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 Wednesday, March 27th, 2013.
The market opened up this morning at 1548.50 represented by this white dotted line. This white dotted line is off by a tick. We generally don’t trade the first 15 minutes of the day. Notice we had these auto waves firing off long. And we had the news of the banks opening tomorrow in Europe. And so with that there’s kind of a bearish tone or a bearish bias. We had a news report at 10:00, no trades in the first part of the morning. We had a neutral report that came out at 10:00 for a news report. That was pending home sales.
And then our first opportunity to get long was right here at about 10:30, and I did not take it. You’ll notice it’s colored in yellow. I did not take it because it was going right into what we call a Shark line. The Shark line is a strong resistance level, as well as yesterday’s close. With that I want to at least, for those people that were viewing from the Shark Den, anybody that did take this trade, going long up into a Shark band, into a Shark line, the trade itself did materialize for a total of 10 ticks. Now I personally did not get in until right here or a little bit later at 10:45, and I got my first target off, and then I didn’t like the price action. I had a market internal that kind of told me to get out. So I took 2 ticks and 2 ticks.
We then had another setup to the downside, I did not take it. Again, you’ll notice a lot of yellows. We had three setups today. We had our auto wave short and I did not take this. I prefer not to go counter-trend. It would have been a total of 6 ticks if we took that. And right here we had another trade just before going into the no trade zone, anywhere from zero to 10 ticks.
We have a rule that before going into the no trade zone, if you haven’t hit your first target then you flatten out of your trade. But in this particular case I wanted to see what would have happened depending on whether you took the trade or not. It setup. It was clean. It was apparent in the room. It continued higher for target 1 and target 2.
11:30 to 1:15 is a no trade zone, just tends to be a period of time with higher volatility. Coming out of the no trade zone there was another opportunity to get long. Again, going into some Shark bands and we had a lot of congestion overhead. I chose to stay out of the trade. And there’s a great quote by Norman Hallett, “I’d rather be out of a trade wishing I were in, than in a trade wishing I were out.” So in this particular case I had an opportunity to get 8 ticks to the long side. Did not take that trade. And I didn’t take any further trades for the rest of the day. So it was a long day of patience, and let’s hope tomorrow we get a little more price action.
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 and I’ll see you 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.