Speaking about gut, I have to come up with some money for my share in a great public company that is going to give the thugs a real pain in the arse. But with all that WE know here, I am less enthused about throwin my lot into the pot. IF you know what I mean. Should I do it? Its serious history, but if the SPX goes to 500-600, I could probably buy the whole company for what I am pay for 12.5%. Any thoughts guys?
And peacefulwarrior, you got your drop just now. Goodonya.
This was something I just read. It pretty helpful.
There was a platform computer game in the late 1980s to promote
Domino’s Pizza called “Avoid the Noid”. The ad featured a “Noid” that
destroyed pizzas and must be avoided. Active traders have our own
version of the “noid” in the form of HFT (high frequency trading)
robots. Except this noid doesn’t destroy pizzas, it destroys traders.
By creating what I like to refer to as “noise”, these bots wreak
havoc on intraday charts, setups, and technical indicators. They prey
on conventional wisdom ignoring moving averages, support/resistance, and
breakouts. With Jack Bauer like precision, they seem to know the exact
level of pain to inflict to get traders to cough up their shares. And
if greed is your demon, get ready for the mother of all vicious snap
backs.
For a trader to be successful in today’s marketplace I believe it is
crucial to “avoid the noise”. Three adjustments that have helped me
avoid the noise and profit in this low-volume, HFT manipulated market
are:
1. Smaller size and scaling in — At TodayTrader we often quote “The
only two things you can control are your share size and your attitude”.
Entering a trade in small lots (one third to one fifth at a time) will
help you stay in a position as it takes the scenic route from point A to
point B.
2. Longer time-frame charts — Bots feast at the micro level. They
have the advantage, and the 1 minute and 5 minute chart is their
playground. I have been focusing and trading more off the 10 minute and
even the daily charts. I still use the 5 minute chart but will marry
it up with longer time frames to keep me in a good trade.
3. Go with your gut – Bots are designed to take your money and will
break down the technicals to do so. I know this is the nature of
today’s market so when I feel that I am right in a position I will sit
thru more pain than I would in the past. Don’t get me wrong. It is
important to have a defined stop; I am just a little more liberal when
it comes to setting them.
Let me give you a good example where all three of these helpful tips
allowed me to stay in a trade and ring up a nice profit. Look at the
chart above. On 10/8/2010 I noticed the casinos got out of the blocks
early and were showing some bullish price action (MGM LVS etc). About
25 minutes after the open WYNN had a pullback and I entered a one third
position (scaling in with small size) at 90.10. It pulled back further
and I entered another third at 89.56 on the 10 moving average. I really
liked the daily chart and that combined with the strength in the sector
gave me conviction (going with my gut).
After checking out the 10 minute chart, I told our clients I would
like to see it hold 89.50 but I was willing to give it to 89.40 because I
liked the risk reward potential in this one. The stock wicked below
89.50 quickly to a low of 89.46 and then bounced, eventually going to
highs and exploding. Unfortunately, I was working other trades and was
unable to buy another third. I sold my last shares 92.97.
There was a platform computer game in the late 1980s to promote
Domino’s Pizza called “Avoid the Noid”. The ad featured a “Noid” that
destroyed pizzas and must be avoided. Active traders have our own
version of the “noid” in the form of HFT (high frequency trading)
robots. Except this noid doesn’t destroy pizzas, it destroys traders.
By creating what I like to refer to as “noise”, these bots wreak
havoc on intraday charts, setups, and technical indicators. They prey
on conventional wisdom ignoring moving averages, support/resistance, and
breakouts. With Jack Bauer like precision, they seem to know the exact
level of pain to inflict to get traders to cough up their shares. And
if greed is your demon, get ready for the mother of all vicious snap
backs.
For a trader to be successful in today’s marketplace I believe it is
crucial to “avoid the noise”. Three adjustments that have helped me
avoid the noise and profit in this low-volume, HFT manipulated market
are:
1. Smaller size and scaling in — At TodayTrader we often quote “The
only two things you can control are your share size and your attitude”.
Entering a trade in small lots (one third to one fifth at a time) will
help you stay in a position as it takes the scenic route from point A to
point B.
2. Longer time-frame charts — Bots feast at the micro level. They
have the advantage, and the 1 minute and 5 minute chart is their
playground. I have been focusing and trading more off the 10 minute and
even the daily charts. I still use the 5 minute chart but will marry
it up with longer time frames to keep me in a good trade.
3. Go with your gut – Bots are designed to take your money and will
break down the technicals to do so. I know this is the nature of
today’s market so when I feel that I am right in a position I will sit
thru more pain than I would in the past. Don’t get me wrong. It is
important to have a defined stop; I am just a little more liberal when
it comes to setting them.
Let me give you a good example where all three of these helpful tips
allowed me to stay in a trade and ring up a nice profit. Look at the
chart above. On 10/8/2010 I noticed the casinos got out of the blocks
early and were showing some bullish price action (MGM LVS etc). About
25 minutes after the open WYNN had a pullback and I entered a one third
position (scaling in with small size) at 90.10. It pulled back further
and I entered another third at 89.56 on the 10 moving average. I really
liked the daily chart and that combined with the strength in the sector
gave me conviction (going with my gut).
After checking out the 10 minute chart, I told our clients I would
like to see it hold 89.50 but I was willing to give it to 89.40 because I
liked the risk reward potential in this one. The stock wicked below
89.50 quickly to a low of 89.46 and then bounced, eventually going to
highs and exploding. Unfortunately, I was working other trades and was
unable to buy another third. I sold my last shares 92.97.
Well, you can bet your last dollar that about every bull left is going to throw in the towel and quit when we tank another 100 points on the SPX over the next few days!
Still open to the idea of one last pump tomorrow and then a dump starting on Friday with follow-thru next week. Now is the time to get our game plans in order…remember the sharpest rallies are bear rallies, which are designed to fail with max effect…
Anyone going to go long on the B wave bottom down? I know I probably won’t. Too bearish now.
Speaking about gut, I have to come up with some money for my share in a great public company that is going to give the thugs a real pain in the arse. But with all that WE know here, I am less enthused about throwin my lot into the pot. IF you know what I mean. Should I do it? Its serious history, but if the SPX goes to 500-600, I could probably buy the whole company for what I am pay for 12.5%. Any thoughts guys?
And peacefulwarrior, you got your drop just now. Goodonya.
Go with your gut! I like that one.
This was something I just read. It pretty helpful.
There was a platform computer game in the late 1980s to promote
Domino’s Pizza called “Avoid the Noid”. The ad featured a “Noid” that
destroyed pizzas and must be avoided. Active traders have our own
version of the “noid” in the form of HFT (high frequency trading)
robots. Except this noid doesn’t destroy pizzas, it destroys traders.
By creating what I like to refer to as “noise”, these bots wreak
havoc on intraday charts, setups, and technical indicators. They prey
on conventional wisdom ignoring moving averages, support/resistance, and
breakouts. With Jack Bauer like precision, they seem to know the exact
level of pain to inflict to get traders to cough up their shares. And
if greed is your demon, get ready for the mother of all vicious snap
backs.
For a trader to be successful in today’s marketplace I believe it is
crucial to “avoid the noise”. Three adjustments that have helped me
avoid the noise and profit in this low-volume, HFT manipulated market
are:
1. Smaller size and scaling in — At TodayTrader we often quote “The
only two things you can control are your share size and your attitude”.
Entering a trade in small lots (one third to one fifth at a time) will
help you stay in a position as it takes the scenic route from point A to
point B.
2. Longer time-frame charts — Bots feast at the micro level. They
have the advantage, and the 1 minute and 5 minute chart is their
playground. I have been focusing and trading more off the 10 minute and
even the daily charts. I still use the 5 minute chart but will marry
it up with longer time frames to keep me in a good trade.
3. Go with your gut – Bots are designed to take your money and will
break down the technicals to do so. I know this is the nature of
today’s market so when I feel that I am right in a position I will sit
thru more pain than I would in the past. Don’t get me wrong. It is
important to have a defined stop; I am just a little more liberal when
it comes to setting them.
Let me give you a good example where all three of these helpful tips
allowed me to stay in a trade and ring up a nice profit. Look at the
chart above. On 10/8/2010 I noticed the casinos got out of the blocks
early and were showing some bullish price action (MGM LVS etc). About
25 minutes after the open WYNN had a pullback and I entered a one third
position (scaling in with small size) at 90.10. It pulled back further
and I entered another third at 89.56 on the 10 moving average. I really
liked the daily chart and that combined with the strength in the sector
gave me conviction (going with my gut).
After checking out the 10 minute chart, I told our clients I would
like to see it hold 89.50 but I was willing to give it to 89.40 because I
liked the risk reward potential in this one. The stock wicked below
89.50 quickly to a low of 89.46 and then bounced, eventually going to
highs and exploding. Unfortunately, I was working other trades and was
unable to buy another third. I sold my last shares 92.97.
There was a platform computer game in the late 1980s to promote
Domino’s Pizza called “Avoid the Noid”. The ad featured a “Noid” that
destroyed pizzas and must be avoided. Active traders have our own
version of the “noid” in the form of HFT (high frequency trading)
robots. Except this noid doesn’t destroy pizzas, it destroys traders.
By creating what I like to refer to as “noise”, these bots wreak
havoc on intraday charts, setups, and technical indicators. They prey
on conventional wisdom ignoring moving averages, support/resistance, and
breakouts. With Jack Bauer like precision, they seem to know the exact
level of pain to inflict to get traders to cough up their shares. And
if greed is your demon, get ready for the mother of all vicious snap
backs.
For a trader to be successful in today’s marketplace I believe it is
crucial to “avoid the noise”. Three adjustments that have helped me
avoid the noise and profit in this low-volume, HFT manipulated market
are:
1. Smaller size and scaling in — At TodayTrader we often quote “The
only two things you can control are your share size and your attitude”.
Entering a trade in small lots (one third to one fifth at a time) will
help you stay in a position as it takes the scenic route from point A to
point B.
2. Longer time-frame charts — Bots feast at the micro level. They
have the advantage, and the 1 minute and 5 minute chart is their
playground. I have been focusing and trading more off the 10 minute and
even the daily charts. I still use the 5 minute chart but will marry
it up with longer time frames to keep me in a good trade.
3. Go with your gut – Bots are designed to take your money and will
break down the technicals to do so. I know this is the nature of
today’s market so when I feel that I am right in a position I will sit
thru more pain than I would in the past. Don’t get me wrong. It is
important to have a defined stop; I am just a little more liberal when
it comes to setting them.
Let me give you a good example where all three of these helpful tips
allowed me to stay in a trade and ring up a nice profit. Look at the
chart above. On 10/8/2010 I noticed the casinos got out of the blocks
early and were showing some bullish price action (MGM LVS etc). About
25 minutes after the open WYNN had a pullback and I entered a one third
position (scaling in with small size) at 90.10. It pulled back further
and I entered another third at 89.56 on the 10 moving average. I really
liked the daily chart and that combined with the strength in the sector
gave me conviction (going with my gut).
After checking out the 10 minute chart, I told our clients I would
like to see it hold 89.50 but I was willing to give it to 89.40 because I
liked the risk reward potential in this one. The stock wicked below
89.50 quickly to a low of 89.46 and then bounced, eventually going to
highs and exploding. Unfortunately, I was working other trades and was
unable to buy another third. I sold my last shares 92.97.
Love the pump before the dump.
Anything can happen, so cross your fingers and keep your finger on the trigger!
Well, you can bet your last dollar that about every bull left is going to throw in the towel and quit when we tank another 100 points on the SPX over the next few days!
Refresh page for new video update…
Still open to the idea of one last pump tomorrow and then a dump starting on Friday with follow-thru next week. Now is the time to get our game plans in order…remember the sharpest rallies are bear rallies, which are designed to fail with max effect…
Thank you Tim