Tuesday, May 06, 2008

I love the game of trading

So today, in the chat room we were long.....well at least I was, I was able to get long at 10:09 and 720.10. At the time, I was scared to death but the internals were screamin GET LONG DUDE, so I did and posted it live.

As the rally continued moving higher and pulling back and moving higher the ticks told the story, it got to the point that if you looked at the 15 minute chart you could just feel it was going to .618 of it selloff late last week, which is 729.50.

Then it happened, I said that if anyone shorted this (time was 11:19am) they were an idiot.....kinda a bold statement at the time, but I explained why I thought it was headed for that .618 retracement on the 15 minute chart.

Soon an email dropped into my inbox, first I thought maybe it was an answer to "The Challenge" but it was a good friend from the chat room. The subject line read, "Idiot Shorted" and I started to laugh. Sure enough, he had shorted, and sure enough the market did roll on higher to 729.50. Now it would be easy to bust on him for being an idiot.....BUT.

A successful trader has an edge, something he or she believes in, something that has served them well over time. The fact that I said, "Only an idiot would short here now without timing," didn't stop him from trading his "TRADING PLAN." The fact that the market didn't give him a reward for his risk isn't important. The important part is that you have to plan the trade and trade the plan....simple as that!!!!!

Somedays you are a mouse and somedays you are the cat......but no one wants to be a piece of cheese......

PS: OF course, to me the funniest part of this chart is that it looks like the CCI has been placed on the $TICK. Upper right chart, and "IF" I ain't mistaken there were a ZLR there. IS I seeing that right tar Kenny????


Anonymous said...

"Idiot Shorted":

Craig said...

Sorry if this is obvious somewhere else, but how does one join the chat room?

Sport said...

email me dude

Anonymous said...

1: usually offensive : a person affected with extreme mental retardation
2: a foolish or stupid person

Dang buddy, this is about the Gator flag isn't it? 'Fess up your deep emotions. And besides, Larry was part of that conspiracy.

Sport said...

I knew Larry was behind is comspiracy all along...sorry Woodie