Stocks & Commodities V. 24:8 (27): Q&A by Don Bright
Product Description
Stocks & Commodities V. 24:8 (27): Q&A by Don Bright
SINCE YOU ASKED
Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http:// Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C.
COMMENT TO JUNE COLUMN
I was reading my June issue of S&C. I always enjoy reading your column very much. I wanted to respond to your reply to a question about whether technical analysis works: No one would ever enter into a good technical setup with bad momentum, bad earnings, wide spreads, poor trending. My best trades are when all the bad news, bad earnings, bad momentum, and so forth give me an entry at a price I am willing to pay for whatever I trade. Same with good news driving stocks, futures, bonds, and so on into areas I want to be selling or shorting.
—Steve Misic
Your comments are certainly valid. Let me explain my thoughts about entries and exits. My point is that even in the most quant-type of entry (correlated pairs trading, for example), we take into consideration all the standard market conditions before entering our short sale or purchase. For example, if the market were tanking, we would not enter our buy order until it settled down a bit for fear we would not be able to get a short sale off (during the decline).
SINCE YOU ASKED
Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http:// Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C.
COMMENT TO JUNE COLUMN
I was reading my June issue of S&C. I always enjoy reading your column very much. I wanted to respond to your reply to a question about whether technical analysis works: No one would ever enter into a good technical setup with bad momentum, bad earnings, wide spreads, poor trending. My best trades are when all the bad news, bad earnings, bad momentum, and so forth give me an entry at a price I am willing to pay for whatever I trade. Same with good news driving stocks, futures, bonds, and so on into areas I want to be selling or shorting.
—Steve Misic
Your comments are certainly valid. Let me explain my thoughts about entries and exits. My point is that even in the most quant-type of entry (correlated pairs trading, for example), we take into consideration all the standard market conditions before entering our short sale or purchase. For example, if the market were tanking, we would not enter our buy order until it settled down a bit for fear we would not be able to get a short sale off (during the decline).
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