Thoughts for Monday 12/18
Bulls are unstoppable, but do we care as a day trader?
Last two weeks I had been trading less with being out but we still had great setups for those who wanted to trade. On Thursday we had 40+ point trade and on Friday we had 16+ point trade from 76 short. Bulls are in full control of tape and week after week they continue to make higher highs. We never are in bull or bear camp, remember trading is not about being bull or bear but extracting points from the tape just like any other business its just business , so treat it like that by taking loss when you are wrong. Don’t fight to be right. Use setups and levels. Don’t get lost in longer term pictures or being right.
Econ for week:
Night session Trading Suggestions:
I suggest to not trade night session from 10 pm to 2 am chop. If action has to happen than it will happen before 10 pm or after 2 am EST. You can generally play short on top level provided for nightly range and long on lower level of nightly range after 2 am or 3 am. But get out of the way if it rips or drops thru levels and wait for new opportunity or flip. And of course never add to loser and better yet cut it and reset.
Remember: I never short above or long below my marker. I wait for it to pause before it or come back to it from rip/dip and pause before executing.
Never take position before Econ like CPI Or FOMC. After econ watch for levels where it stops and how it interacts to decide long or short.
Recommended stop: -2 and go to BE on +2. Some ppl who can't reenter shall chose -3.5/4.
Scale out: 2 lots at +6/8, 3rd at +10/16, 4th leave runner at BE
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