We’ve just posted this week’s Daily Trading Week-In-Review letter. Here’s an expert…
Oct 12, 2008 – Oct 18, 2008: Weekly Trading,
Business Growth & Practical Insights
Dear Client:
On a weekly basis, I plan on writing specialty information that should help all Inner Circle Advantage Members improve their knowledge and possibilities implementing the Wealth Triad concepts into their lives.
Even though some of you are focused on trading at this point in your journey, always remember that you can learn new insights by reading and studying the other topics in the Business Growth and Practical Insights sections.
Similarly, those not currently trading should read those topics because you may realize that you can add that component, as one of your tools to build a financial wealth system for you and your family. Enjoy this issue!
Nate Brooks
Harvard MBA
Trading Insights
What another incredible week of day trading?
The VIX reached another all time intraday high at 81.17. For those that don’t know what that means, it is basically a measure of the fear in the marketplace. Normally, a number in the 35 to 40 indicates a bottoming in the market. When the bailout package was passed the VIX went to 46 that day…which means that investors and traders were now very fearful and that VIX number has increased to its closing of 70.33 on Friday’s market close. There is worldwide PANIC due to the credit crisis, housing crisis, financial crisis and just a complete lack of confidence crisis in everything and everyone.
Mortgage rates had its highest weekly increase EVER…signaling the credit markets are still frozen.
Volatility is the new standard for the trading day session. You can expect 500 to 700 point swings in the Dow and 50 to 80 point swings on the S&P. The exciting part for our students is that our trade setups are working consistently throughout this extreme volatility and that is exciting news because it means there are lots of profitable trade setups.
All you have to do is TRADE WHAT YOU SEE ON YOUR CHARTS ONLY! You must follow your rules and trade setups…and take those trades only.
Always trade what you see on your CHARTS…period. Never trade your “directional bias”. Let’s make this point clear so you never get tricked by market manipulation. Your rules should be clear on when and how you enter into a long trade…how you stay out of trades when the market is in transition and when you can take a trade in the opposite short direction. Trade your rules and nothing else.
Every day was a GREAT trading day this past week. There was lots of volatility which provided the opportunity to have several large runners. Let other people be afraid…just trade your rules and the charts and you will be fine. I can’t tell how exciting trading is now these days. You have to love it. It is so beautiful to see everything working EXACTLY the way I have told my students they would work…YES!
Please be sure to read my 15 page newsletter on Understanding Market Flow. It should be posted on the website already. That newsletter provides you with incredible additional insights how to read the markets on a bar-by-bar basis. If you have not done so already, please make sure you sign up for the Blog Notification Updates…as I am increasing the frequency of my informational blogs.
Advantage Members… Continue reading in Member’s Area