Emini Trading Strategies Weekly Video Update
As you probably heard, the Dow Jones Industrial touched 11000 today! Just before the close today. It ended up closing slightly lower. In any case the “street” will see this as big news. Why? Well everyone is convinced the recovery is better and money can now flow into the markets. I hate to be contrarian here, but as a day trader I have my concerns. This rally over the past year or so has been on extremely low volume. The VIX is at about it’s 52 week low – or just slightly higher. So to me, it’s a bit skewed.
Day traders make their income off of market oscillations. Our trading system is no different. The better the volatility the better for us! The better the volume, the better the fills and the more trades we have to chose from.
Even with low volume The Tick Trader System outperformed! To be honest, we only had one day that had a “One and Done”. On average we have 3-4 One and Done days. Every now and then we have NO DAYS that do it, and then some weeks we have just 1 day – like this week!
So what does that mean? Well it means that our emini system had LOSING TRADES! Don’t panic folks – losing trades is part of the business! As day traders we must take losing trades. Really it’s the psychology of how you handle the losers (and winners) and more importantly having a solid recovery plan. That’s what trading is all about – having a plan to stick with!
Well enjoy the weekend and the Weekly Video Update!
Cheers!
ETS
