Worst market ever?
- Thread starter daniel_m
- Start date
I cant see myself being long in this market but I thought the end of the day moved down quite nicely.. What do you mean by wholesale dumping?
"One of the most hard-lined rules that's been emblazoned in my little pea brain over the years is this: If you think that it can't go any higher (or lower), it can. If you're absolutely sure it can't, it will."
At first glance this may seem like one of those canned responses. But after watching some E-mini traders getting completely slaughtered over the past couple weeks trying to pick the bottom on the NDX, I felt compelled to restate it. Funny thing is, the reasoning is that "it HAS to go up, its too oversold and my indicators are screaming BUY!" all the while price (value) keeps dropping. It may be simplistic to say to just look at price, but I'll tell you what, my usage of charts are becoming less and less as my staring at price movement becomes almost the only indicator I use.
At first glance this may seem like one of those canned responses. But after watching some E-mini traders getting completely slaughtered over the past couple weeks trying to pick the bottom on the NDX, I felt compelled to restate it. Funny thing is, the reasoning is that "it HAS to go up, its too oversold and my indicators are screaming BUY!" all the while price (value) keeps dropping. It may be simplistic to say to just look at price, but I'll tell you what, my usage of charts are becoming less and less as my staring at price movement becomes almost the only indicator I use.
Since many will think that I am simply promoting the market...but if you can get past that, let me tell you what I'm writing about for the magazine now. This should hit in July or August.
"Market Whiners need to Adapt or Die' (working title only).
There are so many changes going in the market these days, that now, more than ever, we need to make major changes in our trading styles and techniques.
I hear "decimals have killed the market" - we can't "scalp" anymore, and all the rest. Well, how about this: Learn to envolope the current market prices and take advantage of bid drops and offer rises. This was not as easily done when we traded in fractions.
I also hear that that there are not the same opportunities for momentum trading, relative strength, and other strategies. Well to this, I say "modify your price targets and share size somewhat." If you were expecting a move of .50 cents, be glad when you get .30 cents with a little larger size. Your "risk reward" is about the same, since the movement against you will also be minimized.
Anyway, I try to show you all some working strategies, and our people are making money....perhaps not as much as last year, but nonetheless, their making money.
Don't take the "whining" part to heart.....it's just a working title. We outline many adaptations of existing strategies for our traders, in the hopes that our growth will continue in the double digits...and we can't do it without the traders making money.
Don
"Market Whiners need to Adapt or Die' (working title only).
There are so many changes going in the market these days, that now, more than ever, we need to make major changes in our trading styles and techniques.
I hear "decimals have killed the market" - we can't "scalp" anymore, and all the rest. Well, how about this: Learn to envolope the current market prices and take advantage of bid drops and offer rises. This was not as easily done when we traded in fractions.
I also hear that that there are not the same opportunities for momentum trading, relative strength, and other strategies. Well to this, I say "modify your price targets and share size somewhat." If you were expecting a move of .50 cents, be glad when you get .30 cents with a little larger size. Your "risk reward" is about the same, since the movement against you will also be minimized.
Anyway, I try to show you all some working strategies, and our people are making money....perhaps not as much as last year, but nonetheless, their making money.
Don't take the "whining" part to heart.....it's just a working title. We outline many adaptations of existing strategies for our traders, in the hopes that our growth will continue in the double digits...and we can't do it without the traders making money.
Don
Don-
I don't think anyone is "whining' or complaining that the market is going down....just that it can be boring and tight on days....and today from 11-3 was pretty boring(for me anyway).
I do the open only plays almost every morning...and it's great if you have the envelope set right..get a few executions etc..but when you don't...and then the rest of the day is sideways...one of the things that happens to me is I fall asleep.
good luck with your article.
BTW, you don't trade anymore do you?
uptik2000
I don't think anyone is "whining' or complaining that the market is going down....just that it can be boring and tight on days....and today from 11-3 was pretty boring(for me anyway).
I do the open only plays almost every morning...and it's great if you have the envelope set right..get a few executions etc..but when you don't...and then the rest of the day is sideways...one of the things that happens to me is I fall asleep.
good luck with your article.
BTW, you don't trade anymore do you?
uptik2000
Don, I agree with you 100%. How can people say the market is not moving. At least with the nasdaq and S&P futures, every day there are usually at least two nice long trends lately(just one today
) Traders should at least be able to catch some of these moves? Like don said, size your trades accordingly. you can at least control that.
) Traders should at least be able to catch some of these moves? Like don said, size your trades accordingly. you can at least control that.thanks for the post, you said it perfectly. i concur 100 %.
best,
surf
____________
from the sound of a girl's guitar
to a stockcollapsenow
its all just another good vibration
best,
surf
____________
from the sound of a girl's guitar
to a stockcollapsenow
its all just another good vibration
Magna
Administrator
Very good post (of which I excerpted just a small portion) but I want to address this notion which I think is false for daytraders. Welles Wilder created ATR (Average True Range) for the sole purpose of giving a more accurate calculation to daily ranges by also taking into account gaps between days. So while ATR is an excellent study of the "true" range for a multi-day swingtrader (or position trader or investor), it gives an inflated figure for the daily range that's important to a daytrader. In other words, ATR is always higher than the actual intraday average daily range because it takes into account gaps. How much higher depends on how much that particular market gaps.