Trading Blogers

Two days ago, I wanted to highlight the discipline I have been following and why I do it. I think there is going to be a real life example to explain it better today.br /br /Take a look at the following chart again.br /br /a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_ZdctlOEsqMQ/SfWkWIGOzlI/AAAAAAAABmI/GTXtyNe4fRQ/s1600-h/DC_Capital_03+Apr.+26+21.29.gif"img style="cursor:pointer; cursor:hand;width: 400px; height: 227px;" src="http://2.bp.blogspot.com/_ZdctlOEsqMQ/SfWkWIGOzlI/AAAAAAAABmI/GTXtyNe4fRQ/s400/DC_Capital_03+Apr.+26+21.29.gif" border="0" alt=""id="BLOGGER_PHOTO_ID_5329346434100547154" //abr /br /If the market opens at where futures are now, SPY will gap below that green trend line and trap a bunch of traders who thought we were breaking out on Friday. br /br /Big picture, larger time frames, micromanaging, sticking with the strong possibilities while taking advantage of small moves... These eventually let you capitalize on the large moves. br /br /Some people confuses micromanaging with day trading, some doesn't understand it at all. Micromanaging is a way to optimize your average price. If your system predicts a range bound market which will soon lead to a directional trending market, you take advantage of this congestion within the range to optimize your entry prices of your portfolio which you built for the next big trend. You do this by closing a portion of your position when the market goes in the opposite direction in small time frames then reopen the same position at better prices. br /br /Why I was trading on the short side around this area? Why Sol shorted a bunch despite he knew they looked like breakouts. Why I said big surprise will soon be on the downside? Because larger time frames always dominate smaller time frames. Longer xTrends always dominate shorter xTrends. When the market pushes through some steal wall like this one under some certain conditions, it gets rejected like a ball bouncing off a stiff surface.br /br /a href="http://finance.yahoo.com/news/World-Bank-Economic-crisis-apf-15036373.html?sec=topStoriespos=6asset=ccode="World Bank: Economic crisis turning into calamity/abr /br /I wish best of luck to those who bought Friday's fakeout.div class="blogger-post-footer"img width='1' height='1' src='http://res1.blogblog.com/tracker/2192317321691025209-6554624382874716561?l=xtrends.blogspot.com'//div