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Varouj Abrahamian wrote:
>
> I agree with Mubashir Nabi, very well said. But how do we follow or measure
> or keep track of the fear factor as traders if you are not on the floor?
Varouj,
I believe the answer to your question is a very simple one, and that is
"price action."
There have been several wonderful letters to the group within the past
week regarding leading indicators, and how, when all is said and done
the only leading indicator is price itself.
So there you have it. If you want to keep track of the fear factor
strive to become a skilled "tape reader." As you're watching the price
action ask yourself "What should the market be doing now?"
If its not doing what its supposed to then ask yourself "Why isn't it?
If you've done your homework and have a really good trade going maybe
its better if you don't have access to all the rumors,distractions,etc.
that a floor trader's exposed to - better to not have all the "noise"
but, rather, a good trading plan. Your protective stop(assuming you use
one) will take you out of the market if price-action hasn't alerted you
sooner so that you could then say "this market is not doing what its
supposed to - get me out!
Best wishes in your trading,
Pete Hallock
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