Old Timer's Advice On Trading This Market

Scataphagos

Scataphagos

1. Volatility has returned. That's good. More chance to make nice gains when traded well.

2. Markets are very "jumpy". Any news or jaw-boning on various topics gets a knee-jerk response in the markets, up or down.... some of which are big.

3. Frankly, I don't see how anyone can trade this market well without using Price TA.... which if used properly will allow you to navigate this uncertain time.

FWIW....
 
Scataphagos said:
1. Volatility has returned. That's good. More chance

2. Markets are very "jumpy". up or down.... some of which are big

3. Frankly, I don't see
More...

There's no such thing as an 'easy' or 'hard' market to trade.

There are only traders...who are rather one-sided, and one dimensional thinkers...who will inevitably get washed away by a tidal wave, or any sized wave that comes their way.

It's important and crucial and vital to approach trading ...from an objective and subjective, collective, open-minded, reasonable, tactical, semi-logical, malleable viewpoint.

You can't make a killing in the market or on a safari adventure...by just throwing rocks at animals from inside of your car.
The same thing and situation and risk/rewards and success/failure applies to traders.
2018 ET. o_O`
 
Last edited:
Scataphagos said:
1. Volatility has returned. That's good. More chance to make nice gains when traded well.

2. Markets are very "jumpy". Any news or jaw-boning on various topics gets a knee-jerk response in the markets, up or down.... some of which are big.

3. Frankly, I don't see how anyone can trade this market well without using Price TA.... which if used properly will allow you to navigate this uncertain time.

FWIW....
More...

I don't use TA, but the last month has been a gift that just keeps on giving. Volatility is not for everyone, but for those that benefit from it - it's here.

With at least a few more years of Trump and lots more "stuff" to happen domestically and internationally, I have to believe there will be plenty of volatility to come unless they take his twitter away.
 
Scataphagos said:
1. Volatility has returned. That's good. More chance to make nice gains when traded well.

2. Markets are very "jumpy". Any news or jaw-boning on various topics gets a knee-jerk response in the markets, up or down.... some of which are big.

3. Frankly, I don't see how anyone can trade this market well without using Price TA.... which if used properly will allow you to navigate this uncertain time.

FWIW....
More...


I agree, and for everyone who has been around for a while and knows how to trade, this must be like trader's dreamland. If one is not happy with this kind of volatility in the ES and NQ, and all the moves and countless opportunities throughout the day, then maybe he should look for another job or hobby. When volatility shot up beginning of february, I was very happy about it and thought great, lets makes some hay as long as it is lasting. I was expecting these fast moves and wide ranges to only hold for something like a few days. It has been over 2 months now, and it is like the best video game or movie, just that it did not end yet. Milk this thing as long as it is lasting. Wish you all good trading !
 
Last edited:
When all is said and done, the death/rebirth of volatility in U.S. financial markets will be connected to the FED, and their creation, and then unwinding, of a balance sheet 4x bigger than pre-Financial Crisis.

Two days ago, the NYSE TRIN sat at a *very* bearish 1.60 all day long; yesterday, it was camped at a very bullish 0.50 or so. The market did not follow along. Why? *Massive* turnover -- a trading agenda that says "Get us out of this set here -- Get us *into* those over there" but do so without moving price so much. (My read?? The "smart money" is selling its winners, and buying up what has been disfavored -- a market-wide Dogs Of The Dow maneuver.)

For 3 years, it had been increasingly necessary/advisable to balance top+bottom option positions with iron condors, and to write them as such -- to wait for an advantageous market move was to lose too much theta. Now? We're back to where you want to write the top on excursions up, and write the bottom on excursions down -- theta be damned! Trying to write ICs right now is just *begging* to get suckered into a whipsaw. "Write on excursions!" has reappeared, tattooed into my brain.

https://www.marketwatch.com/story/s...tralow-volatility-security-blanket-2018-02-28
 
Yep. Bet a lot of cashed-out tech profits get thrown into energy.

You really don't want to bet against SA getting top coin for their upcoming Aramco IPO.
 
lawrence-lugar said:
There's no such thing as an 'easy' or 'hard' market to trade.

There are only traders...who are rather one-sided, and one dimensional thinkers...who will inevitably get washed away by a tidal wave, or any sized wave that comes their way.

It's important and crucial and vital to approach trading ...from an objective and subjective, collective, open-minded, reasonable, tactical, semi-logical, malleable viewpoint.

You can't make a killing in the market or on a safari adventure...by just throwing rocks at animals from inside of your car.
The same thing and situation and risk/rewards and success/failure applies to traders.
2018 ET. o_O`
More...
Something we both agree on...washed away one dimensional thinkers...good stuff!;)
 
You must log in or register to reply here.
Back
Top