trainee: “So this SLV isn’t really doing much this morning”
spencer:”Yeah, pretty tight range”
trainee:”it is just stuck in a 35 cent range”
spencer leaves the desk to attend firm business at 11:00AM.
second conversation at 12:20 when spencer returns
spencer: “you long this SLV? finally broke out of the range”
trainee: “no. i’m watching it.”
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A large part of trading is not trading. As professional traders we spend most of our time observing the market looking for setups where we have a statistical edge. Generally, if we are watching stocks it is because they have done something that warrants our attention. Perhaps they have made a strong Opening Drive or recently made a new 52 week high. In the case of SLV our desk began watching it yesterday after it broke outside of a multi-day consolidation. We were watching it again today because it closed at the high yesterday and still hadn’t reached our first upside target of 37.
Step one is identifying the right stocks to watch. Step two is identifying the setups where you have an edge. Step three is pulling the trigger when it is time. Steps one and two are the hard part. Step three is simply a matter of execution. Just hit the buy key. What’s the worst that could happen?
One Comment on “Conversation With A Trainee At 10:45AM”
This is great. I did exactly the same thing today and feel like I have been kicking myself for it. SLV trades odd and quick, so I guess getting into something later and much more sure is better than trying to call the start of a break.