Buy On Weakness, Sell On Strength

Tuesday, October 13, 2009

There is no better feeling then being bearish, closing a short position within a few ticks of the low and shorting again near the highs of the session. I was inspired today, and read the market pretty well in the morning.

Now I am short again, at 905 but sitting on the profits I have made so far this month. I am still bearish, I think the consumer confidence was influenced by the green shoots that the media has been shouting about and because of the surge on the stock market from the March lows.

These rallies as far as I can see are shorting opportunities and those that have been following this blog know that I like to sell short on strength and cover short on extreme weakness. Its my style, its my way of reading and trading the markets. Everybody needs a style and its difficult to emulate other styles. What fits me, may not fit you. But profits fit everybody as far as I can tell.

I feel like taking risks, I want to be agressive now because I am synchronized with the market but after this trade I am going to rest for a few days because this run cannot go on forever. Maybe I will go to Roland Garros and watch a few days of great tennis. Why not?

Despite having closed half of my crude oil short position early today, I am still off the money on that trade. I won`t add to that position. Its too dangerous to be short oil and do not want to expose myself too much to that trade. I will keep pushing the S&P`s. Its been far easier. I will profit on the oil position if I have a little patience and if the US dollar does not crash...

I went to play some tennis this evening. I need to exercise to keep mentally and phisically fit. As Marty Schwartz wrote on his book Pit Bull, "a great trader is like a great athlete". I agree with him.

Petroleum Oil Gas info Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage. Trading is not as hard as some think and definitely not as easy as some wanted it to be.

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