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, December 21st, 2012.
And since you can hear my voice, obviously the world has not ended. However, last night around 7 to 7:30 I think the announcement from Boehner and his budget proposal had not passed the House and the Senate. And as a result we had a 50 point selloff in the S&P. Now again, this was last night.
So let’s go ahead and move forward to this morning. This morning the market opened up around 1418.75. That’s represented by this white dotted line right here. And we generally don’t trade from 9:30 to 9:45. It’s just a period of higher volatility. You know, the bulls and the bears are battling it back and forth. We do have one specific setup that we do take and this was in the gap fill direction. We did have an opportunity to get long right there at about 9:36. Target 1 and target 2 were hit for a total of 13 ticks.
As we went on into the morning we had a lot of sideways movement. You can see this indicated here. And we took no trades until a nice little break out above the moving average, to the long side. Target 1 and target 2 hit for a total of 10 ticks. And then if you miss this entry here we have what’s called an auto wave. Here what’s called an extended wave trade. You’ll notice how the momentum indicator is in the overbought section. So you can do a market order long here. If not we had a specific limit order going in on the auto wave. And either one could have yielded 10 ticks. If you got both of them you could have yielded as much as 20 ticks on that trade.
We had price action move through the moving average to the downside. Nice pullback. Really didn’t get a valid entry until right there at about 10:52. And again, an opportunity for an aggressive trader. An opportunity for a conservative trader. Got a total of 7 ticks and that would have been on each one of those trades also.
As price action continued through we had another pullback. I generally don’t like to take two trading opportunities in a trend direction. And this was a third opportunity, so we cut our profit targets a little bit light. So we went for 2 ticks and 4 ticks for a total of 6 ticks before going into the next no trade zone.
From 11:30 until 1:15 Eastern Standard Time, again a period of higher volatility, lower volume. Remember today is options expiration and futures expiration and the last day prior to the Christmas holiday. Looking for a trading opportunity. We like to trade long if we have an opportunity from 1:30 until 2:00. Did not get a chance to get into this trade here. Found our end, it was there around 2:00. Just what we watch pretty consistently. A total of 8 ticks to the downside.
Working our way back down to the moving average. Got out of the position. A lot of sideways motion. And then here we go going into the close of the day, from 3:30 to 4:00 nice run. Total of 11 ticks on one trade. Total of 7 ticks on another. Cut it short here because we were running into yesterday’s low. We weren’t sure whether it was going to push up through or not. But as a result we had a conservative close into a nice holiday season.
I want to wish everybody a Merry Christmas for those of you that celebrate it. A wonderful holiday season. I’ll see you back here on Wednesday morning, on December 26th.
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.