Professionals in all walks of life are engaged day and night. My leisure passion is golf. I study the game and hone my craft through practice. I did the same as a baseball player during my college years. Through sports I learned hard work and diligence pay off. My dream to be a pro player, did not happen. However, I was fortunate to take a job in the Chicago trading pits after college. I learned quickly that the trading pits were more competitive that any field I ever played on. In the ’80s and into the 21st century, trading pits were the biggest game on the planet. The environment renewed my passion to play in the big game.
Competitors practice for perfection, yet perfect games and trades are rare. We can improve our chances of success through diligence and structure. Challenge yourself by publishing your thoughts. Each day before the markets open, get in the habit of writing out your strategy for the day. A few bullet points are all you need. Brevity and precision allow me to monitor many markets. Below is the simple format I use every morning for commodities, stocks and ETFs.
Start with a read on momentum (bias matters). Set price goals (support and resistance) and define risk.
Review your journal after the close. This practice should make you a better trader in an extremely competitive environment.
- Day direction indicators favor the short side while weekly momentum turned neutral.
- A day within sup1 and res1 is most common under these conditions.
- Since sellers have a slight edge from a day view, they should emerge the first time the pivot is tested. Expect a brief dip from this level.
Senior Technical AnalystSenior Techical Analyst
Market Taker Mentoring, Inc.