Don't Let The Markets Fool You!

[Soultrader]

Don't be fooled by the wild swings of the markets. Today the Dow took a dive for about 90 points in the afternoon session.

Do not mistake this for market weakness. The Dow then recovered the entire 90 points on STRONG buy programs. (see attachment for interesting premium action)

The Dow then closed within value indicating absolute balance. We have now entered the 5th day of consolidation. There was obvious strong buying presence at the May breakout point of around 11860. This may indicate price acceptance in this new zone. Therefore we have a good possibility of a further lift to the upside and a continuation of the trend which begain in early July.

[namstrader]

Soultrader,

you had a great day yesterday, and took 4 short trades and had my worst day yet. It amazes me that I was so unaware of my foolishness with these countertrend trades. If I had done my homework and was more aware that just yesterday the low value area found no initiative selling and no followthrough, this would have told me buyers are now more confident to take prices back through value and watch for a strong TREND DAY. My focus was on a Gap fill on the short side.

Some day Market Profile will be more ingrained and my visualization and understanding in my learning curve will survive my equity curve drawdown before I lose it all.

I am learning so much from your ways Soultrader, since joining Traders Laboratory I have begun to learn new methods that I want to stay with, that are based upon floortraders pivots, market profile, and market delta. My trading weaknesses still prevail and I am having to burn to learn. Right now I have to remind myself that I am fulfilled in the process and not the outcomes, however, my positive expectancy and trust is being tested daily.

[Soultrader]

Hi namstrader,

Always look at the market from the bigger picture. Once you grasp the bigger picture, then narrow it down to your setups. I had one trade only yesterday and caught most of the trend.

Yesterday the markets gapped out of the consolidation range and we saw price acceptance. This information alone would of told you to stay on the long side. So its always important to have a bird eyes vision or else your mind will tend to get distracted by the daily fluctuations.

As long as you learn from your mistakes namstrader and stick with it you will succeed in this business. Always have a trading plan and follow it. Perhaps this was the hardest thing for me to do in the beginning. I feel like at some point traders know what they need to do to win. But most can not seem to do just that.

Good luck namstrader.