Today Aug 8, 2011 was quite a day in the market as we all watched it fall, fall, and then fall some more. You may think day traders would make a boatload of $$ if you just shorted the intraday market. Though this may have worked for the position traders out there, scalpers and day traders know that intraday and position trading are about as related as bunnies and horses.
The market itself was crazy volatile. Though the daily trend was strongly bearish, the jumps and ticks, aka market volatility, made it a very risky trading day. Traders had to exercise extreme caution when entering and exiting the markets.
This is where an effective trading plan, and discipline and consistency comes in. If you were paralyzed by fear, or decided not to follow your trading plan today and didn't take your losses, you most likely ended up with a lighter bank account.
Trading volumes were exceptionally large and there were millions to be made and lost. Prop firms and brokerages alike were super busy with risk management and systems struggled to keep up with the sheer volume of trading.
As you do a post mortem on your trading today, we hope you are among those who took more profits than losses.
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