Posts Tagged ‘trading goals’

Are You Prepared for Day Trading?

Tuesday, March 15th, 2011

Stock Markets around the world took a dive as everyone looks onto Japan and the situation there.  The Nikkei, ended their Tuesday session down about 11% as Wall Street gaped down and moved lower in sympathy as we see the market coming off there highs looking for value.

We are likely to see increased volatility going forward with good moves on both sides. The Dow and S&P did make a big come back from the lows of the session which was almost -300 at its worst on the Dow and -35 points on the S&P to -138 and -15 respectively.

The Fed came out with a policy notice of leaving rates unchanged and stated that inflation was not a problem at this time. That gave the market added fuel to a already juiced market, as the energy was released back to the upside after the announcement.

In my trading today, I took 4 trades with modest gains on all of them, and would have to give myself a solid grade of (A) in trade execution. A loss does not really effect my own grading much, but a trade that goes outside my trading method definitely does. This grading that I have been doing for myself has been helpful in that I need to be accountable to myself and this is a way for me to do it and write about it. If I want a good grade, like in school, I need to do the right things at the right time and will then get rewarded.  Today’s trades below.

The market was very active early on and felt I needed to lighten up on contract size a touch to allow for a greater stop if I needed it. I didn’t seem to really need it, but the market was moving very fast on the open and the huge gap lower really threw things off from a normal open. That is the largest gap down I can remember seeing in a long time.

I hope and pray they get it together in Japan, because it will have an effect on earnings and the future outlook for the economy here and abroad.

From a humanitarian stand point, it is almost unreal that Japan could get hit with a 9.1 earthquake, the largest in recorded history for that part of the world, then a Tidal Wave wiping out everything in its path, then the reactor/radiation release and today I heard that Tokyo had a 6.4 earthquake and a Volcano had erupted to boot. WOW, that is an enormous amount of tragedy for one week which is not even over yet. We need to pray for relief for the people of Japan and hope that there will be better news coming in the days ahead.

Some of us have Tidal Waves in our lives and need to address those. It could be your trading results that has you down. If you want better for yourself, it first starts with the belief that things can change. If you want things to change, you can make them change. It may take you a month, year or even more, but I truly believe if you want it bad enough and are willing to push yourself farther than you have before, change is inevitable.

Much of a traders results lies in what he or she feels about themselves and their outlook on the ability to get it done. What I mean is, many traders could do better if they would look within themselves for the answers they seek on the screen. If you change your thinking and thus your mind, your results will follow the dominant beliefs that you hold within you. That might sound like a bunch of goop to some, but it may not make sense to you and you may reject that line of thinking as that may be exactly where you find yourself and not wanting to admit it.

We too often, will blame the market for our troubles and any other situation that may be convenient, that keeps us from meeting our trading goals. It is not the market, it is “us”.  I have to include myself in that too, as I have made all the mistakes any trader could make and then some. I speak from experience as I have written the last few years here in my blog. I know what goes through our minds, how we react to market frustrations and what it feels like to loose control of your trading. Been their, done that.

The thing is, traders start live trading far to soon before they are ready too. We all like to think that large draw downs won’t happen to us, but we are only kidding ourselves. To become a doctor, people sacrifice many years of their life and a very high dollar figure on top of that. How many doctors are there in relation to those in the service sector.

It takes a lot of sacrifice and dedication to make it as a trader. If everyone in the medical profession, (doctors) gave up when it was hard or when working their internship, staring at 18-20 hour shifts, how many doctors would we have today. Little to none, as they would have just given up. Before they practice medicine on real people, they put in years of education and sacrifice to have the opportunity and experience the rewards.

The thing is, there is no one watching you or grading your progress and you may decide to graduate yourself before you are really ready. If you have a very large pool of capital and you start with the smallest account size to get the feel for real live trading, then you may be OK as you learn while you are loosing small amounts of money, but that is not always the way it is for those seeking the rewards of trading for a living.

Another big problem is, traders start out without the right training and think they can do it on their own, only to find out they can’t. At that point it is often to late and trading capital has diminished and with it the opportunity to reach their goals.

I will really try and pick this up in my next post, stay tuned………………….

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Trading Psychology, should not be overlooked

Thursday, December 30th, 2010

Today is Thursday, December 30th and we saw the market back off early and close down slightly for the day.

The market is still in the doldrums with low volume and movement in the major index’s. Look for things to get back to normal after the second week of January. No trading for me until after the New Year, but am posting the low risk market turns as shown in the chart below.

As we approach a new year, traders will be looking for answers to there personal trading performance. Many times, they will be looking for new trading methods and or trading systems to solve their problems and that could be the answer for many, but their could be other solutions to look at first. Trading psychology is best not overlooked.

One of the first things we need to look at when assessing our trading performance is “ourselves”.  I will agree first of all, if you don’t have a solid trading method that you follow, with rules for entry and exit, that is clearly defined and in writing, you are going to have a hard time. Having it in writing, is important, as it defines exactly why, where and when you are to enter a trade. Then can define, when you should exit a trade. All of that said, to say this;  If you have that and things are not working out, many times, it is the unseen things withing ourselves that we are overlooking that is holding you back.

I know for sure that their are traders who have a good trading method that they themselves have come up with and or, purchased from the outside but have failed to make it work. The first order of business is to examine ourselves and see if something has been overlooked within ourselves that is holding us back from hitting our trading goals.

Many times it is these hidden things that if uncovered, will set us straight and put us on the road towards our long term trading goals. Let me expose just a few of them which may help jar some memories.

Do you move your stop after entry?     Do you second guess yourself after pulling the trade trigger?       Do you find yourself over-trading?       Do you find yourself always cutting your gains off early?     Are you taking bigger stops than you should be?      Do you have blow out days?

All of the above are things related to “US” as traders and many times not the trading method. We need to be able to follow the method and not our emotions while trading. That can be easier said than done, but if you identify the possible problems, then you are better able to do something about it. Ignoring these issues will not make you a better trader and looking for the Holy Grail of trading systems or methods will not do it either.

This may sound a little harsh, but it is intended to help only. We need to be totally honest with ourselves if we are going to see the lasting change we desire.

Go back over the list of questions above and ask yourself to answer those question to see if you are doing any of them. No one will see your answers but you.  You need to come clean with yourself and if you find that you are doing some of those things above, ask yourself why? Then ask, what can I do to stop?  Often the answers are found much deeper within you and can be difficult to extract, but is possible.

Fear, is all to often a reason for some of the above. Fear of loss can get you out of a good trade and force you into a bad trade. Both are motivated by a very strong emotion. Eliminating or getting control of that emotion is essential and must start with asking what am I afraid of. Is it fear of being wrong? If so, then it could be your ego is getting in the way. To often we don’t like to be wrong and will force trades and or re-enter a trade to quickly because we so want to be right.

Their is no room for large Ego’s in being successful in this business. The market will humble any trader who sports this attitude before to long. Humility is the opposite of this and is what is needed. If its not within your character to be this way, then you know the first thing you have to change.

Greed is another strong emotion that often goes together with trading fear, kind of like, peanut butter and jelly (lol). Trading greed can make you do things that you will question long after the trade has been made. You will say, “why did I do that, I knew better”. Well, these are only some of the obvious factors that can hold us back at traders. I am not immune to all of this myself. Writing about it, helps me maintain the right attitude and hopefully helps a few along the way.

Not trading with true risk capital can bring in additional pressures that not need be present, which can be traced back to a lack of patients, to wait until your financial situation is best suited to take on this risk. So here risk capital is traced back to lack of patients to wait. What do you think will get transferred to your trading screen and account if you lacked patients before in pushing to trade sooner than your situation properly allowed? That is right, a lack of patients to wait for the right setups and a lack of patients to wait for the trade to develop once in. Both are going to give you less than optimal results.

I can continue, and may pick this up from here tomorrow, but you can see, the traders who engage in some of these things may have perfectly good trading methods, but the problem is within themselves. It is not always the case, but it can be.  Every trader needs a written plan for their trading and it needs to cover everything, whether it is self done or purchased from the outside.

Examine your self and trading behavior to best see the results you desire this coming year, 2011.

Good Trading to all, Vince.            P.S.    Please feel free to comment on the above !

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Steps For Establishing your Trading Goals

Sunday, July 4th, 2010

This post is for Friday’s market as the Index’s pulled off Thursdays intra-day low of 1006.

The market had a negative bias to it on Friday after the open which lasted for several hours. We started to flatten out around mid session and then made a run for it. The market did a pretty good job, but just before the close, no one wanted to hold over the long weekend and things sold off quickly. Modest losses for the Dow and NASDAQ as well.

Where do we go from here? Well, everything is down except for the monthly charts right now. It is hard to say, but I would like this market to hold up for while before any major cracks take place, but the market is not going to listen to me. As the days go by, we will afford more of a move down, so as for the Dow to get to the 9500 area or so. The index’s are not exactly in sync and some backing and filling may have to be done to get things lined up with each other. The number S&P 1006 was significant last week, but as time passes, if will allow for the market to come down a little more.  We had a 20 S&P point advance off of the 1006 number but I do see that there could be more room for things to settle in here. It is all pretty close. There is a chance that we could hold on to the lows set on Thursday and by Wednesday move out higher. I will just have to see how things shape up on Tuesday first.

There is a lot of room for the market to drop if it wants to, but if we can contain any new selling to afford the Dow to get to 9500 + or -, we could see a good move off of that number.  The new sentiment numbers will come out on Wednesday morning and there could be new developments there. We were holding at 41% bullish and a reading of 35% or less should trigger a counter move up.  Since the markets will be closed on Monday, that gives us only one day to see what it will do. A 6% drop is kind of a lot to drop in one week, but I have seen it happen plenty of times before.

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Friday’s trading was bit tough for me. It all turned out OK in the end, but I came up to my daily loss limit (4 S&P points) and could have went slightly over it if my last trade did not work out. My judgment was off and it caused me to struggle. I saw something, a big move coming and was acting ahead of the move so as not to miss it. I had built a position with three entries just before my last trade and it did not work out. Only a small loss around 4-5 ticks but I really needed to wait on that move for a better entry. The move was just brewing in the hopper, waiting to jump out, but I needed more patients. The last trade made up for all the mistakes and I hit better than my daily goal. I have similar notes on my screen below if you click on it, once and then again to blow it up if you care to see.  Video of the last trade in U-Tube video gallery posted on Friday too.

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Steps for establishing your goals:

1) Start by doing what you know works, then experiment with new applications. When in doubt, try to do more of what your already doing that is already delivering the results you want.

2) Build the right back up scenario’s into your plan. What might go wrong? Anticipate the unexpected at every level of achievement and don’t let concern about your own status as others perceive it, keep you from making the right choices in the right situations.

3) Get feedback from the right people on the pros and cons of your trading plan. People who give constructive feedback want to see you grow and people who offer only negative thoughts want to see you stay the same. Don’t waste your time talking to people who want to make you feel bad about yourself or question your dream altogether.

4) Keep your eye on the goal, but don’t get tunnel vision as it relates to other obligations. You have to balance your goals as it relates to the big picture. Do something each day that takes you closer to reaching your trading goals and is a reminder to yourself that you are going forward and making progress. The key is balance all other things of importance so other things do not suffer at the expense of reaching your goal.

5) Keep learning and growing and remember no one does it all alone. If the problems down the road look too large to you while you are setting up your plan, remember, you will be a big person by the time you need to solve them. To often we hold off on growth because we worry, “How would I handle all these problems”. We assume that we will never be smarter than we are right now and that we will never run into anyone else who offers skills and experiences that complement your own.

If you are a struggling trader and want to bounce an idea or two off of me, feel free to send me an email and I will give you my constructive thoughts on it. Many times traders do not have anyone to talk to about what they are trying to accomplish and it can be frustrating, because they may be going in the wrong direction. I won’t be trying to get you signed up with my trading course unless you want to, but if you ask a legitimate trading question or questions, I will give you a professional answer, no more. It is up to you to ask. If you struggle with concentration and focus, ask me for a free copy of my E-Book on “The Power of Concentration”.  Again, no strings attached and I will not be hounding you with this or that. Just ask for it and its yours, that is it, and again, if you have questions, I will be happy to answer. So, think it through and send me any email. We are half way through the year, make the second half count in reaching your trading goals.

Good Trading,

Vince

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Patterns of Change for the Day Trader

Wednesday, March 10th, 2010

Today is Wednesday, March 10th and the market was drawn to the double top like a magnet today.

The market was drawn to the exact top of its January high just like it had wings. As soon as it was hit, a reversal was in place with the S&P futures, falling 7 points over the next hour. The market swung back and forth for the rest of the session to close up on the day about 6 points.

The volume was little better today, I think I saw it was around 2 million contracts traded. The early session saw about 4 waves higher to the top. There was some nice trades to be had there.

I had limited time today, but found myself looking at the session around 8:30 am West Coast. I tried to see if I could pick up something before the market went to sleep and today it stayed awake, first day in a while. I saw the top in the market and first picked up a small scalp for .50 point. I was going to wait to see if it was going to turn, but thought it had a few ticks in the trade before the downturn, I was right. It had 3 ticks in the move, I got 2 and was ready for the drop. I picked up+ 1.25 points on the first half of my trade and +1.75 points on the second half as the market continued to fall.

Those two trade took me exactly 10 minutes and there was 2 points. I took the rest of the day off to help a friend with some work.  At the close, I saw a quick scalp trade, so took it for .50 point. I don’t like taking trades at the end of the day, because you have no time to come back, but I knew it was only a one shot deal and my size was a little smaller.

I feel if I was prepared, focused and ready to really trade, could do quite a lot more, but I am not sweating it. I do like the fact that I feel some form of control over my trading, like when you are driving. If you want to go faster, you just step on the gas and prepare for the increased speed. In this case number of trades.

Having control over your trading is very important. This is something you want to strive for and is a worthy cause. If you find that you have a lack of control you need to do something about that. Don’t just do, what ever. Taking that approach, will be a mistake. You want to do what you do with purpose and self control.

The market does not drive you, you drive it. Traders need to create new patterns to replace the ones that are not serving them well. Creating new trading patterns takes time and is best done by repeating the desired outcome again and again. When you condition yourself to do what it is that you want to do, in time, you will have just that which you envision. Not doing anything, is only leaving your trading results to chance and we all know how that usually turns out.

Conditioning creates new patterns and your state of mind summons those patterns any time you call on that state of mind. Now, that is taking control of your trading which will take control of your trading results.

Just knowing, what you need to do is not going to produce the change. It is more than that and will take more of you, to move into action so that you can form new habits and rehearse the changes you implement.

Often times starting to make changes, any constructive changes is easy, but sticking with it and seeing it through to actually produce not only change for changes sack, but results. That takes discipline and again a lot is required from the trader, often to much. Sacrifice that he or she is not yet willing to make.

You need to ask yourself, what are you willing to do to reach your trading goals. Are you willing to balance your life, with all of the other things that need your attention all while not taking your eye off the trading ball. Tending to other obligations and duties, is just as important as studying your trading method and what constitutes a trade signal. If you are out of balance, outside pressure will build up, and that is going to have an effect on your ability to concentrate, focus and exercise the patience needed to wait for the trades to come to you.

So, examine your self and be willing to balance your day with the right kind of focused attention, giving each area what it needs to get the job done and remain balanced. Having a passion for trading can work against you if you let it. So, “DON’T DO THAT”.

Identify, area’s of change and or improvement, rehearse it again and again. With time it will become a good trading habit and that is one worth keeping.

Good Trading ! Vince     Today’s Trades below

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Business Plan

Friday, February 26th, 2010
# Contract x $50 per x1 pt. x 2pts x 5 days wk = $ ——– Weekly Draw

1 x 50 dollars pt. x 2 pts x 5 days wk $500.00
2 x 50 dollars pt. x 2 pts x 5 days wk $1,000.00
3 x 50 dollars pt. x 2 pts x 5 days wk $1,500.00
4 x 50 dollars pt. x 2 pts x 5 days wk $2,000.00
5 x 50 dollars pt. x 2 pts x 5 days wk $2,500.00 $250.00
6 x 50 dollars pt. x 2 pts x 5 days wk $3,000.00 $500.00
7 x 50 dollars pt. x 2 pts x 5 days wk $3,500.00 $750.00
8 x 50 dollars pt. x 2 pts x 5 days wk $4,000.00 $1,000.00
9 x 50 dollars pt. x 2 pts x 5 days wk $4,500.00 $1,250.00
10 x 50 dollars pt. x 2 pts x 5 days wk $5,000.00 $1,500.00
11 x 50 dollars pt. x 2 pts x 5 days wk $5,500.00 $1,750.00
12 x 50 dollars pt. x 2 pts x 5 days wk $6,000.00 $2,000.00
13 x 50 dollars pt. x 2 pts x 5 days wk $6,500.00 $2,250.00
14 x 50 dollars pt. x 2 pts x 5 days wk $7,000.00 $2,500.00
15 x 50 dollars pt. x 2 pts x 5 days wk $7,500.00 $2,750.00
16 x 50 dollars pt. x 2 pts x 5 days wk $8,000.00 $3,000.00

This first 16 week section is the bedrock or foundation for going all the way. Not many people will be able to do this, I tell you that right now and up front. These results are not typical and I am not representing them as such. That being said, it is possible.

Just because most people do not have the discipline it takes to realize these results and the ones from below, does not mean it can not be done. It is up to the individual and their drive, passion, hard work and dedication to make this a reality for those that want it.

Many traders are quite satisfied to trade smaller lots and stick with that. I would add, it is easier to trade small size for the most part. When you increase contract size, it usually changes things for most people. Notice how I said, most people. Maybe you are not like most people and in-fact do not want to be put in a class with “Most People”. I don’t blame you, I don’t either.

What I am saying is, if someone does not lay out the possibilities to attain a specific goal, he will never know how to achieve it or even the idea of achieving it, will be foreign to him. So that is why I lay it out as such, for seeing the possibilities of what the exceptional could do.

The most difficult part in reaching this goal is not attaining the 2 points per day to acquire the results, but it is in the mental preparation and “mind games” that people allow themselves to become subjected to.

As you increase your size, there may come a point that you start to get affected by the money. You may say to yourself, “that is a lot of money, I don’t know about that, maybe I should trade smaller”. Here, the money is affecting your decisions and may start creating problems for your actual trading results.

In this case, it come down to personal choice and meeting your overall objectives. If your goal is to earn 200,000 a year at trading, that is a worthy goal. You may only need to trade up to a specific number of contracts and stop at that point. (The number of contracts to do that is 8-9 contracts at 2 points per day, that is do-able.) What you feel comfortable with at that time. As your account grows, you may feel more comfortable with increasing your size and you may not. Again, personal choice.

If you decide to go to the next level, it usually does get harder, but it is only in your mind. If you stick to the plane and do all the things I teach in my trading manual, listen to the mental exercises two or three times a week, which will allow the neuro-linguistic programming their to take effect and in addition, work on yourself as I explain, there is no reason why you will not have a shot at moving on to the next level.

17 x 50 dollars pt. x 2 pts x 5 days wk $ 9,000 $ 3,500 wk
18 x 50 dollars pt. x 2 pts x 5 days wk $ 9,500 $ 3,750 wk
19 x 50 dollars pt. x 2 pts x 5 days wk $ 10,000 $ 3,000 wk
20 x 50 dollars pt. x 2 pts x 5 days wk $ 10,500 $ 4,250 wk
21 x 50 dollars pt. x 2 pts x 5 days wk $ 11,000 $ 4,500 wk
22 x 50 dollars pt. x 2 pts x 5 days wk $ 11,500 $ 4,750 wk
23 x 50 dollars pt. x 2 pts x 5 days wk $ 12,000 $ 5,000 wk
24 x 50 dollars pt. x 2 pts x 5 days wk $ 12,500 $ 5,250 wk
25 x 50 dollars pt. x 2 pts x 5 days wk $ 13,000 $ 5,500 wk
26 x 50 dollars pt. x 2 pts x 5 days wk $ 13,000 $ 5,500 wk
27 x 50 dollars pt. x 2 pts x 5 days wk $ 14,000 $ 6,000 wk
28 x 50 dollars pt. x 2 pts x 5 days wk $ 14,500 $ 6,250 wk
29 x 50 dollars pt. x 2 pts x 5 days wk $ 15,000 $ 6,500 wk
30 x 50 dollars pt. x 2 pts x 5 days wk $ 15,500 $ 6,750 wk
31 x 50 dollars pt. x 2 pts x 5 days wk $ 16,000 $ 7,000 wk
32 x 50 dollars pt. x 2 pts x 5 days wk $ 16,500 $ 7,250 wk

So, you decided to go for it. You will need support. NO DOUBT. Trading for Big Money does not come easy. When things get a little tough in this section, you will need someone to help you through.

I offer support long after the purchase of my course and anyone scaling up their contract size over time is going to need help in keeping perspective, clarity and focus when targeting higher objectives. This is not an option. If you need and want much more time to attain these higher goal objectives I am sure we can work something out. Just let me know.

I currently have a small group of traders and do plan to grow, but I am not interested in growing into very large group. This way, I will have time to address individual needs from traders as the process of meeting their daily trading goals unfold.

33 x 50 dollars pt. x 2 pts x 5 $ 17,500 $ 7,250 wk
34 x 50 dollars pt. x 2 pts x 5 $ 18,000 $ 7,250 wk
35 x 50 dollars pt. x 2 pts x 5 $ 18,500 $ 7,250 wk
36 x 50 dollars pt. x 2 pts x 5 $ 19,000 $ 7,250 wk
37 x 50 dollars pt. x 2 pts x 5 $ 19,500 $ 7,250 wk
38 x 50 dollars pt. x 2 pts x 5 $ 20,000 $ 7,250 wk
39 x 50 dollars pt. x 2 pts x 5 $ 20,500 $ 7,250 wk
40 x 50 dollars pt. x 2 pts x 5 $ 21,000 $ 7,250 wk
41 x 50 dollars pt. x 2 pts x 5 $ 21,500 $ 7,250 wk
42 x 50 dollars pt. x 2 pts x 5 $ 22,000 $ 7,250 wk
43 x 50 dollars pt. x 2 pts x 5 $ 22,500 $ 7,250 wk
44 x 50 dollars pt. x 2 pts x 5 $ 23,000 $ 7,250 wk
45 x 50 dollars pt. x 2 pts x 5 $ 23,500 $ 7,250 wk
46 x 50 dollars pt. x 2 pts x 5 $ 24,000 $ 7,250 wk
47 x 50 dollars pt. x 2 pts x 5 $ 24,500 $ 7,250 wk
48 x 50 dollars pt. x 2 pts x 5 $ 25,000 $ 7,250 wk
48 x 50 dollars pt. x 2 pts x 5 $ 25,500 $ 7,250 wk
49 x 50 dollars pt. x 2 pts x 5 $ 26,000 $ 7,250 wk
50 x 50 dollars pt. x 2 pts x 5 $ 26,500 $ 7,250 wk
51 x 50 dollars pt. x 2 pts x 5 $ 27,000 $ 7,250 wk
52 x 50 dollars pt. x 2 pts x 5 $ 27,500 $ 7,250 wk

If you are on a quest for greatness, this section is where it happens. You will need all of the things mentioned in the section just above and now, more. If you are able to continue scaling up your trades and get an occasional day that you bring in 6 or 8 points, say two or three times a month, this will insulate you from the occasional day that you get stopped out at your daily loss limit. (-4 points) Having a daily loss limit is so important, I cannot express it enough. YOU NEED TO CONTROL LOSSES.

That is what is always needed at any stage. There would not be any reason to consistently trade for your daily goals and in one day or week, loose a ton or ground and cash. That is what happens to traders all the time. They make it fast and loose it faster.

You need to make it slow and hold on to it. In my trading manual, I lay out all the specifics on how to go about doing this and again, you will need some kind of additional support.

When you start out at week 2, after your 1st week warm-up, you will be risking $100 (1 point, $50 pt x 2 contracts) against an account of say $5,000, an average opening balance for many people. That represents 2% of your equity per trade taken.

After the second section from above, if you are still on course, your risk per trade is now down to .85% per trade taken. Very Good, considering that you have been taking money out of your account. After the third and last section, if you are again still on course, your risk per trade is down to a touch over .50% and that is outstanding.

Overall your risk is going down all along the way and you are taking cash out of the market. By doing this, you are lessening the impact that the money will have on you. You do not have it all on the line, something a gambler would do.

This is the reason why, I do think it is possible for the exceptional to achieve results similar to this. It, by any means does not happen very often, but again, do not let that hold you back. Just because others have tried and not been able to do it, does not mean that has to be transferred over to you, does it?

I DON’T THINK SO! and you shouldn’t either.

Trading for as lofty of a goal as described in this section is again not easy and it may be as previously stated that you trade up to a specific number of contracts and “Hold the Line, Stay with Me”. A famous line from the movie Gladiator. Sorry there, a little off subject. The point is, this plan is not for everyone.

A very attainable goal, is to start trading just one contract for the whole month. If you have averaged 2 points per day, high and lows, then you increase your contract size to two, for the month. If you do not get to a net 20 days x 2 points per day, you stay at one contract until you do. Then you can move on to three and so on.

If you stay close to this plan, with conservative daily targets of 2 points + an occasional windfall 6-8 points once of twice a month, you will be trading 12 contracts and on pace to making over $250,000 a year. That is making it slow and holding on to it.

For so many others, it will only seem like a dream and those that have failed will tell you, “It can not be done”. Don’t let anyone’s negativism take your dream. Back in the day, others who knew what I was doing tried to do just that to me. If I would have listened to them, where would I be know, no where close to what I have achieved.

In closing, I believe that trading for 2 points per day is achievable and feel totally confident in my approach in getting it. I don’t currently trade the size I would like, but that will soon change. Getting my daily goal and helping people get theirs has clearly defined my objectives at this time.

Good Trading to All

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Friday, February 26th, 2010

If you have 60 to 90 minutes a day, a computer, risk capital, the Internet, mental discipline and “Sniper Day Trading”, I believe you may have what it takes to attain financial and time freedom by Day Trading the E-Mini Futures.

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

Important Notice – Risk Disclaimer:

Futures Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any e mini trading system or methodology is not necessarily indicative of future results.

Daytrading Involves High Risks and You Can Lose A Lot of Money.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under or over-compensated for the impact, if any, certain market factors, such as lack of liquidity. Simulated e mini trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Additional Cautions

There are no guarantees or certainties in trading. Reliability of trading signals for mechanical systems are in probabilities only. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during the methods off times (and all methods or systems have off times) – If you are looking for guarantees, trading is not for you. Most people lose trading. One of the reasons is that they are not consistent and lack discipline. A method of system can help you become consistent, BUT you have to stick to the method like a formula. The ability to be disciplined and control your emotions is even more important than any technical indicators a trader may use. Worrying about the money aspect of trades (which is an emotion) can contribute to and cause a trader to make errors. It is important to trade only with true risk capital. You can find further information at: www.sec.gov

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Become Your Own Trading Coach, maintain control

Wednesday, February 17th, 2010

Today is Tuesday February 16th and we saw what I wrote about on Sunday nights posts a nice rally +169 Dow and +19 S&P 500 cash.

Well, Tuesday was the on time day. I put a chart at the bottom of yesterdays post and showed the target area. The minimum target area was 2 points shy at +21 points. We got 19 of them all today and suspect that we will get the rest tomorrow. That was the minimum move I see, but there could be more. I also wrote about it last week and called out the numbers a couple of times.

I was not able to trade today, first time since the holidays. I was just to caught up doing other things. Last Friday, I almost missed the trading session but came in after 12 noon West Coast and still picked up my goal. I have been working on updating my website and it is coming along as well as putting together a newer version of my trading method. It’s all still the same, but with some new things added. I am doing it in Power Point which is easier to move things around. Any current members will get the new material for free once I am done with it. Also working on updating my back office with new content, video’s and training. It is all a lot of work and I am just recovering from being sick and a hard drive crash, one after the other. WOW. That was a lot to handle.

Next week I will schedule time with students to go over their performance and stay in touch.  So feel free to call and schedule a time. This venture is more than about me. Helping others is the best way I know how to help myself. So far so good.

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One Key to success, staying in control while trading: There is nothing worst than losing control. You feel helpless and hopeless when you find yourself there. What can we do to maintain control while trading? This is similar to what I have been talking about lately.

When you lose control, of your trading plans and take non method trades, you only hurt yourself in the long run, even if the trade works out. We always want to establish exactly why we do what it is we do and when to do it, so that the pattern of maintaining control can be repeated. In order to do that, we need to have power in our will and over our emotions. As mentioned in earlier posts, there are many good traders out there that know how to trade, but their inability to maintain control when a trigger point sends everything spinning out of control, seems to happen all to often.

If these traders were able to replace the 3 or 4 really bad days out of the month that keeps their equity at zero or less, they would replace doubt and fear, with hope and victory. So how is it that we are able to reverse those very bad days with gains and come out with positive equity for the month. The battle is won and fought in your mind. Exercising self-control over your action is key, but it first starts in your mind. The thoughts you think are so important to you as a trader. Don’t underestimate it but embrace it, by going on the offensive. Battles are not won in retreat, but on the offensive. So, don’t hold back and take charge.

Everyone does not have the luxury of having a trading coach and many times we need to be our own coach, but make no mistake about it, we all need a coach. So, if you are your own trading coach, what would you tell yourself to do right now. The first thing any coach would do, is find out where you currently stand. How are your trading funds. Are you capitalized well enough to continue the journey. Once that is established and checks out, you should find out what is holding you back from going forward. Identifying the reason why you took those 3 or 4 large losing days is imperative to your future success.

If you are in battle and you are shot, the first thing a medic will do is access the damage and stop the bleeding. He knows if you lose too much blood, you die. Then, he will get you to base where he can perform possibly surgery. That process is going to be painful, but it is painful lying on the field with little hope. So the point is don’t expect fixing your trading problems as a pleasant thing. You may go kicking and screaming, but you know if you don’t, you stand to lose much more.

We need to be ”Men” and cowboy up. No one likes change, but do you want to meet your trading goals and be financially independent or would you rather let that dream pass you by as only a distant memory. I think most people would choose the first one. So what are you going to do about it. If you don’t have outside help, you will have to perform the surgery yourself. In other words it is going to be hard to force yourself to do what you have to, in order to  meet your trading goals.

These are only a few of the reasons why most traders don’t make it. Traders never thing that it is them, its always the other guy. I know this may seem a bit brutal, but, this is exactly what I am talking about. Face your trading problems with an action plan. Get motivated to do the things that are going to produce change. If you identify something that is holding you back, but you find yourself saying to the solution, ”I don’t want to do that”, then you know exactly what it is that you MUST DO to slay that dragon.

Let me end it this way; Behavior is patterned, how we think, feel and act have a pattern to them and that patterning is what make us who we are. The sum total of our patterns is our personality.

The same is true as a trader. Our trading has patterns, some good and some not so good. What we think, feel and act while trading makes up our trading personality and some of us need a make-over. Find solutions to the things that hold you back and force yourself to change. I will have more specific solutions in the posts to come, until then,

GOOD TRADING !

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Instilling Confidence as a Day Trader

Wednesday, May 6th, 2009

Today is Wednesday, May 6th and  we have new highs on all the Indexes.

Well, I was wrong on the overall pull back call yesterday, because we did see new highs before we saw new session lows come in. I did mention that the overall trend is still up and we are working off of a previous call I made of two weeks ago, that the market was going to likely drift higher because everyone was expecting a big pull back. It did not come. The sentiment changed last week strongly in favor for a rally, because there were so few people that were bullish. That’s just the ingredients you need for a continuation of this move.

I have included a daily chart of the S&P Cash market below. It is just a pure chart and you can see that the current trend is still intact. We do have a rising wedge in an uptrend and usually when a formation like that is broken, you see some pretty good movement in the opposite direction. It is still pushing itself higher towards what I have identified as serious overhead resistance. If it pushes up to the purple line over the next week or so, LOOK FOR PRICE REJECTION at around that point. It also happens to be a double top from some time ago and the two are about at the same level.

The extra move to the upside will probably cause traders to start believing in this rally and start buying at the top. This may only be a short term top. A  pull back of some significance should take place, but we will have to watch price action to determine how much it will actually pull back. If good news keeps coming in over the next few months, it may break through that purple line and continue its climb up. I will be able to see, either way by the current price action, but until then we will have to wait and see.

To sum this part up. If the Wedge gets taken out to downside, we will see some heavy down days, but until then the trend is up with a short term potential target of 950 or so, (the outside purple line). It interesting to note that the Dow has broken it’s outside trend-line already a couple of days ago and is pushing higher. The Dow’s  resistance area is still about the same percentage moves as the S&P.

In today’s trading I did very well picking up about 4 times daily goal with only a few trades. I had some big gainers. My first trade was a loss, but the rest of them were all positive trades. Funny thing, I moved my stop up a little after my first trade entry and that is what took me out. The next trade I pick up a nice move short. I almost got stopped out, it was close, but I made it through a rough spot without moving my stop and it worked out real well.

I have been taking my time this week before placing my first trade and that’s OK. I have been trading on open this whole week and that is something I have not been doing. Getting up earlier is an adjustment for me, but I am sure I will get used to it. By the time I usually start, I have the benefit of seeing ongoing market action for some time. I get to see if we have been trending or in the Chop.

Again, it is not bad to trade on the open, it just takes a little adjustment. Many times the market does not like to telegraph the early morning direction and make it easy for traders to find the trend so they can get on the Bus for a ride. Head fakes are often what you see in the beginning of the open, until the real first move of the day takes hold.

Instilling Confidence as a Day Trader:

What is it that most struggling day traders lack? Well, let me answer that in two ways. As the title above states, instilling confidence. Most traders lack a REAL SENSE of confidence when they trade. That is understandable, because the things that you need to do to be successful are not natural, they usually go against the grain of conventional wisdom. But one of the things needed is confidence in your ability to get it done. Put the trades on as part of your planned out strategy and complete the trade.

Notice that I said planned out strategy. Not every trader placing an order has a plan and even if they do, it is likely flawed as it is tested over time. It is not easy to even know what to do and how, let alone be consistent at it. That is why you need a trading method and plan to follow it. You need goals to strive for that are modest. You need the ability to overcome obsticles when faced with it. These are all things I have talked about before, but bear repeating. You need to identify what you are doing right as well as what you are doing wrong. Take steps to overcome your bad habits and develop new habits of SUCCESS as you learn.

Doing all of this will establish confidence in yourself. Making small attainable trading goals each day will take fear away and replace it with what you need. Many traders think that they have a trading plan and they would also claim to have confidence, but this can be FALSE CONFIDENCE and ultimately lead you to an empty trading account.

You need to be honest with yourself, you are responsible for your trades. When your trading plan hits the rocks and you are struggling, do you know how and what you are going to do? Are you going to allow frustration to creep into your mind and start a round of REVENGE TRADING, or are you going to continue to follow your plan? All things that need to be addressed before they happen, if you wait, it could be too late.

Too many traders seem to be in a hurry. Slow down and take your time. The trading markets are going to be around for a long time. Allow yourself to absorb your new trading habits and keep building on the positive ones.

http://www.screencast.com/t/LG8C6TFWv Daily Chart

http://www.screencast.com/t/mk1PMH4TM Today’s Equity Chart

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Trading Discipline, Part 2

Tuesday, April 14th, 2009

Today is Tuesday April 14th and another large gain for the day.

I had a nice return on my time invested today for solid gains. I will get right to it with the stats. I had 20 gains, 3 break even trades and 3 loses. One of the losses was rather large, with a double position and a little larger stop than I usually take. That was early on, but came right back to forge forward into new equity highs. I ended the day at + $3,000 with very little draw down except that early trade.

Very happy with the results overall. I missed the large swings in the early trading. That makes it a lot easier to get the hit and run trades that I like to put on. It is harder to trade a slow moving market because it keeps you in the trade longer. Any time you are in the actual trade, there are forces working against you, straight up. You cannot get away from adversity, but it is how you handle it. A very large part of success is between your ears and we all need to remember that. Every other trader across the globe is having to deal with the same issues on a daily basis. The difference is going to be, who is going to handle the pressure and come out on top?

Having targets and stops built in, is a way to cut down the adversity that takes place. Many people argue that if you have small targets, it is not enough to make up for your inevitable losses. That can be true, if you have more losses than you have gains. In addition, if you stay too long, you may lose your concentration and give back your hard earned equity. All things to remember, especially if you are fairly new to the game.

I have heard it said that when you start and open a trading account, don’t deposit too much into it, because you are going to lose it ALL. This is actually not too far off and it’s really true if you try and go it alone. The world is full of S&P day traders who think it won’t happen to them. That’s the kind of thing that happens to the other guys, but not me. Well, I hate to break the bad news to would be traders who think they have a handle on this, work on your discipline after you know how to trade and what your looking for.

If you have one without the other, you are doomed. You will need to exercise discipline, just like a group of muscles at the gym. If you zero in on that quality, you can improve it and get stronger. This may be a foreign idea to you, but it is totally necessary to your success.

Here are a couple of ideas. I stated before that your environment has an effect on your trading results and that is true. A clean, neat work space, that is organized and in place, makes and has an effect on you mentally. It can have a reflection to your inner world, which translates into clear thinking, patience, focus, etc, resulting in better trading performance.

Now just think about other elements in your life that can have a similar effect. I don’t mean to get personal, and maybe I can just talk about myself to make my point. My goal is to create a home life that is balanced and also in order. By tending to the things in my life that have real true meaning, it helps establish a foundation of stability which gives me a sense of well being. This may not be for everyone, although I feel what everyone needs to know is “Why are we here on this earth?”

I ask myself this question often and it reminds me of what is really important. It is a way of centering myself with the busy lifestyles we all tend to live. The answer to that question is going to be different for everyone and I cannot answer that but for myself only. I get a great deal of peace when I reflect on this question, which then helps me to become a better husband and father to my grown children. It also provides the balance I need in my life to help me compartmentalize my trading goals and pursuits. If I do not exercise balance in that area, I may devote too much time into trading and letting other responsibilities get away from me – the ones that really mean the most. So it all boils down to discipline and remaining in control of your emotions and leaving your trading EGO at the door.

As a trader we will have those trades that bring us nice returns, but always need to remember that this is not easy to master and you need to remain Humble. That too is a form of discipline, to hold yourself back from becoming emotional after a nice gain. It is normal to be excited, but you need to see it as just one trade in the path of many that will eventually take you where you really want to go. That may be spending more time with your family, vacations, helping your neighbor with a project. These are all the things that a successful trading career can give you.

Just remember it’s not all about “us”.  What can we do for others?  You may be surprised, but that attitude will have an effect on your trading results and all for the better. It may say, “I have enough in me to give some away, whatever it is.” With that approach, you open the door for additional resources to find their way into your life, i.e., a growing trading account that seems to always expand.

This is what I find to be true in my life, anyway. I hope it helps someone out there to better handle and exercise discipline in their trading ventures. More to come on this subject. It’s a big one.

http://www.screencast.com/t/72VlG1w2 Today’s equity chart

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