At The Close by Michael Radkay
It’s that time of the trading day when anything and everything is possible…
It’s a little past 5 am Pacific time and I am ready to trade the US commodity futures session. It’s early, but my day is going to end around 8 am. I can live with that! I have a lot of inner chatter going on because it’s 5:19 and it’s one minute to game time. It’s time for my morning ritual to calm my inner chatter: “If I follow my game plan, I am a great trader! If I adjust to my opponent, I am an experienced trader! If I follow my game plan and adjust to my opponent when necessary, I am a master trader!”
ADJUSTING TO YOUR OPPONENT
The essence of this article is captured in the part of my ritual when I mention “adjusting to my opponent.” Who are my opponents in electronic trading? I can’t see them. As market commentator Rick Santelli points out, “Electronic trading is like playing a game, but you can only watch the scoreboard,” so who are we playing against? When I talk about my opponents in electronic trading, they are either buyers or sellers. When I am a short player (seller first), my opponents are the buyers and my teammates are the sellers. When I am a long player (buyer first), my opponents are the sellers and my teammates are the buyers. I am always interested in the health of both teams.