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Thread: July 2008: Consumer Sentiment at new Lows... are you Trading?

  1. #1
    Join Date
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    Default July 2008: Consumer Sentiment at new Lows... are you Trading?

    Note that as in the current market, we've got terrific volatility, especially in oil, energy and other stocks... and yet because of high gas prices, and negative consumer sentiment, and uncertainty over the upcoming presidential elections... many traders may not trade this market... which would be a mistake.

    Oftentimes, it's the PERFECT time to be trading, when it all seems 'gloom and doom'. You have to FIGHT the temptation to 'feel' like the media and the public would have you feel, because that will often sideline you during what should be superb trading opportunities.

    Pay attention to the chart patterns, the technicals, and sector/market indices to help gauge which days and times are best for trading!

    Any insights to share on that? "When it feels like an awful time in the markets, it's often one of the BEST times...for active traders to capitalize on volatility."

    thanks,

    Ken

  2. #2
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    Mar 2008
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    Any insights to share on that? "When it feels like an awful time in the markets, it's often one of the BEST times...for active traders to capitalize on volatility."

    thanks, Ken

    Also the opposite is true. this may not have happened to everyone but on Friday the day the shorting rule took effect. I was expecting a big movement to the up side, which happened. But it was so fast and violent it was like trying to board a speeding train on the stocks I was trying to trade. It reversed pretty fast too, then consolidated sideways. At the end of the day I saw some movers, but not the patterns I trade. It was mostly those slow grinders, the ones that might move a buck over the day, but in penny increments.

  3. #3
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    Hi Cash, I've found that it's often when sentiment is worst, eg "the sky's falling", many traders avoid trading, which isn't the best answer... though things "feel" bad (eg what's on cnbc/cnn, financial market meltdown on wall street), it's often those times during which daily trading ranges are best/widest for trading ... and right re friday, on fast-moving days like that it's often good to only trade w/limit entries and focus on those w/highest volume, to get easier fills w/tighter spreads (which means nas vs nyse stocks often)..

    -ken

  4. #4
    Join Date
    Mar 2008
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    Ok, something new! Being the holiday season, gift giving and such. Well, I received not one but two of the digital picture frames this Christmas. A no brainer, one for the wife and on for me.

    So what I did with mine was to load on one memory card all my favorite chart patterns that I have made money off of in the past. Which reinforces me on continuing good trades based on past performance. The pictures of the charts flash thru one by one. Now one can be a little more creative by having "shorts" on one card and "longs" on another. Or a multitude of combinations. I like putting a chart then followed by a favorite picture of my wife, kids or grand kids. I feel it puts more of a positive spin.

    Oh, yes I caught a little heat from the wife as she walk in and seen the chart in the picture frame. But at the next moment here comes a picture of a family member. The best of both worlds.

  5. #5
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    Feb 2008
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    brilliant idea, Cash! I like that one a lot, re picture frame w/good chart patterns in it, hadn't thought of that... I'll pass that along to the other traders... great way to reinforce good patterns (plus maybe make good trading rules like "Keep Small Stops!" via text jpg using microsoft paint/gfx pgm too).

    -k

  6. #6
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    Feb 2008
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    As anticipated, the markets rallied off earlier lows this spring and are now near year's highs in August, anticipating a pullback/selloff likely soon; still trading aggressively, but putting in close trailing stops on open long swing/position trades here, Aug 14th 2009.

    -k

  7. #7
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    Mar 2008
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    I've found emotions play a very large part in trading, maybe 60%. Then risk management. The technical aspect is really a small part, but important part. Once you master a strategy like yours it's all about limiting your losses and letting your winners run. Earlier on I use to keep my stops a little to tight, might get a point on a 3 or 4 point move. Scaling out helped with my emotions, along w/ lot sizes after scoring the probablites of the trade.

    Ken, How do you keep your emotions in check?

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