Trading Under Fire

Every once in a while I catch a day where pretty much everything I touch devolves into a floating dumpster fire. I will spare you the gory details but by all intents and purposes today is such a day and I’m in a pretty foul mood. However it is those days that really test your mettle not just as a trader but also as a professional in your respective domain and human being in general. So do you throw in the towel and call it quits? Not on my watch!

In my mind what truly defines a person is not how he/she operates during the easy days but when the proverbial excrement is hitting the fan with bullets flying and everyone running around with their hair on fire.

As the Navy Seals are known to say: The Only Easy Day Was Yesterday!

Anyway, let me apologize in advance for the brevity of this post, but due a long sequence of mishaps and general annoyances my usual schedule got delayed today and the market just opened. Which means I’m running behind. So let’s git ‘er done!

Courtesy of week #50 we seem to have been bestowed with a juicy BTFD opportunity. My monsters of tech composite symbol is flagging a solid spike low and I’m looking to grab a bit of long exposure in tech.

The game here in GOOGL and the issues shown below is pretty straight forward:

  1. Go long 30 minutes into the open.
  2. Put your initial stop loss (ISL) below a recent spike low.
  3. Spread our your exposure between at least three symbols.
  4. Combined your exposure should not exceed more than 1% of your portfolio.

That’s it – not exactly rocket surgery.

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Now if you excuse me while I go outside and kick a tree…

  • Mike
  • 3 years ago

About the Author

Hey there, I am one of the founding members of Red Pill Quants. I used to work as a systems engineer in Silicon Valley until I left the industry in 2008 to become a full time quant trader. It's been fun ever since.