May Add to Profits
by Ralph Russell, Nasdaq Real-time Signals Trader
What do we mean by anticipation?
If you are following the Daytrader's Bulletin Real-time Signals for the
Nasdaq and you have entered long or short you are in a position. The next
thing you will do is either take a profit, or exit if suggested when the
trade is not working.
As an example let us assume we are short 2 mini-Nasdaq contracts. If
we are already short, what is our next trade? It is a buy most likely
as we generally do not practice adding on to daytrades.
Anticipating the Buy order that is yet to be broadcast, we can enter
into our trading execution program a buy order for the correct amount,
in this case two contracts.
Now we have that much done. We can even enter into the price level a
price that will cover our commissions and then, if we receive a "Bail
Out" or "Cover the Trade" suggestion, we have that much
done already. We can also choose "Limit" for the type of order.
Now, we are ready! We have properly prepared for the next event
of covering our entered short trade!
We then receive an order to "Bailout at even or better." We
are ready! All we need to do is send the order.
If we receive a suggestion to "Bailout at the Market," we merely
click on the Market Order button once or twice or whatever is appropriate
for your software and default contract amount.
What if we receive an order that says for example: "Buy 2 at 1655-1651
limit"? Simple: we merely adjust our price level to reflect the achieved
price once the market is at the price or lower and take our profits. By
delaying we assume some additional risk in getting our fill, including
the certainty of the Internet working, the certainty of the brokers interface
with Globex working and so on.
Whatever we do we can anticipate and be ready, be prepared to
so something once we are in a trade. This will help prevent errors when
the suggestion does come to do something with the trade. Being anticipatory
will prepare you mentally to offset your trade so the falling or rising
forever syndrome does not cloud your thinking in a good trade.