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 Friday, October 19, 2012. It’s also options expiration day and the 25th anniversary of the flash crash that occurred back in 1987. So we want to keep that in the back of our minds. It’s not too important at this point.
The market opened up at 1450 represented by this white dotted line. We don’t trade from 9:30 to 9:45, just a period of higher volatility. And we want to let the bulls and the bears determine what direction they’re going to push the market. We had a gradual selloff.
Coming out of the no trade zone the market kind of wrapped itself around our moving average. Didn’t really have any opportunities to get in. There was a nice opportunity, notice our wave trade indicator, double red dot popped in here. I did not get in on this one, so I waited for another healthier entry right there at about 10:46 for a short opportunity. And this one we hit our target 1, target 2, and I had a trailing stop in there. I had a trader in the room also held on for a total of 36 ticks just on this one trade. So 21 to 36 ticks depending on what stops or profit targets you used. Whether you used a trailing stop or whether you used fixed targets.
The market continued on the selloff. At this point we’re all watching all of our market internals. Sold off into the no trade zone. No further opportunities to get on. We look for a little bit of a pullback for a continuation. We don’t trade during the no trade zone from 11:30 until 1:15 Eastern Standard Time. Which you were when we finally got stopped out right here at about 1434.
Coming out of the no trade zone we had a nice little break through the moving average. Continued bearish pressure to the downside. An opportunity to get short. A total of 10 ticks there at about 1:45 Eastern Standard Time. Another opportunity to get in short. If you’re doing a trend trade you would have had a reduced risk stop out with minus 2 ticks. I did not get in on this one.
We look back as we continue on into the close. There was no other opportunities for us to really jump on this trend until getting into the close. Had an opportunity to get long right here at about 3:45. Target 1 was hit. We rode it all the way up. It would have hit target 2 except I had my target 2 up closer to around 1432. I missed it by 1 tick. Came back. Stopped me out for flat breakeven.
All in all it was a great day. Especially considering it’s an options expiration day and with the volatility we had to deal with.
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. Have a great weekend and I’ll see you in the Shark Den on Monday 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.