Groundhog Day
Did anybody get the license plate number
of…oh wait, that was yesterday’s column. Yet like Bill Murray in that
classic movie "Groundhog Day" (love that restaurant scene), today’s
open had an awfully familiar ring to it. And as a colleague once told me,
if they’re handing out free doughnuts, by gosh, grab one. The one difference
today was that the early downtrend actually was established pre-market, so one
had to wait to position on an early pullback if one waited until the more liquid
general session to enter the trend. Either way, Punxsutawney Phil would have
been pleased.
Friday
August 3, 2001 12:00 PM EDT
As far as the rest
of the day goes, you know by now how this trader feels about trading Friday
afternoons, as it’s been a good week with some nice recurring volatility.
Watch the 13-minute 15-MA, which is current interim resistance and consider
lightening share sizes as the weekend draws near. Keep in mind the market
has already retraced substantially today and the issue of how much intraday drop
is left is an issue as you look to gauge risk vs. reward, as was the case
yesterday.
Errors of the Week
I mentioned yesterday that I’d be sharing a few bungles, dropped balls, and
other miscues as we go forward. As far as this week goes, I’m sure there
were many, yet the two that stick out include:
-
Accidentally executing a cover stop $0.05 above the ask on a
- Foregoing $0.30 in profits by being too cute trying to perfectly
time the top of a gorgeous downtrending pullback yesterday and missing the
entry by $0.01.
decent-sized load thanks to a spasm in my trigger finger while the cursor
hovered over the one-click confirm button, and…
Perhaps we’ll make this a recurring Friday feature in the spirit of helping
folks avoid similar stupid mistakes as well as keeping this particular trader
humble, which is of course a prerequisite to consistent trading for both reader
and contributor.
Good trading and have a great weekend!
P.S. I’m pleased to announce that I’ll
be hosting a two-day
QQQ trading learning forum immediately following TM2001 at the Venetian
Hotel and Resort on October 7- 8, 2001. It seems like we’ve struck a pleasant
nerve with the Q column, and I look forward to sharing my thoughts and views in
a live forum highly conducive to learning and interaction, as well as simply
meeting many of you in person. So whether you trade the Qs or watermelon
seeds, consider extending your stay just a bit and we’ll combine some very
intensive trading discussions and some fun!
For
a more in-depth look at how Don trades the QQQs, click here.