Daily Blog 3/26/2018
So, last Friday, it’s as if Armageddon was upon us. NQ (QQQ), YM (DIA) and ES (SPY) all printed around 2% losses. So, over the weekend I couldn’t stop refreshing my twitter feed, to gauge the sentiment, and ‘oh boy’ was it bearish. I even saw a few perma-bulls, willing to short SPY as a hedge if it got any worse. Talk about a volatile market. But guess what, it’s really just volatility and if you are a long-term investor, who cares right?
Well, if you are a long-term investor, why even tweet or be on Twitter? That’s because the majority of the FinTwit are short-term traders, and are currently dominated by Futures traders of CL (Oil), GC (Gold), ES, YM, NQ, and RTY, including myself and my chatroom.
Why are people so infatuated with Futures trading? My number one reason is the Liquidity and the fact that it trades 23(hours)/6(days). You can always get in and out of a trade even at midnight. You are never stuck waiting for the market to open and praying the price holds so you can sell. But there are caveats to this convenience, there are professionals with algo that will exploit your every move. So, tread carefully! My mentor states that the Pit hours (9:30 am PST to 1 pm PST) is the best time to trade. This regular trading hour (RTH) offers the best liquidity and you can view BookMap X-Ray software platform to see the Depth of Market (DOM), something akin to a level 2 for common equities. A required software for the day trader.
Today was a great day for me. It ripped so high, it gave many FinTwit the FOMO feeling. My long-only portfolio exploded higher for an unrealized gain of $18,000. My futures trading account was up $300 (lunch money I called it), on ES scalps. Didn’t really trade much, my mind was on my home purchase. I am a few days away from closing on my new home purchase (purchase price over $1M)with Pulte Group as the builder. Buying a home in Silicon Valley is just as hard as day trading or even harder. So wish me luck! I haven’t even moved in yet and the sales guy at Pulte said the home has gone up ~$150,000. So, yeah why even trade futures or stocks? Till next time, more to come.
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