Getting a little trading in although I have to admit been struggling a bit with my alternate home here in California and the areas internet connection. What the heck is wrong when my best available connection is closer to dial-up than high speed? YIKES! It makes me very nervous putting trades on when the connection is so crappy. I know it's not the lack of taxes paid in by the hard workers and traders like us that pay a LOT of taxes that is keeping the infrastructure like a third world country. Is it the politicians distributing our cash for pet projects rather than infrastructure or to the people who have made this money for them in the first place? Perhaps if we could offer bigger bribes, uh, I mean donated more money uh, I mean speaking fees to Hillary Clinton, uh, I mean the Clinton Foundation maybe we could press for some improvements. I think that's how it works now. And if the IRS comes after us, the FBI even, don't worry as apparently it is okay now to delete what we may think is incriminating evidence, smash our devices, have anyone around us cite the fifth amendment and receive immunity. Intent and negative effects no longer implicitly indicate guilt, it's the size of your contribution and the depth of your influence. We didn't really MEAN to break the law, after all. What the hell, freaking twilight zone stuff.
The connection to the above and trading is this: Trading is hard work. I put in my time, study, review and take my losses as instant feedback that I need to do better next time. The market does not say that "some other trader made too much money today, you should have some of theirs since you were less fortunate." You only succeed and are only rewarded by hard work. This is your incentive. You can't use brute force and just blindly place trade after trade, sometimes you have to sit like a panther in the dark, waiting, stalking, until the setup appears and you strike without hesitation. You are rewarded for your diligence, your effort, your patience, and punished or at least not rewarded if you don't get it right. Generally a clear causality can be drawn in life between the effort you put forth and the results you receive. Trading is a living, breathing, instantaneous example of this. There's a lesson in a traders way of life that is completely lost on politicians. It is truly disturbing. Okay, I won't go any further as I can feel my blood pressure spiking as I continue to write, but you get my point, there is no free lunch, no matter how many times you hear that there is, should be or will be, "...but only if you vote for me. This time will be different." Traders are not that stupid. We deal with the real rewards and failures of our efforts every day.
So back to trading, had some decent setups Friday but had to be patient (there's that word again), but the EEdge indicators pointed the way for me and kept my powder dry until ready. I figured since it has been a while since I posted I'd walk through what I was seeing as this unfolded.
First before and after the open, we note at 1 that we're in an uptrend. Immediately after the open the pros start taking the profits already as we note at 2, and the amateurs start to panic buy, their emotions telling them that this is going to the moon. Buy, buy, buy! This is evidenced by the price exhaustion shown at 3. This lets us know buying is done, but can't sell yet and can't buy, sit on our hands.
Finally price dropped to our EEdge-Level and pauses with amateurs now trying to sell, and AGAIN we get price exhaustion, but this time to the down side. Hmmm, time to wait again, but long now according to the EEdge-trend still holding for an up move. Finally at 4 we see pros show up right at resistance turned support, but too early for me. Too bad as we had a nice little squirt up to resistance before stalling again.
Now at 5 we finally have the setup like I like it, Divergence on EEdgeVolume, Support on EEdgeLevel, Professionals on the HeatMap, Emini Entry shown by the LRE, BAM! Superfecta! As if this wasn't enough reason to "get on it and sit on it" this is also a setup right out of the EminiEdge Emini Trading Manual. Price stalls at resistance but this time it should have trouble holding so we hold, but if you got scared out, a re-entry shows up with a lone LRE at 6.
Waiting for a reason to exit finally shows up near resistance with professionals, price exhaustion, volume exhaustion and finally divergence on the EEdge-volume at 7, again at 8. Dump everything for +10 points per contract. We are rewarded for our patience and effort. If you were aggressive a short kind-of shows up at 9, but doesn't follow through since we are still in an uptrend. Time to call it a day. A little later than I like though a little more than 90 minutes is still within the window.
Speaking of calling it a day, hit the surf a bit late and had to contend with wind and high tide. All I can say as sometimes you need to be taught some respect. The surf was angry and I did not listen. I forced it, trying to apply brute force as I mentioned earlier, dumb, dumb, dumb. I will be aching for a while as I think I spent more time under the waves than on top of them, but tomorrow is another day... Again, kudos to Mrs. EminiEdge for the pics. It is not that often she's there AND has a camera AND feels the compulsion to take a picture of me gasping for air... :)
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