Today's Ideas:
    for morning of Wed. Dec. 19, 2007

    IMPORTANT: Below is what we're looking at currently, but pay attention to our UPDATES on the side of each page for actual entry/exit times and prices. Refresh pages often! You will witness our winners AND losers; something that is rare in our business.    TO VERIFY ACTUAL PRICES AND TIMES, PLEASE CLICK ON  A TICKER ENTRY TO THE RIGHT.  ALL TRADES, WHEN THEY OCCURED, ARE VIEWABLE.  

    Whenever possible, we have included the ETF symbol for those who are not experienced trading futures, etc.

    Position update as of 12:25 pm:

    We are long 2 units FXI (avg. price 171.003) 

    WE are long 1 unit NQ (avg. price 2051.87)

    We are long 1 unit $CAD (avg. price .98233)

    We are long 2 units SB (Sugar avg. price .10375)


         Today has given us several signals, which we used to enter the FXI and the NQ.   As mentioned on the ticker, we're only trading the long side of the stock indices for the near term.  This is contrary to our beliefs about the overall health of the markets, but the signals must be taken regardless of "feel".  This leads us to one other important topic, that of stops. We have learned through experience that stops are necessary, and should always be pre-determined.  There is simply no reason to ever over-ride your stops, so that is not a good enough excuse.  Recall that when a position is initiated, we think that it's the optimum time to enter, and we couldn't fathom the price getting near our stop.  Now that the trade is a loser, and our analysis proven incorrect, it's not  the time to second guess stop levels!  In any case, that is how we trade after many years experience.  Regarding current positions, we're hoping we wont get to our stop levels, but will exit if we do.

    The FXI and NQ are shorter term trades, so keep an eye on the ticker.  It is possible we take them overnight, but that is yet to be determined.  Sugar is at the high of the day and holding steady.  The Canadian dollar is also solid, but we are closer to exiting at this stage.  We need the financial stocks to hold up if this indices are going to work higher..use them for the "tell".  Trading is starting to thin out before the holiday, so keep position sizes in check and stay balanced.  Wish we had a great article for you, but nothing to interesting.

    People often ask what our time frames are for each trade, and that is different for each position.  In general, however, most trades last about a week or two, BUT we  trade around the positions as you saw today.  Hence, we DO day trade at times.  We encourage any questions and comments on how to improve our site, and hope you find it useful.  This is a great business, but the learning curve can really take awhile as most successful traders don't have any reason to share ideas. This site is our way of giving back to the trading arenas, in the name of the few mentors we found that helped us along the way. Good luck.

    We can't always explain the reasoning for trades, but they are often a combination of technical, fundamental, and "gut feel". Pay attention, have fun, and make money!

    For previous posts visit the archives.



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