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Randolph+NJ/US
Market Wizard
Experience: Intermediate
Platform: Sierra Chart
Broker: Stage5/Advantage Futures
Trading: NQ
Posts: 2,050 since Jan 2015
Thanks Given: 5,241
Thanks Received: 3,656
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• Seeing an opportunity and acting upon it are two different things.
• Price has memory. Odds are what price did the last time it hit a certain level will be repeated . . . (BR: Until support or resistance fails).
• Pay attention to price action, regardless of what the charts are saying.
• Look for a reversal at the same place you’re expecting a breakout or breakdown.
• Price action sets up against the majority; the best profits are often in the opposite direction of the way you’re planning to go.
• Add to your winners and cut your losers. ’nuff said.
• Opportunities come along all of the time. Wait for the best ones.
• Don’t overly anticipate or see things that aren’t there. Wait for your signals.
• The day isn’t over until the closing bell ring. The way it ends may be vastly different from how it begins.
• Your first job isn’t to make money. It’s to protect capital.
• Don’t rush to buy the lowest price or sell the highest price; It could get much lower or much higher before turning around.
• Most profits come during a few days each month. Play a waiting game the rest of the time.
• Traders lose the most money on the same days the market offers the greatest profits.
• Place yourself ahead of, behind or opposite other traders. The one place you don’t want to be is in the middle of the crowd.
• Read the charts with one eye on where the whales will act. These are the pivot points where the broad market will rally or sell off.
• Traders tend to be early rather than late into positions. Their fear of missing the move overwhelms their fear of being wrong.
• You lose money when you trade what you believe instead of what you see.
• Trade triggers, not patterns. The trigger is a perfect alignment of price and time.
• A nervous stomach gets in the way of short sales. Short-sellers see bull markets in every bounce and give up good trades to avoid getting trampled.
• Tiny pieces of the market puzzle reveal the big picture. Keep a diary of isolated observations because they pay off in time.
• Throw money at the market after an extended break. The action gets you in synch faster than sitting around and trying to figure out what you missed.
• The crowd gets excited about the long side when it’s time to sell short, and excited about the short side when it’s time to go long.
• Price moves along the path of least resistance.
• It’s a lot harder to follow your rules when things get really crazy.
• Whales portray themselves as smart money, but they are as confused as everyone else.
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