ChocolateDigestive
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re: Intra day S&P 500
it's all in reminiscences..........
Scose?
it's all in reminiscences..........
Scose?
Great video, and rather relevant to trading I think:
Just as much as that tiger jumps further than the person on the elephant assumes it will, price can travel faster and further than a trader anticipates.
A stop is never safe lol.
Very apt, was that your intention?
You give me too much credit I'm afraid - I merely put it up for childish amusement and just the shear magnificence of the tiger and the absolute stupidity of a man trying to fight it with 2 small sticks.
It has a strong resonance for me. Quite some years ago, I was at London Zoo with my ex-wife (she was my wife then, she is an ex now, not I was there with my ex because I am weird).
There is a tiger enclosure and a large portal window, about 1.5m tall, round with glass about 15cm thick. I was right next to it looking at the tiger who was stood staring at me directly, about 3m from the window. I was transfixed at just how big it was and just how crazy it looked.
It then charged the window in full attack mode slamming it's entire weight into the glass as it tried to take me out. I instinctively ran away and knocked over about 4 people who were stood behind me - I basically completely sh1t myself. I know what it feels like to be rushed by a big cat and it just isn't funny.
So poking it with a stick, well, the guys probably deserved becoming the tigers lunch.
sheer
and that's one of teh funniest stories I ever heard, you sh!thouse.
you reminded me of a line in floored where the guy says ' you need the heavy calibre for the big animals'
It then charged the window in full attack mode slamming it's entire weight into the glass as it tried to take me out. I instinctively ran away and knocked over about 4 people who were stood behind me - I basically completely sh1t myself. I know what it feels like to be rushed by a big cat and it just isn't funny.
So I am going to try and explain to you why I did what I did today which many will just say is 'averaging a loser'.
I have a simple view on this - I will take a loser if I need to and I did not feel that today it was necessary. This is because:
1) The market gapped up under low volumes. It was out of balance compared to where it closed yesterday and essentially the act of selling off gradually and without any sense of gusto was just the act of 'advertising for buyers'. This was not the behaviour associated with a day where there is real directional conviction.
2) As there was no real directional conviction, I felt comfortable that it would mean revert towards the VPOC. What I didn't know was exactly where buyers would come in although I obviously had a view of a number of levels where that might happen.
3) Had there been high volumes prior to the open and evidence of strong directional conviction to the downside with a solid OD, OTD or maybe an ORR opening type, I would not have tried to fade the opening swing down, nor continued to add in at gap and ONL. Part of this is knowing when to play and knowing when to stay out and today I felt comfortable playing.
4) To put this into perspective, in Q1 I have taken 43 trades of which 3 were like today's - an opening swing gone wrong in what became a mean reverting scenario. It is not something that happens a lot. One day I am sure I will get floored and have to pick up the bill on a 10% loss but for me, the rewards far outweigh the risks.