Both ES and NQ completed sequences from their open-range zones to CM RoadMap price magnets below by session’s end. Those are the true and dominant rythms of all financial markets above all else. Moving averages, market profile, etc all secondary and incidental price studies fall somewhere well behind these core price-action measurements of contracted and expanded price waves.
But, like anything else, that does not mean trading is automatic or even easy to accomplish in real-time. It still requires the mental discipline and fortitude to stick with the gameplan, trade the high-odds direction known to be true over the course of time. Trading in directional bias of CM RoadMap filtration places YOU on the correct side of market direction more often than not.
However, it is the minority of times “not” that causes lapse of discipline in traders. An unshakable human weakness when it comes to trading is deep desire to win every trade, be profitable every day. The false hope and misguided belief that such is possible keeps flailing traders churning themselves down one wrong path after another, seeking what simply does not exist.
Trading successfully can be real simple. Really simple, actually. Trade in the directional bias that price action itself tells you to. Do that all the time. You will prevail a majority of times. The remainder of times when you don’t? That is why the age-old wisdom of “cutting losses short” is indeed age-old wisdom.
Crude oil futures continue to be somewhat illiquid and continue to behave that way. Pretty much the entire price movement now is hours of tight-range, congestive coiling and chop interspersed with brief spurts of rapid spikes up and violent slams down. CL futures began acting this way the same day Superstorm Sandy made landfall on the east coast, and CL has not changed its behavior one iota since.
I have said many, many times in the past year or so that CL trading is bipolar, at times very easy and other times very difficult to equal degrees. Nothing I have seen or experienced of late causes me to change that stance. The month of December inside sessions I actively trade will be dedicated to perfecting my mental=emotional reflex of managing CL trades in Quick-Strike fashion. Yesterday happened to catch a ride where price action collapsed in violent slam fashion as discussed above. But that’s not how a long-term career is built when price action is choppy and thin. For a number of good reasons I need to hone my mental skills at grinding out smaller-sized gains with increasingly bigger position size to get where I’m going in 2013 and beyond.
This month is an excellent time to study and learn. Work on new things. Prepare yourself for the prime times to come in January and beyond. Those last-minute lazy people who think they can wait until prime time is here to “earn while they learn” are already behind the curve and more probable to feed our accounts than pad their own. Such is the eternal cycles of financial markets and human traders. Neither constant will ever change.
Today’s weather forecast here in western NY calls for abundant sunshine with temperatures in the mid to high 60sF. That would be all-time record warmth for this date, December 4th. In the spirit of YOLO and the holiday season upon us, I’m going to spend this day living life. A few hours’ on the water by canoe in our local marsh, followed by gathering the yearly Christmas trees (plural) with Holly for her business and our home.
Years from now I’ll reflect back on this day and recall what we did with the final day of “summer” in this record high unseasonable warmth. But if the day was spent working inside charts and markets, I wouldn’t even remember how it went two weeks from now.
Trading effectively is nothing more than a means for the end. The end result is living life and living well. Trading is work. Life is living. I’m taking today off from work, and living life with no regrets
For more daily updates from Austin, visit his blog at Coiled Markets.