“Got to learn how to trade; definitely need my own ‘Impenetrable Bacon Box’!”
Outside of maybe a Christmas Eve on a Friday, was yesterday about the most pathetic trading day in gold you’ve ever seen? “Seriously, a $6 buck & change range day with only about $3 - $4 in New York? I feel like a genius for leaving when I did after those first 2 trades. [Vote yes and you get a Beggin’ Strip.]”
“Many times, just like in trading, you can see the hurt coming.”
All markets have ‘personalities’, and while the volatility algorithm is excellent in mapping shifts in short term momentum, it can’t know the myriad of correlations and conditions present in the marketplace each day; and having a “sense” of these will go a long way in getting you on “your beach”.
I start each trading day around 6 A.M. [local Paradise time, which translates in Summer to Eastern time U.S., and in the winter when the rest of you Schlubs in the U.S. have to set your clocks back an hour, mine always stays the same so I can start at 7 A.M.]; I scan everything on the MT4 platform to see if there are any “big moves” that happened overnight. I’ll then check out my “Econ page” to see what, if any, reports are due out this day in the U.S., and if they are important or pretty much useless. From there I’ll scan the financial headlines to see if anything catches my eye to pay attention to; by 7:30 A.M. the following has happened, 1) the dog has gone out for his 4th pee, 2) the “impenetrable bacon box” has in fact been penetrated for breakfast and treats at least twice, 3) I’m on my 3rd cup of coffee, my system is on and all screens and order boxes have been set, and finally 4) I’m ready to trade starting at 08:00.
“Hey Boss, I think I need a little help getting over this bathtub hurdle … and then I’m gonna need a bacon treat!”
It always amazes me how many people erect “little hurdles” in their life to convince their inner self they can’t do something. When I used to do speaking engagements I would hear this a lot; “Hey man, I’m just a total Newbie here, and like you been trading forever and know this shit ‘inside & out’ and got an account with lots of money in it … and … well, I ain’t got none of that … it’s easy for you … me, not so much … you got so many advantages over me … I don’t know if I can do this [meaning, of course, I can’t do this.]”
And my response would always be along the lines of the following: “So, get your ass in the game and level the playing field … do whatever it is you have to do to get here, and then stay here … I wasn’t born a trader, nobody is … nobody gave me shit to start … I took each day as 1) a learning opportunity to get better, and 2) an opportunity to set the direction and scope of MY OWN LIFE ON MY TERMS, and not be held down by asshole bosses and corporations that don’t give a flying fuck about me or my family. A lot of the ‘guesswork’ and ‘blind alleys’ new traders go through I have eliminated for you, allowing you to concentrate on what works so you can make money immediately if you follow the rules … key thing here, though, is can you follow the rules and show patience & discipline? … pretty much everybody says they can … until they don’t or won’t cuz deep in their heart they know they are ‘smarter’ than the algorithm … It’s all about the ‘hurdles’ you erect in your head that hold you back from the life you desire … get rid of the ‘hurdles’, start trading the algorithm, and ‘escape to success’!”
As I said yesterday, here in a few short days you’ll have all 4 key markets to trade the volatility algorithms; the DOW30 [U.S.], the DAX30 [Germany], spot gold [XAUUSD], and WTI Crude Oil; as I write this today, do not trade crude oil at ASSETS FX. The LP in crude oil has ruined the CFD with 3 digit pricing and too much of a fat spread, thus insuring you will be paying too much to trade there. All markets at LMFX are reasonable to trade, with spot gold the best.
And while my focus here will always be primarily gold, the other 3 markets offer opportunity when gold dies down and loses some of its intraday volatility [like lately]; the DAX30 primarily of interest to European traders in their business day, and crude oil and the DOW30 for those U.S. traders who like to sleep nights and keep a relatively sane schedule in their life without becoming a “trading zombie’.
I got “all the bases” covered for you; “destroy the little hurdles and find a market [among the 4 I have an algorithm for and that you like] so you can own it like it’s your own personal ATM!”
Looking at the overnight action, and of course the Asian traders do what the Asian traders almost always do, which is buy gold and rally it up; “Same old shit, different day. They never, ever learn.”
Going into the first trade, I’m not at all excited about being long from these levels when I got the first “buy signal” from the algorithm; Asians rallying it overnight and the fact we are in the 1260’s makes me nervous. Once the trade is on, given the fact the market is doing nothing of any substance and not exhibiting the kind of behavior I’m looking for [like going up!], I’m looking for any rally spike to get me out with a profit, and fortunately about 17 minutes into the trade we get one that I take advantage of and liquidate. It’s not much of anything in terms of profit, but I’m not counting money, I’m looking at the trade, and it stinks.
Quite frankly, up and until this stuff can show me intraday volatility is back and daily ranges are back to the $16 - $23 level, I have got a very quick trigger finger. I’m not in this to give the LP money, or to look for action. I’m here to make money, and right now gold is “sick”; very low daily ranges [$6 - $10 lately the norm] with outliers from shit like the NFP report or Fed meetings; other than that, not much to hang your hat on until things improve. Today’s trade directly below.
I also know that at 08:30 we get inflation data, which is likely to move the market one way or another, so this is another reason for me to exit; “if I wanna gamble, I go to Las Vegas.” Ok, so the inflation numbers come out and gold spikes up; first question I always get from Newbie traders, “Hey man, you must be awfully disappointed you missed that move to the exhaustion line, huh?” MY RESPONSE ALWAYS: “Nope, could care less; opportunity is infinite, capital is finite. I did the right thing.” Below, the exhaustion moves after the inflation numbers.
Now, if you got in on the buy signal, and held on through the report, you should have [“don’t make me come over there and have to smack you for not getting out!”] been out at the exhaustion line, or very close to it. Once again, the exhaustion lines [in real time] “nail” the top. “What do you want from me?”
I’m sooo outta here. 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!”