the trading room kicked in with another superb short term trade in the “maxpain” category today thanks to our most excellent market observer and trader Robert. It was interesting to see how different traders all applied their own rules for trading the position, with the mastermind effect providing some excellent insights for us all to consider. I am exceited and proud of the work the gang are doing there every day.
target was WB (Wachovia Bank) which has the distinction of holding my student loan for the doctoral program :P. It reminded us of the Thornburg Mortgage maxpain pattern from earlier this year which was such a phenomenal short term trade (although radioactive, as Thornburg went bankrupt later). Framing the trade to reflect a belief that WB would not go bankrupt enabled a healthy positive move already with a promise of more to come.
I am preparing an e-book on this trading technique and will doa draft presentation this month at the next ETF seminar in Ralegh. Melita will be dragging me to Australia and germany next year, so the road show goes a little more interntional next year 😛
the intraday technique we have been noodling around with for the past year in the chatroom, and then refined at the first Tortoise KC workshop has been very handy for opportuntiy trading in this market with its historic volatility
Here’s a sample of our daily trading plan Decision Support Template:
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- daily trading plan decision support template