Quote from flip:
here's a link to the book (I'll remove the file by next week, so pls. download soon)
http://dl.dropbox.com/u/11853547/Toby Crabel - Day Trading With Short Term Price Patterns.pdf
Quote from kinggyppo:
Crash "Reversal"
"Iâve told this story dozens of time, but the memory has never ceased to have an impact on me. I was out of the
country on Black Monday of the Crash of 1987. In fact, I wasnât able to get back to the trading pit until Tuesday
afternoon (even though I flew standby on the Concorde). I made six-figure profits on Tuesday afternoon and
Wednesday. But that all paled in comparison to what happened on Thursday.
Before trading began, the pit was tense. The brokers, I noticed, were especially nervous. Having been a broker in my early days, I could read their body language clearly. They were acting as if they had a large order to fill. Just before the bell rings, brokers start to make their offers. A broker offered to sell S&Ps 4.00 points lower. (In the pit weâd think of that as 400 points lower.) Then another broker, this time from Shearson, said he was 10.00 lower.
(Remember this was 1987, and we didnât have any limits to act as brakes on a sharply falling market.) This was unbelievable, I thought! Within seconds we were already 10.00 points down. As a local, I wondered just how far down this market would go.
âIâm 20.00 lower,â I yelled out. A Shearson broker was lower still â 30.00 points lower. I said I was 40.00 points lower. The Shearson broker shot back that he was 50.00 lower. S&Ps opened 56.00 points lower. In the midst of this freefall, I knew it had to be the bottom. I turned buyer. I bought 150 contracts from a broker behind me and sold them two seconds later for 20.00 points higher. I walked out of the pit with a $1.3 million profit made in less than a minute. I went into the bathroom and threw up. As
much as I had made on that one trade, I could have lost if the market had turned against me."
from Lewis Borsellino, trading with Lewis Borsellino
hopefully that story will inspire, you're best days are ahead of you, keep at it guys.
Quote from Maverick74:
Nice move in natty gas today. Looks like it caught a spark.
Quote from drm7:
Natural Gas is a weird market. A lot of days are dead - barely gets out of the opening range. I've also seen a lot of failed A ups and A downs. The market can turn on a dime. Inventory days are crazy. I read an article in the WSJ a while back about algo traders piling into NG without adapting to the lower liquidity (relative to CL at least). The result are some crazy fluctuations.
HOWEVER, there are days where you get a nice, clean A up, A down and it runs and runs.
Quote from mfbreakout:
I do not trade Natural Gas so not really familiar with it. However, being a student of MF method, looking at 30 days number line starting 9-1 to 9-13, I see following values.
-4,-6,4,4,4,4,4,0,2,2,2,2,2,0,0.
No wonder it has given lot of failed A up or A downs. Again I am only talking in terms of day trading.
Crude Oil number lines VALUES are totally opposite of Natural Gas and thus have enough volatility to trade in a daily range of 400-600 ticks.
Quote from Maverick74:
Can you further clarify those number line values for me? How does his number line go from -6 to +4 in one day? The most the # line could move is 8 and that's if you dropped off a minus 4 day and added a plus 4 day. Am I missing something here?
Quote from mfbreakout:
The numbers are not in sequence of 9/1 to 10/13 as i thought. MF posts numbers in following sequence. I had not noticed the dates sequence up to this point.
9/1, 9/2, 9/28, 9/29, 9/30, 10/03, 10/04,10/05,10/06,10/07,10/10,10/11,10/12,12/13.
-4,-6,4,4,4,4,4,0,2,2,2,2,0,0.