flips.
Here's a little article from Market Watch yesterday on the benefits of "trading the bear."
https://www.marketwatch.com/story/h...-gullible-investors-11654880407?mod=home-page
Happy to talk craft with anyone who's interested in talking shop. Make some cash!
Happy trades!
Bear markets have lower prices and greater volatility, creating a better daily spread. It plays on the emotional response from traders that "the market is reversing." Hint: we're in a recession, it's not reversing, so you trade "what is," what's in front of you.
Remove the anchor of needing to find the bottom, or for the market to "reverse" and instead, enjoy the upside benefits of the bear market. The lower the market goes, the greater % leverage (spread/gain) you have on every trade because of lower prices, which means risking less capital on the same number of shares for a higher % gain. With less capital at risk, when a trade goes bad, you have more reserve capital, making problems easier to fix.
With small intra-day flips, using sound technique, I have found it quite straight forward to produce consistent daily gains of 2-4% on my entire trading account without overnight holds. On a descending market, swing trading makes no sense at this point, which means wherever the market goes, let it, just play the flips.
Here's a little article from Market Watch yesterday on the benefits of "trading the bear."
https://www.marketwatch.com/story/h...-gullible-investors-11654880407?mod=home-page
Happy to talk craft with anyone who's interested in talking shop. Make some cash!
Happy trades!
Maybe DeSanity can fool Reps next time but even tRump's favorite wet dream daughter has turned on him.
Anyway pension funds have to buy to put funds to work - nothing more than that. But nothing to do with silly squiggly lines. Also not likely to be with NDX, but S&P and Dow.
Anyway pension funds have to buy to put funds to work - nothing more than that. But nothing to do with silly squiggly lines. Also not likely to be with NDX, but S&P and Dow.
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Pension funds always buy high, they go in heavy at IPO's (dumb, since IPO's are a P&D), most of their institutional buy-holds sit for years and years in the red, many never come back to even. They are notoriously poorly managed, most are in trouble all the time. If you want to see some of the poorest examples of money management, it's pension fund managers.
Not sure what the political vents have to do with trading, some unexpressed anger in there somewhere, but ok, though it's the Democrat's economy now, (actually it's big tech, who wants a bad economy. As Lenin once said "The worse, the better.").
I don't mind the bear market, it has great volatility, nervous traders, and all the prices are cheaper, so there's plenty of money to be made. Play the game, hoping for a different one comes from traders that don't have the chops to adapt. Everything moves up and down every day, as always, in any market. Business as usual. A crash or correction? Big deal, trade it. Flip shares, take green, find the next one.
Happy trading!
Not sure what the political vents have to do with trading, some unexpressed anger in there somewhere, but ok, though it's the Democrat's economy now, (actually it's big tech, who wants a bad economy. As Lenin once said "The worse, the better.").
I don't mind the bear market, it has great volatility, nervous traders, and all the prices are cheaper, so there's plenty of money to be made. Play the game, hoping for a different one comes from traders that don't have the chops to adapt. Everything moves up and down every day, as always, in any market. Business as usual. A crash or correction? Big deal, trade it. Flip shares, take green, find the next one.
Happy trading!
Not because they are right or wrong, but because of the psychological need to make such calls. Sophomoric at best behavior at best. Moronic at worse.
A "master of the universe" complex and trading never work out until the person learns enough to know it is a fools errand and they are the fool running the errands.
Agreed. The need to feel more powerful than you covers underlying insecurity. Convince enough people you know what you are talking about and they won't make you accountable.
The market moves up and down every day, bear or bull, so mastering how to play drops and bounces, and getting out clean every session, means it doesn't matter what the market does, so there's no emotional relevance to whether this is the "top" or "bottom."
I hope it goes lower, there are no buyers, so that's what should happen (price follows volume), which means everything's cheaper on the drop, making buys safer and safer the lower it goes.
Happy trades!
The market moves up and down every day, bear or bull, so mastering how to play drops and bounces, and getting out clean every session, means it doesn't matter what the market does, so there's no emotional relevance to whether this is the "top" or "bottom."
I hope it goes lower, there are no buyers, so that's what should happen (price follows volume), which means everything's cheaper on the drop, making buys safer and safer the lower it goes.
Happy trades!
Excellent post, well written.
Agree re leverage, and not swing trading bear markets.
I like trading inverses UVXY SQQQ TZA and commodities eg KOLD SCO GDX, prefer ETFs to stocks, for swings.. daytrading gaps etc still fine.
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Hi Ken,
As always, it's great to hear from those you respect. There is surprisingly so little discussion ever on chats about craft, trade tips, etc - it just amazes me that expressing an opinion means more than picking each other's brains for knowledge.
Hope you're having a great day!
As always, it's great to hear from those you respect. There is surprisingly so little discussion ever on chats about craft, trade tips, etc - it just amazes me that expressing an opinion means more than picking each other's brains for knowledge.
Hope you're having a great day!
After the OP's "call", it is now premarket:
June 11, 2022, 10:06 PM PDT Updated on June 12, 2022, 5:35 PM PDT
Equities shed about 2% in Japan and South Korea. US futures slid, with Nasdaq 100 contracts down 1.7% and those for the S&P 500 1% lower.
So if you have a long NQ-ES, the tail end of the trade is your to manage.
June 11, 2022, 10:06 PM PDT Updated on June 12, 2022, 5:35 PM PDT
Equities shed about 2% in Japan and South Korea. US futures slid, with Nasdaq 100 contracts down 1.7% and those for the S&P 500 1% lower.
So if you have a long NQ-ES, the tail end of the trade is your to manage.
I told everyone I know that Friday close was the generational low
Now there are people with flaming pitchforks at my door
Now there are people with flaming pitchforks at my door