Posts Tagged ‘trading method’

Multiple Screen Shots Past Sessions

Monday, May 7th, 2012

Today is Monday, May 7th and I have multiple screen shots covering the last 4 trading sessions.  This will catch me up from my last trading day last week Tuesday and keep those following up to date.

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

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

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

Thursday’s Session below;

Friday’s Session below;

Today, Monday’s Session below;

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

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

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

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

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

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

I wish you all the best. Vince

Large T-3 Trade Screen View

Thursday, April 12th, 2012

Today, Thursday April 11th, I did no trading but do show a continuation of one of my trade screens, the larger zoomed in view of my T-3 trade screen.

This screen is for traders who want to take fewer trades, but for higher point moves. You will have to wait through a good portion of the day to let these setups come together, but it can be very worth your time.

I don’t often trade from this screen, but I look at it all the time to see where I am in the bigger picture. This view may give some traders an idea of what could be possible when the markets are moving.

The trade indicators are not the method by any means, but they are consistent with it. I often say that, because it is important to understand that trading off of price action is the key to long term success. You can not rely on trade indicators because you give up your understanding of what is going on with the price.

Traders always need to remember “why they are entering a trade” and or they should know why. That gives some form of conviction to stay with it and let it perform. If you don’t know why you are going into the trade, you can easily be shaken from it for no good reason.

Trading well is not based on feelings, because feelings can easily mislead you. Seeing and knowing what is the likely path of price is key and is what is taught within the trading method.

This is different, from my normal screen shots, but it might be helpful to know that the method accommodates different things for different traders.

It also takes in a very small view and setups that again I don’t often show, for just scalping 3-4 ticks out of a trade. This holds a higher percentage than the other two somewhat, but is all within the trading method. Not every trader comes with the same expectations but the method is able to accommodate just about everyone.

The markets are fractal in nature and is consistent within those different time frame views. That can also be taken on up into hourly, daily and even weekly charts and they will all perform and act consistently within the trading method. That is what I mean by “fractal”, the same but at different levels.

I hope this helps a little in showing you what a trader can expect to see, learn and apply with the trading method. The very best to you all. Vince

Market Closes on Key Support

Wednesday, February 29th, 2012

Today is Wednesday February 29th and we saw a late day sell off that took the market down to some key support in the daily market. I was looking for 1362 in yesterday’s market but it looks like it came a day late towards today’s close.

The market sentiment has stayed the same again this week, but hovering at the high end of the range. We came very close in reaching a market extreme here, but backed off and now the same for the last two weeks. I would expect a bullish bias, until everyone is invested before a meaningful sell off gets started, but today’s closing numbers are very important. A break below today’s close will shift or slow at best the daily momentum.

I will post today’s chart of the day here first and will post yesterday’s under that and give a few comments afterwards;

Today, I took three trades and they were counter to the early morning drop that I missed. That has been typical, as I usually stat trading when I feel alert. I know I most often miss the easier price movement that takes place within the first hour to 90 minutes of the day, but I do have enough confidence in the trading method that I can still pick up what I am looking for within each session, which is usually between 2-4 S&P points.

I often have to remind everyone that the trading indicators are not the trading method, but they are consistent with it. There is a complete separate market rational for all the entries that don’t have anything to do with the indicators.

I usually mark what I call “turning points” on the screen and continuation points when they are appropriate. A trader, I feels needs to know what the price pressure points represent and how that is interpreted into tradable points. Taking what the market gives easily is a good strategy for long term success. Always shooting for the stars is nice, but it can often lead to frustration and mistakes.

With that said, there are lots of clues within the trading method to trade for bigger point returns. One can always trade the next series of time frames higher for fewer trades and higher reward, but you need to invest more time and patients to get that. That is usually more than I am willing to pay and so, stick to what I can take easily and safely when I am ready to trade.

I will post yesterday’s trades below; Tuesday February 28

Yesterday, again missed a few easy early morning trades but got stuck with a tight narrow range for some time. This did cause me to trade for much longer than I really wanted to. I did a few things wrong and a few things right and ended the session with a small gain.

You can see that the indicators do a fairly good job of identifying where the market turning points are but this again is a reflection of the price. The price is always first and is what is traded. With that said, not every signal as shown is a strong buy or sell and that goes for every day. Some show stronger turning points than others and some are to be avoided. All of that is within the method and not the indicators, as they will not tell you that, but the method will.

Tomorrow is another day and hope to start a little earlier so I can finish earlier, sounds like a fair trade off, but we will see, until then good trading to all.

Vince

Trading Lesson: How to Handle Trading Losses

Saturday, February 18th, 2012

Thursday and Friday, February 16th and 17th I saw two day’s of small losses, -2 points and -1 point.  I was just not in sync and it shows. Two small losses are better than large stop out days, of which is 4 S&P points per session max. If I am making poor decisions it is best to let the day go and wait it out. That is what I did and for that I am content. I can make that up this coming week if the market gives me an opportunity. I should not hunt for trades but need to remember to let them come to me. That is good advise for everyone as well.

When the market is acting well, that is the time to either trade a little heaver and or trade for additional points. It is a lot easier to make up any daily goal shortfall on a session that you are seeing things as they are and not as you want them to be.

This is a good lesson for me and for those working through their own trading method. I am happy with the fact that I did not overly try and get even or go ahead when it was not the time to do it. On Thursdays session, I had my chance with the last trade entry as it was a very good runner for 5-6 points. I was it at the right timing but somehow I talked myself out of the trade and even then went short when the method said not to do either one.

That is a clear sign that “I am the problem” and trying to trade through that, can do more damage. The best thing a trader can do it let it go and close it up, which I did. That is a victory in itself and I see it as such. Being down only 2 small points and not doing any additional damage is a very good thing. Losses happen to everyone, but its what you do with those losses and how you handle it.

Some traders can not handle loosing trades and loosing days, but we better learn to accept it. If we put our self worth as a trader into every trade and or every trading session, you will create a barrier for yourself that is almost impossible to overcome. For many, this is all they might need to do in order to adjust themselves towards profitability.

So much of this is tied to the mental aspect of trading and often overlooked, which is the reason why I bring it up. Dealing with losses is a difficult matter, but it need not be. The blockage comes from your own expectations of what you feel you should have gotten but did not. Thus, a let down and negative self worth as a trader can easily creep in.

If you don’t allow yourself to tie your performance in any one session to the big picture performance, than it is just a small loss that can be make up in another session or just kick it out and keep moving forward. This is one of the hardest things for traders to do, because they will get all to consumed with the fact that they make to many mistakes and thus create more mistakes.

That which you hate the most is what you invariably and overwhelmingly drawn to. Think about that for a moment….

It can very easily become a self fulfilling prophesy, as traders make the same mistakes over and over again. Why is that so?  Another good question and worth a moment of pause to reflect within.

The decision is often up to you, believe it or not. If you know how to trade and have an OK method to follow, many times it is just the negative self image a trader hold deep down within himself that he is not even aware of, that subconsciously pushes himself towards a self sabotage mentality.

I know many know exactly what I am talking about because it has happened to most traders across the board sometime in there trading career.

These things can be overcome but a strong will and determination to first address it and then take action as described is a start to turn things around. I tell you this because its true, even though it may hurt. Often, the truth does hurt, but when you embrace it, rather than run from it, you are taking the steps towards recovery and establishing a solid foundation.

That is one of the best ways I can describe it. Building a trading foundation that looks within just as much as the outward expression that is tied to your actions of pulling the trigger. You need both to be successful. Having one without the other will eventually express itself towards the least common denominator and that is towards ones weaknesses. The market is always looking for personal cracks in your trading armor. Seeing and exploiting your weaknesses where ever they may be. A lack of patients is very common and one that gets many traders over and over again.

Premature entries draws on fear of lost opportunities and causes entry before its time and so on. I could talk for days on all of this, because I to have lived it. Its learning how to deal with it and stay in control at all times and again this is found within.

I write this for myself just as much as I write this for those who follow me. This is my way also to remind myself of the many truths I have learned and a nice way for me to express it and help a few others with similar issues along the way.

With that in mind, I hope it has helped. I will post my trades below for the last two sessions and look forward to a better week.  Trade well, trade committed!  Vince

Friday’s Trades:

Thursday’s Trades:

Today’s Trades part 2

Tuesday, February 14th, 2012

Today is Tuesday, February 14th and I will just be posting my trades again today. The price movement looked OK today and can see that this afternoon things picked up. I do have the turning points for most of the day in the chart below, so you can see how it looks per my indicators. (click on the chart 2 times to blow it up to full size)

I often like to clarify, that the trade indicators is not the trading method, which exits completely separate. Knowing which trades are better and what makes up those possible turning points is essential to being prepared to trade them. It certainly adds and or puts the odds in your favor when you know what you can expect from each move so you can target your exits, which is apart of the trading method.  I wish you all the best. Vince

Creating your Trading Plan

Friday, February 10th, 2012

Today is Friday February 12, 2012 where the market had a very large opening gap to the downside. We later stabalized and mounted a couple of rallies, to get some of the losses back.

The daily market is still in an uptrend and it would appear that we could see slightly higher prices or at least not any lower prices than today’s low as per the S&P emini futures.

In today’s trading I did well at roughly 2 to 3 times my daily goal. A couple of trades I came in early, but did see clearly what was coming, a strong benefit from being able to read the price action.  If one waits for that trading edge, you have very little to worry about as you will be looking at green right after entry, which is always a good feeling. Let me post my trades from today below, before I carry on to much further.

Acting on “The Trading Edge”

Day trading is a great way to make a living. You have the free time after you have your points for the day to go and enjoy other things life may have for you. There is more to life than trading, but I don’t want to try and convince anyone about that. We are all different and have different dreams and goals.

To make the dream become a reality, every trader needs to have a “trading edge”. Without it, you will be left with guessing and that is no way to move into this venture. It then becomes more like a gamble and the odds are really then no better. It is possible to come out on top most trading days, but you really need that personal trading plan that is combined with a solid trading method. If you don’t have both, you are leaving it up chance.

Creating your Trading Plan

A personal trading plan is important and is I believe different than your trading method. That plan, is all about you. It is tailored to your goals, your time invested, your objectives in point totals as they relate to time invested in the markets. These are all separate from the trading method you trade. Many may not have thought about it that way and that is why I mention it today, for your benefit.

Every trading method is unique to the one using it. I know that my method, “Sniper Day Trading” is no different. I trade differently than many of my members, but that does not make one better than the other. I like to scale out of trades and don’t mind getting out a little early on some, to make it a little easier to stay in for more.

That is different, in that there are those who like to go, “all in”,  “all out” and that is OK. Thus, my point for having a personal trading plan as it relates to the time you have to sit in front of the screen each day.

If you really want to take fewer trades, but want a higher risk to reward ratios, then you will have to exercise your patients and wait and wait. If you can do that with no problem, that is great. Many times traders can do better by taking fewer trades but for bigger returns. If you can sit through the down time, then a different plan may be better for you. That is why this part is tailored to you and your trading strengths.

There is a lot of controversy over good risk reward ratio’s, but the one that counts is the one that you can do consistently and be profitable with. I don’t think it is a good idea to trade for anything less than a 1:1 trade ratio, which just means that your risk is equal to your reward on any given trade. It does not have to be a totally hard rule, but it should make up the bulk of your trades as such, or better.

In the Sniper Day Trading method, I do have that trade ratio present or better. I will risk 1 point for 1 point at times, and that is fine, because I know if it is good method setup, I will hit it most often. Two of those and that could be a conservative daily goal for some.

Being able to read the market in a pure price action way, is really where you will find that “trading edge”. Getting good at it will instill confidence and give you the courage to put the trade on without fear. If you do experience trading fear, before you pull the trigger, you need to settle down and practice a bit longer.

Trading from a position of fear will take your edge away and you will be reactionary at best. It only gets worst from there, when you have highly charged emotions in the game. Separate yourself from the money and focus on doing the right thing. Don’t worry about the results. Try and shorten your targets to help instill that winning frame of mind and don’t worry if the move goes higher from there.

Be sure you have a daily stop point, if you are not trading well. Never let a modest days loss become a wipe out. You are the one that has control over that and it will keep you alive for another day when more favorable market conditions are present.

Day Trading is very personal to each participant. It can be one of the hardest things you have ever done, but you can choose to make it easier on yourself by getting educated, put time on your side to practice and instill confidence and create your personal trading plan that will put over the top.  I hope this advise will help some on their journey.

Trade well, trade committed!  Vince

Fed Declares Low Rates Till 2014

Wednesday, January 25th, 2012

1-25-12;  Today, the market was moving very slowly until the Fed declares low rates till 2014. Things suddenly picked up and started to move.

It was a good thing as seen by those on the street, but it is likely be very inflationary. With the Fed’s target rate for inflation at 2% it seems unlikely that in the real world that real people will experience a rate that low. It has been said, that illusion is greater than reality and maybe that would apply here. Gold and Silver thought as I did with a huge rally in both of the metals.

In today’s trading I had three trades 2 early on and one much later in the day, as seeing the price action was so right for an addition trade and took one, which was good for about 5 points at the top as I scaled out on the way with a larger position. The days trades in the chart below.

I have two charts up on one screen again today and don’t know how long I will keep doing that, but I still am for now.

Monday I talked about the two charts acting as one chart, and so started to show you what I mean in the last few sessions. I did include the tabs at the bottom of my screen as well. This is the middle view as I have series smaller and one series larger. I don’t show everything on my chart as I do have a few things taken off, but the point is, this trading method is driven by understanding and acting on that understanding of price first and indicators confirming.

Price has three components to it. Time, space, energy. We need to see time pass to allow for the build up of energy and while it is doing both of those, it is passing through space. It has to go somewhere and that is does. It gets expressed in the posting of price bars on the screen. The three components work in line with each other adding the fact that support then becomes resistance when broken. It is looking and understanding these concepts to a definable level where one can then apply these principles to make positive trades.

I don’t really like the term winning trade as that has a flip side with losing trades and the whole thing is equated with a gamble. This is not a gamble if you can steer the odds to your favor by using a trading methodology that will continue to express itself in positive out-coming trades, hows that.

Notice the word ” If “  as that is a big word with a lot of meaning. If you can steer the odds to your favor. How does one do that?  It can be done by understanding the three elements of trading and applying those principals to the charts.

That sounds easier said than done, but that is why we all need to continue to research and uncover the missing pieces. Some have all the time they need to do that, but time is money. It has taken a long time for me to piece all the pieces of the puzzle together and have come up with something that works. I show my trades every day to give those who look on a working understanding that this is possible and it does help me be accountable to myself as I do have an audience.

It is my goal to become a better trader than I currently am. I know my weaknesses and am trying to address them. I would love to get a much better trading schedule established, but I seem to trade when I am up and that always seems to be a different time. I was missing the easy early morning trades and stuck with the slow moving stuff during the mid-day N.Y. lunch. Starting a little earlier like I have been trying this week has helped make it easier on me to pick up my modest daily goal of 2-4 points in the ES each day I trade.

So far this week, I have put on 9 trades in three days and all for gains. I don’t like keeping tabs on this kind of thing, but I just plan to trade well, exercise patients and some form of discipline as it relates to the trading method.

OK, that’s it for now.  Trade well, trade committed, Vince

Low Market Volatility

Wednesday, January 11th, 2012

Today is Wednesday January 11th 2012, where we just keep seeing low market volatility day after day. During the Christmas Holiday’s it was understandable, but now into the new year, the amount of trading opportunities has gone down.

Day trading in a low market volatility conditions, will test the skills of all traders, as the moves are smaller and trading opportunities fewer. In addition, your level of patients will be tested as well, which brings me to today’s trades.

I was tested a few times with being patient, but I don’t fault myself for playing it safe.  I come to expect the market to react when conditions are right and when it takes to long, that can be a sign for caution ahead. Being conservative can keep your losses small, but if doubt is present, my view is to step aside until stronger conviction is present. The day’s trades below.

The trading method is separate from the trading indicators as they are there to confirm what is already present. That is very important and cannot be over-repeated.

Not every trading signal as shown is a low risk entry and would have passed on some of the previous signals. Using the mind and method to screen out which turning points are best and which are to left behind can keep your balance sheet healthy.

I have been on a little kick about this in my last few post, but it can be misunderstood as I just post the charts and such. I look to capture 2-4 S&P points for most sessions and call that my “Daily Goal”. When the market is really moving and opportunities are present for more, I will go far beyond that goal to help make up for any short falls in the previous days so I can keep pace with that average. It is a good way to approach the management side of your account as this will keep your stress levels down, not having to swing for the fences every day.

Which all reminds me of some trading advice I gave a member today. We don’t have to take every trade we see and we don’t even have to take “Any” trades. If we don’t like it or not sure, don’t feel like to you have to take it. We are not under any obligation to trade and so we should be free to pass. This will allow you to see the hidden gems when they come up. The perfect trades will just show up, without you having to hunt for them.

In market conditions as this, it is very important I feel to be able to “snip” or pick off a point or so on some clear trades. Doing so correctly can add up just the same as one good trade. If the bigger moves are not present, what you are left with is small moves. If you can not find a way to take points out of that kind of a market, then you are now at a disadvantage and subject to market conditions.

For some, this is no problem as I mentioned above, we don’t have to trade conditions that don’t meet our expectations, but I have seen market conditions last for months like this. If you can not make a profit because your conditions are not right, then you are out of business.

That is why being well rounded to be able to take a 1 point out of the market while not risking more than that, is of value. You can always trade the 3-5 point trades or more when they are present, but you are in greater control. Having the ability, even if you don’t need to use it often, will add a greater sense of confidence to any trader.

That is why I have different models setup for different conditions. The one I use mostly, is you could say the all purpose model. I have a higher time frame chart that fits in with the one I show (that is not seen) and they act as a team giving you a full picture as they are interlocked in my own unique way. There is one series of this below and one series of these above the middle one mentioned. All three of these can be used for insight and or trade opportunities to give you results based on market conditions

More on this in my next post….

Good Trading to All, Vince

Trading Indicators only Reflect Price

Thursday, January 5th, 2012

Today is Thursday January 5th, 2011 and have a video of some of the first trades of the year. I did take a few trades on Tuesday and posted them on my previous blog post, but here we have two days of trading with some of the market turns traded and shown.

It is important to know that the trading indicators I show are only a small reflection of the trading method and do not make up the method itself. The price action is always first and will always be first and is the reason to learn and understand price as it relates to future movement.

We are starting a new trading year and with it are opportunities for those that see them. Every day is a new beginning for traders and that is how it should be looked at. Yesterday may have had trading lessons but the right approach is always moving forward from where you are today. Learn from the past, but do better today is a simple approach but a healthy one.

To many traders get stuck in what they did wrong yesterday and carry it over into what they are doing today. That can be a drag on your outlook and thus results. We all have the ability to “Choose” to make things better, better than it was in the past, but we need to get over the past, as not doing so will result in that mental drag mentioned above.

Choose to make this the best year of your life first, then choose to make this the best trading year of your life. The first one has to come first to allow the second one to become validated.

Taking action that will move you towards your goals is the first step. Think it out on paper, be realistic, and be sure not to get stuck in the dream state. Action is tied to a plan, is the way to start out the year and remember to exercise your mind because that is the “engine” that will take you there. Think about it.

I wish you all the best, Vince

P.S.  A screen shot of today’s trades in case you don’t have time to view the video above. This does not have the large move short I was looking for at the close of yesterday but does include the two nice moves I picked up in today’s session.

The Perfect Trading Day

Saturday, December 17th, 2011

Today’s post is for Friday’s session December 16, 2011 as I had the perfect trading day.

There was some pretty good moves early on in Friday’s session in the S&P’s, but mid day things just went to sleep. I took only one trade and was actively participating in the market for 45 minutes and in the trade for 30 minutes and closed the last of my scaled out position for around 5 points. The perfect trading day, with little struggle and only one tick of draw down for the session.

For Monday’s session, I do think we will see a number I put out for Thursday’s session 1198/97 in the S&P futures but this time it will be in the active session. We hit that number called and got the desired reaction of a instant 22 S&P point rally of which I did say would happen and it did on cue, but do believe we will need to see that number now for the regular session.

I won’t be overly anxious about seeing that come to pass but just think it will come Monday. We are in a pretty good position to hit that in pretty quick fashion but again think we should see some strong buying power lift prices back up and would be looking for an up week in the markets overall. Let me post my day’s trades below.

Currently the S&P futures are at 1210 and 1197/98 is 12-13 points away, so don’t be surprised to see that move early on as it should trade in the regular session to that point. This is just my opinion and not trade or investment advise, so be sure to do your own research and analysis.

I have a larger tick chart here to fit in the whole day, but no trade indicators.  I have been trying to drive home the point that the trading method is not indicator driven and has all its own basis for taking the trades or not. It is hard to not talk about it and not say how things work, so I show something that traders who look on can identify with, trade indicators. They are consistent with the trading method but are not the basis for it. It is all very specific and clear with entries, stops and targets.

I wanted traders who are learning the method to rely on there ability to read the price apart from the indicators and do training several times per week for members to drive that point home. When you put some of the indicators back up, you will see that they confirm very nicely to give you the same exact points that the method will give you on own method analysis. I hope that is clear.

The goal is to get traders to be able to read any price chart and have confidence to trade it if they choose. It can be any style of price charts, candle charts, minute charts, tick charts, point and figure charts, range charts, it does not matter. Again, it can be in any time frame as well.

This can be very valuable when looking at one’s long term portfolio of stocks and mutual funds if you have them. The same would apply to those as well. This is a skill that can be learned. There is more than one way to view and understand the markets and the approach I take is different and not rarely seen if ever in its combination of techniques. It is my method approach that is unique to me, built up over decades, literally.

Many traders use different styles that can include some of the various bar charts as mentioned. Let me reiterate, you can use candle charts, range charts, tick charts, minute charts, as that part really does not matter. I use tick charts and build the screen with more than one time frame to get the chart to view as just one screen and time frame and that is apart of the trading method.