Why am I trading?
Why Trading: Where do I start? I first was drawn to it because it seemed so cool. It is cool. It’s fascinating how hundreds of thousands of people all with their own ideas about what’s happening, about to happen and just did happen are participating in an instrument, like say EBay stock, buying or selling many times each day. But what is even more amazing, I feel, is when you take something like an Index, NASDAQ or lets use the S&P500 where you have 500 of some of the largest companies on the planet all combined into a single number, if you will, a gauge of just how there all doing all at once, almost. And then you further extend that to where you have an Index Future so you can actually trade the Index in a sense. I’m talking about the CME E-mini S&P 500 Index Future known as the ES to traders worldwide. Find it here: http://www.cmegroup.com/trading/equity-index/us-index/e-mini-sandp500_contract_specifications.html
As a trader trading the ES I feel as if all the hundreds of thousands of people working in all 500 monster companies that make up the Index are working for me in a distance kind of way. They come to work each day and push their papers, send their emails, build their workshops, congregate at water coolers, hire new people, fire other people, sell products, drink coffee, buy products, crank out products, support families, retire after long careers, eat sack lunches, attend training, well you get the picture and all these people, working to make their company work times 500, all, in the simplest of terms, so I can trade it.
So how do I trade.
Volume Profile Order Flow market internals and a dissection of the auction process finding opportune locations to either buy at a discount, sell at a premium or sit tight waiting for an exquisite opportunity.
More Later….thx and take care
Ron
I often relate to other businesses I am a patron of. For example restaurants. Home Depot. Amazon etc. Not every "trade" they make works out. Warranty work. Cold soup. Item broken in shipment. A poorly seasoned dish. A hair in a taco....lol..... This is the same thing we do just a diff industry. I look to buy peanut butter at the grocery store when its on sale for example. Not when its at the vpoc. Meaning the price most traded or just the regular price peanut butter is normally sold for. I want a good deal. So I wait for a sale. Sales are for short time periods. Then the price goes back to the "vpoc". I then stand in the grocery store aisle and sell all those jars back I bought on sale to the people that like to buy at the "vpoc"....lol.... So this means in trading have areas you will wait for and them watch the DOM to see if you are correct in your thesis about this area. You might end up waiting 2 or 3 days. So what. You are smart about it. There will still be uncertainty but you can stack the probabilities in your favor this way.
I like to think our business is a more pure form of all this peanut butter talk...lol...without all the complications of employees, massive over head etc etc..... our orders are our employees. But for this simplicity there is a price to pay. Namely retraining your brain to think in probabilities.
Ron
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