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
Info@TraderShark.com
Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures. Today is Monday, March 18th, 2013.
The market opened up this morning here at 1538.25 represented by this white dotted line. We had some overhanging news about Cyprus, again, it was rumor. There was no specific news at that point that they were going to levy some type of tax on the deposits for some of the European banks. And with that there was an overall kind of bearish bias. You could almost feel it. We felt it in the room. We were ready to be shorting this market any opportunity we had.
And so with that in mind counter-intuitive thought process would be for the market to go higher. Right? If everybody sees this as going lower, the market’s going to go higher. But what we’re going to do we had a news report out at 10:00 that determined that if you don’t see the market move in the direction of the news in the morning, then you will tend to see it selloff in the afternoon. So let’s go ahead and keep that in the back of our mind.
When we first started out we had what’s called a pro-range reversal. Had an opportunity to get short in through here. Generally try to go for 8 ticks, only got down to a 4 tick level. Came back up, stopped us out at minus 4 ticks. So, and that’s just with 1 contract and that’s kind of a scalp trade.
Continuing on we had a nice little pullback to our moving average. And had two separate opportunities to get long. One opportunity, if you didn’t get in there, that’s okay. If you got in the second one, that’s fine. If you tried twice and you added on your positions you would have went anywhere from plus 11 to plus possible 22 ticks.
Market pulled back a little bit. An opportunity to get long. Got the first target off. Got stopped out right to a tick, so it took a loss of 2 ticks just to sit back and watch the market continue on in our favor. We then had another opportunity to get long in through here. Market internal indicators got us out early and got plus 2 ticks.
And then this was a mistake, but I also want to show it to you is, had an opportunity, got below our moving averages. Had an opportunity to get short and then quickly noticed that one of our market internal indicators was completely against us or in the neutral position, so I literally just forced myself out. I tried to get out where I entered; could not. Pulled it in by 1 tick and took a loss of 1 tick. Actually, my mistake, that should be a loss of 2 ticks. Two contracts at minus 2.
Then we go into what’s called a no trade zone from 11:30 until 1:15 Eastern Standard Time. We do not trade just due to the higher volatility, the lower volume. But we did have a run up. It kind of modeled a type of Shark Attack trade, but I don’t trade during the no trade zones. And even in this particular case I was not in. So we watched the market take off without us.
Coming out of the no trade zone we had a little bit of a selloff. Pullback, continuation to the downside. Got 7 ticks on this 1 trade. Again, this is an area where we had an auto wave fire off, got a total of 7 ticks on that. And if you didn’t get into the auto wave or were too slow, then you had an opportunity to get right in behind that. And if you got your second trade off, you would have got your first contract and got stopped out on your second contract.
Price action continued to push higher, little pullback. Target 1 hit, stopped out for minus 2 ticks. Going into the close, once we got below our moving average we pretty much knew that this was the selloff we were expecting from the bad news report this morning. Had an opportunity to get in. When you do counter-trend trades you go for a little bit shorter targets. Got a total of 6 ticks. And then we had a another setup, notice both of our wave trades kicked off and I did not take this second trade, but you could have got anywhere from 6 to 10 ticks to the downside. And then going into the close another auto wave short. Target 1 was hit. Would have got stopped out for minus 2 ticks.
To learn more about these and more advanced trade setups, or to get a copy of the Trader Shark trading manual, please visit TraderShark.com. Thank you. Have a great evening and I’ll see you in the Shark Den in the 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.