Prep Time
Chalk the morning up to
a half-day off as we and the rest of the trading world await the FOMC
announcement which is expected at 2:15 p.m. EDT. While the market continues its
slow grind up on the 13-minute chart, tradable opportunities on the Qs have been
scarce at best, unless one is managing longer-term positions.
I certainly concur with David Floyd’s fine post-announcement trading strategy,
and will also either wait to see what type of trend emerges should we get the
expected 25-basis-point cut, or trade in the direction of a surprise move. As we
approach 2:15 on the East coast, consider doing a fresh system reboot and
minimizing any applications and charts as the post-announcement data surge can
be strong.
Tuesday
August 21, 2001 12:05 PM EDT
One error I made in my trading last
year was not always adjusting my lot sizes in a timely manner during market
declines. When dealing with intraday market gyrations day after day, one can
easily lose track of the impact a rising or declining market has on traded
capital, which can in turn adversely impact income if lot sizes aren’t
adjusted…assuming similar performance. While I recognize the math is pretty
simple, here’s a reminder of where we’ve been over the past few months and the
impact of Q lot sizes, using a sample capital size of $50k (investors, shade
your eyes).
On a personal note, I’ll find out
tonight whether or not I’ll be fulfilling my civic obligation through jury duty
over the next few days, so there may be a slight break in the Q column, which
will hopefully be brief.
In the meantime…good
trading.
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.