This interview with an equity trader, Charles Poliacof is broken up into four short segments. The most interesting part of the discussion is when they were discussing the banks announced that they are paying back TARP money and the market yawned. That was a sign of weakness in the bank stocks.
Fear of missing out makes traders and investors impatient. It is best to wait for the exact situation that you have tested, rather than relax your discipline in order to participate in the action.
Poliakof breaks up the trading day into three sections. The open, from 9:30 to roughly 10:15, when the market mean reverts, he claims. The middle of the day, 10:30 to 2:30, when the market consolidates, digesting what happened in the morning. And the close, from 2:30 or 3:00 to 4:00 PM, when anything can happen.
Here Poliakof discusses pressing your advantage when trades are going in your favor. It is important to keep track of your results so that you can see what is working and what isn’t working for you.
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