What do you do with a pot of money when...

R

ryoubetteroff

Here’s one for anyone who cares to answer…

Scenario:
Monday morning 9:30 am
Cash on hand…..plenty…
Current equity positions…..flat…no positions short or long
Leaning…..long…..
Pre market indicators……down…..
Strategy…..Begin building long positions in KRB YHOO CMCSK QQQ etc
9:40 am market turns and runs up 282 pts

Okay, I think you get the picture..
What I am really trying to ask is what and how does one participate in a day like this.
Personally I did not trade very well this day and did not make much money.

Now that’s one thing but the other is my wife and friends who know I trade all ask, with enthusiasm, “how’d you do today…. must have made a bundle…..”

Serious strategy suggestions appreciated
Humorous answers welcome
Humiliation………well I’ve already taken care of that myself
 
A day like that happens once every six months. It's great to max it out, but you had no way of knowing how it would play out. Ken Wolfe has a good adage: "Play the rule, not the exception." That means you have to trade your plan, not throw it away in hopes of a monster day. Look at it this way, at least you weren't heavily short.
 
Quote from ryoubetteroff:

Here’s one for anyone who cares to answer…

Scenario:
Monday morning 9:30 am
Cash on hand…..plenty…
Current equity positions…..flat…no positions short or long
Leaning…..long…..
Pre market indicators……down…..
Strategy…..Begin building long positions in KRB YHOO CMCSK QQQ etc
9:40 am market turns and runs up 282 pts

Okay, I think you get the picture..
What I am really trying to ask is what and how does one participate in a day like this.
Personally I did not trade very well this day and did not make much money.

Now that’s one thing but the other is my wife and friends who know I trade all ask, with enthusiasm, “how’d you do today…. must have made a bundle…..”

Serious strategy suggestions appreciated
Humorous answers welcome
Humiliation………well I’ve already taken care of that myself
More...

even fund managers who make millions to manage money missed this move.
you have hit on a problem many traders have. if they are used to scalping they seldom get big moves. if they swing they might be invested from higher. if they are shorters they might of took big losses. everything looks clear in hindsite. dont beat yourself up. just make notes and try to be ready next time a similar thing happens.
 
It's like fishing... You need to have your line in the water all the time. Most of the time you just wasted the whole day, and a few cans of worm... and one day you get the big catch.

Cheers !! :)
 
To catch a trend day, buy market on open, put your stop a % of average daily range away and hold to close. Simple.

Trend days open at or near the low of the day and close at or near the high of the day. If you don't go in at the open you will miss it altogether, and likewise if you place a profit target you will generally do worse than turning off your computer and exiting market on close.
 
you play your own game. who cares how much money you make on a big up day? what about all those days the market was down or flat? pulling dough out on a steady and consistent basis is what counts if you are a short-term trader.
 
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