Surfing for Profitspoints of exhaustion where the information flow is going to start to
turn and go the other way. How would you classify yourself?
A: Basically I am a continuation trader. When the trends are
going in that direction, I don’t see any point in trying to find the
turn. It will tell you when it’s reversed.
Q: How would you know that it had reversed? What kind of
technical telltale signs would tell that the trend has stopped?
A: It’s got to come to some area where it’s reversed before. That’s
number one. Then, even though it may reverse, it always takes at
least a day or so for that happen. If you look at any chart pattern
where the market’s reversed, you’ll see a daily reversal. Reversal
only happens once, but the continuation’s happening all the time
until the moment the reversal is hit.
Q: Given that kind of layout, since you obviously look at previ-
ous support and resistance levels, how would you approach a trade
where—and again let’s use the dollar—we have a slew of positive
data, a good fundamental background, the U.S. dollar strength-
ening over the last several days, but approaching critical prior
resistance levels. At that level, even though the fundamental news
continues to be supportive, do you become more cautious because
of the technical barriers in front of you or do you simply stay in
there until proven otherwise?
A: Yeah, definitely I do become more cautious. I’m just a trader.
At the end of the day I just try to make money for myself. If
it gets to a critical technical area and I’ve made enough money,
maybe I’ll stay out of the market for a while or lower my leverage.
I say to myself, I’m not sure here, I’m going to wait. I’ve already
made money coming into this. So let me just assess my personal
situation or my relevant situation around me and see what’s going
on. I may do something like that, which has nothing to do with
trading, but has to do with being and living as a trader. Let’s say
it’s Christmas time or Thanksgiving or something like that. You’re