Chopped Up

• November 19, 2001
• Dave Floyd

Now that one of the
slower trading weeks is behind us (much of it option related), I am
looking forward to the first half of this week for some sorely needed intraday
volatility. The news from Afghanistan is certainly encouraging. However, the
housing starts number, which was just released, showed a decline of 1.3%, while
permits decreased by 3.6%. The market appears to be taking it in stride
initially.

I continue to stress being very selective. I have
received several e-mails recently from readers and colleagues who complain of
being “chopped up.” Make sure your trades meet all of your criteria. If
not, pass. There is no reason to “give away” money in this market. Despite
the market being slow, a disciplined trader will still manage to make money, not
give it away. If this sounds like your situation, it is time to re-evaluate your
selection criteria. The thought for the week epitomizes this idea.

Thought For The Week:

“Although
the cheetah is the fastest animal in the world and can catch any animal on the
plains, it will wait until it is absolutely sure it can catch its prey.
It may hide in the bush for a week, waiting for just the right moment.
It will wait for a baby antelope, and not just any baby antelope, but
preferably one that is also sick or lame. Only
then, when there is no chance it can lose its prey, does it attack.
That, to me, is the epitome of professional trading.”   
—Mark Weinstein

Key
Technical Numbers:                                 

As always, feel free to send me your comments and
questions. See you in TradersWire.

Dave