2013 is here! Do you know your edge? I know my edge and plan on trading it and only it this upcoming year. Stocktoberfest hosted by @howardlindzon interviewing @reformedbroker who gave the line of the event “the best way to beat a high frequency trader is to be a low frequency trader.” Simple and effective. Makes sense on many levels, but where does that leave the “day trader”? I enter 2013 with visions of a decade ago when volatility was crushed. In 2003 -2005 after the Nasdaq bubble burst the “retail” portion of the market was gone. This left just the pro’s, those who are in the market all day everyday to battle it out. I think we are in that time again and its going to be as my friend @gtotoy stated to me “dog eat dog”. This time however, we have HFT’s alive and well, not the human specialist of old representing all of our excuses as to why the trade didn’t work. They are faster and more relentless. They never quit and they don’t take lunch. They know all the levels you know, they know the charts as good as you. They even know the bias you have set in your alerts and they will use it against you everyday in every way. They welcome you with open arms into the arena. How as a day trader are you going to enter this arena in 2013? Are you going in with the same tired plays without understanding what effect low volatility has on them? Has it crossed your mind that you now need to make money off the backs of other pro’s ? Do you really think that is going to be either easy or consistent?
My 2103 plan is all about survive and prosper. I will change what needs to change to accomplish these ends. I will turn upside down all the old tired plays and figure out how to disrupt them. Yes, disrupt them! I will start with knowing that those who survive this game aren’t afraid of change and those who will fail don’t change. As a discretionary trader my discretion will come in the form of choosing when to play and how to play, but I know that I have to be more systematic in doing it. Yeah I said it.. more systematic. I need to be able to reproduce my edge without hesitation on a daily basis. That sure does sound systematic to me. They are using speed and big data to game you and me. The more I enter the arena the more chances I give them to take my money. The more I trade like they expect the more they will take. I enter 2013 knowing that my edge has to come without bias just hard cold numbers. Every alert you set comes with bias, they understand that and use it to their advantage. They will show you what you want to see knowing your bias, then use that against you quickly and decisively. They are pro’s.
Consistency is what it takes to survive in trading. My thinking is always about what needs to change to stay consistent. I want to consistently survive and prosper. I am planning for 2013 to be “dog eat dog” and my discretionary trading plan will be more systematic so I can be one that eats.
A few words for those day traders that wish to survive and prosper in low volatility …”range” and “time of day”. See how you can disrupt your trading plays using those few words.
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