Thursday, March 13, 2014

My # 1 Trading Rule

Why is my number one trading rule "anything can happen at any time" and why do I often put "and probably will" behind it?

Take a look at these two charts...

YM E-Mini Dow Chart at 7:30 AM PST (1 hour after U.S. cash open).

YM E-Mini Dow Chart at 1:00 PM PST U.S. Cash Close

We never know what is going to happen. What we do is manage risk and put on smart trades. We have edge with the Execution/Target Zones. We have indications to stand down...I tweeted at Range Long that I wasn't feeling long side.


But we never know what is going to happen. Moral of the story? Anything can happen at any time — we never know! Be patient. Be aware. Be smart. Manage risk. Trade smart and trade well!

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