Hello Traders,
I am normally not a person that trades on the news, but with that being said, how do you let a gift like Warren talking go? Although, my part of the gift was small in nature in relation to what was available. I was able to profit by what he said today.
My trade was in and out before 10AM Eastern time, that is before Bernanke was scheduled to speak. I want to say that this was a trade that normally I would ignore, but at the time I put it on it sure looked like we wanted to go back to the 1300 level.
In any case, I tried once again in the afternoon, to get long, but the market did not want to play ball. There is a fine line where opinion and charts can get you in trouble. In other words, to trade just on your opinion, can be a dangerous way to trade, but based on what the chart is telling you, then it can be a profitable position to be in.
Today, was one of those days to profit from the news, but to keep a tight stop on your entry just in case of failure. My trade got me in after the market open around 1285 and change and I moved my stop to capture profits and was caught on the pull back this morning at 1288 and change.
Although, this is not a home run in regards to trades, it was a WIN in my books. My trading plan allows for a little discretion in my trading. As I believe so should yours, but base your decisions more on facts rather than opinion trading.
In my humble opinion, your OPINION will get you in more trouble that it is worth as a trader. As a trader's motto remember, "Trade What You See, NOT What You Think!"
This in a nutshell, is at the CORE of any successful trader to be able to take the information at hand in the charts and translate that into a WINNING position more times than the other way around.
Good Trades and I leave you with my ES Market Chart. By the way, there will be no trade of the week video this week. My trading did not warrant anything of note to talk about this week.
Good Trades,
David AKA Tiger
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