1
Top Ten Resolutions for Traders
1. Don’t be too anxious to trade early in the pit session
when we are opening within the prior pit session’s range. When we open
in balance, more information, via time, is usually better. When you feel that you
are afraid you are going to miss the trade, it is more than likely an impulse t
rade; impulse trades usually do not yield positive results.
2. Do not fade trend days
—one of the most serious mistakes that traders make
.
3.Markets are very visual; print out your charts with visible, pre-identifie
d references clearly marked. Check them off once they are reached. Also, record
dynamic references developing in the current pit session such as halfback,
afternoon rally highs and pullback lows, etc.
4.
Always have your Profiles collapsed and split out so that you can see one-
timeframing auctions as well as balanced auctions.
5. Identify and mark potential destinations on your charts this will likely
increase your imagination and help you stay in good trades longer.
6. Know your opportunities : Open inside the prior pit session’s range; we are
in balance—smaller opportunities. Open outside of the prior pit session’s range; we
are out of balance—larger opportunities. Adjust your strategy and tactics
accordingly and recognize breakout trades versus reversion to the mean trades.
7. Understand the conditions that lead to day timeframe inventory being
too long or too short.
This happens repeatedly and offers several trading opportunities in the day timeframe.
8. Understand overnight inventory and its potential influence on the early pit
session auction.
9. Trade location is the best risk management tool we have. Start each day
having pre-identified trade location for the day, short-term, intermediate-term,
and long-term timeframes.
10. Keep a ‘landscape’ perspective; trade the Profiles in conjunction with an
appreciation for the bigger picture rather than vie wing the Profiles in a vacuum. The landscape perspective starts with
recognizing where value is developing. We trade value rather than price. Price alone will often misdirect
you.
