Another basically flat day across the board. The Dow did move up a bit more than the other index’s and basically touched a similar area and or number that would correspond to the S&P number I was watching 1122, which has not yet been hit.

I know a lot of people are calling for this market to drop and the level of bearishness has increased over the last 7 weeks from only 18% to currently 32% now. This is the largest bearish reading we have had in 15 months. If a minority position develops in the bullish camp to 35% or under over the coming weeks, I can not help but see a rally coming behind that. I might not be seeing something in the individual Dow Charts as of yet and will be taking a closer look to try and gain some insight, but for now we will just have to wait.

Either way the market moves, as short term traders and day traders, we only need to listen to what it is saying. It has a message for traders each day and tells you when to go long or short, but do you know how to here its voice? Many traders do, but most do not. Trading is about timing and trade and money management. If you have it, you push forward, if you don’t, you look, search, read, ponder, guess, analyze in the hopes of trying to figure out the formula of success.

The bottom line, people are not born with understanding how to do this. Logic and reason are not a large help, so being intelligent will not always help you. Understanding how the rhythm of the market moves is a learned trait and would take literally many years to just get a basic understanding of its nuances on your own.  Most traders will have there account equity drained long before they get to the point of understanding. Which brings me to a very noticeable observation. To many traders are relying on call rooms to give them the answers that they need to know and find out for themselves.

Call rooms or trading rooms that give out market calls most often do not explain why a trade is a buy or sell, but make the call for those to follow. Traders end up placing trades without the understanding of why. They do not have an understanding of “Support and Resistance” and how that applies to there positions. Support and Resistance, is just one aspect of trading that goes overlooked. You are not going to learn most often how to trade in a trading room, unless the moderator is clearly showing why, where and when the price will break away from an area and give the reasons.

At that point, it could be a benefit, if you are involved in the process. If the trades are called out, Long at 1105.50 and you follow it, what have you gained. You are dependent on someone else to give you your “daily bread”, not a good idea. Even if it works out, which most do not, you are actually hurting yourself from gaining and achieving your long term trading goals as your mind is not focused on learning how to trade and understanding the probable path of price.

Good traders know how to interpret the “Price Action” of any trading instrument. You will not be dependent on trading indicators, on trading rooms, or anything else but yourself, because you have learned the secret language the market gives off each day.   Sniper Day Trading teaches that language and also mentors you through the process of understanding that trading language.

I know traders are enamored with trading indicators, but they are only a reflection of the price. When you understand how to read the price action of the price bars themselves, you will be moving in the right direction. That is what I mean when I talk about understanding this trading language. The market will tell you what to do, as the evidence mounts overwhelmingly to one side of the equation.

I have talked about this recently, but I only repeat myself to be sure everyone is listening. Trading indicators can be a big plus for many and I do use them. I often trade without them as well, to make sure I am not building up a crutch on anything outside of reading the price action itself.

Recently I have been putting up only a couple of my indicators to show that if you follow them, you will be able to make money consistently. You will not have to trade all day long, as you will probably make mistakes, I know I do at times when I trade all day. The point is, taking a couple of hours or less, depending on your goals, you could make money consistently by just following the custom indicators and setup I offer. That is really not the ultimate goal although it may be for some. Learning why the indicators are saying buy or sell is what you should be after. Then you will have the confidence and conviction to place your orders and expect the market to move in your favor.

If you want to reach your trading goals, you have to do something different than what you are doing now. If you expect different results and do the same as you have before, you cannot reasonably expect different results. The law of  “action reaction” would apply here as it does in the stock market.

I am here to help. It is not all about the money, money can be made quickly in any given trading session. Giving back to those who want to improve there trading and realize there goals brings a lot of satisfaction to me. I have also seen my personal trading improve as I teach my trading method.

I will leave you this. I spoke to one of my students this week and I was so happy for him to see his trading results improve. He was a struggling trader who reached out for help. He told me, he has not had a loosing day in the last three weeks. He trades only one contract and does trade a few different markets, but is making $350 to $700 dollars a day     ( trades one market at a time -S&P, Gold, Oil, Russell) . He understands the language and is able to read it clearly. He see’s price structure the way it should be approached and again, I am so happy for him, you can not believe it. He is too, by the way. He knows that he will be able to make his living from trading and is just beginning to live his dreams.                                                                     ” HOW ABOUT YOU”   Good Trading to all, Vince.

Related posts:

1. Price Action Trading Defined
2. Price Action Day Trading
3. Price Action Rules When Trading the Markets

Another nice showing for those on the long side of the market. Today the market did something that it does about once per month. I call it “Search and Destroy”. That is, the market makes a slightly new high, followed by a slightly new low, then a slightly higher high, followed by a slightly lower low and yet again the same. The price is taking out players just above new highs, hitting there stops and at the same time making those who play breakouts go long and taking  them down. Both players long and shorts are getting killed when this happens, thus the term “Search & Destroy”. It is searching for stops and causing breakouts players to go long only to make them both loose. This is pretty brutal if you don’t know how to handle yourself. This was just a quick easy observation.

The market in general is designed to keep you guessing or it seems like that for most players, but there is a consistent element that runs through each day and those traders who know what to look for can take advantage of this.

By getting comfortable with this new language that I was talking about yesterday, traders will know when to enter long and or short with a high degree of accuracy. Trading for one to one (1 to 1) ratio is alright as long as you are right more often than not. In addition, when you have 2 or 3 to 1 returns, it makes it nice and keeps things simple. But two or three trades for 3-4 ticks each is “A OK” in my book, always has been and always will be. I only run a 4 tick stop on 95% of my trades and my average stop out is really only about 2 or 3 ticks. This is not an accident and can be learned.

There were a lot of nice easy trades today that could have been taken by those who know where to place there buy orders and where and when to get out. It all happens at the pressure points, like an acupuncturist at work.  They find the points on you body that will release the built up pressure on the nerves and muscles. As they apply pressure to a very small defined area, the toxic build up is released and body feels better by the release of energy in that area. This is exactly how to read the price action as it relates to day trading. This is best I can do without going into it further, but the most important thing I have said about this topic since I started a couple of days ago.

In today’s trading, I only put on a couple of trades and was in the market for only a few minutes. In fact, I came onto the screen, looked at few things for a minute, went to my my scalp screen and waited for just a few moments, took a trade long for a nice quick gain and walked away. I was coming up into the New York lunch time, so I just left and said that I would return for a trade in the afternoon session. I did just that, looked at my screen for just a moment to see where we were at and place a trade short for another easy trade. I had in my mind that was enough, no struggle, just a quick small scalp trade and done for the day. I definitely could have taken several more trades and could have picked up 3-5 points more at least for the session if I continued to trade the afternoon.  But what I had was enough for today. If I start early and traded the morning and afternoon session, I feel I could have picked up 6-10 points net almost any day. As I said yesterday, it is not about being over confident or cocky, but knowing how to read that trading language that could do it. I definitely need to respect the markets, for sure. The day I don’t is the day I will see a stop out day for myself of -4 S&P points if I take it that far.

Trading for most people is very difficult, but it does not have to be that way. Traders need to trade the easy and obvious. If it is not easy and obvious, then you should wait until you see a trade that fits that description. Don’t underestimate that last statement. That could be the second most important thing I have said the last three days, certainly in this post anyway. To often, traders want to live up to the scenario  that I laid out above and it can hurt them. I can see the charts and read the language very well, and you can do it too, but it will take you some time to learn it. If you spend your time only following indicators, then you will miss out on valuable life changing skills, where money and earning a living are not as important because you have enough from the trading markets. That is only going to come when you understand the trading language and can read the daily price action with confidence.

If anyone is interested into learning this trading language and posses within them the ability to trade any market with confidence, then I would say, send me an email and we can talk about it. I have the time to pour my knowledge into those who are willing to learn. If this is something you are interested in, this is a good place to do it. You only go around this life once, fulfill your dreams, you will be glad you did.

Related posts:

1. Price Action Trading Defined