It’s Chop Time
It’s chop time at the
Nasdaq this morning as we wait for the market to tip its hand. The Qs
have basically been in a tight trading range this morning as the market
struggles to break its 13-minute 15-MA resistance that was established late on
Friday. As I don’t like to guess amidst consolidation, which is 50/50 at best,
I’ll wait for the market to break in one direction or the other and react to
whatever move transpires.
Monday July
16, 2001 11:02 AM EDT
Trade Management
Amidst all of the mail I’ve received since starting the Q column a few weeks
ago, I’ve received several questions relating to stops and other trade
management aspects which can be difficult to summarize in a quick e-mail
response or even a few columns. One of the reasons is that I believe trade
management is one of the great "arts" of trading, where decisions
relating to trade frequency, lot size, scaling in and out, stops, and related
aspects are (and should be) highly unique to each trader’s risk tolerance, order-entry
abilities, current state of focus, mental flexibility and general market
conditions.
I think time actually provides some of the best answers as one’s "trading
personality" develops, evolves and matures. Having said that, I’ll be
sharing some of my personal views on various trade management concepts in future
columns and will go into greater detail in future lessons and at TM2001.
Until then, good trading.
For
a more in-depth look at how Don trades the QQQs, click here.
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