Two quick updates: 1. Eurex is offering mini DAX contract starting Wednesday Oct. 28th.The DAX is one of the more popular European indices but a rather large contract. I think the mini DAX will be a popular contract that allows traders to trade at different times of the day and participate in European Index action.It will be fifth the size and fifth the margin of the big DAX.
Dull day in most markets with low volume ( with the exception of the energy sector). I was trying to think of something helpful to share with my readers and couldn’t really think of anything specific….so instead I decided to share with you one of the post-its I have glued to one of my screens….my reminder of the need to stay disciplined to a system I developed…..it says:”STUPID PEOPLE do the same things looking to achieve different results. Don’t let your emotions run your trading. Let the system run, you put too much work & time into it. Learn from past mistakes and adjust”
So whatever speaks to you that will help you stick to your money management rules and be discipline, type it, print it, place it some where visible….
Every so often when I think I need to “manually interfere with my system”, I look at my post-it and take a small time out. That helps me stay disciplined.
Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services.
This article was published by the Stocks, Futures, & Options Magazine in September, 2007 and was written by our VP, Ilan Levy-Mayer. We think this article is timeless and whether you are beginner or advanced trader, you will enjoy it.
Perhaps the greatest luxury I have in this business is the ability to observe the experiences of many traders with different personalities, life schedules and risk capital, each trading in a variety of markets. What most astute brokers realize is that, over time, as some individuals prematurely exit winners while others desperately cling to losers, Day trading is by definition a trade that is initiated and completed during the same trading day. In this wide category, you will find many types of traders. On one end of the spectrum are scalpers, who go for one or two ticks of profit several times a day in trades lasting just seconds. On the other side are speculators who stay in a position from the start of the day until the close. One of the main appeals of day trading for all types is that the trader goes home flat without having to worry about positions. When the market closes, the day is done. Money management, as the name implies, is applying prudent principles to help conserve your trade (risk) capital. Without risk capital to trade, a speculator does not have a chance to succeed.
The move we saw from Friday morning right after job numbers to today was a very powerful, vertical up move.
The question, big question is:
Is this a vicious bear market rally, possibly an opportunity to sell?
Did market participants decided that rates will be at zero for foreseeable future ( ZIRP) and market just finished a healthy 10% correction and heading back to an all time high?
Big questions….I am not sure which way to lean but here my daily chart of the mini SP 500 with some levels to watch. We are right against key resistance, possible right shoulder in the head and shoulder formation.
EP – E-Mini S&P 500, Equalized Active Daily Continution : Heikin-Ashi
Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services.
GOOD TRADING
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