Jump to content

Will Santa Rally 2017 Hold Or Will There Be Another Chance Next Week ?


Guest 121

Recommended Posts

Maybe food for thought.

 

"Many traders hate to take trades off when the uncertainty of the weekend, holiday or seasonal liquidity is due to fall. Often, the trades are held in an effort to outwit the investing masses or follows a trading strategy that does not pay much mind to what activity levels and conviction can generate. Yet, there are more questionable reasons that traders adhere to when they pursue a trade during such distorting downtime.

 

Often times, taking a trade off before it hits its full profit can register a blow to an individual’s trading prowess so they hold out of ego and spite. Far more common – and proportionality asinine – is a desire not to miss out on the chance of follow through over and after the weekend. The investor doesn’t want to take off the trade before the weekend or holiday because the assumption is that money will be left on the table when they open again for trade. This is a dangerous way to think.

 

Weekends can be quiet, but then again they can also deliver systemic surprises. If there were a sudden and high profile event risk, a massive gap can occur in  the off hours. Can you imagine a 20 percent or greater drop in a trade you held overnight or through Fridays’ close? This has happened to me in the past. Weekend and holiday lull management is crucial to successful trading over a longer period of time.

 

What is the downside of taking off exposure (long-term or short-term)? The biggest hang up is that in ones trading account, the exit will be registered and reentering the position will reset the profit counter. So trade with a 200 pip profile for example over the weekend is not booked. In part, this caters to our visual cortex. We don’t want to see our account book profit and then reestablish the trade at presumably a worst price after the weekend. In reality, taking off and re-establishing after the weekend renders the same continuous trade or idea, but it looks separate in our accounts which troubles traders.

 

Don’t let this psychological hang up get in the way of good risk-reward management." John Kicklighter DFX

Link to comment

Archived

This topic is now archived and is closed to further replies.

  • image.png

  • Posts

    • Commodity Market Elliott Wave Analysis for Bitcoin, Bonds, Yields, USD/ DXY, Gold, Silver, Iron Ore, Copper, Uranium, Crude Oil, Natural Gas, Corn, Wheat, Soybeans, Coffee, Cocoa. Commodity Market Elliott Wave Analysis Update: Identifying the crucial turn in the USD is paramount in our analysis. However, the challenge lies in interpreting the upward movement of the USD DXY, as it can be construed in multiple ways. To gain clarity on the DXY, I examine the 10-year Yields, which indicate further upside potential. Concurrently, TLT Bonds suggest continued downside momentum. Consequently, Gold, Silver, and base metals remain susceptible to selling pressure. Additionally, the Crude oil market exhibits an upward trajectory, aligning closely with the movement of the USD DXY. Notably, Forex pairs, particularly the AUDUSD, demonstrate a direct correlation due to the interconnectedness of commodity dollars. In summary, the market pivot necessary for trading has yet to materialize and may not occur until mid-March 24. Bitcoin: Wave iv) has concluded, and Wave v) appears poised towards 55k. Dollar: Expectations point to an increase in both the Dollar and Yields, with Bonds likely to decline. Gold and Silver: Currently experiencing a corrective rally. Crude oil: Favorable for long positions in crude, while shorting gas remains advisable. Video Chapters 00:00 Bitcoin (BTC) 03:28 US Dollar Index, DXY / TLT Bonds. US Gov Bonds 10 Yr Yields 05:51 China 15:23 Precious Metals: Spot Gold XAU /GDX ETF / US Spot Silver XAG  16:20 Base Metals: Iron Ore, Copper XCU/USD. Uranium URA ETF 19:59 Energy: Crude Oil WTIOIL / Natural Gas NG 22:22 Softs and Grains, Cocoa, Coffee, Wheat, Soybeans 25:31 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge. com  Join & Learn Elliott Wave from Experts Stay ahead of market movements and make informed decisions with our comprehensive analysis.  
    • Yeah, I think it's the mechanism behind the BGB price trend. This could go farther than one would expect. So I'll be trying to add it to my pf to help boost its healthiness in the future.
    • I don't think we can still take part in the airdrop but buying it could be the best option particularly as the market seems to be helping to create a good entry price.
×
×
  • Create New...
us