Thursday, November 27, 2008

November review

My performance this month was better than last but I know that I'm missing a lot of opportunities. My win rate and expectancy were both improved. The market has traded totally different since mid-September. My entry techniques are still valid, but I'm seeing less setups. Price moves seem to be driven more by news, rumors, or just mob mentality. I'm looking for these subtle imblances between buyers and sellers, but when a move gets under way in this market you just need to jump on and enjoy the ride. While I'm scanning for nice setups the market just takes off and doesn't look back. Then I try to trade sloppy seconds. But it's unrealistic to expect continutation off of a 4 or 5 percent move. In a normal market you tend to have a couple of legs up in the morning. Most of my entries are from 10:15-10:30 expecting continuation of the initial move up. In these extreme conditions we tend to get strong moves that can last all the way until lunch without pause. So long story short, I need to come up with a new entry technique for days when I expect a major move. Now that I've seen a couple months of this new price action, I've come up with a very simple entry technique to add to my bag of tricks. I don't know how long the markets will remain this volatile, but I need to start taking advantage of it. I need to stop looking at the price action as an obstacle and start viewing it as an opportunity.

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