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TopstepTrader

Living to Trade Another Day

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Here we are again sailing in the wind of massive end of month buying amidst a worldwide recession, less than stellar GDP estimates, earnings with declining revenues, and a severely depleted workforce. Nothing surprises me anymore. I suppose all we need is the Fed Chairman or ECB President to tell us that they will “do whatever it takes” to support the dollar and Euro respectively, and the markets will scream higher. We are so inclined to buy the rumor and sell the fact that this current formula, although may not really add up, actually makes sense. We've come to expect the unexpected.

 

I’m a trader and I’m looking for trades. Volatility and price action create opportunities, so even if there is no rhyme or reason to the movement, this flow allows me to increase my profit potential and find good if not great trade locations. The best way to be proficient in capturing these opportunities is to know how to trade the rest of the time when the market isn’t creating such large price movements.

 

Most of the time the markets don’t move as swiftly and definitively and the monotony can be tough to cope with. We find ourselves reaching for trades that aren’t necessarily there and displaying a clear lack of restraint in our trade execution. If your trading has been suspect, it may not mean you lack focus, but just seem to not care about losing. Going for broke and then getting mad at the market is not the answer. We know it doesn’t owe us anything and it certainly doesn’t care. We seem to believe “I’m right” and the market can’t possibly go against me. As soon as this emotion is triggered trading should be halted. You’ll tell yourself you're right no matter how wrong you are. Learn to be more satisfied with smaller profits and consistent, profitable trading will be the result. We act out of character because we’ve done well before but want more. This market, with limited resources, presents infrequent opportunities. We should only be looking for a few trades. Stay in the game and don’t force the issue. Greed is an evil you don’t want to know. Uncontrollable trading has never proved to be beneficial. If it has, it’s only been luck. We can’t rely on that. If you know how to control your trading during the tedious market days, you will know how to recognize major moves and be able to capitalize on them when they happen. Focusing on the grind will ultimately allow you to be more profitable more often.

 

 

Trade well,

 

Brian Welsh AKA Jayhawk

TopstepTrader Senior Scout and Trading Coach

 

Brian Welsh is a professional Broker and Trader on the floor of the Chicago Board of Trade. Brian also serves as TopstepTrader's Senior Scout. Brian is featured daily on the Live Squawk Radio during his "Chalk Talk with Jayhawk" sessions at 10:30am CST. Brian is also one of our professional Trading Coaches and is available for private coaching. TopstepTrader seeks to find and develop undiscovered trading talent from around the world. While in our program, those who display a strong trading skill and aptitude will be backed as a fully-funded trader.http://www.topsteptrader.com/

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