Learn to Day-Trade the Emini S&P and Euro Futures – live with a full-time trader.
This video is designed for educational purposes only and to show some of our trade plan setups to reinforce our daily trade plan review.
To successful trading,
TraderShark
Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures. Today is Friday, May 31st, 2013.
The market opened up here at 1648.25 represented by the white dotted line. We generally don’t trade the first 15 minutes of the day from 9:30 to 9:45. Though we do have two exceptions, right? There’s exceptions to every rule. We have what’s called a pro-range reversal that occurred right here. An opportunity to get long. It’s only good for about 4 ticks. I don’t generally ride it up into the opening price and generally I don’t trade within 1 point of opening price.
Coming out of the no trade zone we had an opportunity to get long, however we had news reports at 9:45, news reports at 9:55, consumer confidence, and I chose not to take these trades. But there was a nice clean setup; good from anywhere between 4 to 6 ticks. Here’s another opportunity to get short, another 4 to 6 ticks. I did not take those trades.
Going on into the morning, we’re just kind of watching. The news reports were positive to neutral and with that, what do we see happening quite often? We see a selloff into the market. So with the selloff into the market, I was expecting a bounce into the afternoon. I tend not to trade within 1 point of opening price.
I want you to see we had another setup long here. Another setup long here. I chose not to take these trades. So I am being discretionary, cautious. This is a Friday afternoon. Last day of the month. And so I want you to notice all these yellow arrows, the market was setting up and giving us these triggers, and I chose not to take them. If you want to scalp them out for 2 or 4 ticks, you know, more power to you. I chose not to take those trades.
We then had a nice little break out trade here at what, about 11:00. Now, I’m traditionally a pullback trader, but for a breakout trade we do have breakout trade setup, fit perfectly right? Both your anchor charts and your trader charts fired off as well as having support from your directional indicator. Getting up in here towards the highs of the day we had another opportunity to fire off with the pullback, but again first target was off, got stopped out for minus 2 ticks on this particular trade.
And with the reversal we had an opportunity to get short right before we got into the no trade zone, so the idea of not trading or initiating any new trades in the no trade zone still stands. However, if you get into a trade just before, you can hold onto your trade as long as you get your first target off, target 1, target 2 are hit for a total of 10 ticks on that trade. However, this no trade zone runs from 11:30 until 1:15 Eastern Standard Time.
Coming out of the no trade zone had a couple opportunities to get short. And then the continuation just kept firing off. I think we had what, the prior days low was around 46, 1646.75. So we were expecting a little bit of a bounce, did not occur. Didn’t get into any long positions. And I want you to notice all of our internal indicators, everything was showing us, continue to stay to the short side. If you missed a couple of them they continue to push lower. Each one of these pauses was an area where they’re trying to suck in buyers. Nobody was buying. The market just kept going lower.
So we were able to take a couple of advantages here to the downside. Finding support at our Shark band, our next Shark band was down here at 37 – 38. This is our first Shark band was 40 to 41 I believe. And as we moved our way to the right hand side, you know this is almost a head fake, did not have enough steam to push higher. This is where all those afternoon buyers were looking to bring that news report to fruition and push up higher, it did not. As a result a lot of those people got hammered and stopped out. Then we found our support level here at this Shark band for a continuation. We had a minor bounce only to see a final trade, I did not take this one, going into the no trade zone. So really we had internal market conflicts. All in all it was a pretty good week.
To learn more about these and more advanced trade setups or to get a copy of the Trader Shark trading manuals, please visit TraderShark.com. Thank you. Have a great weekend and I’ll see you on Monday morning.
Link to Video and Transcription
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not an indication of future results.
Five key elements used prior to entering a trade