'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Wednesday, December 1, 2010

Observe & Trade


A vertical leap from Russell 2000 as shown from this 5-min. chart.

If you look at yesterday's pattern, it's almost flat.

But today, due to some positive news, it skyrocketed.

If you anticipated the good news and bought early in the open, you can make a nice paycheck today.

Trading is about timing, watching, sitting, anticipating, persevering, observing, and locating the right "thing" (entry and exit).