Know where you are. The first thing that chasers do is to find the most likely place to find the location of touchdown. There is never a guarantee of certainty however, there are ways of knowing where to look. Often we talk to others in the industry to know the choice spots for what we are looking for. Areas of interest that historically produce the type of volatility we are looking for the Tornado Alley of the market. This is where many competitors fight for the best spot, while the traders compete for the best price, in the end it's an educated guess. But in a game where a couple feet or a couple pennies make a difference, experience, mindfulness, and position, matters a great deal. Have the right equipment. You don't want to face a twister or a volatile market breaking off the open without the proper tools. You want to be able to scan for trades like scanning the skies for the clouds and formations that produce the events that bring the results you're looking for. The better your equipment and funding, the more storms you get to chase. It is not prudent to go into either of these endeavors overly eager, without proper information, unable to scan what is happening or being undercapitalized so that one mistake takes out your entire season, or in the example of trading your entire account. Panicked minds do not make good decisions. One must be calm, aware, and able to act in the moment with training to manage whatever situation the trader or chaser finds themselves in. As a trader the tools are trading platforms with Level II ladders, scanners, and a network of traders with common goals and expertise. These are as vital to our mission as maps, Doppler Radar scans, and ham radio networks are to storm chasers. They are essential for protection and success. Know what you are doing. The beautiful and dangerous thing about both trading and storm chasing is that there is a relatively small barrier of entry to both endeavors. Technically with a lap top, some software, and a couple hundred dollars a person can technically start trading. The way anyone with a vehicle and a cell phone could start storm chasing. That doesn't mean because you can, you should, or that taking on that kind of high risk adventure should be done without some training and education. Yet many people do it. YouTube is full of them all. Random people walking outside to take a live video of a storm passing their house and various financial gurus with their get rich program to make you rich in 3 days using proven techniques. Some get lucky, and it works for them, however the majority that try it get hurt if not devastated by the results of doing something that requires a high level of information and skill to maneuver properly with no prior planning or effective exit strategy when the storm starts heading in the wrong direction in a hurry! Experienced mentors are great, but personal experience must be earned it can't be bought. A great place to start chasing your passion is with someone who knows the terrain. Who has been there, who has learned from the storms, and who has learned to come out unscathed on the other side. Sure there may be some scary times, some cracked windshields, some 2X4s embedded in the door. Just like there can be 5R losses if you don't place a stop loss correctly. Things happen and even the best laid plans can go awry. The storm teaches storm chasers and the market teaches day traders. In order to learn you must show up and interact with it. The more you show up and interact with it the more accustom to stocks patterns you become. The quicker you notice when they change direction and you can either change your position by adjusting your target or stop loss, decide to not go in, or get the hell out when that bad boy is moving against you! Live to chase another day. Data, data, and more data!!! Information is everything! Journal, back test, and review strategies. Where did it happen (which stock)? What time of day? What was the environment like at the time? How did the pattern form? How long did it last? The more data the better. Which can be used for better execution of the plan at a later date when similar conditions consolidate whether in the sky or on a chart. For the love of the chase... For those who have caught the bug there is a love and a desire to face the beast every day and see what beauty and magic awaits. The wins and the losses over time. The consistency that comes from the chase. But then when that perfect pattern starts to form and the excitement starts to build as the checklist is ticked and we know this has a good chance of being the one and a pattern forms and away we go! That makes the work worth it. Whether it's the cupping clouds that produce the touch down of twin sisters in the middle of a corn field or whether its a buy set up that rips to the moon. Those are the moments that we chase for. That's where our money is made. If you would like to learn more about day trading visit www.livetraders.com or follow the Live Traders YouTube channel AuthorSophia is a #momtrepreneur living in Scottsdale, Arizona.
1 Comment
Silverio
8/17/2022 05:24:09 pm
Great article!
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August 2024
AuthorSophia Tesch is a graduate of the Hugh Downs School of Human Communication at Arizona State University. Sophia is a community advocate. She lives in San Tan Valley, Arizona with her husband and children. |