SKF illustrates perfectly why it's smart to be prepared in advance for anything to happen and why you must take profits when the market offers them up. Instead of suffering the loss of $3 of your total gain on the pullback, the prepared trader puts that $3 plus $ 3 more on the short into their account and never suffers the emotional turmoil of watching your unrealized gains disappear.
Markets telegraphed what the high probability trade was in advance. Human nature told the story way before that.
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I wasn't feeling well today, but I managed to jump in on SKF just after lunch when the banks started diving. Made my daily profit target on the day in 1 trade. Took the quick pop, saw instant profit, took it immediately without hesitation. I only did 500 shares instead of the 1,000 share scalp. 500 is plenty for me. I think right now with an account under 6 figures, 1,000 share trades are too much. Even though I have the courage to do it, emotionally it's not worth taking the hit.
Starting to feel like October again with this action!
Thanks Scott.
Hi,
I am religiously follow your blog.Please explain AGAIN the green and red lines on your charts.I have read your comments but I don't get it.
Sorry,Thanks in advance
"My normal position is 1000 shares. If I'm long, a red line on the charts show the entry, shorts use a green line. If I cover, a red line will show the price level and I will usually go long there as well. If I sell, a green line will show the price level"
Red Line = Long position, or where he exited his short
Green Line = Short, or where he exited a long trade
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