notes from Tom Sosnoff chat June 10, 2009

Some quick notes from the thinkorswim wednesday chat with Tom Sosnoff on his trading approach.


Understanding the price action, futures, and relationships between indexes. You need to understand the product you're trading. For example, looking at the relationship between volatility and price action for a way to anticipate where the indexes are going.

You need to be slap in the face once in a while. You become overconfident after winning a few trades. This is when the market reminds you and put you back on the ground. I can relate to this. Being short this long rally, I've been hurt. The first five months of the year, I was successful with my trades despite the insane markets. I need to develop my trading strategies and stick with it.

Need to have a good understanding of strategies and its nuisances.