c08 JWBT016-Busby September 30, 2008 14:0 Printer: TBD
102 STRATEGIES TO WIN
FIGURE 8.2 A one-minute chart of the E-mini on April 30, 2008. I made the trade,
but due to the fast move and shift of prices, I was only able to make about $33.50
per E-mini contract. I was in and out of the action in less than one minute. Some
Corvettes pay me more. In fact, most do so, but every trade cannot and will not be
a big winner. That is the reality of the market.this trade would be a fast and furious one. Then prices headed south. I did
not need to know what action the Fed took. I can learn that later. What I
needed to know was that my sell numbers had been hit and I went short.
My trade was a sell on the E-mini S&P at 1398.00. Knowing the potential for
a rapid shift in prices, I placed an order to exit my positions at 1396.00 but
saw prices shifting and quickly liquidated. On this particular day, I got some
slippage.Slippageis a term that refers to the difference in the price of the
order that was placed and the fill price. I did not make a king’s ransom on
the trade, but I picked up a few bucks and certainly did not lose a dime. The
trade did not work out as well as I would have liked, but I trade multiple
contracts and was satisfied with my Corvette. Figure 8.2 shows the rapid
Corvette.
Moments after getting out of the trade, the ranks of the bulls swelled
and prices went up. I did not take the bait. I moved to the sidelines to wait
for the markets to calm down and show their real direction. That was a
wise decision because the up move did not last long and I was able to go
short again on my Model “T.”