We don't see days like this very often but when we get them, a lot of traders make fast profits, fast loses and certainly get an education.
During the fall of 2008, I was about six months into trading the ES. I really enjoyed this trading instrument with all its volatility and personality. But there was so much to learn about it as we as myself.
I got hurt during that month of September that will forever be etched in my trading skull. I held and prayed my long would eventually go in my favor. It didn't. The market continued to tank and eventually I reached my threshold of pain and got out. It could have been worse, but with more seasoning and screen time, I would not have taken such a heavy hit. I was discouraged but my passion to learn this business and to achieve consistent success made me persevere.
Today I used that experience to my advantage. I've seen this extreme volatility before (not quite this fast and far in such a short period of time). I had a slight trip up but found myself backing off the pedal, evaluating and taking advantage of a couple long opportunities.
Experience. Putting in the screen time, observing various ebbs and flows of price action, watching price reaction during high and low volatility periods, developing a feel and intuition about the market. All this comes with time, patience and experience. Although I did not make a killing today, I was able to stay out of major trouble.
Because of the wonderful mentoring from the
EminiWizard combined with past experiences, I was able to observe, participate and learn a little bit more.
Here's an interesting
audio from the S & P Pit during the plunge and the hyper activity that took place.
Same
audio from the pit but with live price action on a chart. Nice perspective.
What a day.
Additionally,
Fari Hamzei shared his
chat room transcript from May 6th on Twitter over the weekend and I wanted to include it in this record as part of the "historical" record.
We'll be talking about this day for years to come.
Trade Well !
Posts
