I wrote this on Tuesday, September 12th on this blog: “The US congress returned from summer break today and immediately we are bracing for a government shutdown…These political headlines on the periphery should have major affect on price action for the next few weeks. Maybe even some serious vol. Fingers crossed.”
And here we are, two days of awesome volatility and strong directional moves an astute trader should’ve been able to catch. My edge appeared perfectly on the ES chart at 11.15 a.m. and ES continued to sell off for 35 points or so. There was a second chance at entry - orange bubble - at 12.45 p.m. and 1.05 p.m.
If you look the NQ chart - blue bars - she broke in tandem with ES and presented almost 125 points to the short side. Long term readers of this blog know this is a viable edge.
For those that don’t know my edge/setup is the 4181 tick chart with a 50 EMA.
I did not trade this afternoon because I do not trust reverse price action when there is news pending.
If you did trade though and made money this morning but lost it in the afternoon, you have to understand you are the ULTIMATE EDGE in your trading. It is not your strategy, it is you. You give yourself profits and it is you that gives yourself losses.
A struggling trader could be presented with the greatest money making setup but if he is impulsive, greedy and undisciplined then he will never make any money.
This is one of my favorite quotes on trading: