too much good news is actually bad!

Discussion in 'Trading' started by limitupmike, Aug 7, 2009.

  1. i am shorting rallies today in the sp 500.... i am looking for short term sell offs due to profit taking.

    all of this good news just too much...= sell in my book. i am going to put some short positions on in the next few days..i have been long this run but enough is enough..get short
  2. It's a decent bet, especially if the SPX stays below 1014 which is the .382% retracement.

    Tons of shorts getting squeezed this morning. If they ever get done covering and some funds pull their "bids" in the last hour, we could see a decent pullback that closes the S&P well off the highs.

    It's possible.
    Just be nimble and have your stops in.
  3. i do not use stops
  4. That's an excellent way to blowing out.
    Good luck.
  5. getting stopped out over and over again and paying fees over and over again is a great way to end up losing. I know what i am doing so i do not use stops...i am short so what is the worse that can happen?..not much out there can make me lose my shirt.

    1. position size = blow out
    2. no idea what you are doing= blow out
    3. not averaging in and out of losers and winners= blow out
    4. too much commission n fees = blow out

    no stops allows all of these to be rolled up into 1! i have to think about every trade due to the fact that i am not using stops..i actuaally think about what i am doing before i do it...

    PEOPLE WHO USE STOPS INTRA DAY AT THE OPENING OF NEW POSITIONS ARE MERELY GUESSING!!! and use the stop to reinforce their losses by being able to say" i used stops..i stuck to my plan!" lol..these are the losers...

    Winners actively add to positions intra day and exit as well...always thinking when and where they will buy or sell more! Stops unless to enter a trade are useless for short term trading...if you cannot take the heat (risk) then u shouldn't be trading.
  6. if you want to improve your trading then reduce your size....and do not use stops.
    assess as you are losing..
    should i buy more here and average down?

    if winning? should i sell a more? dumpit all at a small profit.

    these answers depend on your style and your forecast...

    here is what i am thinking today.
    1. best case = sp500 sells off near the close..maybe not huge but a sell...
    2. 2nd best case= sp rallies hard into close ..i am short so this is bad! but guess what..i wil sell more on monday...and then get a better average price...for an even stronger sell off.

    3. not likely today...sp moves sideways into close.... not likely..
    remember traders are thinking about next week...big traders i mean..they are not worried about intra day...i see profit taking for unknowns of next week
  7. One of thee very best posts I've ever read on ET!

    I do not use stops either intraday (except buy/sell stops for entry), only if I have to hold overnight will I but this is rare.

  8. when you need to move lots of size....hundreds of thousands of positions..say sell them..then the best time is when the market is rallying..


    good luck with your attitude kiddo. between that and your obvious lack of skills, you'll be out of the business in no time.
  10. selling more spy now!!!
    #10     Aug 7, 2009