Today the President of Egypt decides to officially step down. A little after 11AM Eastern Time today and the market went on a free fall for just a couple of minutes before recovering most of the move violently back the other way.
Small account traders ... these are difficult days to trade because it goes against your trading discipline, patience, and your self-controlled behavior to say the least.
For instance, right before the announcement the market was showing a continued breakout of the morning range, and technically speaking looked like a real decent long opportunity coming into the rest of Friday.
Then the news comes out ... and presto whamo ... you could have been under a ton of money quickly. We were able to pull out 10 ticks on the move up before the free fall ... was it luck or time of day ... or simply our plan.
I would argue that we had a plan to trade on this day and followed that plan.
The opportunity to short this market came back a little later, but with no real followthru after the market settled down a bit so small account traders could try to take advantage of this trading action.
In the end, it is important to remain the three c's ... Calm ... Cool ... and Collected!
Plan Your Trade and Trade Your Plan ALWAYS!! When in doubt GET OUT!!!
Good Trading,
David "Tiger" Knight
