Thursday, December 10, 2009

Time for Oven Mitts

When trading is tough we (I) like to say put on the oven mitts. One can not punch too many keys with oven mitts on. In other words, sometimes the best trade is the trade not done at all.

The market lately sure has the feel of holiday lull. I am mentally prepared to do less size, less decisions, and less risk. When the market pays me to increase these variables I will.

Check out our last two plays of the day from the Trading RM twitter feed:

1) On Wednesday December 9th pre open we said:

"Trade off open: Short $MW only on a bounce and hold under the 19 level. Shorts have been tough lately. entry and exits are key"

Check out the MW chart and we see that it could not hold below $19 (light blue line) and thus our trade off the open was a no trade:

2) Today, Thursday December 10th our we sent out via twitter this play of the day:

"Play off the open: Wait. we are seeing nothing. very quiet $$"

Again, sometimes the best trade is no trade at all.

Recall our post on maximizing "1 star days." If I can eliminate just one $500 loser every day I save $125,000 a year. Recognizing early that it is a 1 star day can help us. Today did not feel like a day to push our chips in.

blog comments powered by Disqus