Learn to Day-Trade the Emini S&P Futures

Overtrading Not All Bad – June 3, 2013

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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 June 3rd, 2013.
We have a pre-market area from 8:30 to 9:30. We generally don’t trade that timeframe unless a specific trade sets up, and it did in this case. I took an opportunity to get short. Got my first target off. Got stopped out for minus 2 ticks. Set up again. Got my first target off and then I flattened my position. I just wasn’t comfortable with the trade.
And then at 9:30 our market opened up at 1633 represented by the white dotted line. We had a quick pro-range reversal. This is colored in yellow, so I did not take this trade. Market continued. We don’t trade from 9:30 until 9:45, just a period of higher volatility. Price action dropped down to the weekly low, represented here at 1626.25. Nice little bounce. We were expecting a break. Did break it. Didn’t follow through.
Nice pullback. We had a news report at 10:00, and it was a little bit early for us to get into this, but I did try to get in short. And then I saw that we were going to get run over. I quickly pulled my stop and I got out at minus 8 ticks on this particular trade.
Got a nice pullback. Once we committed to the upside, had a nice pullback for an entry long. Got a total of 15 ticks on this run. We had an auto wave fire off long. I did not take this trade. At the top of the trade, I don’t want to be pulling back and going for an auto wave. I want to wait for an even deeper pullback. There may have been a couple traders got caught in on this. If they did, they would have lost 16 ticks on this particular trade. Of course I waited a little longer to get my 16 ticks up.
Had another auto wave fire off here. Full stop out. I took minus 8 ticks on 2 contracts. The continuation through the moving average to the downside. No pullbacks whatsoever. Did not get a chance to get in on this. Finally got a nice pullback here. This yellow arrow was our first auto wave that fired off to the downside. I did not take that. I had a nice wave trade. There was an auto wave and a wave. The wave trade right here caught in and I did get a chance to get 10 ticks out of this. First contract got off, second contract got off.
And then we found ourselves below the weekly low. Little bit of a sideways movement. Broke back above the weekly low. Just we had some sideways motion. Best bet to sit on the sidelines. Our directional indicator was, worked our way back above. Nice setup up. Anchor chart setup. Trigger chart fired off. Target 1 and target 2 hit for a total of 10 ticks. We then had another pullback for minus 2 ticks.
As we go into our no trade zone from 11:30 until 1:15 Eastern Standard Time. This may not look like sideways chop, but the volatility would have been very challenging to try and trade it in through here. That’s why we don’t trade from 11:30 until 1:15 Eastern Standard Time.
Coming out of the no trade zone continue with more sideways chop. Look how it just kind of hovered around the weekly low. Then it was a nice pullback to our moving average. Target 1 and target 2 hit for a total of 8 ticks. Not much going on. Again, sideways motion at the open. So the sideways motion nothing really was committing. Plus, I don’t like to trade from 2:30 until 3:30 in the afternoon. If I can help it I try not to. I like to wait until we get into like the 3:30 timeframe.
And then the old adage, slow and quiet equals bullish. We had a nice opportunity to get off on our first contract. Target 1 and target 2 hit for a total of 15 ticks. And then a nice pull back. Auto wave fired off. Continuation. I was calling off these targets as the price action was working its way up into the close, 1535.50, 1536.50, 1537.50, final target. And we close out the rest of the day for a total of 11 trades and 48 ticks.
After going over the video I saw that the chart had been moved off of the top of the screen, so I put in this last screenshot here so you can see, I was actually telling everybody where price action was working its way towards at 1635.50, 1636.50 and 1637.50.
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.