Wednesday, 2 November 2011

The Plan.

I like to plan my trades before I enter them and write the plans on paper with a pen [writing the plans on excel spread sheets on my computer do not evoke the same feelings in me]; this allows me to have the plan in front of me and I can 'follow along' as the trade unfolds. If I get anxious or if I walk out of the game room and come back in and need to refresh my mind, the plan is there in front me: I simply look at the plan and go back to executing the original plan. Plan, if you stick with it, take many of the emotions out of your trading.  

There is nothing more bullish to a market than sold out bulls. There is nothing more bearish than covered bears.

30min.view , potential head & shoulders setup that would be confirmed by breaking this week's lows
                                                                   
                                                                                OR

daily view , we can trade above last week's highs and the 200dma

VIX is up 42% since Friday's close.

That kind of move tends more often than not to produce a bounce in the market.



Watching to see if the market can stabilize itself and then begin to form a base support suggesting that a higher low is being formed.