Posts Tagged ‘sequence trading’

 Sloppy and choppy trading for the vast majority of traders unaccustomed to sequence trading.

 Plenty of setups today in both directions if you know what you are looking for.

Grabbing the majority of the move and leaving the last tic or two for the greedy usually works best for me.

That’s the essence of risk and reward; where do the odds of a small or large reversal begin to dictate your choice in direction?

Trend trading is my preferred method of playing; but in range days (or reversal days!) it seems wiser to play the range trading game until it doesn’t work anymore.

Having multiple contracts on increases our risk, but allows us to scale out our first points and then trail for the larger move. Scaling into a position is also viable provided we aren’t deluding our self about the true stop and breakout areas. These are gray areas that each trader has to address in our own business plan.

If I sense a big move is coming, I will assume a little more risk; not by adding more contracts but by scaling in early and then a bit late if it takes a little more time to develop the play.

I also am willing to assume more risk when the count is in my favor. Bases loaded, no outs, and a 3-0 count I assume the pitcher is coming with a fast ball right down the middle. When I get my favorite pattern setup, at the right time, and with the right volume signal, I am all over it.

Many ways to play the risk reward game; as long as I am willing to pay the price when I am wrong.

Staying in the game long enough to get another at bat is what it’s all about.


slice and dice

slice and dice


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As is normal in the summer, the boys left early for their life of leisure near the shore. Volume was light, and the tick charts showed that they were not particularly active.

Their game plan, however, was easy to anticipate. Get it done early, buy it on the pullback. There has been a 30 point bounce already in two days from the recent 110 point drop.

The afternoon support kicked in at a key reversal price and time,and sequence traders knew exactly where we were headed in the double play move. The late day burst at 3:40 frustrated a lot of traders who became inattentive and assumed the market was listless and going nowhere.

Way to go team.

Manipulated markets are relatively contrived and easy to read.

If you fight them, they will destroy you. If you stand aside, nothing will happen. If you join them at the right time, you will get wealthy.

I know what my choice is, what’s yours?


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