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 emini S&P futures. Today is Friday, June 28th, 2013.
The market opened up this morning here at 1601.75 represented by this white dotted line. I want you to notice that upon the opening at around 9:30 the market ran sideways. We tend not to trade the first 15 minutes of the day. We do have what’s called a pro-range reversal. I got into one position, shorted it, and then I stopped myself out just in time for it to go in the direction I thought it was going to go anyways. Zero on that particular trade.
Then we had a news report out at 9:45. I believe that was the Chicago PMI. And so we tend not to trade within about 3 minutes either side of that news report. There was an auto wave that fired off short. Did not take that. That’s why it’s colored in yellow. And then at 9:55 we had the consumer sentiment report and that also tends to have, sometimes news leaks about 3 minutes early. And so we try not to trade 3 minutes prior, before and after that one. And as a result an auto wave fired off. We did not take these two trades. I did not personally.
And then as the day went on, one of the news reports being neutral and the other one being extremely bearish. I believe the Chicago PMI was below consensus range. Depending on how the news responds, if it does not respond in the direction of the news in the morning, then we tend to believe that the market’s going to follow through in the afternoon.
This being Friday, we really kind of bottomed out here. And just as expected the market pushed higher on bad news. Running all the stops. Another opportunity to get long again, the yellow arrows are the ones I did not take. We’re working our way back in towards the opening price. Back into the opening range. Did not want to be played with this choppy market going on.
And as a result really didn’t have any trades to materialize until right here at about a little after 11:00. I got in the trade. I got my first contract off, and then the second contract I flattened at the same position, and so I took a total of 4 ticks on that trade. And then once we got up there got a nice setup to go long. Got my first contract off and it messed around with me, came to within 1 tick of our target 2 and then came back out and I got stopped out for minus 2 ticks. And that’s one of the reasons we keep our stop relatively tight. After it starts to move we tighten it up.
And in this regard, here at 11:30 we had what’s called a no trade zone. And from 11:30 to 1:15, again another period of time where the volatility increases and the volume decreases we don’t ever want to get caught in that realm. However, I mean I call it a no trade zone and yet we were watching it close, looking for a type of selloff. I took this trade to the downside, and all of the sudden found, I got my first target off and then I flattened out there too. It was just, we were watching the volatility index. We were watching the bank index. It was really all over the place and so it would have followed through and hit our second target, I just chose to get out quickly.
And then as we continue on, here at about 1:15, came out of the no trade zone. Had a nice opportunity to get in long. And I want you to notice we had a nice clean trendline on a momentum indicator and got our first target off. Got stopped out before it continued on in the direction. Took a minus 2 ticks on that trade.
And then at around the 2:00 timeframe we don’t want to be caught in any long positions, but you don’t just inadvertently short. So in this particular case, I waited for a nice clean setup. Got the setup to go short. Auto wave fired off. Target 1 and target 2 were hit. Actually in this particular case I was expecting to run quite rapidly to the downside. It did not.
Going on into the close we had an opportunity to get long. Target 1 and target 2 were hit for a total of 10 ticks. We were above the opening range and at that point it just kind of appeared that we were not going to have the heavy sell off we were expecting.
And then, again, I know this is a no trade zone here at 3:50 is a no trade zone. And I started to put all the arrows into the Shark Den, so everybody could see what was going to go on. Going into the final no trade zone, I always tell people that we don’t trade at 3:50, but there are exceptions to the rule. In this particular case, remember the news report we had this morning. Expecting a sell off due to the news. Going into the close of the day, I did take this trade short. And I don’t want newer traders taking this type of risk, but in this particular case, you know, we kind of know how the S&P futures breathes and this thing was going to tumble. All of our indicators were firing off to the downside and we were not disappointed. So kind of saved the day for a Friday afternoon.
I want to let you know, next week I’m going to be in New York. I will be broadcasting live Monday, Tuesday, Wednesday, and Friday. Have a great weekend everybody. Have a great 4th of July. And I will talk to you then.
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 weekend and I’ll talk to 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.