WHY IS IT THE SLOW, FAT KIDS ALWAYS LOSE?
“Hey kid, you know how to play musical chairs?” “Yes”, I said. “Well good, maybe you got a chance to make it in this business”.
And it’s been downhill ever since I got that sage advice my first day on the trading floor from some old Jewish guy back-in-the-day. For what it’s worth, the algorithm will never let you forget this.
Coming into today, I’m seeing headwinds from a number of different directions; 1) how aggressive will shorts be after yesterday’s bloodbath [short answer: not very], especially early, 2) does anybody really want to get long in the 1350’s, and 3) Fed “beige book” at 2:00 P.M. Eastern which should smother volatility until then. So, my expectations for today aren’t that high.Right out of the gate at 08:00 we get a mini-waterfall after a 45 minute downtrend, and that gets me long on the next M1 that turns green, Directly below the trade.
But it is trade #2 I want to focus today’s post on, because it is a lesson in following the algorithm, no matter what your “guts” tell you or [God forbid] your brains; when you get that large spike, you have to liquidate or at worst liquidate on the turn of the next M1 that goes red. Directly below is trade #2.
And while I’m sitting here long in this thing, I start getting a little nervous because nothing is happening, and my mind goes back to that first day of trading in the pits [one, you will never forget] about the nature of musical chairs. So, when I see that spike, even though my profit is pennies from my fill, I know it’s a suckers move, and it’s time to liquidate. Learn the lesson.
In other news, I’ve decided to post on the website the links to crude oil on Friday evening; this gives you the entire weekend [with the markets closed] to digest its contents and do a little research on the MT4 if you wish. I’m also still waiting for LMFX to get its act together with their PAMM updates, which should have been done a full month ago. We’ll see what happens in the next few days, but I’m not a “happy camper” about this development. Until tomorrow …
Have a great day everybody!
OPEN A DEMO AND/OR LIVE ACCOUNT AT THE LMFX LINK IN THE “DOWNLOAD LINKS” SECTION OF THE WEBSITE TITLED “OPEN TRADING ACCOUNT – DO IT NOW!”
OUR LMFX GOLD TRADING PAMM WILL BE READY AS SOON AS LMFX GETS THROUGH WITH UPGRADES TO ITS PAMM SOFTWARE! WE ARE VERY CLOSE; OPEN YOUR LIVE TRADING ACCOUNT TODAY, FUND IT, AND BE READY TO PARTICIPATE!