The ACD Method
- Thread starter sbrowne126
- Start date
I follow all markets. I do NOT day trade commodity markets. I do put on macro positions on everything. I would call myself an opportunist in these markets vs someone who is actively trading them. In other words, I don't take every swing trade I see but if I see something that is lining up nicely, I'll trade it. Usually the only reason I'm not trading more of them is because I get distracted with other stuff.
Here is another possible good setup. Soybeans have been on a tear recently. Up close to 50% on the year. And we just happen to be approaching the QTR A up at 1480. We currently are sitting right at the monthly A up at 1458. These beans really popped on Friday and the Bean options were going nuts. If we see another day of intense buying into that QTR A level, a nice short could be lining up. I would NOT, repeat NOT short the futures. This would be an option play.
Here's a great interview with Joe Terranova about his new book. Impressed by this interview I will have to go and get the book.
http://martinkronicle.com/2011/12/28/money-2012-buy-high-sell-higher/
http://martinkronicle.com/2011/12/28/money-2012-buy-high-sell-higher/
By macro, I gather you mean not individual stocks and not intraday, i.e., more big-picture trades. Assuming that is correct, how often do you look at prices or charts to decide whether to scale in or out (assuming you add to positions and/or exit partially)? And how much screen real estate do you need to be able to follow and trade the large number of markets that you do?
Here's a good analogy from the interview. Joe talked about how Mark Fisher would always say that trading was alot like driving a taxi. You drive around for the most part looking for normal sized fares but then one out of every 10-20 times you have someone that will step in your taxi and will say take me to Atlantic City. Trading is about hitting singles, and then once and a while you get that great trade that you can really press.
Remember to hit those singles!
Great story. Now I am going to have to listen to that interview.
By macro I simply mean longer term trades. I don't scale. These trades don't last that long. Usually one to two weeks. I have lots of layouts saved for the macro stuff. So it's really as simple as pulling up my commodity layouts and looking at my quad grid. My quad grid has 4 charts that show the intra-day, weekly, monthly and QTR levels. Everything you need to see is right there. So you don't need a lot of space. What you need, is a lot of TIME!
Hey Shan,
Thanks for the post. I highly recommend Joe's book. It's exactly what I like in a good trading book, (very little about execution/filled with stories to learn from). Instead of wasting time on setups, (though they're covered on more of a macro basis) he talks about taking steps to organize you into being better able to follow your plan.
Some highlights: turn-around Tuesday, making an apointment to buy or sell the market, never buying in front of an event, (but often after) and setting up your notebook.
IMO, One of the better books on trading, (that doesn't really talk about trading) that I've read. Highly recommend.