Tuesday, February 15, 2011

Patience Is Key In A Choppy Tape

These are emails sent to ART OF TRADING Members today and thought i'd share them here as well.

Be Careful Today

"Hey guys

Please be very careful with long positions today. Many stocks that opened well, are now losing their breakouts and FAST. When that happens, it's time to chill and relax. Be very careful chasing anything in a market that sees failed breakouts. Do not get complacent. If you have a gain on the day, congratulations. If you have a loss on the day, i highly recommend, you walk away and call it a day. Do not amplify a loss on an emotional roll coaster day."

Achieving Consistency In A Choppy Market

"Hey guys,

Tough tape today. Saw many good traders get chopped to pieces today. Like i said in my morning email. Please BE CAREFUL in today's tape. Many breakouts failing in a tricky/choppy tape. Very hard to achieve consistent results when there is no follow thru in the moves. For every trade that works, you'll see 1-2 two that stall out or reverse. There is no traction right now.

So what to do? Simple, you play defense and relax until the playable moves come back. There is NO secret. Only patience.

Relax and wait.... The good trades WILL come. Don't force.

Will go all cash into tomorrow.

p.s. Nice plays today in the chat room. Many scored nicely in OPK today."

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