It will be one of those "talking heads" days when 'd rather take day off
10:00 AM Yellen (EST)
10:30 AM EIA Petroleum Status Report
1:00 PM 10-Yr Note Auction
1:30 PM John Williams Speaks
2:00 PM Treasury Budget
it could be a very choppy day so building and scalping is what I may do mostly instead of directional load ups.
This is a strategy for trading a BB stock in which there is an equation with one very known fact: the ATR.
When a choppiness dominates , a regular big board stock moves through the ATR in a very choppy, up and down manner. If you are familiar with few stocks that tend to chop more, rather then to trend, this could be quite nice way to make few bucks. The reality is in the markets there is more choppiness then trending over all, stocks tend to trend 30% of the time and be in range 70% of the time over all. So finding a choppy stock should not be an issue, just make sure there is good volume and tight spread.
There is no ideal set in stone way to trade , but the majority of traders are looking to catch a move, to squeeze every single penny out of it , to hit home runs. So majority of traders loose, or about 90% or so? It is normal to want that , we are humans and we want it our ways. I belong in that group but I try real hard to fit in the reality.
I normally divide the ATR by 10 and generally build position each 1/10th of the ATR going on the way against me, and constantly placing /replacing orders to take profit at 1/10th of an ATR.
May update this post with some trades if I do any today or in the near future if anybody wants to know more detail about this quite relaxing way of trading using appropriate money management. I kinda like to call it "Cornering a stock " which in reality is not a true cornering since I am not Warren Buffet with unlimited funds to actually do that , but it appears that it looks like that.
Most importantly I do not do this longing stock. Or if I do I have a very well known stop since when long many things can go wrong with stock.
Happy trading and be careful when the talking head are on today
@DaChopa
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