I started out the day scared shitless to enter a trade. WHY?
ER2 popped 10pts in the first 6min of trade. If I had put in a ten lot short I would'a shit my pants trading the usual way I trade,,,,that is of course,,TRADING without STOPS. Guess what, the next 12 min we went 17pts the other way, by now I think I would've owed IB money if I had gone short at the top on a revenge trade.
Instead of trading ER2 at the open I waited an hour and then I put on a sorta hedge trade, real small, just to get my feet wet.
Short XHB, long PGJ, with 100 shares, makes sense right? Well the trade started working out immediately and when I saw PGJ lose value I closed out the trade, I should have let XHB ride for the extra dollar to the downside on the horrific collapse of BZH and NFI at 10:30am EST. Oh'well.
After that I entered the ER2 jungle and started scalping. Today was the day to take profits quick and to not scale into positions, because as soon as you were up a good amount ER2 would reverse. After awhile you could just see how blackbox systems were popping every which direction taking out stops and taking your money if you weren't quick enough to tighten your stops.
P/L $1,500 on 54 contracts
Trade Summary-
Most of the day the max size held was 3 contracts with an initial entry of 1 contract to scale in. Some trades were quick, like 4 ticks in 2 seconds,,yep, as soon as I shorted I clicked buy and got 4 ticks, you see what I'm talking about blackbox's now!
PS-Here is what I'm reading (good stuff, check it)
Non Stationary Markets: A Theory of Market Participation by the TICK DR.,,He talks about how the recent volatility is difficult to trade,,,Um,,,,just a little,,,
Also he talks about those mysterious BLACK BOXES,,,,,OOOO,,,,,SPOOOKY
Checkout a new blog I just found called Cluelessqtrader
He talks about when he thinks the market may have hit support,,,he's right
I'm already hearing it on CNBC right now, more carnage in the home builders and we're starting to hear possible hedgefund blowups,,,GO BEAR STEARNS!!!(YOU SEE THE CROWD around THE NYSE POST THIS MORNING,,,,MOST be giving away free VICODIN,,,for the pain that all there investors are going to be in from investing in that company from all those mortgage hedge fund blowups!)
PS-Anyone talking about the YEN TRADE on CNBC,,,
what about the Ausie dollar?
Here's a trading tip for ya'll, if XHB and XLF go up, buy, if PGJ is going down, stay short.
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