“Some early advice I got – One of the first pieces of advice I got when I started trading on the floor was that you have to make only one good trade a day to make a living. If you can sit back and wait for that perfect setup and make 6 to 10 ticks on it, that’s all you need. Every day you’ll get one or two situations that look and feel great. Just be patient and wait for them; there is no need to try to beat the market all day long.” (High probability trading: take the steps to become a successful trader – Marcel Link)
Here’s various notes from around the trading desk:
“choppy markets are harder to trade” – now that I specialize in fading I don’t agree with this.
“if you keep using the same share size then you aren’t differentiating market scenarios”
“what I did was catch a falling knife in reverse – trying to pick a top” – I am learning to avoid this by watching the market — there’s an idea!
“WYNN got a boost from MGM’s good news” – please TRY to do some sector analysis even though you hate it – start to think in sectors, what are this company’s competitors.
idea: thrust pattern – recognize it, profit from it, very common pattern.
“look for relative strength among sector”
“one needs to submit the trade good and early otherwise trend will have matured too far to enter”
“adx would have kept you safe” – note from my trend-trading days
“modern markets seem to burn everyone before they launch definable trends” – eSignal Learning: Trading Education: Archived Weekly Trading Article for 2009.
“a good pattern won’t bail you out of a choppy market. Move to the sidelines when conflict and indecision take charge of the price action” – eSignal Learning: Trading Education: Archived Weekly Trading Article for 2009.
“stocks are forced to negotiate a minefield of conflicting trends, each dependent on different time frames. your positions need to align with these cycles to capture the profits you visualized in your trade analysis. But donj’t drive yourself crazy because there’s a limit to your study time. …not all your ducks will line up in a row before you need to take action” eSignal Learning: Trading Education: Archived Weekly Trading Article for 2009.
“painful and boring…read transcripts at least…listen to the conference call…may be 90 minutes but great info…don’t skip it” – Cramer
“check out company quarterly filings, annual report…read the 10K” – Cramer
it is okay to include the wicks when putting up a Fib grid. measure a ‘move’, not necessarily choppy action that precedes it.
“convergence between pattern and retracement can point to excellent trading opportunities. Keep in mind that retracements work poorly in a vacuum. always examine high, lows and moving averages to confirm the importance of a specific level. …Discord between retracement and the underlying pattern generates noise instead of profit. Move on to a new chart when nothing lines up correctly. This divderegence generates most of the whipsaw in a price chart. Alternatively, strong phasing between Fibonacci and pattern exposes highly predictive reversals at narrow price levels.” – Alan Farley, Technical Analysis Tutorial (From TradingDay.com)
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