I could not fit in the day with the smaller chart I usually show, so I elected to show a different chart all together. I don’t usually show my T-3 trade screen which is the biggest of the three layouts because I don’t often trade by its principals. I use it still every day, to help quickly identify the trend, but there are not very many trade signals that go off during the day and one has to be willing and able to sit through the pull backs which is not easy.

If you have and understand why and where prices are likely to move to, it helps to hold on for the bigger return. That does not happen by chance, but with use of probabilities. The higher the probability, the better the trade as it posses less risk when mixed with reward.

Let me post today’s chart and yesterdays chart which I did not post below;   First today’s chart;

Yesterday’s Trades;

Today’s last trade was good for 12 S&P points covering right at the bottom, in addition, I did have double the size I usually trade for a big trading day.

Tomorrow is Friday, the last day of the week and will look on the conservative side, as I know better than to get greedy and aggressive. Most traders biggest losses, come just before they had some of there best gains. I know that, and will look to play it safe waiting for good low risk scalps to ensure a positive end to a good week.

Until then good trading to all. Vince

Related posts:

1. Advantages of Short Term Trading, Part 2
2. Addressing the Mental Side of Trading
3. Psychological Advantages of Short Term Trading;

I had only one trade and squeezed it in just before the close. I don’t often like to be or get to aggressive at the end of the session because there is little time to recover if that first trade is sour. So I just kept it real conservative and took 3-4 ticks out of high percentage short trade. The move had more, but just a quick trade is all I was looking for, covering the position into weakness.

Often times late in the day, things can shift fast, in what seems like a 1 point gain can be gone in a flash and then you are up against your stop. So, just entering late in any session “to me”, it pays to be conservative unless something else is brewing of significance.

OK, I was able to squeeze in the bulk of the day in today’s chart, but could not get the early part of the session in. Some pretty clear trades long and short as the chart below will show.   Trade well, until tomorrow.

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1. Only One Trade Today – Quick and Easy !
2. Learn to Scalp Trade and thrive in an kind of Market
3. Timing your Scalp Trade Entries

A small trading lesson in today’s post below, but I will give a small recap first.  I will put up Thursday’s session first and then Friday. Both days had gains, with Thursday being pretty healthy. Friday I had the makings of a good trade short and did get in on it, but had to expectantly take off and just settle for a couple of ticks. That was the high of the day and the market just went straight down from there the rest of the session.

Overall I had a good week and nothing to complain about. I will take it one day at a time this coming week and not be anxious. I suggest we all try and stay cool and let your trade setups come to you, what ever they are. It is best not to hunting for a trade. If you relax and let it come to you, with no worries of missing a trade or move, you will likely see what you were waiting for and have a good trade.When you hunt for trades, you often will see things that are not there or find something that you have conjured up in your mind that fits and then try and look for the setup that matches that. DON’T DO THAT. It does not matter what your trading style is, I believe this to be good advise.

When traders are more relaxed, you have a better chance to see and think objectively and that can make all the difference in the world. This is not a race. If you push it, you only feel then more compelled to make that up and thus, you will be hunting yet again. “Relax”,  take a deep breath and wait until it is right. If you wait until it comes to you, many times you won’t have to sweat it out as it finishes the work it needs to put in before it goes in your direction.Good Trading to all.

Thursdays session;

Friday’s Session;

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2. Mental Trading Lesson Today!
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I got started in the afternoon session today and took again just two trades. The first one was for one point and was a counter-trend trade using my T-1 model, (very short term scalp). I would prefer to wait through the smaller moves, but I had little time and felt strongly in getting the small target. The next trade was a continuation of the original trend short and was good for 1.75 / 1.50 / and 1.00 point.  That was enough for another light daily goal. I did see that last trade short on the enclosed screen shot, but I just let it go.  Trading for 25 minutes with goal in hand is an easy session and nothing to complain about.

Again today, I show how the trade signals line up with the vertical lines and circle the area’s I call “turning points. The indicators only confirm the price action and it is that which we teach. The trading indicators come along for the ride.

This is always a good point to remember. Learn how things work and why they work and you will do a lot better then just following trading indicators. This is empowering and will help you take your trading to the next level. The learning does not have to come from me, but learning good market principals will help keep you moving forward. Just don’t risk your capital until you know what you are doing and why you are doing it, that is the key to this point.

I will cut my post here short today but will be back tomorrow with something more to share, so until then, trade well.

Vince

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I took two trades for a healthy daily goal + with the first being a short which set up the second trade, a long with a bit of legs under it. Everything within the method said the trade probabilities were to the upside on that second trade.

With the market coming under extreme heat earlier in the session, by the time I came rolling in, things had already shaken out and the market was on the mend. Much of the price action itself told the story onto its next moves.

Like chess, you need to think through your opponents past moves so you can see his futures moves and get positioned for the “take down”. Trading has some similar traits in that waiting for your opponent to show his hand and pick up on his strategy, you are buying time to let the market reveal its hand to you.

One of the things we traders need to remember is, not to get ahead of the game. What I mean is, do not allow our knowing of  the opponents hand create an over exuberance to participate in what has just been revealed in the games next move. As in chess, if you react to soon, you will loose that advantage of “knowing” and put yourself at risk.

My second trade had just a touch of that in it. I entered like I knew where that next move was going and I was right, but coming in to soon, sometimes is not always the best move. When it is going to just run right after entry, you may feel great, but if you come under a little fire, you have to sweat it out and may even be tempted to move your stop, all things you want to avoid. The first mistake can cause you to make a second and then even a third and then, you have a mess to clean up. Some don’t get it cleaned up and add to the mess, all what I call “destructive trading behavior”. It happens to just about everyone, but traders need to learn to maintain control and trade only what they know. Leave the speculation behind. High probability trading is what is sought after and can be achieved with the proper trading method and the discipline to execute it.

These are some of the hardest things to learn as you are dealing with human emotions at this point. If your trading method says, the market is going to go higher, then you want to just get in at the lowest price and ride it higher. It makes sense, but if you consider what you have to go through to get to the point of where it actually does take off, you may think the early entry is not really worth it.

What I mean is, you may get a good price, but you may also have to suffer some draw down before you see those higher prices you are waiting for. That can cause anxiety and it may even cause you to second guess your original decision, which then puts your position at risk. Indecision is not what we strive for, but solid well thought out plays that clearly has the odds in our favor.

In the chart above, you can see the turning points and some continuation points with the indicators I use confirming. The indicators are only reflecting what the price is doing and so is a reflection of price. I teach traders to focus on the price action and those things that make that up.

This is where the chess analysis comes in again. The market will many times need to move here and then there, before it can make its next move. Those moves are essential for proper positioning which creates the needed energy for price to then expand. If you don’t have the energy, you are only going to see small moves as it gets into position.

The trading “turning points” that I talk about are so very often the sweat spot within the charts to get things moving with little draw down. You can also clearly know where to place your stops in an identifiable way so as not to get hit, 4-5 ticks for the T-2 screen above.  All of this is repeatable price behavior educated traders can come to learn.

Getting to that point where you think you know is sometimes a little harder than most traders what to admit, as most give themselves to much credit. Staying humble with a teachable spirit, is apart of the journey and what is needed. Becoming a good day trader is a life long journey and continual learning is all apart of it. Stay open minded, observe and live your trading dream with high probability trading.

I wish you all the best.  Vince

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I will post the session in order starting from last week Wednesday and so on. I will comment on Wednesdays market here first as that was an aggressive day for me and did things a little different. My entries were not that great and I could have done better there, but I was playing things more from a T-3 perspective, which is my longer view screen. I carried the trades on over into the aftermarket and was looking for S&P 1401 as a target.  The screen shot shows the end results as I did not do a good enough job in placing my stop. I got hit on the exact low just before prices went on up to hit the 1401 target area I planned for in that after market session.

That is trading and it happens. The thing to remember is not to let any negative influences come into the next session of which I did. I was a bit overly cautious at the start of my Thursday session and had a great short going, but talked myself out of it with only a few tick gain. It was a good runner.

I did have a good day Wednesday as well as the rest of the days since, with daily goals hit, but I was still a little unsettled about getting stopped out on Wednesday after seeing it all come about as planned. Keep moving forward and don’t look back. a good lesson.      More below the charts !

Thursday’s Session below;

Friday’s Session below;

Today, Monday’s Session below;

Its always a good idea to remind those following and or those who are viewing for the first time that the trading method is independent of the trading indicators, although you will see that they are very much in-line with good method trades. Not every arrow or signal long or short are equal in strength. It is the method that will determine that and is again separate from the signals shown. The indicators are a good confirmation for traders to measure themselves and they can be somewhat like “training wheels” for those still learning. It is the price action that will rule and is what we always look to that makes for good trades.

I hope this helps bring some perspective and clarity, as traders will only become good at what they do if they first understand how to “read the price” first. It all starts with that.

The markets have something for everyone, in that if you choose to scalp 1 point here and there, it can done. If you choose to sit and wait for the mega moves, 5-10 points, it can usually offer that too;(as long as the markets are moving as they are now). And if you are looking for something in between, as I most often do, traders can be accommodated.

It all depends on how much time and dollar risk per trade you are willing to invest. Each model can be accomplished with the risk in line with the rewards.

If the markets are very choppy and you are a trend trader, you will get literally chopped up, thus the term, as you look for those breakouts that follow your model. If you only have one mode of attack, you can be at a disadvantage and are somewhat subject to the market conditions. If you have a skill on how to read and play the smaller moves, you can take back the advantage and put it on your side of the equation.

It is not easy for most people as the shorter term time frames cause problems for most traders. If you know what you expect from price even on these small levels, you can hit it- get in and out quickly. If you know how to project targets, you could be selling into strength and keep your stress level down at the same time. You don’t have to get every tick and or point the market move on, but enough that meets your goal and or what the market will give easily.

I wish you all the best. Vince

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The big move in today’s market was news driven and the market liked it with a powerful rally just after the release. I missed most of the day and did come in around the last half hour with just one trade for a small gain. Not enough for a daily goal, but that is OK. A screen shot below. Today, I have the full screen up so you can see a little more of the day and you can take a look at a few notes I have posted as well. Good Trading to all.

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A pretty slow day, but there were a few OK moves early on. The mid day was terrible, but that is not anything we don’t usually expect. Low and or slow moving markets with little direction as they wait for the bigger players to come back from Lunch.

It did pick up with a good move around 1 pm, New York time. I missed that trade as I needed to walk away and take a break but it was the payoff for waiting out the move, which I was unable to do. I saw little in almost 2 hours of the market, as it looked like it barely moved. Late in the session it picked up and a good counter trend long set in for a strong move into the close.

I did have that one, as I saw that pretty clear and helped me pick up a little shy of a daily goal. The big picture painted a portrait for me and was happy with that last trade with targets hit exactly where I expected.

I have a patients threshold and I know that trying to trade in the slower time of the day, I am asking for trouble, but I still end up doing it. I usually am still able to do fine but I know I make things harder on myself than they have to be. I really don’t like a slow market.

Let me post my trades below and I do have a few notes there to show you what I felt. I am looking for a better price action day tomorrow and or should I say, I am hoping for it. Either way, I will make the best of it and keep moving forward. Good Trading to all. Vince

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Today we saw moves in both directions but the stronger positions were long (up). This is the smaller chart within what I call my T-2 trade screen. There is a larger chart that acts the same but is easier to see it from a bigger perspective. The signals it shows are still yet the same. This T-2 screen is the middle screen, as there is one screen smaller, for very small scalp trades, called my T-1 trade screen and there is one screen larger called my T-3 trade screen. All the charts act the same within the method, but give off different sized moves within there class. The risk and reward is adjusted for each and is always no worst than a 1:1 trade ratio and most often higher.

I say all of that to share the idea that every trading day is different and not likely the same as the previous session. Some days the market is really moving and other days it is range bound and going nowhere. Being ready for what ever the market decides to through out at you is something we need to be prepared for but how is that done?

With the T-3 screen, and or a larger view, a trader could see that there is still upside momentum within the markets. Many of the short trades may be short lived with this stronger upward bias and one would do better looking for long trade setups and leave the smaller short opportunities. Doing this gives you are greater reward when compared to your risk and something most traders actively search for during the session.

Being a scalp trader is a skill that can be learned, but also being able to spot the larger picture is still a big key to ones success. Weeding out the smaller moves or understanding what you can expect out of a trade is important to best and accurately access trade risk before you put on that trade. Not knowing how to do this or when its right to go long and or short will keep you guessing and there is no room for that. Unless you have an edge, you will just be gambling, something traders do all the time.

But how can traders know and put something to work that can be trusted?  You either have to do your own research and work on back testing your idea’s until you see it consistently come through in various market conditions to know it is of value. That process takes a long long time and for some their trading carreer will be over before they get to that point.

Seeing and believing in something that is proven to work for years, not weeks is what traders need. It can be anything that gives you that trading edge,  combined with low risk and that is a huge key, low trade risk.

When you might be in doubt about direction and its not really that clear, you can always default to a pure scalp approach. Taking 1 point out of the market with a 1 point trade risk, is a 1:1 trade ratio and acceptable. The reasoning is your trade percentage will be higher than 50% and thus the edge. In fact hitting something like 65-70 % is pretty good and what we should be shooting for at a minimum. When you combine the fact that you could be getting double the return with the same risk, now you have something very good. You don’t need to get that all the time, but as the market reveals itself to you, take what is offered.

Again, this is done by “reading the market“. Traders pick up the trading edge by reading the market first, then any trading indicators or confirmation method is nice to see kick in. Without the knowledge of knowing what you are doing in a field of professionals, we run the risk again of gambling and no one wants that.

It is a fine line, because if you don’t experience it, how will you ever get to the other side and that is where getting informed and trained first is the key. I know it is and can be hard to hold back and wait, but to many traders graduate themselves prematurely and find out later that they did not know all that they should have known. I might be stepping on toes and ego’s, not my intention, but its just the truth we seek. As I mentioned before, its the truth that will set up free.

Part of that truth can be found in consistent price structure. Something that we can come to count on again and again in its simplest form at a minimum to have that trading edge talked about. Acting on consistent price structure will offer us many things, one being that low trade risk talked about above. It will also offer, what I call opportunities to act on trade to targets, where you see the likely and probable spots on the chart that price will move to.

This all goes back to the opening paragraph where I talk about the three models for different conditions. If you choose to trade out of a bigger model, you will have to commit more time to following the markets for sure. A no trade is a trade while you wait for things to come together and that is work, even when you are doing nothing. It is not easy, but for those committed to the process and the rewards, it is often worth it.

Reading the market can be achieved with some level of consistency while holding the trading edge and being able to access trade risk all at the same time. That is a trading method that works.

There is more than one way to trade, that is for sure, find what works for you and look to higher time frames or tick counts to help lend insight for your smaller entry views.

I wish you all the best, Vince

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Today we had the Fed interest rate decision among other releases and there was a huge move in Apple Computer that drove the market all over the place. There is a lot more news coming out the next couple of days so it pays to be aware of these times, so you can either back away and let the dust settle and or jump right in.

It pays to be conservative at times and with the wild moves in the markets the last couple of days is a good reason.

In Tuesday’s session I made a few bad decisions and stopped for the session. I had three losses in a row and just was not in tune. It was not big losses as the total for the 3 trades was 2.5 S&P points. That is a very manageable number to come back from in a  future session.

Today, I did not start out great either, 3 two tick losses for -1.5 points as the volume and movement went dead before the Fed announcement. I did better after the market heated up and just had a small gain on the day, but did come back and was up for the session.

Tomorrow is a new day and I will just have to wait and see what turns up. I know I could have done better both sessions but not doing a lot of damage is a very good thing. Try and keep that in mind. You never want to let yourself be driven by strong emotions. Stepping away to cool off and let it go, is not easy, but its what we need to do. Don’t let your bad trades haunt you. See what you did wrong, resolve to do better and move on. Don’t just try, but do it. I am speaking to myself just the same here. The last sessions trades below. Good Trading to all. Vince

Yesterday’s below;

Related posts:

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