The day trader is not buffeted by market gyrations

You may have noticed that my day trading this week has been just the same as in previous weeks, despite the market turbulence all around us. This is something I like about this kind of trading. You are focussed on short term charts with the specific objective of hitching a ride on momentum moves, whatever their direction.  Your risk is tightly controlled, so there is none of the feeling of hysteria which grips longer term traders and investors when markets collapse.

Today I took a short trade which did not work out.  In the wheat market, I like to quit trades like this fairly quickly, so I keep a tight stop. Sometimes this burns me a bit, because the market turns back and goes my way, but it is worth it to keep my average loss smaller than the average win. As I write, I can see that happened today, with my original short trade winning comfortably at the moment. C’est la vie.


I sold at 909 and bought back at 912.75 for a loss of 3.75 per contract, 7.5 points in total.


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