Friday, November 4, 2011

Post-NFP trading: a slow day at the races

Every month when NFP day arrives, I always ask myself if I am going to trade or stay on the sidelines. The reason being that on those specific days, the markets tend to be highly irrational prior to the announcement and sometimes as much as a couple of hours after the release. Well, today was worst in my opinion cause it took until lunch time before the markets that I trade started behaving more "normally" (granted such a state exist). Some traders like to trade those yo-yo like markets but me it makes my head spin. So, I got involved but kept my stops tight, head cold, and ended up in positive territory at the end of the day. That's all that matters for me. So here is the net result for today: +$224 trading 1 contract (commissions included). Details below. Have a good weekend!

P.S. some people have asked me why I keep writing "trading 1 contract..." after my results. Well it's to show that consistency in trading is more important imho than anything else. Once you're consistent enough, you just trade bigger in terms of contracts and multiply by 2, 3 or 4 your daily results without changing anything to your trading style.

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