Millionaire TradersQ: When you make that kind of a small trade, and you say you
want to get a better feel for the market, what makes you feel the
market better by making that small trade?
A: Forces me to pay attention.
Q: Forces you to focus. So the biggest benefit is that now you
have money on the line and you want to pay a lot more attention
to price action?
A: Yes.
Q: Could you give us an idea of your basic day? How do you
start it? What do you do?
A: One of the worst things for me is to go sit at my computer,
too soon. If I get up early and I go sit at my computer, by the time
8:30 or 9:30 market time I am so ready to trade that it’s bad for
my trading style. I’m a whole lot better off to come in 15 minutes
before the market opens, look at the major headlines, look at the
chart structure. I don’t really pay attention to what happened over
night and make trades. The riskiest trade in the day is the first one,
in the first five minutes.
Q: Why is that the riskiest trade of the day?
A: You begin to see who the dominant forces are, whether they
are going to try to move the market up or down, and you want to
work hard in that first 45 minutes because that’s when the best
opportunities exist.
Q: What kind of clues do you see in price action that would make
you think—oh, they’re going to start moving the market up today?
A: Actually this morning was a great example. The market gapped
down, they managed to push ER down a couple of points and it