James Altucher has been a regular proponent of doing yoga, and he’s right. I tried it for a while about 5 years ago, and I have to say not only did I love it, but I could feel the difference it made in my life.
But work, and kids, and….well you know that story. I stopped going for “just a week or two” and haven’t been back since. This last year I have for the first time really started to feel the effect of age and have been promising myself that I would start again, but have yet to make the commitment.
Then I came across this photo:
One of the greatest musicians and one of the greatest traders are die hard yoga enthusiast. What more motivation do I need to get off my ass and sign up for a class?
Dan was very generous in sharing his knowledge about trading the E-mini ($ES_F) in the overnight session and his info really helped the article. However there were 5 tips that Dan had sent me that could not be included due to space constraints. I am going to share them here along with a short video from the SFO article that illustrates Dan’s preferred time frames to trade overnight.
Here they are:
1) Use half your normal position size. The markets can stay irrational longer than you can stay solvent — this is especially true when cash markets aren’t open and there aren’t market internal indicators to use as a guide.
2) Use currency futures as risk indicators. When trading $ES_F always keep an eye on what $6E_F and especially $DX_F is doing. Most of the time, the euro and the dollar index can be used as a warning sign of things to come, whether you are long or short.
3) Listen to a news source. News can happen any time of day, just like futures markets are open around the clock. RanSquawk is an international news source that is offered independently, or if you have a ThinkOrSwim account, you can listen to it under Chat/Global News. It is extremely important to have at least one source for news, and possibly use Bloomberg streaming news (free on their website) as a backup.
4) Know your economic calendar. One of the worst things that can happen to you is have a profitable trade rip against you due to a seemingly random GDP report out of France or an unemployment report out of Germany. The point is, you must be aware of global economic news if you want to trade global markets.
5) Only price pays. Don’t try to think you are smarter than the market because price is moving against you “on light volume”. That thinking is toxic and pervasive, especially in this market. The reason volume is light is that there are simply fewer participants overnight and it doesn’t take that much volume to rip your face off. Your broker doesn’t care about volume when they send you a margin call. Volume is fine, especially if you stick to London cash market times. Stick to your stops.
* Bonus: some may disagree with me, but try to trade 2-5AM CST. Outside of that time range, liquidity is hard to come by and you can get chopped to pieces.