Dealing with choppy market conditions like a pro

Dealing with choppy market conditions like a pro

Posted on 04. Mar, 2010 by in Boomerang Scalp Trader

Good afternoon.

Johnny here for mid session Thursday. After a slew of key government reports came out in pre market and during the first 45 minutes of trading the market went into extreme choppy trading conditions.

Friends, we must always remember this simple creed….”the market is just the market” and indicators analyse market conditions.  In other words, there is no indicator or trading system that the market follows, but the markets are what set the conditions for the indicators to Read.

The Boomerang Scalp Indicator system gives the most advanced warning signals of when the market will shift and also identifies when to stay out of the markets.

Lets review todays pre opening along with the first 45 minutes of trading. Look at the effect of all the mixed speculation about what these various reports mean to the market direction….Choppy higher move, then complete fade of the accumulated bias.

trading

Here are the Boomerang Rules for learning to avoid choppy markets.

#1) The Most Important One of All:  You!  Do not list psychological training as last. It is FIRST.  Repeat the Traders Affirmations everyday that are shown in the Boomerang Trading Handbook. Do not think you are above this daily proceedure.

#2) If the Boomerang bias bars are changing color back and forth along with the underlying algorithms (up/down arrows) then JUST WAIT for the market to smooth out.  It may take some time. Who cares? Take a break or do some research on your charts.  The market does not owe you a trade. If you think it does and you force a trade…well, thats not pro trading

#3) If the Boomerang Bias line (Blue dotted line) is FLAT then stay out of the market until there is a clear shift

#4) Learn to read the tape. This is not a requirement of the Boomerang Scalp Trader but just an intelligent choice of someone who plans on making trading a career and does not like to flush their money down the toilet. It’s easy to learn if you follow the simple approach in the Boomerang Trading Handbook.

For an advanced study of reading the tape….Learn the approach used by Mohan, our frequent guest speaker at our webinars. He loves Boomerang and has created a comprehensive and simple way to read the tape he calls “The High 5″  Go to www.mohansmarketforce.com  and read the free tutorial on the High 5. Take a free 1 month trial and watch Mohan call the exact direction of the market each day …before the opening bell.

#5)  If the market is choppy it is sometimes necessary to let the next market move occur without you on board. THEN, after a 3-4 point move occurs this will break the choppy syndrome. You can then look to take the next Boomerang Scalp Trade.

#6) Watch the 1-2-3 pattern discussed here on prior blogs

As I am typing the market is continuing in a very choppy, go no where fashion. You may have guessed that, I am not trading right now, but instead doing the blog and STANDING ASIDE FROM THE CHOPPY MESS taking my own advice here.

Hope this assists you in becoming a pro trader.   Johnny

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