Thursday, September 23, 2010

The Daily Note - Ready for Anything

There are days when breathers are nice. Days when the sheer steep is exhausting just to look at. Funny I don't remember feeling that way when I skied those, but I sure feel that way when I look at some of the setups for trading. That is why looking both ways before stepping off is paramount to keeping your capital safe.

Mapping a trade both ways allows for choice, allows for safety and give a trader an easier way to admit to being wrong. Knowing there is an opposite option to the trade already laid out also allows an easier way to tweak the trade when conditions change.

There is nothing wrong with caution because I am reminded of how easily conditions can change on the mountain and how fast a great day can turn into a perilous one. Same on the trading floor, within seconds things can take off or fall off and being conditioned for the change can mean life or trading death.

While taping todays afternoon tune, I was alerting traders to the tightness of AAPL and NFLX. It was still that way when I finished the tape, but while uploading, the NQ_F, AAPL, AMZN, NFLX almost simultaneously fell off the cliff that I just moment before was pointing to. If not for stops, you may have been caught in the avalanche, however short lived, avalanches are deadly. Events like these are good lessons, teaching us the age old rule, that in life as in nature, to always be ready for anything.

Instead of a tune today, watch this awesome pre-season ski clip. You won't be disappointed and it has a good tune. :)

Kashmir - A Skier's Journey: Ep1 from Jordan Manley Photography on Vimeo.

Happy Trading, Living and Dancing

The Daily Pick - A Mid Day Tune

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