There are a lot of factors right now which can point to a continued sell off, but there are some points to still hold this up. The effect of the QE2 are still yet to be felt on Wall Street and it should have some impact, so that is one thing for starters. Some say the Fed will continue to artificially hold interest rates down as a way to stimulate the economy by addition rounds of buy backs in the Treasury Bond market, but that is yet to be seen. Maybe Wall Street is trying to influence the Fed by pushing stocks down in displeasure only to try and get what they want, a continued loose money policy, where Wall Street directly benefits. Where is one to put there money? With rates on Treasuries so low, no one wants to enter that market and get a rate that does not even keep up with inflation and there is where the market benefits as the only other alternative. There are many other more detailed direct benefits to the market, but I will just state the simple one mentioned.

All bond buy backs done by the Fed is not a good thing long term. I hear they have a 2-3 Trillion dollar balance sheet of these buy backs. This is causing foreign investors great concern as to the safety of there investments and some have begun to liquidate some of there positions. A private investment fund that had the largest portfolio of Treasury’s in the country has sold his entire portfolio and now owns none as he stated that it was not worth the risk. I believe Standard and Poor Investment research lowered the Treasury Bond market out-look to negative from stable, which has never happened before. They kept there triple AAA rating though, which confused investors. Needless to say, there are problems on the forefront but we will be looking at a new presidential election next year and I am sure there are many interested parties who would like to see a strong stock market going forward.

Corporate profits are rising and companies are buying back there there own stock which is a good sign. The jobs front does not look good, but I hear that the temp agencies are booming with active workers. Many of them will be the first to get hired to full time when things become more clear. In addition, corporations are sitting on a ton of cash. All of these are good signs, but non of them have yet to take hold and produce, so we are left to wait.

I don’t have access to the sentiment numbers like I use to see, but I had found out in general that the market sentiment had been becoming much more bearish, all of which is a great sign for a continued move back up. When the majority believe a crash of large market drop is coming, it is usually the opposite that shows up.

I am not yet sure that we will see the large drop that many are calling for, but I am not yet ready to be a bull just yet. I did get the last call wrong and I will be straight up with that one. It is one of the few I have gotten wrong at least at first. We will have to see what Monday’s market brings as I was looking for the markets to stabilize at least and best, rally back up late in the day. That did not happen, but Monday and Tuesday’s market will give us another chance to do that.

As day traders, it really does not matter what happens in the course of a day, up-down or sideways. Trained traders can adjust to any market environment and pull something out of the market. The key to remember as I often state, is to just read the market and trade what you read. If you don’t know how to read that language, you need to get to work. The market has many low risk opportunities every trading day. Some days are easier than others, but you just trade what is in front of you and leave your opinions at the door. With that said, I do project the next moves out, but based on what the current market is showing. I think that is fine, because it can show you where prices can go if the position is held. I call that a “trade to target”. When we see those, it is still always a good idea to take some of the trade off the table as that does give you more power to stick around for the whole move, without the stress of giving a large part of the move back. Those are all trade and money management issues and very important to mastering your trading experience.

Trading successfully is Method, Mind and Management. I talk and teach all three of those to interested traders seeking to take there venture to a higher level. It has helped me to become better myself which is a direct benefit.

I did continue my trading on Friday with my second day back from my break and picked up 2.50 points on two gains and did have one flat trade in there. Traded about an hour and that was it. I let a few moves go by and don’t feel bad about it, as the day was a little skewed with the large gap. I did see that there was some nice moves for the rest of the session but I was long gone. Monday is a new day with new beginnings. Still trading a little smaller and likely that way this week, but we will see. My trades from Friday below. Good Trading to all.

Related posts:

1. Big Day on Wall Street & Day 6 training
2. Wall Street, “BOOM OR BUST”, which will it be?
3. Alert !!!!! Big Development for Wall Street Bulls

Day trading is a very sought after profession. Many try, but few last. Why is that and what can be done for those who really want to overcome the barriers? There is no substitute for experience and being exposed to the daily market fluctuations that take place every day. Short cuts, to help speed up the process can be to find a sound trading method to build upon. This can cut down some of the learning curve for those who pursue this, but it is not the final answer. The individual trader is where the responsibility lies for success.

Every traders comes with different baggage from his past and many of those can be very negative and hidden deep within the subconscious. It is essential to know who you are and what limitations you may have from your past. Uncovering some of this first, will go a long way to overcoming your personal trading barriers.

Every trader needs to know what kind of trader they really are. If you try and trade a style that is not part of your stronger inner traits, you are not in sync with yourself and the markets. So, take time to examine that.

Me personally, I don’t like staying in a trade very long and look to exit on strength rather than on weakness. Knowing that ahead of time even as a scalp trader, I am lining up with my strength’s and the results are improved.

Being successful once you have a good idea of what to do and what you are looking for, is money management. Without this, you are going to suffer. I always try and measure how much is in the move, or where it is naturally and likely to move to. Then I try and underestimate that a bit to be sure I will get there.

The first part of the equation happens before you get into the trade, that would be trade selection. Knowing which trades to take and which ones to pass on is very important. This part is called discretionary trading and when combined with rules and principals to follow, is the best kind of trading with the best results. This would separate what is called a trading system from a trading method. Discretionary trading is putting everything you know about the market and its character to your advantage with a buy or sell signal.

Trading systems are not discriminatory, as they take signals from a predefined set of conditions automatically, putting you in the trade as those conditions are met. The problem is, if and when you hit a draw down, you are either going to keep trading it or stop. When you stop, that is the likely time that it will turn around and start to recover from its earlier losses, but without you. As you re-enter, thinking it is back on track, it then again starts to suffer draw downs and you are again underwater. This is frustrating for many traders I am sure. I never traded that way with a mechanical system but I do know the scenario’s that it plays out.

A trading method, is going to have discretionary trades to take and pass on. You need to interpret the current market conditions and see if they are favorable per your trading method conditions. If parts are missing, you are better off to pass. If the ingredients are all their, proceed and do not hesitate. This is the biggest difference between the two approaches.

To trade a method successfully, you really need to get comfortable with it and that is going to take time. To many traders rush into the trading pit and want to see what they can do. That is fine, but when the time is right. If you are going to go college for a degree, they don’t hand one out in 3 months and say thanks for coming. It is a long term venture of commitment, passion and desire what will take them to their goals. Becoming any professional is no minor operation, just the same as becoming a successful trader. It takes time to know how price reacts to different market conditions. You can jump start that, but their is no substitute for this. Those traders that have a years mindset, as a opposed to a weeks and months mindset, know that it is the truly committed who will persevere and overcome.

The other thing is having realistic weekly and monthly goals. As daytraders we strive to be profitable every day, but that is not always going to happen for sure. Shooting for a weekly and monthly profitability goal is more realistic. If you apply to much preasure on yourself in any one day that you are off, you will force trades and make mistakes trying to come back. If you have a daily loss limit, you always know ahead of time what is the worst thing that is going to happen this day. You don’t have to wait until your losses mount either, as if you are off, you can always stop before that threshold is reached. Having a weekly and monthly goal helps to release some of that market performance pressure. You always have tomorrow when market conditions are likely more favorable.

To recap; A trading method is better than a trading system, but it can be harder and take longer to master. The end results are improved performance and you maintaining control. Money management, a key to success. Without it, you will not make money. Take what the market gives easily and freely, and exit what becomes a struggle. Protecting profits and moving up your stops are a key part of that management.

Every trade starts out as a scalp for me, until the market proves itself. Scaling out is another key part of that trade management. Taking a small piece of that easy trade can allow you to stick around for the rest of the trade to develop into more without the fear of quickly giving it all back and the trade becoming a looser. All apart of trade and money management.

All of this comes with time and experience as you follow the markets. A few more things,  price always comes first. Be a student of “price” and see how indicators reflect that, not the other way around. Lastly, do not forget how time plays a very important role in all of this. “Time and Price go together”.

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No trading on Friday and today. There is something wrong with the price data at Trade Station. The tick charts are way off, posting like 5 times as many bars as normal. I don’t want to try and trade what I don’t understand, not worth it. It started from the afternoon session on Friday and has continued into today. Lets hope they fix it soon. Any comments from traders on this welcomed.

Related posts:

1. Scalp Trading for 2 points a Day
2. Successful Scalp Trading, Is It Possible ?
3. Trading Tuning Points – S & P Emini & Two Stocks, Video !

Emini Course and Mentoring Program

In my Emini Trading Course, I show you how to utilize a “Sniper Trading” type approach using my tested method to earn at least 2 points per day from the markets. You could learn how to make consistent profits in good or bad markets. Our method focuses on high probability trading, delivering you your points for the day. Day trading for a living does not have to be hard, if you have the right method, plan, course of action and someone to explain it to you in a live market trading environment.

Price action, is driven by emotional buying and selling decisions for a variety of reasons, all of which are present in the current price at any given moment. Our job, is to find the turning points that exist in each session through precision market timing. These turning points are present every day the markets are open. Sniper Day trading will teach you to clearly spot where these turning points are, using a trading mastery type approach. These points show up like consistent “Sniper” shots on your trading screen and are clearly defined by using the custom tools I have created.

We strive to teach our students to learn price action apart from indicators or tools, but they are helpful to point out what may not be seen in the beginning. I am sure what I have in full is not being taught by anyone and is unique to me and the many years I have spent developing and now clearly defining the “Sniper Day Trading Method”. The signals generated by my method will produce the same signals to anyone who is following it, there is really no gray area, only which trades you decide to take and which you let go by.

Sniper Day Trading Method

We trade with tick data and use multiple time frames in timing our trade entries. I have three different styles I trade and bring them up as the price action dictates. One is a “Scalp Trading Method”, (T-1 Trade) that is very accurate in picking up 2,3 or 4 ticks on the S&P. My stops are such, that this approach averages a one to one risk/reward ratio, but enjoys a very high percentage “Win/Loss” ratio. This is bread and butter for me.
The second style enjoys the benefit of my “Precision Turning Points” model, (T-2 Trade) and is usually traded with multiple contracts. The first part is scaled out around 1 point, which quickly brings me to a no loose position and the second half is usually allowed to run. I have four incredible ways to get out, all of which act independently of each other, but are uncannily similar in their results.

The last, is a “Pyramid Trading Method”, that when conditions are right, you are able to keep your first risk small but scale into the trade, adding positions in the direction of the trend, but only at very low risk entry points, keeping your stops down to 1 S&P point. Each one of these methods are very clearly explained in my 80 page trading manual and followed up in the DVD training part of my course. They will also be gone over in our live trading sessions.

While only needing to pull 2 points after commission per day out of the market, (8 ticks) catching a few scalp trades or a T-2 trade, is really all you need to hit your daily goal. I believe in setting realistic goals, which increase your chances to meet them. By having a clear mind, a solid trading plan, with position sizing risk limits and rock solid money management, you come that much closer to trade your way to financial and time freedom.
Examples of two typical trading days back to back, applying the Sniper Day Trading Method. It only took about 20 minutes to get my daily goal plus on both of these days.

Mental Discipline and Trading Psychology. I have told you what I can offer to you, but this is not all you will need for success. I am convinced that my method, custom indicators and complete approach could make the aspiring trader profitable on a regular basis, but do you have what it takes? Trading psychology plays a huge roll in all traders, whether they know it or not. You have forces constantly working against you. Success is only going to become a reality to you, if you have the qualities needed to pull this off. What you are going to need is * Discipline * Patience * Ability to follow rules * Control your fears * Get a grip on personal greed. Frequently, I talk about this in my daily blog, because they are too often why traders fail to reach their goals.
I offer a lot of support in this area as well, if you are a struggling trader and want to change, I have the tools, method and know how to likely turn you around, so that you can create the consistent income, free up your time and fulfill your dreams in becoming a successful day trader.

Mental Exercises

In my program I address some of these issues in a series of “Mental Training Exercises” that I have put together. They are designed to get your mind thinking and believing that trading for a living and meeting your daily trading goal is normal, natural and the only outcome you will accept. The titles in the first series are; * Financial Freedom * Positive Risk Taking * Holding your concentration while trading * Achieving your Trading Goals. The titles in the second series are; * Overcoming Trading Obstacles * Controlling Emotions while Trading * Overcoming the Fear of Failure * Creating Hope & Success.

These I believe are very powerful and are in, “the first person” and will become personal to you. They are a form of Neuro-Linguistic programming that can take you farther and bring you closer to meeting your trading goals. They are, in written form and in audio CD and created by me. My plans are to continue to expand these in the future and make any new additions available to students who come on board, all at no extra charge. These training series are specific to traders and cover issues they face.

Solutions for traders, Sniper Day Trading

I realize that not everyone is born with all the qualities a successful trader will need, but I feel it can be learned if you want it bad enough. Ask yourself, how much do you want to become a consistent successful trader ? The answer to that is going to make all the difference in the world.

I know personally the things that hold traders back from bringing it all together and I know exactly what to do to help them change. I believe I can help the struggling trader as well as the trader who has never done this before.
I can set you on a course that is tailored to your experience level and walk you through everything needed and expected. The good part is, you won’t have to go it along. If you have any question, I can not only answer it, but help you apply it, to get the results you will need. Our daily goal is not to hard to hit, 2 points + per day. We can take a conservative approach to help you get that goal regularly.

If you are honest and know you need help and are willing to work hard and change what ever you have to, then I am sure I can help. Trading for a living is possible, but you need to do different, be different and think different from the majority of other traders. If you first commit to yourself these things, then I will commit to you, which will bring you one step closer to the success that we all strive for. Lastly, I want to assure anyone with doubts, my method, straight up works. The only question that remains is, will you move forward and decide to make it work for “YOU”.

Price Action Day Trading

“Price Action Day Trading”, is the key to your long term success. The markets do something everyday that is consistent since they began trading, over one hundred years ago. It exists in all time frames and gets played out on trading screens across the globe each day. It is important to understand and learn, “good price structure” and how it is built. That is what I teach and that is what students get when they partner with me at Sniper Day Trading. The key is learning what to do and when to do it and why. If you don’t know the answers to those questions you will eventually fall short. Many traders use indicators to help them and that is OK. I have them and use them also, but I do not base my trading decisions on the indicators. I base it on good price structure and trade setups that happen over and over, day after day. Traders and investors are very predictable, they base many of there trading decisions on emotion. Knowing slightly ahead, how they will react when certain prices are reached and breached, give us the trading edge we look for. With that said, the indicators magically line up with our trading decisions which can give us the added confidence to put our money on the line.

Below is a typical trading day where you will see the trading, “Turning Point”. I have stripped away everything from the screen except two things. There is much more, but I just want to show you that the indicators line up with our turning points. Which came first the chicken or the egg. The chicken and that is price. Price is always first and the indicators are second. That being said, the indicators can help traders see what is already on the trading screen. I hope this explanation helps clarify in the minds of seeking traders that what we have and do is real and works.

What You Get With Sniper Day Trading

• My E-Mini Trading Manual (hard copy 80 full pages) with future updates. (very nicely done)
• Complete DVD video training package in very nice hard cover locking case / extra: will include method applied to stock trading.
• Method explained throughout the week, with full screen video and audio illustration in both the T-1 and T-2 screens, “Turning Points”. Very powerful part of ongoing training. (This service will be included ongoing all at no extra charge)
• All custom chart settings to build your trading platform and help by me if needed to set it up.
• All of my custom and modified indicators I created, that will unmistakably identify my “TURNING POINTS” for the T-1 and T-2 trades, when applied to the method.
• Method checklist work-sheet ( for examining trades against method).
• Laminated 8×11 “Method Overview”, to pin up over trading screen. Laminated 8×11 “Mental Exercise Overview” pin up over screen.
• Mental Training Exercises: eight titles – audio CD and in written form. On-going future title releases no extra charge.
• Leather bound “Trading Journal”, to help you keep your thoughts, progress, questions and answers.
• I will personally work with each trader by screen sharing technology and voice of I.P. through SKYPE, in a live trading environment. After you go through the material, we will set appointments for our personal sessions together. We will apply live market data to the method and I will show you exactly what to do and how to do it. The manual and video’s will give you a head start, but working with me personally will undoubtedly bring it all together. I will spend as much time as needed with each trader who comes on board until he or she understands the complete trading method.

If in the future if you have questions, I will always be here to discuss them and go over your charts to help point you in the right direction. I am not just selling my trading method, but offering much more, mentoring and getting you profitable. Traders often face mental barriers that hold them back, but they do not know exactly what it is or why they consistently make the same mistakes over and over again. I can uncover the problems here, find the solutions and set you on your new course.

My goal is to get each trader that joins with Sniper Day Trading to book at least 2 points per day and gradually increasing contract size to a desired income goal. I will do my part as stated above, will you do yours?

ORDER HERE

Related posts:

1. Training series / First in a nine part series
2. Live S&P Futures Trading Video’s Today
3. Technical Analysis for Today’s S&P 500 E-Mini

Currently, the momentum on the daily charts is down and the 120 minute chart (2 hour) has just turned up today. The weekly chart is flirting with a turn in the momentum, but it has not happened yet. A lower weekly close and I am sure it will turn down. So, a pull back up for now, will bring a moment of pause to the market from this recent sell off. We could see a sizable move, if the market can get up over todays high with any conviction.

I do see some pretty strong over-head resistance just a couple of points higher from todays close. We very well may see a slight rise on the open, followed by a pull back down inside the range one more time, before we make another attempt to break out of the downtrend. We will see what tomorrow brings, it should be good. I think the price action is going to get better, with good swings in both directions.

I did not post anything for Fridays session, I had company over the weekend, but I will post a video managing Fridays last trade + 5 S&P points and show my results for the rest of that day.

In todays trading, I did pretty good. I could have had all winners, but I did not take enough time after a break I took, to better accurately see where we were and likely to go, resulting in a loose of one point. Other than that, I had several trades that I scaled out of the positions for multiple point gains and a few 1 pointers or so. It’s in the video below if you care to take a look.

I was going to stop after my first three trades, which was plenty for my daily goal, enough for even the high side. After taking a break for about an hour, I thought to come back for another session. I don’t always do this and I don’t always recommend traders trade all day or even most of the day, because fatigue can set in and the likelihood for making mistakes goes up.

If I do come back, I almost always cut my size down. That way, if I have losses, it is not going to impact my gains as big a degree. If I have additional gains, it only gets added on for nice day. This is a conservative approach and is recommended if you already have made your daily goal.  

We have all heard of “Money Management” and how important it is. It is true. If you increase your size when you are not trading well, you make everything harder, not easier. Traders often try to get back what they lost by doing so, which is one reason of many, that most don’t make it. I hope that is not the case for those who take the time to read my trading blog. I try to give a mix of different idea’s, thoughts and insight into a day traders world.

Most of us pursue this business because we love it. We love it for the opportunities that it can bring as well as many other reasons.  Some traders want to make it ($) fast and lots of it. I don’t recommend that either. If you go to fast, you only speed the process up to the point where you will again make mistakes, loosing the hope you had when you first started out. You can’t change past trading mistakes that we all make, but we can try to uncover what it is we just did, why we did it and what are we going to do to change. If we don’t take all three of those seriously, we will only come back another day and repeat the same trading mistakes all over again.

I was watching a movie recently where a patient was seeing a doctor. He told him, it hurts when I do this. The Doctor then said, if it hurts when you do that, then don’t do it. We don’t like it when we take losses that are not apart of our plan, strategy or method, but your first loss is best. Why is it that we to often take trades that don’t fit our model. Lack of patients is one of them. I admit, I don’t have all the patients I could use sometimes while trading. That is why I trade small time frames. I don’t have to wait to long for another trade to come my way. If you are trading 15 minute  bars or even 5 price bars, you may have to wait for some time.

The point is, everyone is different and we all need to find our strengths and weaknesses. If you know what your are strong in, work on making it better. The area’s of weakness, take extra time and reflect what is holding you back. To often, it is in our minds. I am serious. There are a lot of good traders out there that are just an inch away from bringing it all together. They just need a little help, guidance and support.

Let me give you two things that can really help those who feel that you are so close to bringing consistent profitability to light. I know of and have heard of traders who have done this and they say, it is the best thing they could have done. I have talked before about how important the mind is and to often, how we see ourselves inside, gets transferred outside. If you don’t have the inside part right we only work against every good thing we try to bring to the trading screen.

There are many ways to go about thinking the right way, not only when we trade but throughout the day. I can see that I am close to my typing limit and I will probably just wait until tomorrow to better give you the right background on this. If traders take this seriously, I truly believe it will help some if not many bring up there, BOTTOM LINE. 

No related posts.

The Dow was down 122 points and the S&P was off by 15. We will likely continue the retracement over the next few days as the market posted a back to back weekly gain, something it has not done since May of 2008. I have a daily chart below of the Dow and S&P and you can see that after redrawing the outside line, which I was off by a little originally, it is now lined up straight and the market traded right up to it. It also happens to be the broken support of a few months ago. I mentioned it yesterday, but you can see it today in the chart below. Support when broken will then become resistance when tested. That is what we have seen the last 2 days. The Dow also lines up, the same way.

I had a good day trading today. It was slow going in the beginning. I started late, during the slow volume time of day, and could not get any traction. I was splitting my trades when I would have done better with, all contracts in, all contracts out. After a slight draw down and the passing of a little time, the volume came back and I got myself on the right side of the trend and started putting it together. My equity had very little draw down after that, almost straight up. I settled the day out with $+1629 dollars after commission costs and had over 20 entry trades.  Still traded small for the most part and have not yet made any changes, like I was talking about yesterday.

I have one small video of a trade I put on and a still shot of the trades just after that. I backed off on the size again at the end, which is really a good idea. If you have solid gains and you decide to keep trading, you have to have a point where you will lock in your profits for the day and give no more back, if you fall below that point. If you start to over trade and make mistakes, you can give back what you worked hard to get. That is the reason for backing off on size at the end of the day when you already have your daily goal and good profits. You will be a conservative trader with this approach.  This is about money management as well.

Do not let greed creep into your mind and find yourself shooting for the stars. More is fine when it is the appropriate time. I would say that if any one is just starting out and you do not have anyone helping you through the process, you should only be trading for a small daily target. I recommend about 2 points and not really any more than that.  The reason is, you do not have enough experience to deal with all of the changes the market will throw at you. Eventually you will get taken out. That is the hard cold facts.

We all like to think it won’t happen to us, but that is presumptuous on on our part. Being honest with yourself is the first step to victory and that victory can come in the form of two points a day. If you can pick that up, consider it a big victory and try and do it again tomorrow.  A common scenario is, you will pick up a few points and think it is easy, then let your guard down.  The market then gives you a read that you have not seen, or are not familiar with, and the gains are gone. You then say, “Iwill get that back,” and don’t exercise patience having already lost your focus, because you are thinking about the money and your losses increase.

You have to be able to stop yourself, if this is happening and walk away. Clear your mind and when you take your next trade, don’t be thinking about anything else, other than the process. Are you doing the right thing based on the method? Don’t be thinking about getting even with the markets. That has been called, REVENGE TRADING and it can do a lot of damage, not only to your account, but more importantly to your ability to have confidence in what you are doing.

By losing your focus and discipline, trading like this, you only join the ranks of so many others who thought they could. The battle is greatly in your mind. That is why I have some very good books on my web site to help you with the process. If you have not read any of them, I recommend that you do. Some of them are not even related to trading, but it sure does apply and can help with many other areas of your life as a bonus.

http://www.screencast.com/t/MHjVQ0SI8L              Today’s equity chart

http://www.screencast.com/t/qBfXqtoGBXq             Live trade video

http://www.screencast.com/t/ITUh0ylJ                      Still shot of some trades, end of the day             

http://www.screencast.com/t/M4FpJW2M8kx          Still shot of Daily S&P

Related posts:

1. Federal Reserve takes drastic step, Buys 300 Billion in Treasuries
2. Market continues sell off & Nice smooth day of gains
3. Day two / Sample Training

I am going to have to hold my breath on that one. We have been down 14 out of the last 15 days. That is a big downer. But let’s have hope – where have we heard that before? I can’t help myself, it came right off the top. 

I have a chart of the Dow posted at the bottom. Take a look at the descending bottoms. It is currently hitting the third and last one right now. All I can tell you is that when I see a formation like that, you usually will get a move back up off the line.

There is no guarantee, and we will have to watch current price action to actually determine the trend at hand, but it is worth noting. If we do get a move up tomorrow, the more interesting thing is going to be how is the market going to go into the close. Most of the past rallies have been met with selling at the close, typical of a bear market. Could tomorrow be different? I think it could.

When people expect the market to sell off at the close of each trading day, it’s just such an event that eventually convinces the last holdouts to take a position short. We know what happens after that. The market reverses on you and it starts giving you draw downs. It waits until the last of them are in short and then you can get a pretty big short covering rally. That is, people who do the opposite of buy and sell first, (short), then hope to buy back at lower prices and replace the shares they borrowed. In the case of futures, there is someone on the other side of that trade who is betting against you. If he starts suffering draw-downs, he may quickly jump out and there is someone else to quickly take his place.

In any case, a lot of people are convinced we are going lower and I am one of them. But “not yet”. A famous line in the movie gladiator. Do any of you remember?

I think the market is ready to take some of the shorts money. It can then reset the trap and catch everyone later who has bought into the line, “this is the bottom”. What I am sure about is that it is going to take a while for us to put a bottom in, even if it is at these levels. We will not turn around until the monthly chart turns up. Right now, that is in pure free fall. It takes time for it to turn around and the path of least resistance is still currently down. But let’s give these downer guys a break and rally off the bottom, OK?  Like the market listens to me!  Well, maybe. Let’s see tomorrow what happens.

In today’s day trading, another good day. Only traded very light with a couple of exceptions, 1-3 contracts. I have been scaling out of more trades lately, but not all. I definitely have trades that are all in and then all out.

Think about this for a moment. If you had the means to do so, would you rather put on a trade with 25 contracts and hit two one point targets for a profit of $2,500 dollars in 20 minutes for the day, or trade 5 contracts all day and make the same money?  That is a good question and you may want to think about it before you answer right away.

If you are trading for the money, that’s OK, most people are. For a lot of people, it is an outlet, that’s OK too. The market is a lot of things for a lot people, but it is always good to think about what it is for you. For me, it represents time freedom and the money is nice too. With time, I have choices and so the story goes.

I am currently exercising some of my skills in scaling out of trades. I believe it is important to know how to handle different market conditions and to occasionally trade for what the market can comfortably give you. If I only have one set of tools in my bag, what will I do if I have to build a house? With that being said, “bread and butter” is always a good staple. That is where my short term scalping comes in. As I said before, I am OK taking 3 ticks on a trade, as long as I can do it with a high probability of success. This short term scalping is something I can usually count on getting, if things get tough. I only really need 3 trades of 3 ticks each to pick up 2 1/4 points. That would net me my daily goal after commission and to that I would say, “have a nice day”.

If you can pick up a net 2-3 points per day and do it again tomorrow and so on, how long do you think it will take before you will be able to trade 25 contracts? For some who are conservative, you can take a lot longer before you increase your trade size, by building up your account equity to a comfortable level that is right for you. But for others, it can come much faster. If you  can increase your size by one contract each week, you can get there in about 4 months. Trading for only 2 points a day, you are going to pick up $ 50,000 per month and that is if you leave your contract size at 25. After many months of doing that, you are going to be in real good shape.

I don’t want anyone who is following me to lose sight of that fact. We don’t need to take 20 trades a day and pick up 15 points. It is nice when you can and if you can, but it is not essential to making a lot of money. The increase in big money is going to come from DISCIPLINE and money management. You will always need discipline, that is for sure, but money management can take you to places you never thought you could go.

When I split a trade up and get the first targets, I always move up my stop. I am now in a no lose situation. You can do a lot when you are at that place. You may see a trade that can bring you back from a draw down by squeezing out 3-4 points instead of just one. If you don’t know how to do that and have not done it, then you are at a disadvantage from everyone else. It’s just another tool in my bag to help me and everyone else get their daily goal.

I took 23 trades with about 75 percent gains, trading very small. My daily total was $1600 plus, over 3 times daily goal. I have some video’s of the trades I took below.

http://www.screencast.com/t/gHqOoI3A              Daily chart of the Dow

http://www.screencast.com/t/cXwEpSROaiD      Daily equity chart

http://www.screencast.com/t/2l5t7TBflPl           Some of today’s live trades

http://www.screencast.com/t/09dWm1DOV      Some of today’s live trades

http://www.screencast.com/t/zjlfvsWFI              Some of today’a live trades

Related posts:

1. Sentiment numbers stronger than expected
2. S&P 500 bounces off double bottom & Trading Lesson
3. At last, an up day