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 Thursday, October 11, 2012.
The market opened up this morning here at 1437 represented by this white dotted line. We generally don’t trade from 9:30 to 9:45. However, there was some unemployment numbers that came out positive. First pullback opportunity here. We did trade pre-market. I’m not showing it on here. We pulled 2 ticks and 3 ticks and then we had the market open. We don’t generally want to be in a trade at the market open. Obviously that’s like a news report movement in price action.
We waited for the first opening range. Ran across the moving average. Nice pullback here. Now, I got in late. This is a classic mistake, chasing a trade. If you took your standard entry and got in here or tried at least by 1 tick, you would have hit your target 1 and target 2 for a total of 10 ticks. However, I did a classic mistake. I traded it. I was a little bit late getting in. Did not get my target 1. Pulled back to about minus 4 ticks and would have gotten stopped out for minus 8 with 2 contracts. So I’m going to label this as minus 8 to a total of plus 10. I took a loss of 8 ticks. Some traders in the room, if you hit it properly, you would have been out plus 10 ticks.
And then as the market continued on price action continued. You don’t want to be buying at the highs of the day and I want you to notice we did have what’s called an extended wave trade long. And got in here. Target 1 was hit. Got stopped out for 2 ticks over on this side.
We then cross back through our moving average. Tested our opening price. I did not get into this trade because I generally don’t trade within 1 point of opening price. In this case a nice clean setup. See that wave trade signal right here for a total of 6 ticks. It’s colored yellow because I did not take that trade.
We then went into what’s called a no trade zone from 11:30 until 1:15 Eastern Standard Time. And that’s just a period of higher volatility, lower volume. Coming out of that no trade zone, I was not here. I was actually at a meeting. Did not get back in until around 2:00. But this is a nice clean setup. I think some of the traders in the room did actually get a hold of this one. Trending outside of the opening range. Target 1 and target 2 for a total of 10 ticks.
Then just as I was settling into the trading area, there was a counter trend trade that set up. Target 1 was hit. Got stopped out for minus 2 ticks on that trade. Again, they’re yellow if I did not take them. They’re colored red if I shorted and green if I went long. In this particular case just as everything was settling down thinking we had a nice trend to the downside, target 1 was hit got stopped out for minus 2 ticks. And you can’t just stop because you’ve got a reduced risk stop or a full stop out. You’ve got to continue to follow according to your trade patterns. Wave set up here just about 3:30 in the afternoon. It is counter-trend. Target 1 and target 2 hit for a total of 6 ticks.
And then you’ll notice the last trade into the close, by that time there was quite a bit of sideways movement. Did not expect this market. But the setup. There’s your wave trade setup. Target 1 and target 2 hit for a total of 6 ticks. Again, yellow, I did not take it.
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, enjoy the debate tonight, 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.