January 14, 2010
- in Uncategorized by schooloftrade
When we opened our trade room today we quickly saw a VERY different market…
SchoolofTrade.com Daily Commentary 01-13-10
When we opened our trade room today we quickly saw a VERY different market environment that we saw Monday and Tuesday this week.
We had good volume, the market was moving, but we were still missing something…follow-through.
“Follow-through” is a term used to describe the process of confirming the move in the market. For example, we see a pattern develop on the Gold futures Market, the volume is good, lots of interest in the market at that area, but the momentum doesn’t confirm, so we have to wait..
Later in the morning on Crude Oil futures market we see an almost perfect pattern develop, moment is there, plenty of room to let the trade run, but the large buyers/sellers never showed up to confirm the trade…that means NO follow-through, the traders in the market didn’t finish the job and we had to wait on the sidelines to wait for confirmation.
Its important on days like today that we remember we need to use 100% of our rules, and when we try to “cut corners” in our trading, the markets have a very efficient way of telling us we made a mistake, causing us to lose money, and more importantly, confidence.
Today was a day that appeared to be filled with opportunity, but if you are a rule-based trader like we are, it was a very tough day b/c we did a LOT of work watching patterns that went nowhere.Remember, the highest % trades are the ones we want, which means that our rules need to be 100% satisfied. Anything less means you are playing with the potential of a reversal b/c its NOT a high-percentage trading opportunity.
We still made money today, even with 1 loss!
• 907 CL = +18T• 1011 CL = -19T
• 1024 GC = +8T
• 1048 GC = +10T
• TOTAL = 17T ($170)
