Teach Talk Trade Day Trading & Technical Analysis

Mechanical Trading Systems and You, Trade your Plan

Traders love to talk about their trading. The love to talk about what could be than rather what is.Intellectually, we know that the chart says everything we need to know, but as emotional beings, we are always looking for the “insight” or the “intuition” to put us a step ahead of everybody else who are all looking at the same charts we are.

Sometimes all you have to do is call up a trading buddy and say, “Hi, how are you today?” What you’ll get in return will be, “Boy, have you seen the ’so-and-so’ chart today?If that breaks the XY level, it’s going to really take off!” He continues, “And with that unstable political situation, this could really be a big trade.” Why should you care? You shouldn’t.

I guess we could take a look at the suggested chart and apply our trading parameters to it….. and if it passes scrutiny, well, that would be alright to trade, right? Yeah, OK.You have to watch yourself, though. You see, you can have a tendency to want to MAKE a trade fit.After hearing all about the great fundamentals, you can (subconsciously) view the chart with “I wanna buy” eyes, meaning that you can tell yourself that an almost-confirmation is close enough (with all those fundamentals going for it!).

That’s the danger.It’s always best, I think, to come across a trade yourself. You see a price falling….. and falling…..

gosh, when will it bottom? Your system says, “Don’t guess, be patient”. So, the market has a nice reversal day…. new low during the day with a higher close. Getting close to a buy, but not yet. The price goes higher for a few days and then starts to come back down.It’s looking good. The low holds, the market breaks the rally high and BOOM, we pull the trigger and we are in.

The system rules. THAT’S the way to take a trade.Every trader (you, included) has his or her own agenda. Only you know what works for you, system-wise and emotion-wise. Trust in your tested trading system. It will serve you if you stick to it.

Please take advantage of the FREE 7 DAY TRIAL to title=”The Morning Call”>The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Engergy issues ) & title=”Mechanical Monkey”>The Mechanical Monkey where we discuss our mechanical trades.
 

Repay Loans????

When a loan isn’t repaid and is only followed with another, larger loan… it’s not really lending, is it? Besides, even your grandchildren would be able to calculate this rate of interest (3.95%) is less than the present, official rate of inflation and far less than any bank could borrow money with in the markets today – that is, if they could borrow at all. Don’t you wish there were an entire federal agency dedicated to erasing all the mistakes you’ve made as an investor with collateral-free, below-market-interest-rate loans, which need not ever be repaid?

 How long can this game continue? We don’t have a crystal ball, We only know as long as the Fed continues to pump huge amounts of money into the banking system at interest rates far below the market rate, buying hard commodities – especially gold – is very likely to be a great bet.

Please take advantage of the FREE 7 DAY TRIAL to The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Engergy issues ) & The Mechanical Monkey where we discuss our mechanical trades.

December crude oil was a bit higher overnight.  It has consolidated some of this weeks decline.  Stochastics adn the RSI are bearish and looks like it is signaling  a sideways to lower near term prices.  A close below the 20-day moving average at 90.21 is needed to confirm that a top has been put in.  A first resistance would be the 10 day  moving average at 94.61 and then the next resistance level would be at Wednesday’s high of 97.41.  Since the highs are in uncharted territory who knows where it will head on the upside.

The December Heating oil and unleaded gas also consolidated in similar patterns to crude oil.