9 replies to this topic

[Rogerdodger]

From My Blog

Trade like a spider!
Why are we really here?

Friday's reversal was surprising. And FAST!
I had been looking for a reversal but was thinking maybe it would come Monday after an opening gap down.
I was playing SDS (double short S&P), thinking that we could get some panic selling into the close.
As the range tightened I thought we probably needed a false move before springing.
We got it and I was stopped out of that trade for a penny loss.

Then I got busy with my attention diverted, trying to keep an eye on a potential "pissing contest" on one of the boards.

The rest is history, as they say.

Now I'm reminded of a spider which I saw in my garden last fall.
It was building a rather large spider web about 3 feet in diameter.
It had already built all of the radials and was now spinning in circles towards the center to finish the trap.

These are really amazing creatures to watch, and I did.
As I got closer to the web, the spider completely ignored me!
She seemed to be on a mission.
I could stick my rather large nose within inches of the spider and still she was oblivious to me.

I noticed some tiny gnats stuck at the edge of the web, but I guess they were not worth her time. Just "noise" to this busy, viciously intent spider.

Then it happened.
Out of nowhere, a fly slammed into the edge of the unfinished web.
I wondered what she would do next.
Would she ignore it as she had the gnats?
Would she first finish her beautiful web and then go for the fly, that is, if it was still there?
What she did was STOP! Motionless for the first time in many minutes.
Feeling the vibrations with her feet.
Within a second she crossed the web to paralyze the fresh morsel, destroying some of her beautiful web in the process.

It kind of irritated me that she messed up such a beautiful work of art.
But it was no work of art. It was a deadly trap.
Her whole purpose in being there that day was not to build a web but to catch that fly.

I need to trade like that spider.
I need to avoid distractions and remember why I'm trading: to catch that profit before it gets away. That's all.
I need to be quick to jump on moves which come "out of nowhere".
I'm not here to impress the other spiders with my web of market calls.
I'm not here to compare my web to that of the other spiders and get into "pissing contests".
I need to ignore those who try to stick their big nose in my business.
I need to be on a mission and be viciously intent.
I need to eat.

Edited by Rogerdodger, 23 February 2008 - 02:02 PM.

[ONEGOAL]

I SCORE THAT POST AS A PERFECT "10" - thanks for sharing

[AChartist]

For god sake it was not surprising, it was all over the options prices by 10:30 AM. I posted it here for you around 1PM.

[SemiBizz]

All you really have to remember is to separate the IMPORTANT from the URGENT. Pissing in general can be urgent of course... But, you have to ask yourself what your mind should be on. There was no penalty for delaying your response to the disturbance in the immediate timeframe, but there was a huge price paid for not keeping your mind on your trades...

You are the pilot, your first responsibility is to fly your airplane.

Edited by SemiBizz, 23 February 2008 - 03:07 PM.

[mss]

I need to trade like that spider.
I need to avoid distractions and remember why I'm trading: to catch that profit before it gets away. That's all.
I need to be quick to jump on moves which come "out of nowhere".
I'm not here to impress the other spiders with my web of market calls.
I'm not here to compare my web to that of the other spiders and get into "pissing contests".
I need to ignore those who try to stick their big nose in my business.
I need to be on a mission and be viciously intent.
I need to eat.

RD, what a great story. You have defined exactly what I have wonted to say to some of the posters for a long time.

I give you the badge - YOU ARE THE CAT - steadfast and determined to its task.
mss

[Iblayz]

Roger A great post. Period. Nothing else need be said.

[Rogerdodger]

Pissing in general can be urgent of course...

Do spiders piss?

Yes. They call it web.


MSS

You have defined exactly what I have wonted to say to some of the posters for a long time.

Thanks. I've really been thinking about that spider recently as I've opened an account with IB for the purpose of s/t trading.
That is a whole different world from the swing trading I've been doing in IRA's and 401-ks.

Now I gotta eat lots of little bugs before they escape.
It requires me to pay attention.

Edited by Rogerdodger, 23 February 2008 - 04:17 PM.

[AChartist]

A couple guidlines I have, short macd signal below zero and falling with stochastic topped. Short RSI 14 on downtrend line. In this mkt the crash stocks are occuring oversold everthing in gear downward, oversold and flatlined stoch, with narrow BB both downward works on the other extreme. Short earnings pops above falling in gear moving avgs leaving gaps. Buy on spikes below flat closed 1.785 60 min BB with 60 min macd rising, RSI 2 < 1 Basically every rally is for selling, buys are rare. Someday it will change.

[underabigw]

Roger, Mammy would be so proud. Mammy ............Hattie McDaniel "You know what trouble I's talkin' 'bout. Mr. Ashley be comin' to Atlanta when he get's his leave, and you sattin' there waitin' for him, just like a spider". Great post! UBW Walter

[esther231]

Great post and tale. Thanks, Roger