Morning Prep; day trading with schooloftrade

The James’ Report:  Day Trading Strategies for Professional Traders

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TRADING KARMA:  Professional Traders are taught from a very young age in their careers all about the wisdom of crowds, and how we are all just one grain of sand in the hourglass of our lives and the markets we trade.  Books on Market Profile, Fibonacci, and Elliot Wave quickly remind us that we are all trading for different reasons; however our trading is done in very predictable ways when we are grouped into a massive marketplace.  This is the biggest reason we are successful in using the past to predict the future.    Karma is similar to supply and demand for a trader; it’s always changing from overbought to oversold, and always comes back into balance naturally over time, whether we like it or not.  As a trader we believe that is what becomes overbought will eventually self-correct, but we never know how much TIME must pass between then and now.  The same is true for a believed in Karma; we know that what goes out will come back to us, but we do not know how long that will take to manifest into our daily lives.  Professional traders must remember that every trade is important, but only when you look at your trades over a large series, such as 50 to 100 trades you have taken in the past.  Alone, a single trade cannot tell us much more than PnL, but when you look at 100+ trades using the same day trading strategy you begin to see tremendous value in your analysis. 

News from Europe & Asia for US Morning Session:

– Shanghai Composite ends session lower by 1.3% at 1,990 (first sub-2000 close in 3.5 years) 
– Hong Kong Monetary Authority (HKMA) continues to defend the peg; injects HK$3.1B into the financial system
– Initial euphoria over Eurogroup agreement on Greece fades as session wore on
– UK second reading of Q3 GDP sees YoY revised lower to -0.1% from 0.0% advanced reading
– Spain sold slightly more than planned Treasury bills at falling funding costs
– OECD cuts 2013 global growth outlook to 3.4% from 4.2% prior (moving in line with IMF view)

**Key Points in Greek debt agreement:
– Greece bilateral loan rates to be lowered by 100bps.
– Euro zone agrees to defer interest payments on EFSF loans to Greece by 10 years
– Extend maturities on all Greek loans by 15 years
– Central banks to forgo bond profits on Greek bonds
– Package includes central bank profits on Greek bonds paid into a separate Greek account
– Also to include a debt buy back (**Note: no further details given in statement but ministers seemed to have agreed to debt buyback at €0.35 in some press circles)
– Eurogroup reached political agreement for Greek disbursement
– Greece aid disbursement to take place in 3 tranches
– Greece to receive €34.4B for bank recapitalization in Dec; with formal decision on disbursement Dec 13th.
– Remainder of funds to be released in Q1 of 2013 linked to implementation

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