Previous Week's Analysis

First of all I'd like to thank Adam Todd for inviting me on Juicestorm for an interview. Was an enjoyable experience and the time flew by chatting about all things trading. I've been pleasantly surprised of how positive the feedback has been from it, and more thanks go out to all the friendly comments left on my blog. The feedback was very much needed for my own head, as it has convinced me that its the right thing to pursue and encourages me to make them available to all as soon as I can. More details about the courses will be available soon so just keep an eye out. But if you can't wait then drop me an email and I will pass you on more details I didn't have time to mention on the interview.

Regarding last weeks trading all in all it was a good week. With some solid focus needed on Tuesday to recover my unfortunate incident with my Internet that cost me -251.....as mentioned on a previous post. Then taking some steady profits throughout the week I got myself into a good zone after Wednesday. But looking back I was a little disappointed with myself of the amount of losses that built up over the week. Far too many crept in that took away some well deserved profit. But the reasoning being that the markets were strong, and on occasions i was pushing a bit too hard to earn some extra pennies. In doing so I left myself in a few unwelcome positions.

I feel most of the markets were perfect for swing trading and due to the high profile races it attracted in some nice liquidity. Which in turn offered some great opportunities where markets were not only turning in direction fast, but often the true value was pushed too far in either direction. The reason a market goes sometimes further than you think, is not because someone is watching over your screen and screwing you over the second you enter the market....as it feels like at times. The reason this happens is when people get themselves in situations in which they can't instantly recover from. Like when a trader, or a combination of traders think a market is going 1 way, then it quickly turns and ends up going the other. So when a market goes the wrong direction even further against them you can see the desperation in people needing to get out at the current price. So then more traders push the price as they jump in front of the desperate money wanting out, which accumulates to a market going way beyond where the 'true price' it should be. Purely because peoples reaction to a price has forced people in losing positions to exit there trades in desperation. Their emotions take over and they rush to exit at any price available. When the market then is forced past where it should be, you will see a large bounce back of people rushing on the other side. Seeing value at the high/low position the market has now been pushed to. Also backers/layers will see the market at this position and now it provides them with an opportunity to bid/offer a price at the current position they think as value. This is how a market can fly around so quickly and can lose a scalper all there money in 1 go. Beware of knowing when to scalp and when to swing!

With swing trading you can achieve some massive moves if you can work out where other people are needing to exit there positions. In desperation they simply have to push the price further. In my eyes these are where the odds are in your favour to make profit. These are the odds in which I want to be working with, not the 50/50 situations you see on a regular basis.

Its about reading other peoples reaction to a price movement, not just the numbers on the screen. These are opportunities where you have to be able to read not where the market 'should' be at, but where you think the value is 'now' at. I hope that makes some sense as i did go on a bit of a ramble there :)

I've flown out to the UK for 10 days and arrive in Madrid on the 3rd September. Come back for my local festival - Leeds fest :) So won't be that much going on as far as trading this week. That's why the essay of a post now hehe. I'll make my post that was suggested regarding my setup when I'm back in Madrid.

I needed a plane to catch on Saturday and only could fit in 1hr and 15 mins on the Saturday. An annoying finish to a good week trading Tues - Sat