Sunday, April 16, 2006
I followed my 'holiday trading rule' and steered clear of commodity trading during the latter half of this past week. I've always found there is too much 'position squaring' in trading commodities as holidays approach. Easter might be considered fairly signifigant. Labor Day and Christmas are two others that come to mind. Things get skewed and it's just as likely the small day trader will get screwed.
Plus I'm still smarting from the beating I took a week ago Friday. I just couldn't get the feel for the day. The Dow ambled back and forth all day. I'd go long at the bottom of the channel where past suppport had formed and they'd run it through. I'd short it at the top of the resistance channel and they'd run it up for one 10 minute bar. It got pretty expensive. I should have turned off the trading platform and my charts but my fatigue was only superceded by my stubborn stupidity. Nobody but me is going to get that kind of behavior figured out for myself. When these feelings of frustration creep over your own day, take my advise. Shut it all down and take a break. That method will save you lots of money and of course more importantly, guilt and self recrimination.
I've been thinking about writing some reports and helpfull hints for traders who are struggling with particular issues in their trading. I notice most of the information out there is built around the idea there is some 'perfect' trader flawlessly applying somebody else's method and reading the tape without trouble. The trading commodities truth is far from that and I think I might be able to contribute more that I am. Let me know what you think.
Let's talk! Otzi@telus.net