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,
Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures. Today is Tuesday, August 14th, 2012.
We don’t generally trade the no trade zone, which is from 8:30 in the morning until about 9:45. However, this morning we had some news reports at 8:30. They were both positive. And so we watched the market take off. We don’t generally trade the news report itself. We trade the reaction to the news. So a nice pullback.
We had an opportunity to get long on a potential Fibonacci trade. And in this particular case, hindsight is always 20/20, in this case we were way too early and got tagged for minus 10 tick loss. Two contracts at 5 ticks each.
The pullback here, if you look down at your momentum indicator there really was a nice clean opportunity a little bit later and even that would have met with a first target hit and would have had a reduced risk stop out. So we don’t generally trade the no trade zone in this particular case we traded the news report for a pullback and we took a loss for 10 ticks.
So from 9:30 the market opened up at 1406.75 represented by this white dotted line. So it opened up around 9:30. We generally don’t trade from 9:30 until 9:45 unless we get a setup in the direction of the gap fill, which is down below us at around what, 1402.5.
And we had an opportunity to get short right in through here. Pullback. A breakout. Pullback to our moving average. Thought we had an opportunity to get short. Got stopped out for minus 10 ticks on this trade. Even if you got your target 1 off you would have what, lost about 2 ticks on this particular trade. And it would not have taken a full stop out. So as a result, it would have eventually hit the profit target. But I had another indicator in the room that kind of pushed me out early and as a result I’m going to take minus 10 ticks on that trade. However, if you had stayed in with the actual setup, we had an 8 tick stop on this particular trade. It came all the way up to minus 7 ticks. So this in effect, according to the textbook, would have yielded a positive 10 ticks.
And for the rest of the morning the market just continued to go sideways. We really didn’t have any clean setups right into the no trade zone from 11:30 until 1:15 Eastern Standard Time you see even there we had a nice little drop. Confirmation with the momentum indicator.
And again, no further activity, just a lot of chop. Low volume. Minimal activity. We did have one clean opportunity right here at around 3:30 in the afternoon. Target 1 and target 2 were hit for a total of 10 ticks. And it did continue lower on into our final no trade zone at 3:50.
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. Hope the volume picks up and we’ll see you in the Shark Den in the morning. Thank you.
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.