Friday 2 November 2012
FTSE Premarket Review 2012-11-02
The FTSE retraced the previous days move yesterday and bounced at the 100% fib. Seems like a pretty bulish move. Slow start to this morning so expecting a bit of a retracement. Also NFP today so probably not a great deal of action until then.
Levels to watch:
5908-10
5866
5830-32
5819
Thursday 1 November 2012
Trading - Your Inner Dialogue
Read some good tweets from @trader_dante today regarding the thought processes of a trader which I thought would be good to record for the future. He was talking about the inner (and outer) dialogue he has with himself when considering a trade.
"One trader sees a breakout and understands that is technically "bullish" and takes the trade. Another trader is asking questions...
"One trader sees a breakout and understands that is technically "bullish" and takes the trade. Another trader is asking questions...
- How far has price already travelled today?
- How does that compare to an average day?
- Why might today be any different?
- Has price broken enough to take the buy stops?
- Are those buy stops shorts puking or longs initiating?
- Have retest traders using buy limits had a chance to get onboard on any timeframe?
- Where will shorts puke?
- Where will longs target?
- What's the bigger picture telling us?
- Is price behaviour confirming my opinion which is based on the net result of my understanding?
So I take entries with more confidence when my understanding is deemed to be right by the price action."
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