Professional Trader - Ask your questions here for the next few days...

[DisciplinedHedg]

Quote from Redneck trader:

Well Sir


My questions –

What does the big/ smart/ professional money (the one you don’t want to bet against) action look like on a chart (intra day and/ or daily)?

How do you identify it?

How do you go about deciphering its intentions?



Thanks

RN

These are much more sophisticated questions.

To see the big money, a few of the things I look at are the strength of the tick, OEX options activity, depth of the bid. The market has its own feel depending on what the "big money" is doing which is one of the reasons I like to watch every tick.

Deciphering its intentions? I would say to do this one needs to consider the overall backdrop such as support/resistance levels, what the sentiment is in the market, and other factors.

 

[DisciplinedHedg]

Quote from Arnie:

Did you ever consider giving up?

Yes and no. Yes, in that early on I considered giving up the idea of trading for a living. No, I never considered giving up on trading entirely since I enjoy it too much.

 

[cookding]

Quote from DisciplinedHedg:

Besides the indices, I only watch the tick and vix. And all those have support/resistance levels.

I've found time frame is extremely important. I cannot emphasize this enough. It is important because it is the major factor in aligning with my personality. I trade daily with usually 1 day charts because I will already have a mental picture of what has occurred in the past. I use a monthly time frame to guage profitability.

How do you use vix and what timeframe? Thanks.

 

[DisciplinedHedg]

Quote from DrEvil:

Here are my questions:

1.How would you rate these in importance (percentages): 1. Trade Entry, 2. Trade Management, 3. Trade Exit

2.Do you believe an entry strategy that is based on breakouts (buy high sell higher ...) or pullbacks (buy low sell high ...) to be more profitable?

3.Do you use time stops? Any thoughts on them?

thanks in advance

1. Too tough for me to give %, but I would say trade management by far since most of my trading time and energy is devoted to it.

2. Success of breakouts and pullbacks greatly depend on the market environment.

3. Yes, I do use time stops. There are positions that I take because I expect a certain result within a certain period of time. When it doesn't occur in the time period, then mentally I try to accept that I am wrong and move on.

 

[DisciplinedHedg]

Quote from quin8670:

Do you use moving averages or any other technical indicators?

I've never found moving averages to be useful in itself. Only when other traders are watching a certain level do I start to watch the same level.

 

[DisciplinedHedg]

Quote from cookding:

How do you use vix and what timeframe? Thanks.

I watch the vix intraday tick by tick. It's important especially relative to price.

 

[domestic]

how did your account do in October 2008?

 

[NoDoji]

Quote from Redneck trader:

What does the big/ smart/ professional money (the one you don’t want to bet against) action look like on a chart (intra day and/ or daily)?

RN, it looks like the attached chart

When you see the price bidding up as 1000-6000 share prints scroll by so fast on the Time & Sales you can hardly follow it, I think you can safely jump on board at any time and be guaranteed something green.

 

[cookding]

Quote from DisciplinedHedg:

I watch the vix intraday tick by tick. It's important especially relative to price.

Can you give an example of what you look for? If this is too much, I understand. Thanks again.

 

[DisciplinedHedg]

Quote from cookding:

Can you give an example of what you look for? If this is too much, I understand. Thanks again.

Basic example...

Generally, as the market goes down, the vix should go up, and vice versa. When it doesn't, or doesn't to the extent that it should, take note.