Hubert Senters here.
Got a question from Russell.
I was in a good long trade on the YM yesterday with a nice runner until 2:15 PM yesterday when the YM experienced a program sell program and a 50 point swing on a 1 minute candle.
Using good risk management, I was obviously stopped out with a small profit on my runner. The YM went on to be much higher just 2 minutes later.
Can you explain the factors like liquidty and other possible reasons that could explain a move like this?
Shit happen sometimes. That’s called welcome to trading. That’s the reality. Now, what may happen sometimes is if you have a moment where the market is a little thinner and then you get program buys or program sells.
What’s happening is a bank of computers just think of like there’s let’s say you own a taco shop and there’s no business and then boom it at lunch time there’s 50 people lining. Same thing.
Like when the markets are just doing their thing and they get a little thin and then you get program sells they all back up on top of each other so you’re going to have violent moves both ways.
But you did the right thing man. You got a stop-loss in there and you got stopped out with the profit that’s still a good move on my part or on your part I should say.
Sometimes it will work in the opposite direction just so happen to you it was stopping you out and you could have made more money but you didn’t. But sometimes like on a news release or on a program buy you’re on the right side of it and you’re on the winning side of it.
Sometimes the markets will get a little thin and when you do see or you feel or you experienced a bunch of buy orders or a bunch of sell orders. It will whip the market one way and then whip it back the next and there’s nothing you can really do about it. I wish there was but there’s nothing you can really do about it.
That’s why trading can be risky. In yesterday’s video it seems like we’ve got higher versus lower by huge margin so let me figure out the percentage was. Almost four times the amount of people think of it it’s going to go higher versus lower so there’s where the numbers are.
Russell I hope it helps. You’re not doing anything. You’re paying attention to details using the stop. You’re doing the right thing and you’re asking really good questions. And you’re doing the right thing so hang in there.
Good luck. Hope it helps. I’m going to HYPERLINK you guys to Mark’s gold webinar tonight and I’ll see you on the next video.
Hubert.
