What Can I Do To Be Prepared?
Make it stop already. I don’t know how
many more false starts and endless locker room bantering I can take. This market,
plain and simple, at least from an HVT standpoint, stinks. The volatility right
now, well, there isn’t any. The VIX, at 18.13, is approaching lows set back in
August 2000. Something will give, it is just a matter of time. Most of the
traders in my office are tired of hearing that, but the simple fact is, it is
the truth. The patient trader will get through this period and thrive when the
market loosens up. If it makes you feel any better, purely from an HVT
standpoint, I am only up a few hundred bucks this week. That, as my faithful
colleague ribs me about, "speaks volumes."
As I said to many of the traders in my office yesterday, though, prepare
yourself for the time when the market does kick into gear. I really don’t know
what the percentages are, but I think it is a safe bet to say that the lion’s
share of a trader’s income in any given year is derived from pockets of extreme
volatility that total perhaps a month or two. The remainder of the time is spent
chipping away or sitting tight.
Over the last week I have constantly asked myself; "What can I do to not
only be prepared, but take my ‘game’ to the next level?" Answer: I have
increased my share size on a per-trade basis (on stocks that can handle decent
size order flow). The result was quite surprising. Not only was I easily able to
move the size with ease, but it gave me a great perspective on what is
achievable when the market begins to move with more conviction. This simple
approach alone will make an immediate contribution to the bottom line, and
especially in the future. What can you do differently to take your trading to
the next level?
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 1188 | 1566 |
| 1177 (key resistance) | 1544 |
| 1165-67 | 1532 |
| 1160 | 1513 |
| 1149 | 1502-05 (confluence) |
| 1142-43 | 1485 (key support) |
| 1137 (key support) | 1481 |
| 1131 | 1460-62 |
| 1127 (key support) | 1435 (critical support) |
With just over a month to go before the
launch of Single Stock Futures (SSFs), I will be starting a four-part
series beginning on March 22, the first part of which will address the
following:
Section 1: Why I will be trading
SSFs.
The introduction of SSFs will be a very
exciting time for traders. They will not only offer a new avenue for traders,
but more importantly, offer a nice complement to what many traders, including
myself, already do.
As always, feel free to send me your comments and
questions. See you in TradersWire.
Have a great weekend.