Trader's Talk - 05 February 2010

Hello traders,

Good morning to all,although the news from global markets is not good

Most of the stops must have been triggered yesterday afternoon ( the rest will trigger at the open today)and disciplined traders must be out of long positions,and experienced traders must be already short ready to book profits today /or carry forward short for the weekend for more gains

But what about a trader who is still long?...well situation will look very uncomfortable,but even if you are long and had solid money management skills you can still work your way around difficult situations.

First loss is the minimum loss that you have on your account,so before market opens you need to prepare your self for every kind of situation.Prepare an exit plan,market will give many opportunities to make profit if we survive.

So prepare for the worst and hope for the best 

Intraday bounce should be sold from now onwards till be get a swing reversal

Be careful of the weekend ahead,they generally create a more bearish/bullish sentiment and current week sentiment get carried forward to next week

We all know that Mondays are very notorious,21 January 2008 (Strong bearish sentiment day) and  18 May 2009 (strong bullish sentiment day) were Mondays...If you were holding  positions opposite to the recent trend at that time, it would have been painful

I am not try to create a panic here,the idea is not be careless with your stops,and don't try to catch the falling knives and never average your losing trades 

Stock markets are leading indicators of economy.So while the news on economy may be good now,market may be looking at situation months ahead and factoring those conditions now

So forget the news good or bad and follow the prices

Please write all your comments and suggestions in this post...I will be posting this daily, titled "Trader's Talk"

Good luck