Trader Mike

Here are some of the more interesting trades I took this week. It was one of my better weeks as far as winning percentage (67% — 8 winners out of 12 trades) and expectancy (0.88). Maybe I should only trade 3 days per week every week. Hmm…

I went long in WITS on Wednesday morning. It was up strongly early thanks to its earnings report the night before. Once it triggered an NR7 alert on my Trade-Ideas scanner I took a look at the chart and loved what I saw. It had pulled back from the highs and was trying to bounce off of 22. (Those round-numbers often act as support/resistance.) So I …

Bo Yoder, who recently added a weblog to his site, has posted an excerpt from his book about the payout/payback cycle. It’s split into two parts: Part 1 - Part 2. Some snippets of the article:

For every style of trading there is a “perfect” market environment. When the market is aligned to your style, everything you touch will turn to gold. Your patterns will set up and run without stress to your target zones, your excitement and confidence will soar as your win cluster grows. But these glorious periods seldom last long. Stops will begin to appear again, and then perhaps a loss cluster. This constant cycle from “zero” to …