Posts Tagged ‘trading indicators’

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New Stock Market Move Now Confirmed

Wednesday, September 14th, 2011

We are seeing a new market move confirmed in my opinion as of this Wednesday September 14th, 2011. I just took the time earlier to apply the Sniper Day Trading Method, to the all the individual charts of the Dow Jones Industrial Average and found my answer. I thought we were at least going to hit the 1176 number today and wrote about that last night while the night trading was down to 1148. That would be a 28 point S&P turn around, or 280 point equivalent in the Dow for the coming session.This was all from a much lower levels that I first made this call and today that was hit.

I know have any hesitation satisfied as to the move after that, as I mentioned a few days ago in my blog posting that the next move was conditional. If this, then that. The “this” was a close above 1180 on the S&P would take us up substantially. I don’t remember exactly the number I gave then, but it was around S&P 1245 or so.  In looking to my work, today, that is the number  I feel very comfortable in projecting prices to. It should come pretty fast and as I see now as I write this while the market still has about 90 minutes to go before the close, it would appear that we will close above the 1180 mark and thus confirming the call earlier in the week.

In applying the Sniper Day Trading Method to the daily market, I can see the confirmation of the move. If I had done that work yesterday or even a few days ago, I would have had the greater conviction to make the call. The stock market is fractal in nature and the same principals that apply in a tick chart or time chart can be applied to a daily and or even weekly chart.

Since I mentioned stocks, the trading method will work excellent on stocks in the various time frames. It could go to the daily market and or much smaller time charts, tick charts or range charts. People trade these markets and they are usually very predictable with there decisions when you apply the trading method to it.

I will make another call that looks like it is getting ready to move. There is currently no indication of this market doing anything substantial as of now, but in the days to come, I feel we will see a huge drop in the price of Gold, and Silver will be going along for the ride. I can quickly see a $150 dollar drop in Gold coming as the stock market continues to advance.

This drop in Gold is likely only temporary but it will non the less likely happen. I am looking for something to happen around Friday, but it could come as soon as tomorrow. This is all my opinion and something I have been watching and waiting for to call out. I could be wrong, so don’t take my advise to trade off of, use your own judgement and make your trading decisions in that area, as I am just giving my opinion on the matter.

In today’s trading, I had two trades for solid gains while only investing about 30 minutes start to stop for the session. I will post my trades in the chart below. One note, and I often mention this that the trading method is not about following indicators, it is about knowing how to trade by being able to read the price action. I do this in a very unique way far different from so many others. This is my own compilation of understanding markets and how to limit ones risk by being able to enter with very little draw down and virtually instant price movement gratification.

With all of that said, the trading indicators are extremely consistent with the trading method and it’s components, so following the indicators can help learning members get a handle of the turning points that happen through out the day. The method is customizable to the individual and can be adjusted to the markets you trade and the dominant time frames you currently use. I trade for short term moves mainly on the S&P emini, but that is me. The days session and it turning point and continuation points identified below.

As I finish writing this, I can see that the market moved up into the 1190’s and is settling back to around the low 1180’s. On the very short term, as in tomorrow’s morning session, a pull back to 1168 would be very normal and could be expected, so just be cautious and aware of that. Again, that is just my opinion and not trading advise. Best to you all !

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Huge Market Reversal after Bernanki Postpones

Saturday, August 27th, 2011

In Friday’s market we saw a huge market reversal that was orderly and structured. The market traded with purpose and conviction with huge trends that were very trade-able.

In a daily picture view, the market is marking time for a possible continuation move to the upside, but we could consolidate here for a spell. It would not be uncommon for price to hang out a little longer before a break of the last highs are made, but would have to leave open the possibility for the market to break to the down-side too.

It is possible and I have to see it that way. I won’t marry the trade, but leave this open as price attempts to continue its assent to higher prices.

I have a larger tick chart than normal, that is squeezed together, showing the trading signals generated or that one could have traded. This is a higher time frame, so you will get fewer signals but they will be much larger.   You would only need to catch one move out of the many in the session to make big money.

With this model, a target of 2 points initially, than moving to trail you position would have served you well. Trading multiple contract you can do that, and lower your risk as your maximum stop on this trading model would be 2 points. When you see a choppy market, this can easily give you a one to one ratio in a 2 point target with 2 point stop. You can go back over the last long term chart I posted and see how that would have served you.

The interesting thing is the trading method is not the trading indicators and really does not have anything to do with the method per say in only that the exact same signals at the exact same area are identical. Don’t get me wrong, we use the indicators to confirm in what is present for all different reason, but again, still consistent with the method overall. It is amazing to say the least.

It sure is nice to look at. Going back, the data really always looks the same. The moves are just not as big as they are now, because of the increased volatility in the market.

I just did a video for my members where I took this chart back for 10 days and marked up the all the past data with trade-able turning points that would be consistent with the method and did it in a 5 minute video, then went back and inditified with a verticle line all the entries and they were amazingly consistent with the custom indicator I show. I was not looking at the indicator to get the indicator turning point, but the price and its structure. That was a cool exercise because I had not looked at the past data before I did the video and was able to fly through 10 days of data turning points and telling why on many as I zoom through.

Being objective is what is always necessary to be able to trade this way. If you have strong opinions you wont’ see the turns. That is one aspect of the mental side of trading.

Traders face constant challenges while trying to out flank the markets. You need to end up profitable at the end of the day, with being right only an after thought of no consequence.

In a study by psychologist, they conclude that humans when fixing on an idea, we see what we want to see.

If we create mental maps and we have conviction to that map, we will blind ourselves from the reality that exits before us. We tend to overvalue those things that we own. Once we own a market opinion we tend to over value it.

We only see what we expect to see and are then blind to reality. A closed mind will cause you to miss data and not look at it objectively.

The professional trader has the conviction and boldness to act and the humility to accept that there may be more they don’t see at that time.

When looking at the market, an empty mind can do wonders for your bottom line.

All that to say, that a trader can trade at those market turns I have marked in this post and all the other ones if you are trained. The mental training goes with this along with ongoing training through out the week.

I have seen many trader excel and find there way through this trading method to be left with a hope, confidence and an increasing bottom line. It is all up to the individual and there determination to learn. It is all there for the taking, you need to have the passion and desire to go with it to keep on going even if get hard.

That is why and where mental training with a great trading method is key for success. You need the ability to follow through and not let your emotions over-ride your judgment.

That is why we never marry a position, but let the market tell us what it wants to do.

A simple approach is like I mentioned to approach this with a 2 point target and 2 point stop. You would have done well, and with a little more skill, the ability to discern when to ride up a portion or all of the move to higher prices. That does take a little more time, but it is within the method to learn when and on which trades to go for more.

OK, that’s it today, I will be back trading after labor day and will continue my posting of trades then. Enjoy, the rest of your Summer, it is going fast.  Vince

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Posted in Market Consolidation | No Comments »

Additional Market Risk & Exposure

Wednesday, August 10th, 2011

The markets are in a hot zone right now, with volume and moves accelerated greatly. This can be a good market to trade if your trading platform is solid and trade execution speed lightning fast. That is not to mention, if your timing is off and you are not precise with your entries, you will take unwanted draw downs and losses. You need to be on your game if you want to participate. Anything less and you will be taking on a lot of additional risk and losses and your efforts will seem more like a gamble.  Anytime you do not posses the trading advantage, you are just guessing and I don’t have to tell you the results of that kind of effort.

Be selective, wait for the best entries with this kind of market. You don’t want to over expose yourself to this market as it can chew you up and spit you out. So, an underexposure is really best, but trade if you must with as much precision as you can. A stop loss for a typical trade a few weeks ago might have to be doubled and or tripled to have the same margin, but the targets need to be double or triple as well, to compensate for the additional risk. In addition, traders should consider to lower there contract size if they do not want to take on additional risk. Being aggressive in this kind of market can bring in windfall profits, but it has a lot of additional risks and can be a double edge sword.

In today’s trading, I wanted to trade the pre-market, but I was not up and ready in time, I just took a little extra time to relax and prepare after the markets active opening. We did see a little slower action a couple of hours into the day, as compared to the open and made two trades in total for the day. The first one, had good timing on the entry, very little draw down and ended up getting stuck in the trade as I tried to exit on a limit order in a falling market. A couple of attempts and I found myself all the way back down and then some for a stop loss of 3.50 points. Next trade was the same type of entry in a quiet small consolidation area, with very little draw down and great movement with the first exit a market order for +9 points and the second one for a stop market of 8.50 points. A good day, with no need to push it in about 60 minutes of trading.

I have the turning points marked up as per the trading indicators, but this is not the trading method. My trading is price based which takes into account time, space (movement) and energy. I won’t go into it, as I usually don’t, but I like to show those who look on that there is a basis for price movement that they can understand. Trading indicators are used by many a trader and it is something that others can relate to. So, I make that part easy in showing how price correlates to the indicators. This can be very helpful for many as they learn the price action part of the method, which is where the real power of this method comes in at. The indicators do a nice job of confirming the method as you can see hundreds of times in the daily postings I put up.

What ever your method, be consistent in doing the same types of things when they are warranted. This way, you will be able to repeat your success as you move forward. I wish all my reader the very best.

Trade well and committed, Vince

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Scalp Trading & Market Timing

Wednesday, July 20th, 2011

Today is Wednesday July 20th and the market took a bit of a pause today. Still good trading opportunities to be had and I picked up my share.

Today, I just went into scalp trading mode as I had 6 trades all for gains, but small.  A nice follow through day coming off of yesterdays big day. Small scalp trades are just fine, they add up quickly as long as your market timing is good.

All I have to do is just stay the course and I will see another week of daily gains. I will not put myself under any undue pressure, as I take the days as they come. I have no expectations on what I want and think I should get. Its not up to me to decide. I only need to read what I see and the rest will come out just fine.

The market will only go one of two ways, so it should not be to hard. I say that jokingly. Market timing is so important, it can not be overlooked as it is usually the dividing line between profitability. Good market timing is entering the trade with the least amount of draw down against you while getting the move going in your desired direction. Timing is not much of a problem, as if you have a good trading method to tell you when to enter, you need only follow it and I don’t mean the trading indicators.

Traders need to know why and when prices move apart from the trading indicators that they use or do not use. If you don’t know why, you will  eventually get sucked in to the markets mind games and left for dead. On the other hand, if you do know “why”, that will make all the difference in the world. First know why and then you will know when. Do You Know?

Let me post my trades below for today’s session as this will be a short posting.   Trade well, trade committed.

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Posted in Scalp Trading | No Comments »

Buy and Sell Zones

Thursday, June 23rd, 2011

Today, we saw volume swell in the S&P emini futures market to double the average, over 3 million where we have been used to seeing 1.5 million contracts traded.  All of that volume seemed to push the market around a great deal, which is nice to see in general. A moving market means opportunity and that can mean money.

The market closed at the highs of the session and only down slightly from yesterdays open. That kind of buying off the bottom is usually a good sign for follow through in the coming days. The up move from this recent bottom has been taking its time, as we saw a back fill, into the middle of range with buyers coming in strong.

I just checked the news and it seems that some kind of financial deal for the Greek debt has been struck and it looks like the market liked it. It sounds like a good reason for buyers to bid up prices and they did later in the session.

Below are my trades for the day in the S&P emini futures. I have the chart marked with buy and sell zones.

I could not fit the whole day in as the volume was just to high. These are tick charts and as the volume increased, more bars are posted and the chart gets filled up pretty fast. I plan on doing a U-Tube Video of today’s action, that way I can cover the whole day and give a few comments about it along the way. You can go to the video gallery section on the top right corner of the web site and click there to view it if you care to.  In that video, you will see the whole days, buy and sell zones as I go through the chart. The most resent one will be today’s but have not yet as of right now put it up. By the time you read this, it should be done.

I always say that the trading indicators are not the method and that is very true. We look at three time frames and this is the smallest one. For those you want to get the bigger picture, the largest view does a nice job to spot overall direction when combined to the trading method.

The middle time frame, which I hardly ever show, is virtually the same chart as this but adjusted to scale, giving the same indicator signals exactly. This is the zoomed in view to best pin-point price entry. These two charts fit inside each other like a glove and is a very beautiful thing what taken together.

I successful trading method has to I believe start with understanding and trading the price. If you only lean on the indicators for-ever, you will not be learning to think as a professional. Most of these market turns telegraph there intentions, but you have to know how to read it and then trade it consistently as the trading method calls for. Without a road map, traders are left to follow there emotions and that is what many end up doing. You will never make it as a trader long term if you don’t have a set methodology that you follow. A two or three day win streak will quickly come to a halt when you are pulled in several directions and just find yourself guessing. That is no way to trade, in addition, you wont last. So many traders want to go it alone and figure it out themselves. You can do that, I know I did. I would have to say I had a pride issue and just didn’t want to get formal training. I paid for it anyway, handsomely as most trader do.

To learn the art of day trading for a living, is an expensive endevor. Most traders will pay there dues one way or another, but keeping it as pain-free as possible is the most desirable.

The main thing is keep learning and do the hard work. Don’t overlook working on yourself which most traders do. Work on discipline issues, patient issues, physical issues. Train your mind and body to do battle, but let it be a battle of your choosing. I prefer the example I gave in my last blog post as a Sniper. Still engaged in battle, but it is low impact. You wait for your enemy to come to you and then strike. You don’t have to do the GLADIATOR  thing and fight to the death on every trade. So, the point is work on yourself and come to the markets with the mindset that you are already victorious and your enemy does not even know it.

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Posted in Price Action | Comments Off

Trading Course & Mentoring Program

Friday, May 20th, 2011

This post is for Friday’s market May 20th, 2011 as we saw the market initially move lower, then back higher and finished off on the lows of the day -13 on the S&P futures and -93 on the Dow Jones.

I had pointed out the resistance area overhead and told my group that we were likely going to move lower off the open exactly where we ended up within the first hour of today’s trading. In addition, I mentioned several days ago after first hitting the resistance area overhead 1344/1345 that we would likely move back down to the 1316 area by Wednesday at the latest. So far that is turning out to look like a good read as the markets did close on there lows for the day, a solid sign of weakness coming on Monday, but we will see.

The market is getting into position to soon break down or rally back up. the 1316 S&P area is very significant and we should hold above that number give or take a little. I will say, that 1310 on a closing basis is the line in the sand. This is just my opinion and not investment advise, but that number, 1310 needs to hold on a closing basis to remain in the uptrend as I see it. I think we will revisit the 1316 area the first part of this week and bounce once more and then we will see.

A break of 1345 on the upside will likely get things going up again, so that is the number to watch there for the longs.

I did not trade all this week as I had to tend to some family matters that took my early morning days. I did not mind the break as it has been the first week off of any length for months. I hope to be back trading this coming week but I may need to just play it by ear. I have a video of today’s turning points in the smallest time frame chart I use, with just a simple view. I have taken off few things but have left a few things for you to see how a trader could use the indicators I show to his advantage. The indicators are only a reflection of the trading method and is not the method by any means. I teach how to read price action and not indicators, as they are not needed at all to get the same entries as shown. The indicators I show do a pretty good job of reflecting the trading method, but I don’t say to much more than that. There is a lot to it, and is of substance one could build on nicely. I have much more I don’t show, but as I have said before, something is better than nothing.

The trading method and course is not hard to understand, but it does take work to absorb and is very unique. I don’t think there is anyone doing what I do in the way I do it, out there. It is a unique combination of things that I have found to be very consistent and reliable. In addition, it carries with it the potential to carry a very small stop on most trades if you so choose.

There is more than one way to trade the method as well. A trader can take the trading method and build upon it to help him make it his own, personal to him. That way, you don’t have to change the dominant style of trader you are to make this work. To customer fit the method to the trader is ideal. This type of outfitting, has the best results long term for success. You don’t have to turn yourself into a round hole, if you are a square peg. OK, that may not be the best example, but I did get a laugh just now.

I think you know what I am saying. The principals are all there to tailor the method to you. If you like to trade for bigger moves, and trade less, time frames can be re-arranged to account for that. If you like to do purely small scalp trading, of as little as 3 tick to 2 points (and carry a 3 tick stop on most trades), that is available in a different model screen set up called my T-1 trade screen, (never shown). There is a lot more in between as well, to much to explain, but I do know that fitting your trading style to the method is the way a trader will get the best results. In addition, a lot has to do with how much time you have to trade or want to trade, to make a few points for the session. Its all a beautiful thing.

If you are looking for something that works and can work for you, this could be it. I don’t often tout my trading method in my blog writings, but once in a while I do, as I am proud of my accomplishments and how it has helped many traders reach there trading goals.

I often teach and give out a steady diet of the mental side of trading as well, which is so often overlooked. The mental side of trading is just as important as the technical side of trading. This is where getting the desired  results can make all the difference in the world. Some traders need help in this area, to make sure they follow the method and don’t beat themselves for no good reason.   There are a lot of reasons for this and the topic for another posting, so give it some thought and see if  the  trading course and mentoring program, might be for you. If you have questions, I always take more time than most to give you complete answers to any questions you might have.

Wishing all my readers the best going forward,  Vince

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Posted in Day Trading Course | No Comments »

Trading Discipline and Self Control- do you have it?

Saturday, April 16th, 2011

4-15-11;  Friday’s trading, was met with little struggle and little draw down after the entries. I only took three trades all gains and plenty for meeting my daily trading goal. I know I always repeat this, but it bears repeating. The trading indicators are not the trading method. There is a complete trading method built around price structure, a unique form of support and resistance and the use of momentum as it all relates to keeping draw downs small and getting the price to move out in my favor right after entry. The trading indicators I show here do very closely mimic or copy my trading method and I do find it very helpful at times to confirm what I am doing with the trading method.

It is still amazing to me that it all comes together the way it does and all I can say is that I am very thankful that I have come to learn all of this over my long trading career since the early 1980’s. I have seen a lot and have make every mistake know to man as it relates to trading, so I write and speak from experience and all I can say is that this stuff works, straight up. We are the ones at times that don’t work and that is where trading discipline and the controlling of our emotions is vital to our success. I will pick this up down below, so keep reading.

Friday’s trades below, which marks two weeks of daily gains in a row, and all of which is posted here daily for all to see.

Friday’s market was filled with good trading opportunities as we saw mostly upside buying pressure, to close on a positive note. We are likely to see a little more follow through come Monday’s market, but do believe that later in the week, we could see selling pressure come back in and take the market down to very key support at 1290 in the cash S&P. That is going to be a very important area. We may see one more bounce up off that area and that will tell us more of what the next move will be. Going forward just another move, if a bounce then comes back in off the 1290 area and then we break that, to the downside, that is going to be the turning point for a big sell off.

There is a lot of forward projecting here, but we first have to see how it shapes up. Recap; Monday’s early morning move to 1325-26 area, then bigger move back down during the week to 1290 area, then bounce up slightly off that and then we will see. A break of the 1290 area on a closing basis, is going to send the S&P into a sell off of a minimum of 100 S&P points or more in pretty quick fashion, 1290 to 1190 at a minimum with 1155 very reasonable as a destination area for that drop.

If the market holds the 1290 area and try’s to mount a continuation rally, we will just have to wait and see for that. With a massive shift in market sentiment, I am lead to believe that the break is going to take place and we are now only getting into position for a drop but I will update this as we go forward to confirm.  This is all my own opinion and not considered investment advise. Consult your own financial people before you make any trading decisions.

I look at market structure and that pretty much tells me, what is coming next. I have been doing this in small times frames with a great deal of accuracy and it is no different with large time frames. The stock market is fractal in nature and what that means is, that the same types of formations exist at all levels, whether it be in weekly charts, daily charts, hourly charts, minute charts or tick charts. Fractal, the same at all levels. The exact market flow exists at all these levels and is a reflection of the masses that drive them. Since people are basically the same in their make up, emotions of fear, greed, self-control and the lack of it, you can come to expect the same type of market behavior at every level.

Day Trading is achievable for those who want it, but there is a price to pay and that price is dedication, trading discipline and self control. If you don’t have those qualities, you can acquire them. I believe everyone has the ability to change. If you don’t see those qualities in your daily life in general, you won’t all of the sudden be able to muster them up when wanting to trade the markets, you will loose. On the other hand, if you have the dedication to learn a solid trading method and the discipline to stay close to it, followed by the self control to wait when you need to wait and pull the trigger when you are supposed to pull the trigger, you could do it.

Following our dreams is a great thing and I encourage everyone to do that, where ever they are at, but you need to be realistic and have a plan on how you are going to change and do what is expected of you to make any of this a reality.

Every trader starts out with the best intentions, but it is what we actually do that will make the difference, not what we want. You need a solid trading method to start. Then, you can start changing yourself and your attitudes to line up with success.

If you trade from a fear based approach, you won’t make it. You will sabotage yourself and your efforts for what seems like no apparent reason. Getting control of your emotions and removing trading fear to be replaced with confidence will take time. It is not going to happen overnight. If you expect that, you again will be disappointed. That is where dedication comes back in, trading dedication to the trading method that you are learning. Your confidence will grow as you see and experience market reactions being played out again and again. It is like exercising a muscle. The more you train, the bigger and more confident you become.

Give it some thought, if have a good trading method that works, then the only thing holding you back is yourself. Change that and you will change your trading destiny. Good Trading to all. Vince

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Posted in Trader Coaching | No Comments »

Trading Indicators only Reflect Price

Thursday, April 14th, 2011

3-14-11;  Today’s trading was smooth sailing, with only 30 minutes on the screen for me today and I was off to do other things. The market was very predictable as you can see the turning points and continuation points on my screen shot below. The trading indicators are only a reflection of what the market is doing and that is a reflection of what individual traders collectively are doing. So, if you know how other traders will react at these inflection points, you will right there have a leg up on them.

A Psychologist by his trade, listens to peoples problems and offers advise to help direct there lives. He has to get inside there head, so to speak to know how his patient is thinking and try to understand why he does what it is that he does. Only then can he offer anything of value that will help address the issues at hand.

The same is true in trading. You have to get a feel for what these traders will do in mass as they see certain points on the screen. This is all broken down into a price driven trading method. The trading indicators only reflect everything I just mentioned.

These trading indicators can help you see what it is that you don’t see and understand at this point. Knowing the trading method and reason for the moves, totally puts the odds and trading advantage on your side of the isle.

It takes work and dedication to master this. It does not come overnight. You may be able to follow the trading indicators and have some trading success, but the true real empowering confidence will come when you know the methodology behind behind these moves.

You do need trading discipline to be able to keep yourself in check, but that is within you, which is also work. At times traders are not willing to do that work or they get lax on it and think they can just get by. Well, if you let your gaurd down while competing on the screen, you will be disappointed. When you don’t get what you think you should have, it can be discouraging. That happens only when you don’t have a solid understanding of what you are doing, even if you think you do.

Every day, traders take to the field and think that it won’t happen to me, but the other guy. The thing is, they are the other guy and just don’t know it. That is not a put down, but it is just how it is. Every trader needs to stay “Humble”, doing other wise, will bring disappointment. Many have heard the term, “Pride comes before the fall”. That is from the Good Book and it happens all day long across the globe.

Trading confidence is different and comes when you know that doing the right things over a period of time will yield you the overall results you seek. Stick with what works and be consistent with it. If you don’t have anything that works, find it, work hard to create it, or buy it.

I show my screen every day as seen in the screen shots above with my daily trades. I show the turning points and continuation points as identified with the hope that traders can see a pattern of consistent market behavior within the trading day. You don’t have to get it all, as you can see in the long trade I took today, I had more in the trade. Its not how much is available, but how much you can walk away with that counts.

We all know how much sand is at the beach. If you get overwhelmed with all the sand, you will loose your focus on getting some of it. Trying to grab it with only your hands, you only see it fall right through them. Don’t get overwhelmed by getting all that the market has to offer as it could overtake you as you walk away with nothing. Instead, be content with “your daily bread” , what you need from the session and walk away. Close the computer and enjoy the benefits of what trading has to offer, free time.

For me, a couple of times a month, I like to react to market conditions and trade longer , with much higher daily returns, but that is the exception not the daily rule. I do think if you exercise good trading discipline and some what a veteran, trading for more only when the market tells you too, is OK. Again, that is maybe 2-3 days out of the whole month. Listen to the market and feel what it is saying. That will keep you out of trouble and keep your daily struggles down to a minimum.

Well, I hope today’s article was a help to some. Feel free to comment back with an email or question. I really don’t mind and in fact encourage you to. Don’t worry, I never try and sell anything to anyone. I don’t even keep the emails names to later hit you up with this or that, like almost every other site that I have seen. I just like to help traders overcome there issues and make them better traders, but that is always on your terms.

Wishing the best to all my readers, Good Trading,

Vince

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Posted in Day Trading Indicators | 1 Comment »

Profiting from Scalp Trading

Wednesday, April 13th, 2011

4-13-11; Wednesdays Trading went well. I had another trade to target on my second trade that came together perfectly. Today’s trading grade (A).

There is more to this down move underway, but we cannot rule out a contained bounce up over today’s high. Barring that bounce, we have around15- 20 S&P points more to the downside, now that today’s session is in. So, proceed like you are crossing the street, look both ways and proceed with caution.

Today’s trades below.

There were some good moves in the market today and it was pretty much an easy read. I have the turning points and continuation points marked up in the chart as I usually do, to show you where you could have taken action to capture a piece of the markets move.

Each tick for 1 contract traded is $ 12.50. With three contracts that is 37.50 per tick movement. It takes 4 ticks to make up one point in the S&P and the leverage for those three contracts is about 65,000 x 3 or close to $200,000 worth of stock during the time you are in the market. You always have a stop in place so you know exactly how much you will allow the price to work against you. Everyone who trades this market know this or should know it, but for the benefit for those who don’t, there it is.

The Sniper Day Trading Method, is something I came up with. It is a combination of things that look to a very unique form of support and resistance combined with momentum. It is what I find works and is very consistent in virtually any trading environment.

It is a trading method, not a system. The signals above could all be taken without throught, but then it would start to become a system which does have its problems. It is the market conditions that make the difference as to which area’s are better for long or short than others.

In fact, I like to call those marked area’s as “Area’s of Interest”. The reason, because they are area’s where prices are likely to move with little recoil against you, but not every trade signal will make for the best trades. Some are better than others and have there own individual components to it that can then give the trader the edge. That is the trade method part of the equation. You have discretion, but you also have rules and guidelines to follow. Just one of those can be the indicator set that you see on the screen.

Those indicators are not everything and there is a lot more to it. I only show a limited amount of my screen as something is better than nothing. That only leaves you wondering how or even if this looks like it could work. If you look back at dozens or I could say hundreds of blog postings to see my trades and more of these area’s of interest I talk about, you will get an idea if there is something to this or not.

Getting familiar in taking the short trades the same way you do the long ones is a good thing. The reason, the market will always move in two directions with down most often moving faster.

Some traders have a problem seeing and finding the trades short. You just have to tell yourself it is the same and allowing yourself to see it, will open up more trading opportunities to you.

Be sure you know your trading platform front, back and sideways. Spend the extra time to be sure you know how to place the orders.

Going back to the trading method, of which is really a “scalp trading method”, implies that a trader is willing to pick off a small piece of a market move with limited risk while doing so, get in, get out. Scalp trading can mean different things for different traders. I do have something that can take 2,3 or 4 ticks out of the market while risking no more than that on the trade. There are dozens of trade opportunities that match up to this in any given session. The goal here is not to hit a home-run, but to pick up a few small bit size pieces and off you go.

The other part of my trading method is for those who are better inclined to trade for bigger moves and will allow the trade to trend. This is in my T-2 trade screen as you see in the picture above. I still do take very small trades at times, because that may only be what the market is offering. I will take what ever I see I can get safely.

Limiting a traders risk is all about knowing where and when to enter. A small window does present itself on the screen many times a day and needs to be met with persicion timing. That is where you need a Sniper to zero in on the trade entries. A Sniper trades from cover as he looks for the target. That is how I came up with the name. In looking at the screen shot above, the entries are clearly identified and it relates, yesterday, today and again tomorrow.

Profiting from scalp trading is very possible.  The difference from being able to and or not, is knowing how, it can be learned. Do you have a passion for success, do you think you have the discipline to follow the method rules to profit from scalp trading?  Then only you know what you need to do next.

Hope you have enjoyed the article today as I will write again, until that time, Good Trading to all.

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Narrow Trading Range-Before Next Move

Thursday, March 31st, 2011

Thursday, 3-31-11;  Today we saw another very narrow range in the markets, as the major index’s pulled slightly back from its ongoing advance.

The trend is still up and we are not far from an all time yearly high. With the last two days basically sideways, giving time to digest previous gains, we could be ready for another move. The question is, will it continue up or reverse back down. The market has made it this far, and those who were trying to short this market are getting creamed. All the latest news says the market should go down, but it seems to just ignore the news and march on to its own agenda.

In today’s trading, I did not stay to long at it, taking just two trades. I was in the first one for about 45 minutes, which is long time for me, but that is what I had to do. It was during the New York lunch time, where things are known for being notoriously slow 12-2 p.m. The second trade I was in for only a few minutes and was just a very small scalp. That was all the market was giving and I did not want to sit around waiting through the rest of the day, so what I had was fine.

We only saw a 5 point trading range in the S&P emini’s today. That has to be the smallest trading range I have seen in a long time. It makes it hard for many traders to make money in this environment, but not those who know how to scalp trade there way through the day. A little here and there adds up. If I started earlier, there were some pretty good trades to be had. The screen shot of the better portion of the day is below along with my trades.

The market is very predictable if you know what you are looking for.  I have been sick lately with a head cold. Its not enough to make me stop trading, but it is harder to wait the market out when you are not up to your best.  Overall, this week I am 4 for 4 positive days and hope to start a new streak.

I use different charts in my trading and seem to only show this one chart. This is the smallest size chart I watch, with this fitting inside a larger chart with the same signals on them. I use a few more trading indicators on the screen, but don’t really need any, as the the method is price action driven. It is always important to point that out, because new traders may come on and see this as the Holy Grail of trading. It is not. You need to work at this, even though it may look easy.

With that said, you can go back and look at dozens and dozens or even hundreds of post and screen shots and you will virtually see the same type of charts with very similar reads to them as above.  The indicators only reflect what the price is doing and can be a tool, but you need to know how to swim in these waters before you jump in.

Money and trade management are vital to your success. If you allow greed to take hold you are cooked. The same can be said about fear, with a lack of conviction to pull the trigger can get  you left behind.

Outside of knowing how to trade, you are your biggest asset or liability. You can make this happen, if you are consistant with yourself. If you go outside of your rules and do what feels good, you may be in for some pain. We as traders don’t like to be wrong, and ego to often gets in the way. Are you going to bend and just allow yourself to be tossed around? If you do, you then become your biggest liability and reaching your trading goals will become more distant.

Get a trading method that works, stick to it, and discipline yourself to wait for it’s signals, either price driven or indicator, if that is all you can see, its better than relying on what your feelings.

Traders need to make moves on what they know about the market and its behaviors. If you don’t know, then you need to put in some extra screen time.

Most important, don’t risk your money until you have the trading edge. Without the trading edge, you then are reduced to just guessing and that is not going to help you.

That’s it for now.     P.S.  I will get back to the follow up from yesterdays post over the weekend. It seems like the right time to follow up with that. Good trading to all.

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