Monday, November 30, 2009


taking profits on CSGS and gone short
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3 comments:

bluecollartrader said...

Scott,
When you mention that you have exited and are "going short," do you typically mean immediately short or are you basically saying that you are looking to short at the next prime entry point where you feel a short is warranted? It's a minor point but I'm curious...

5:26 a.m.
Scott said...

BCT - I mean immediately as the reason is I feel when the trade now longer works in one direction, the premise for that trade is finished, thus the probability in my eyes is better to trade it in the other direction. It's all momentum really, what goes up must come down or vice versa.

8:21 a.m.
bluecollartrader said...

Thank you for your reply, Scott. Your post wording suggested that the reverse trade was immediate but I wanted to be clear.
You must have a sense of the probablilities of a trade stalling but not reversing after a run versus when it will actually reverse. That's great feel for the market. You have lately posted some of your stop-outs. I like how well you can sense that your trade ideas are not working and cut them loose.
Constantly watching which patterns work most often and which don't is so important. Time spent in close study of a moving market still seems to be the key to success.

5:28 a.m.

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