Well, after 52 pages of content this may get lost but trading can be as easy as this. There are two types of markets. Volatile and non-volatile and the volatility or lack of volatility is concentrated within a certain time period, which you have to assess. Let's go back to 2007 and 2008. On a daily basis and intra-day the markets were all over the place. Trying to "time" this type of market is next to impossible. I used a money management, multi-entry, very wide stop method (not easy to do -- very hard on the heart) and made more money in 2008 than I made in 2009, 2010, and so far 2011 combined. I made about 90% of my money in the first 2 hours. Trend following and tight stops didn't work. There was no trend and putting in a close stop is like sticking your neck out with the Guillotine in the raised position.
Fast forward to current day. No volatility, surf's up. I generally wait for the first hour to pass to assess direction but lately I've just been buying at the open and letting it ride. The market goes up every friggin day. Don't over analyze. Just buy until this method stops working.
Looking back at 2009, I still used my counter move method that I was using in 2008 and started getting fried. I made the mistake of ignoring the radical drop in my volatility measurement tool. Light bulb goes on. It was time to go back to pre-2007 methods.
That's basically where we're at. Keep buying until that stops working. When that happens, stop and re-assess. Has anything happened to change the character of the markets? Here's a hint. It comes in the form of news. Surf's up baby. Buy the open, go take a nap. If the first trigger don't work, be patient. You'll get another.
And to all this bullshit about HFT killing day trading. That's complete garbage. The market hasn't changed a bit. If anything, HFT is helping the trader by putting liquidity out there. This is just another excuse for a loser to use. "It's not a level playing field. HFT'ers have the advantage." What advantage?? How does a sub-second entry of less than a penny hurt you?
Fast forward to current day. No volatility, surf's up. I generally wait for the first hour to pass to assess direction but lately I've just been buying at the open and letting it ride. The market goes up every friggin day. Don't over analyze. Just buy until this method stops working.
Looking back at 2009, I still used my counter move method that I was using in 2008 and started getting fried. I made the mistake of ignoring the radical drop in my volatility measurement tool. Light bulb goes on. It was time to go back to pre-2007 methods.
That's basically where we're at. Keep buying until that stops working. When that happens, stop and re-assess. Has anything happened to change the character of the markets? Here's a hint. It comes in the form of news. Surf's up baby. Buy the open, go take a nap. If the first trigger don't work, be patient. You'll get another.
And to all this bullshit about HFT killing day trading. That's complete garbage. The market hasn't changed a bit. If anything, HFT is helping the trader by putting liquidity out there. This is just another excuse for a loser to use. "It's not a level playing field. HFT'ers have the advantage." What advantage?? How does a sub-second entry of less than a penny hurt you?
