ES Short Term Trading 8-24-2010

Originally posted by BruceM

the band traders would have bought the 54.75 long trade and try to push it to 57....we'll see...not me !still symetric until proven wrong

The Most Common Problem I See Among Active Traders

The recent post on listening to market communications highlights one of the most common problems I see among active traders, particularly those that trade on a day time frame.

We've all known people who seem to talk at you rather than with you. It seems as if they're uninterested in anything you have to say. They just want to get things off their minds. Indeed, even as you're talking, you can see that they can't wait to blurt out whatever is in their heads.

Can you imagine a psychologist who interacted like that? You're trying to describe your problems, and the shrink is talking right over you with whatever psychobabble he happens to be espousing at the time. That would be quite frustrating.

Well, that is how many traders approach markets. They don't listen to what the market has to say. Instead, they're looking for the next setup, the next trade to put on.

When you sit in front of the screen, the goal should be similar to the psychologist's: to understand what is going on before you take action. If you're approaching markets with your own opinions and your own need to put on trades, you'll miss the market's communications--its evolving patterns--and any hope of getting a gut feel for the action will be gone.

I often wondered why I tended to trade well after taking a break from markets. The reason, I discovered, was that I was following markets during the break, but not trying to put on trades. That freed me up to simply hear what the markets had to say.

If you have a *need* to talk, chances are you'll be a poor conversationalist because you'll be a poor listener.

And if you have a *need* to trade, odds are you'll be tone deaf with respect to what markets are actually telling you.

Originally posted by BruceM

Lorn,
any connection between the closing volume at bid or ask and the projected trade in O/N or open for the next day sessio?

Does closing volume at the bid lead to further selling in O/N ? I guess thats the real question.

Originally posted by Lorn

A good read to contemplate as we prepare for tomorrow's action.

http://traderfeed.blogspot.com/2010/03/most-common-problem-i-see-among-active.html

The Most Common Problem I See Among Active Traders

The recent post on listening to market communications highlights one of the most common problems I see among active traders, particularly those that trade on a day time frame.

We've all known people who seem to talk at you rather than with you. It seems as if they're uninterested in anything you have to say. They just want to get things off their minds. Indeed, even as you're talking, you can see that they can't wait to blurt out whatever is in their heads.

Can you imagine a psychologist who interacted like that? You're trying to describe your problems, and the shrink is talking right over you with whatever psychobabble he happens to be espousing at the time. That would be quite frustrating.

Well, that is how many traders approach markets. They don't listen to what the market has to say. Instead, they're looking for the next setup, the next trade to put on.

When you sit in front of the screen, the goal should be similar to the psychologist's: to understand what is going on before you take action. If you're approaching markets with your own opinions and your own need to put on trades, you'll miss the market's communications--its evolving patterns--and any hope of getting a gut feel for the action will be gone.

I often wondered why I tended to trade well after taking a break from markets. The reason, I discovered, was that I was following markets during the break, but not trying to put on trades. That freed me up to simply hear what the markets had to say.

If you have a *need* to talk, chances are you'll be a poor conversationalist because you'll be a poor listener.

And if you have a *need* to trade, odds are you'll be tone deaf with respect to what markets are actually telling you.

Originally posted by jimkane

Hey, Lorn, you should start a topic just for these kinds of posts they are so good (as long as Dr. Brett doesn't mind, I had heard something about him not wanting to be reposted or linked???). I voted you up on this one (and I think on another another one like this that you posted). Give it some thought.

Originally posted by Lorn

A good read to contemplate as we prepare for tomorrow's action.

http://traderfeed.blogspot.com/2010/03/most-common-problem-i-see-among-active.html

The Most Common Problem I See Among Active Traders

The recent post on listening to market communications highlights one of the most common problems I see among active traders, particularly those that trade on a day time frame.

We've all known people who seem to talk at you rather than with you. It seems as if they're uninterested in anything you have to say. They just want to get things off their minds. Indeed, even as you're talking, you can see that they can't wait to blurt out whatever is in their heads.

Can you imagine a psychologist who interacted like that? You're trying to describe your problems, and the shrink is talking right over you with whatever psychobabble he happens to be espousing at the time. That would be quite frustrating.

Well, that is how many traders approach markets. They don't listen to what the market has to say. Instead, they're looking for the next setup, the next trade to put on.

When you sit in front of the screen, the goal should be similar to the psychologist's: to understand what is going on before you take action. If you're approaching markets with your own opinions and your own need to put on trades, you'll miss the market's communications--its evolving patterns--and any hope of getting a gut feel for the action will be gone.

I often wondered why I tended to trade well after taking a break from markets. The reason, I discovered, was that I was following markets during the break, but not trying to put on trades. That freed me up to simply hear what the markets had to say.

If you have a *need* to talk, chances are you'll be a poor conversationalist because you'll be a poor listener.

And if you have a *need* to trade, odds are you'll be tone deaf with respect to what markets are actually telling you.