The Art of the Trade: The Monday Be Careful Trade
Monday Be Careful Trade by NEWWAVE TRADER on JUNE 20, 2011 Monday's always seem to get me. I do my weekend homework and have a well thought out plan. However, for some reason I get burned. Today was no exception. I was bearish based on last week's price action and the market rallied catching me and lot of other bears. There is a better approach. Let's take a look:
Ignore the pundits. The talking heads and Internet blogs are always touting their positions. Either ignore them entirely or do the opposite.
Sit on your hands. As hard as it is, waiting until after the morning orders are filled makes the most sense. When everyone gets caught, that's when you make the trade.
Resting orders at the extremes. If you're bold and know where you'd like to have a position, place resting orders above or below the market. Have a stop in place in case it keeps going.
Setup for the rest of the week. Use Monday's trade to get a sense of the momentum for the rest of the week.
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