20130404
Long 1 TF 915.5, -0.6
Short 1 NQ 2790.0, +2.0
Short 2 TF 917.2, 917.6, -0.7, +0.5
Short 1 TF 917.7, +1.0
Short 1 TF 918.6, +0.9
Long 1 TF 915.4, -0.2
Long 1 YM 14481, +19
Total YM +19
Total NQ +2.0
Total TF +0.9
Sudden volatility spikes are always a challenge. Today, both the European Central Bnk Pres Draghi and our own Fed Chief Bernanke were providing background energy for market swings. But there's an internal structure to the market that many are aware of but few are able to codify. It plays itself out regardless of the news, but often with just a lot more volatility. You can always reduce your trade size on such days. And in order to get the best fills, you have to balance three internal elements to your trade plan. One, you have to have models that codify the reversals and the breakouts. Two, you have to have patience until the signal really fleshes out. And last, you have to be ready to strike with and entry the moment that model flashes its presence. It's often compared to baseball. You have to be calm while you wait for the ball to be hit, and when it is, you have to react with lightning speed with a plan you already have executed in your head for just that contingency. In other words, you have to recognize what element in your plan has been triggered, and execute. Stay discipline.
