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?

Being fully aware that anything can happen at any time keeps my emphasis on managing risk at the forefront, which is where I want 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 TS TradePlan and the Execution/Target Zones. We get indications to stand down on the long side on days like this. 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!