Learn practical trading strategies.
Take control of your future!

Singapore
Knight Trader Boot Camp
Coming in May 20, 21 & 23!

S&P – And it opens “Player”

Photobucket
I am sure you have notice that I have not been posting often, well for a simple reason, October is a very volatile month. In addition, this week is US option expiration, which is well known for a volatile week.

Volatile + volatile = more volatile.

After such a massive move higher, S&P now trying to decide if it wants to decide the next direction. Over the last few days, it closed white, black, white, black, and this morning, white again. Is that a hammer or hanging man candle this morning? Deciding one of them may tell you the direction. As of now, it looks more like hanging man rather than a hammer as it is found at the top of the price action.

For me, I will be watching the S&P movement in comparison with Oct 18th candle. Go higher, bullish, go lower bearish. If go higher, there is a chance it can run a little bit more as price have consolidated over the last few days, therefore it will be a breakout of resistance (but I will long small as it has move up so much). Go lower, I will short small too as this run up is very strong. There is a possibility a higher low will be formed.

Here you go, I shared my thoughts. There is no need to trade every single day in stocks unless you are a day trader. Forex yes, stocks no.

Why?

In the mid week webinar recording (you can watch it in youtube), I shared that
1 year = 200 daily candles
1 day = 288 5-minute candles
1 day = 24 1-hour candles

If you are using daily candles in stock, you have to set an expectation that there will not be an opportunity every single day. There will be a lot of days where you just wait and wait and wait and wait. But I am not asking you or encouraging you to trade forex. Every type of trade has its risk. You will have to decide for yourself and see if you like the volatility or risk. Never think of the reward first. Always think of the risk first. There are a lot of forex demo account that is available. Just go and try it out lor. It is free for you to try. If you cannot make money using free money, then it is not time yet for you to try real money.

This posting may offend some of the people but this is just my opinion.

 




Comments are closed.


©2013 Charting Academy Pte Ltd