Archive for the ‘Scalp Trading’ Category

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The Market Move is On

Thursday, June 9th, 2011

Today is Thursday June 9th, 2011 and the market finally is breathing a few signs of life. Currently at 8:45 am West Coast, the S&P is trading higher at 1288.75 +12 points for the session and the Dow is up +100. We will likely see still yet higher prices for the session as the market comes off 6 loosing days in a row, something it has not done for a long time.

I was able to squeeze an hour of trading in today and hope to get back onto a regular schedule of trading my account. Some things in life we just can not control and the health of those you love always has to come first.

Let me post my trades for the day below for Thursdays session first and a few comments after that.

In a separate account, I do have a position on from last nights night trading session and that is still working. I see higher prices and will hold through any pull back. I will give an update tomorrow on how that is going. My entry was 1280 and now have a stop at just 1282. Its my attempt to make up for some of the days of trading I missed and today is the day to give it chance and hold.

In the chart above, you can see the turning points and continuation area’s as marked. This is from the end of yesterdays session to the first hour of today’s session. When trading the markets, all one needs to do is read the price action and trade accordingly. You don’t have to know to much else. We often times can project prices up and down when those reads are clear, but scalping a few points out of the market is just fine. There is no trading anxiety as you are in and out quickly.

I would have like to have had a bigger piece of that move up, but did not want to chase it. I did have an opportunity, but let it go. In one hour I picked up 4 points on three scalp trades on small size, but it counts. One thing I have learned, is don’t cry over what you think you should have had in the session. We have to not let ourselves get greedy and keep reaching. There are sessions that a trending move will add up nicely to you bottom line, but if you are always thinking, “just a little more”, to often you will loose what you have.

One key is to be selective and patient, but don’t hesitate when it comes together. In addition, if you believe to strongly that the market should do this or that, you will blind yourself to what it actually is doing. Stay open minded and just trade what you see. You have to know what to do, for sure, and if you don’t, that could a big problem for you.

Traders need to act in a way that is consistent with there order entries. If you always do different things based on how you feel, you will not like your results. Find something that works and stick with it. Best to all you and good trading.

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Trade Decisions

Tuesday, May 10th, 2011

Today’s market we saw the Dow up +78 and the S&P futures +11 in a slow trading session with only 1.5 million contracts traded. I traded a good portion of the day today and did finish well, hitting a nice method trade to  target for several points. Yesterday I only traded for the last hour and so included both sessions in the chart below.

I have marked up on the screen the “trade decisions” that where identified by a custom indicator that works within the trade method. The small windows circled, are area’s that a trade decision could be made. That window is small, which helps to zero in on the exact entries that a market move is likely to take place. There are many reasons for a market shift within those area’s and that is really apart of the method, but the trade indicators do line up with the method not the other way around.

When you make a trade decision, to go long or short, you don’t want to see the price retrace much against you, that is called a draw down. In making the right trade decision, you won’t see that draw down, but will see a price increase in the direction of your entry, simple enough. The trick is, how to zero in on those holes and pick out the entries that make for the right trade decision.

It is in knowing market behavior and the likely path of price that this is accomplished. Many of us have heard, “knowledge is power” and in this case it can also be translated into money $ .

Market conditions are always changing and with those changes picking the right type of strategy for the conditions is important. For some, learning a pure scalping method is the way to go. It does not have to be complicated, but low risk entries are the key to any good trading method, but few are able to find it. Learning to trade a scalping method where this is the norm are few and far between.

To trade the model I have above, I usually use a 4-5 tick stop and take what the market offers, sometimes it is a lot and sometimes it is small, but the key is to wait until the trade comes together. This is just one screen from a whole picture, no shown, and we know what they say about a picture; its worth a thousand words. In this case that too would apply. The point is, I have another model that is for scalping small targets.  there, a trade can be taken with a 3 tick stop and a target of 3-4 ticks on most trades is common. I don’t show this model, as most traders like to take trades for larger returns, but this does exist within my trading method.

This scalping method holds at a minimum a 1 to 1 trade ratio and up, with a high percentage of trade wins. Market conditions will dictate how many trades are available in any given day, but 20-30 trades is not uncommon even with slow or low trading ranges. This part of the method trades in what I call the dominant trend and counter trend within the method.

Trading a scalping method that provides low risk entries, small draw downs under changing market conditions is all more than I could ask for. I find myself trading out of my T-2 screen most often and not the T-1 scalp screen mentioned these days, which is what you see above. Again, that is a small limited view of things but it does paint a clear picture for all to see. I just need to be diligent in following it.     Best to you all.

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Small Scalp Trades Today

Wednesday, April 20th, 2011

4-21-11;  Very Strong turn-up in the market with the  major averages flirting with new highs. We sure did see a big bounce as the next move in the plan of action I laid out last Friday. We are not currently in danger of taking out the last major pivot low, the next part in the planed layout.   One day at a time.

In today’s trading I had modest gains with my minimum daily goal met during the New York mid-day session. It was slow, but I found a few pure scalp trades, enough to post some modest gains.

With the market coming up during the night-trading, there was little energy left to make additional gains. The energy level said to play this close. Take what you can, but don’t have huge expectations. Here is were scalp trading can really give you the edge. In a non-trending choppy environment, there are low risk trades, but limited movement. Listening to the beat of the market is possible, by allowing yourself to see and feel the energy or lack of it.

Just being open and aware, of the emotions that are being swung back and forth, all the while utilizing your Sniper Style skills, to pick your mark, spot your target and go for it. Well, today’s trades below before I get carried away, Good Trading

!

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Wall of Worry

Sunday, March 6th, 2011

Where will the stock market go from here?  That is the big question on Wall Street these days.

A key number the market will want to honor is 1304 as a danger zone with 1300 as very troubled waters ahead. The market has been rolling full steam ahead since Thanksgiving last year with almost an uninterupted roll to the upside until lately.

The bigger volitility is a sign that things are getting heated up and the market will be expressing that through bigger moves one way and the other until a shift takes place. Many have recently become bullish and others are less worried about a bear market sell off than any time in recent memory. Both of those are a little worrisome, but the market has faced that “Wall of Worry” before as we have seen roughly a 30% increase in the market since last September, the last six months.

There is a lot brewing on the world seen, with the middle east heating up. The price of Oil is not going to make things easy for this economy as it continues to rise. A rising Oil market will make everything much more expensive and trickle through the economy in hundreds of ways that will not end up good for anyone.

I believe we will be seeing an inflationary environment in the months ahead. This is a big cause for the unrest in the middle east. The cost of food is rising around the world. If it continues, which I believe it will, we can continue to see trouble ahead with falling governments and unrest. There is a lot more to the story and one could really get into it, but I will choose not to and leave that for others.

There is always more than one way to see things from the way it is being portrayed. Being a trader we should be trained to see, look and notice the unseen before it becomes apparent to others. This thinking is consistent with many other area’s and world politics is one of them.

As a day trader, the current price of the S&P is a mute point. We should only care from a stand point of seeing a stable economic environment for all those whom it could effect.  From a trading point of view, it does not matter what the market does, up-down-or sideways.

That is the beauty of what we do. We should never be married to a direction or a position. Doing so will leave you in ruins. Just reading the current environment to establish what you should do is the way to proceed. This is the same as reading the newspaper, but for many, that paper is in another language.

In my trading for Friday, I did well to close out the week for another 5 for 5 gains. I have been grading myself  and always find ways to improve. Being a little short on time early on in the session did cause me to force my hand and try and make something happen instead of letting it happen and taking the ride.

These are just some of the area’s I can always improve on. The mental side of trading is a big factor. We should be able to identify healthy thinking or thoughts that should give us concern. If you talked it out, you may be better able to hear what it is that you are thinking and it may be a way to stop yourself if you find that you are going down the wrong road.

Recording your sessions with a screen recorder or through some of the tools that are available is not a bad idea. That way, you can go back and critic your trading objectively. This is part of the hard work that many traders are not willing to do. Others will not take the time to write out there trading strategy in detail and there work will suffer because of it.

For those who follow a trading methodology, say like mine or anyone else, that part of the work is basically done for you. The work still needs to be done in making that trading method work for you and that will entail finding your own style within that trading method.

It is key to learn price action first. Trading indicators are only a reflection of the price action. Trading indicators can be a good confirmation, but they should not be the main reason a trader takes a trade. Not understanding how this action comes together to provide you with strong clues in future direction will put you at a disadvantage. Learn this, and you put the odds in your favor.

Good Trading to all.

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Keeping your Concentration while Trading

Wednesday, February 16th, 2011

2-16-11;

Today we saw the Index’s move higher again with the Dow up 61 and the S&P futures +8 on this Wednesday session.

The volume was a little better coming in around 1.8 million contracts traded, so that was good. The movement was OK as I did see opportunities as I look back.

In today’s trading, I took 4 trades with one loss for 2 ticks on the S&P emini futures. There was more on the table with a few of the trades I took, but took what came off easily except for the last trade. I did get distracted while I was checking on something and came back to find that I was going to miss the move I was waiting for. It was just a continuation of the first move, but I let my emotions get the best of me. I should have gotten earlier of after the bounce it made to have been a good fill and trade.

Having to compensate for a bad fill is not usually a good idea. It worked out for me here today, but it just as well could have gone up one tick more to stop me out and I would have been looking at a longer trading day in-front of me.  I think I could have made that up, as their were some pretty good potential trades later on in the session. The point is, keeping your concentration while trading is essential and getting distracted can cost you money.

Just a short post today, so until next time, Good Trading to all.


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Today’s Scalp Trades

Monday, January 31st, 2011

1-31-11;

Just a short post here today, as I got back into trading this week. The day seemed to be an easy read today as the market retraced back up from Friday’s sell-off. There was a small gap opening in the S&P which was quickly filled as the market started in with some early chop. If you tried to trade any of that for anything more than 3-4 ticks, you were coming up with losses most likely as the first 40 minutes we only saw “choppy action”.

As a scalp trader, money could still be made in that environment if you have precision entries like a “Sniper” getting in and out quickly. Around 45 minutes after the open, the market showed its first signs of a trend, of which I was in part of it.

There was another move up from higher levels as the market went to a trade to target that I called out well in advance while doing some training with my group. I put the training on pause and took the trade for +5,+7 and +12 ticks right to a predefined point at the top of the range.

All in all, I took 4 trades, with one of them flat for some nice gains on the session. I have a screen shot for a quick glance and I did do a video for those that want to see more of the potential trades that the market revealed.

Trade Safe !  Vince

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Timing your Scalp Trade Entries

Tuesday, January 25th, 2011

1-25-11;

Timing your scalp trade entries is the key to keeping your risk low while moving towards your target and goal. That sounds reasonable, acceptable, and the thing to do, but most traders have a real hard time doing this. The reason, they just do not know that the market has a built in language to it, that tells traders ahead of time where it wants to go.

How would you feel if on your next trade, the market only moved against you by one tick?  What if you could do that again and again. You would be doing pretty good. How about when you do take a loss, it is only then for two ticks with only on occasion 3 or 4 ? (ticks)  Now, some would say, that would be a dream come true, but impossible to do. It is only impossible by those who think it, with their limiting beliefs. If you don’t think something is possible, then for you it will never be possible.

Our subconscious minds will never allow us to attain something that we first do not believe ourselves. Read that line again, as it is a very big reason why many traders struggle. So, first thing. Tell yourself that this is possible and I will become a successful trader.

Next, you need to take the steps to help yourself get to the level you want to be at. It is not going to happen by itself. The same way learning a foreign language is just not going to jump into your mind on its own. You will have to do something about it.

Back to timing your scalp trades entries.   Every day, the market presents itself with opportunities. Those trading opportunities are present on multiple time frames across the board. Typically, the higher the time frame, the greater the risk associated with the trade. Finding the right balance that is tied to your trading personality is very important.

If your trading objective is to just pick up a few Emini points per session, than you need excellent trade timing. This can also be done while trading stocks and is no different in any way. Having a reasonable daily target, goal or objective, you can not allow the price  to move against you very much. If you find that is the case, your entries need work. You likely need to improve on finding “The Hole”, the trading hole. This is the area a trade has the least amount of trade risk associated with it.

A trader may be able to pick the bottoms and tops, catch a few now and then and see his trade selection move in his direction and make more on the move with this approach.  That is not “Sniper Day Trading”, as you will most certainly have to give the trade much more room to breath in order to account for this type of trading. You will see more stop outs and you will be trading against the momentum at that moment in time. I know some traders do this and it may work for them, but it leaves to much risk open for other traders to run the stops and take you out at your threshold only to then see the move go in your favor, but without you.

Their is another way, by leaving some of the trade on the table upon entry, but at times have the ability to sell into strength or cover into weakness, towards trade to targets. Here, with my method, you will at times see clear area’s that you may want to wait for. They could pay off big if you catch a couple of them.

If we take the “easy and obvious trades” we will not be putting ourselves at risk, but what is easy and obvious?  You just need to know how this game works. I don’t want to talk in riddles, but their is so much trade structure that happens every day I can not begin to tell you. Actually I can’t tell you, because I would be revealing my method. I have never seen anyone trade and put the market structure up on the screen as I do. I am not the only one in the world I am sure who trades the way I do, that would be a bit presumptuous on my part.

By and large, those to take my training see things they never saw or even knew existed, in the charts. The price tells all and the indicators can confirm. On most every trade, I always see it building first and getting into position. One thing I can say, the market is like a power plant, building up energy only to later be released. Knowing how to spot the energy and its likely path of release, will give you the edge to prepare and then take action when it all comes together.

Going back to an earlier statement that can help those struggling, “your believes about your ability to trade successfully and about money will determine your outcome”.  Traders need confidence and the only way to get it is do the right thing at the right time and you get rewarded. The opposite is true. Learn how to trade the price, learn how to limit your losses, learn how to enter with little or no draw down, learn to be patient, learn to be disciplined and you will build confidence and your trading account. It is possible, learn.

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In my trading today, I took 8 trades and had only one loss for 2 ticks. I played it very conservative with the following trades of / Flat / +9 ticks & +4 ticks / +4 ticks & +6 ticks / +2 ticks  / +4 ticks & flat / -2 ticks on smaller size / +3 ticks & +4 ticks / +4 ticks , +5 ticks , +9 ticks /

I could have traded for extended runs today, on a few trades, I certainly did have the room in the market for it, but just controlled myself for the smaller scalp trades. I thought to do a video today since the price swings were a lot better.

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Scalp Trading as a Form of Income

Saturday, January 22nd, 2011

1-22-11;   Scalp trading, can be defined as picking off small price moves in any trading instrument for profit. It can be in day trading stocks, futures, or in my case the S&P emini futures market.

It is not difficult to participate in this venture, but doing it profitably is another thing. Most traders and or investors have a difficult time pulling money out of the markets on a regular basis. It is not that they don’t have desire, but being profitable on a regular basis has a few key components to those who can.

One of those being, trading discipline. One can only have this kind of discipline if he is informed on what to be disciplined towards. If a trader has no written plan, then he is just flying by the seat of his pants and could never expect to get consistent results based on how he or she feels. You can not trade by feelings. This is different from trader insight as I call it. That would be when after long hours of price analysis, you become tuned in to the markets behavior and get a feel for the rhythm of the market.

This is being in tune with what is, not trying to guess on the next market move. Most often, the market will tell you what it is going to do next. If you are in tune with the unspoken language that it throws off each day, you will be able to time these trading entries with precision.

So, you need a written trading plan first. I have written about this before and it is essential. Then and only then, you would be able to exercise discipline to follow that trading plan. So often, we are anxious about getting what the market has to offer, but that impatience is what clouds our judgment, which creates anxiety and we begin to make rash decisions that we can hardly understand. When we look back, we are in dismay, on how did we ever put that trade on there.

It happens to ever trader, whether they admit it or not. For some it happens all to often. Our job is to keep those times to a bare minimum if we want to become the consistent traders that we aspire.

Scalp trading is an awesome opportunity to profit from the stock market participation, only if we have the discipline to follow a plan, make a reasonable amount of profit and get out for the day. As you get more experience, trading for more or take all the markets gives, can be achieved, but that does take time.

Traders are all to willing to take everything they can right out of the gate, and end up getting nothing. It would be better to tell yourself that you are only going to make two trades today, if the market presents the opportunity. That way, you know you will not be over trading.

If the first one works out, you put yourself in a no loose situation for the session. If you exercise good discipline and wait for the best confirmed entry, you will only add to the days gains and end your session.

Over trading is a big problem for many traders especially the ones who are drawn to scalp trading, like I am. We often times are drawn to the action as day traders place trades, right, so, get in their and trade. That line of thinking will hurt the up and coming  trader and steal any confidence that he had, sending him back to the drawing board. Don’t let that be you. Take steps to prepare yourself and your mind for your challenges.

This part is not easy and is so overlooked it is not funny. Traders fail to plan for the mind challenges that are certain to face them. They only end up reacting to them after it is well under way, as they struggle to try and get even. This mindset ends up working against you. You are focused on the money and it now has a hold of you, to the degree that you often don’t know what to do.

If you plan on taking two trades, you limit all of those possibilities for yourself to blow up, get frustrated, get even, rack up huge commissions against your account and do a number of other destructive things. You could call it, “The One Two”.

If you have a losing trade, you may still be able to have a wining day with your next trade. If you exercise trading discipline and only take a good method trade setup, that has a 2:1 trade ratio or higher, you will still come out slightly ahead for the day.

Tomorrow becomes a new day and you get go again. This type of approach will take longer to achieve the returns of your dreams, but at least you have a chance to attain it. Most traders are going to blow up their account in 30 days or less. Don’t let that happen to you. Scalp trading as a form of income can become a reality, if you have support.

If you don’t know what makes for a great trade and have it crystal clear in your mind, you then are only guessing. I don’t need to tell you what you can expect with that approach. It then boarders on gambling and no one likes to have that label attached to them.

If you trade high percentage trades, you are not gambling. The odds are in your favor for profitable results, only if you stay in control of your trading emotions. Lose it, and you become a statistic. Maintain it, and you can make a living from the markets, which would you rather see.

Let the rush of trading go by you. Fulfill that part of your life some other way that will not affect your finances. Let Scalp trading be what you first thought it could be for you. A profitable way to bring in extra income.

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My trading results for Friday, Thursday, and Wednesday in that order. Wednesday I was sick and traded anyway, you can see I lost my concentration and took many non method trades. The indicators are not my method, by any means, but they are consistent with it. I get all my entries by price action rules of the Sniper Day Trading Method. I did recover that day nicely, but I put myself at great risk by increasing size on my last trade. All three days were profitable with Friday being my best day as far as timing and following method rules.

Enjoy the rest of the weekend to all and see you on Monday’s Post.

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Scalp Trading for 2 points a Day

Thursday, January 6th, 2011

Today is Thursday January 7th, 2011;

We saw the market fall back slightly today with the Dow down -25 and the S&P -2.  The daily momentum is still up as we have one more day until we finish the first 5 days of January completing the first round of the January effect. Lets see how tomorrow finishes up.

I welcome this bull run and am personally glad it is still alive. I do know we are on borrowed time as the market defies gratify. Again, I would have to say this big move up did catch me by surprise as the market sentiment did sway me to become more bearish overall. A confirming break never did come back in late November, so that is some saving grace. Once the market turned up past its old highs of around 1225, I did start to see the 1260 area as a possible target. We hit that and restested yet a bit higher, so as of now, I will just wait and see what the daily charts have in store.

Below on more U-Tube video of the days turning points and continuation trades as per a few of my indicator tools. Trading for a few points is not to hard if you can follow some of these signals, but know what is driving these signals is much better yet. The market does react in predicable fashion more often than not and harnessing some of these trades can yield nice returns. It takes discipline and focus to hit these area’s, but it is totally possible to achieve.

As mentioned, if you know how trader typically act as the price bars are constructed and laid out on your screen, you will know what is coming before it gets their and you will be mentally prepared to take action as it all comes together. The key is knowing, and when to pull the trigger. These marked area’s are kind of like “Cliff Notes” are to reading a book.  You will get a lot more out of reading the whole book as opposed to just getting a summary of it. The results can be similar, but with the book, you understand all the related circumstances around why, when and how far moves are likely to move once they do (as it relates to trading).

To be successful at this, you have to keep your losses very small. I can not take a 2-3 point stop in the S&P. That does not work for me as it proves that my entry was not as it should. Keeping losses down to 2-4 ticks is key to making your points for the day. I usually start out with a 4-5 tick stop, but it gets moved up as things move my way.

Scalp trading is said to be some of the hardest forms of trading, but it can be the most rewarding in many ways. If you have limited time to trade, you want to see multiple trades within the time you have.  If you only see one trade in the first 60-90 minutes of the session, you won’t be able to come back if your first trade is stopped out. So you end the day with a loss. Your minimum risk reward ratio should not be less than one to one when you start out, but if you loose the edge, getting out with two ticks on the emini S&P should be fine. Being flexible will help you go a lot farther as you live to trade another day.

Trade management is another very key element for success. You need to be able keep yourself protected and minimize your risk at all times. Overexposure to market risk will eat away at your confidence and cause you to hesitate when it comes time to pull the trigger. A few small losses can quickly be covered on one trade. Say you have -3 ticks, -2 ticks, -4 ticks as your losses and then come back with a 2.5 point trade, you are about even including commission. The next trade may be scaled out at +1 point and two points for 1.5 point average day. That is 5 trades with 3 losses and two gains. Nothing earth shattering here, but maybe tomorrow you won’t have the three losses and just hit the first two trades which would be a 4 point day minus commission.

So, the key is keeping your losses small and get out of the trade once you loose the trading edge. You live to trade again, and you don’t do big damage to your account. I will say most traders end up beating themselves. Many know what it is they should do, but just don’t do it. Take a break if you are having loosing days. If you have three loosing days in a row, you need to take some time off. This is a must. What ever you are doing, it is not working. Step back and assess your action and attitudes as it relates to your trading method.

I think traders need to talk out what they are seeing and doing as it relates to their trading.  If I was struggling, I would record my trading sessions with some type of screen capture software. You can find them for free many times on the internet.  I have one that works well and saves it to small files if you want to archive it.  I am not afiliated in any way with this software, but I use a program called “Capture Wiz Pro”. You can easily record your trading session and play it back for review to see if you are living up to your written plans.

If you don’t have a well written trading method to follow, you are at a disadvantage right their. You can not just have this stuff floating around in your head with a general idea of what you are suppose to do, that is not going to work. You might as well save your money and practice until you do. Up and coming traders are trading against professionals and big money institutions who thrive on this type of trader as though they were “chum” for a feeding frenzy. I don’t want to put anyone down and that is not my intention.  All of us are still learning and need to humble, but I know what it takes.

If you don’t have the time, will or ability you can follow someone you trust or feel is right for you or you can do it yourself. Cover everything as it relates to entry, exits, stops, trade management, daily goal, etc.    More Tomorrow……

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Successful Scalp Trading, Is It Possible ?

Tuesday, November 16th, 2010

Successful scalp trading, is it possible? That is the question that so many traders want to know and I will tell you the answer to that, which is “Yes”. It is not for everyone, that is for sure. Their are so many traders who are not cut out for this, but will only find out by going through the process. Getting good information and a solid trading method will have a lot to do with that success, but often traders will just beat themselves, through their own personal weaknesses.

If you have the passion for taking your trading endeavors to the highest levels, achieving success and harnessing your knowledge to produce the results you pursue, you will overcome all personal weaknesses.

Not all trading methods are alike and you need to find something that is tuned to your personality. What I offer may not be the answer for some, but on the other hand it could be just what the doctor ordered.

Being successful will require a lot and should not be taken lightly. Having the ability to block out distractions and focus on price movement will be the starting point. Trade indicators are only a reflection of what the price is doing and so the trade focus needs to be on the price first.

Recently, I have talked about the three elements for successful trading of any kind. “Time, Space and Energy”.  The first two lead to the third element, trade energy, but today in the daily charts, 11-16-10 Tuesday, we saw the first two elements exercised, in that the time accelerated the price, to the downside, to a level that I called yesterday. I said that I could see where prices were going to go on the S&P, 1175/80. I thought that it was going to take a few days to do it, so that is why I said 75/80. Not knowing that it would come all in one day with a near 200 point loss in the Dow and 20 point loss in the S&P changed the figure a touch. I would have said, 70/75 instead, but I did not know that then. Close enough through and would call that a good call. The next trick is going to come, when this market holds off of these levels and moves back higher. I would say, that we are in the general area of support and will hold these current levels give a take a touch.

Knowing what to expect from the market is key and traders can learn how to do that in any time frame if you know how to read the price. I look at price and can see basically where it is going to go ahead of time, so often. Many of those times, I would not want to place an order in all of those spots because we may have the third element missing (energy), but knowing what you can expect ahead of time is a great exercise for when it does line up and come together. At those times, the energy is their to carry the price through time and space as it releases the stored energy that was built up through time.

I look at three time frame tick charts and glance at a small time chart to better see the gaps, minus the Globex market. The first two time frames are really just one chart with the third chart an expression of the first two. Each time frame is much larger than the next, but it all works together.

The stock market is fractal in nature and I have pointed that out many times. Each time frame is apart of yet a larger time frame and so on. Knowing how to harness that information and put it into a structure that makes sense is essential. Market framework is another way of saying “structure” and shows how time, space (price is another way of saying it) and energy all work together to create small little windows of opportunities where prices can be exploited. Meaning, you have the clear advantage. But how can you see those opportunities and take advantage of the situation. It is all in “knowing”. Either you know how or you don’t. You may rely on other things that you do know and that may be enough if it works for you.


Above is a short U-Tube Video I did today showing the basic entry points I might have considered. These area’s happen all day, every day, with today being very normal and not anything special.

The power went out in the mountains where I live today and did not have enough battery back up supply to trade. I waited it out as long as I could and came in for the last 30 minutes or so. I hit my goal and that was good, but still was off in my timing. It still all came out good, but I was anxious because of the lack of trade time. Again, I forced my first trade and tried to take a counter trend trade short for just a few ticks, but got stopped out for a point. The next trades were all gains, but wish I could have waited a minute more to enter. The price would have been the same, but the timing would have been better. I am hard on myself at times because I know I can do better. Even though it came out in my favor, I rarely look at that. Doing the right thing at the right time is much more important than getting a winning trade. I don’t want to develop bad habits. I have to be my own trading coach and writing my blog is one way for me to do that.

Good Trading to all,

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