Brown Friday?

 Brown Friday?
“Thanksgiving is an emotional holiday. People travel thousands of miles to be with people they only see once a year. And then discover once a year is way too often.” – Johnny Carson

The day after Thanksgiving, Black Friday, is known for its holiday deals.

In 2016, over $655 billion was spent on this one day alone.

But have you heard of Brown Friday?

Due to an unfortunate circumstance, emergency plumbing calls are the highest of the year that day (up 50% from the average Friday)…

…and they certainly don't offer any discount coupons to fix the problem.

At the end of Thanksgiving dinner, you might feel so full you have to go number three…but that's not the problem.

After eating up a storm, there's gobs of grease left over on plates and serving trays…and when you wash the dishes, it tends to clog up the pipes…

…which leads to a phone call to Joe the Plumber to get him and his plumber's crack to your clogged pad pronto.

Best to put that grease and grime into a container and save yourself the massive headache and jaw dropping bill from Joe.

Speaking of which, is there something you're doing in your trading that is the equivalent of flushing grease down the drain, clogging the funnel that goes from the market to your trading account?

One of the most commonly over-looked trading problems is slippage — bad fills.

It happens when you drop market orders into even some of the most liquid stocks and ETFs.

You meant to sell at $30, but your sell order gets executed at an average price of $29.48.

Talk about turning fist pumps into frustration!

You might think slippage only happens when you trade a few thousands shares, and the HFT firms start pulling their bids or offers.

The same thing happens when traders act unknowingly in unison.

There is a solution with one of the more popular discount brokers: IB (Interactivebrokers).

Not only can you split up your large order into smaller pieces, you can randomize the process…and take advantage of the market's short-term mean reversion at the same time.

It's called the Accumulation/Distribution algorithm, and you can check it out here:

https://www.interactivebrokers.com/en/index.php?f=1157

*I'm not affiliated with IB in any way other than we're in the process of adding auto-trading with them via Portfolio Boss.

PS. Thank you for being a subscriber and allowing me to share my weird stories, tricks, tips, and outright rants about the markets. My thanksgiving to you is perpetual.

Trade smart,

Dan