Posts Tagged ‘trading method’

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Trading Psychology and the Trader

Tuesday, October 4th, 2011

Tuesday October 4th, 2011;  Hello this is Vince and want to give a quick up date on today’s action. I traded for around 1 hour, picked up a modest daily goal and went deer hunting. I did not bag a deer yet this season, but I still have about 2 weeks.

We did have that market reversal I quietly was expecting, today Tuesday and not yesterday, but did give out a number that the S&P should stay above, 1120 and it broke it in yesterdays market. I did mention yesterday that the Dow should then stay above 10,600 and can see that we did do that today nicely, on a strong close.

Let me keep this part short as I have other good things to share in today’s post as described yesterday. Many think that this market is going to crack and break down. I personally don’t think it is going to happen now. It will come, but just don’t think it is going to come now, when most expect it. The negativity is so thick, I can feel it in the financial airwaves and I don’t even have cable TV, (by choice).  Things don’t happen when everyone is expecting them to happen and everyone expects this market to crash. We will see in the days ahead.

Above, I have a still shot of the day’s trades I took and below that, a video of the whole days turning points and some of the continuation points. These are just the raw signals and some are better than others. Certainly all of of them are not meant to be traded, as all you really need is a couple of trades to come out nicely most days. The key is keeping your gains and adding to them. Said many times, the trading signals are not the method, but only a nice reflection of it. The reasoning and rational behind it is where the power to act comes from and we all know the adage, “Knowledge is Power”. It is true in this case as well.

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Let me shift gears into what I will be covering in the days and even weeks to come. It is something that traders need so badly and intently that it can not be overlooked. Feeding the mind of traders is just as important as feeding the stomach of a trader. Without food, you will die, I don’t need to convince anyone of that, but the same is true in trading. If you don’t feed your mind with the right mental food and thoughts, your account will die, and that is just as real as the other example given.

Let me first lay some ground work to base some of this on. Psychology is a topic that is often talked about in many fields and it is one that can not be overlooked by traders especially.

The word psychology comes from from the Greek word “psyche”, translated, soul and so the term can be described as the study of the soul.

Man has been created in three parts, the body, the soul and the spirit. We will be discussing the soul and which is also made up of three parts. One of these parts is the emotion as it is the emotion that we love, desire, hate, and have joy or sorrow. Another part of the soul is the mind where we have thoughts, considerations, idea’s and concepts. The third part of the soul is the will, through which we make decisions. Our joy or sorrow is something of the emotion.

When we consider or reason, we are using the mind and when we make a decision to do a certain thing, the will is in operation.  The mind, the will and the emotions then are the three parts of the soul.  By the mind we think, by the will we choose, and by the emotions we like or dislike, love or hate.

The above will lay a ground work for us to best lay a foundation to build upon. It is in understanding who we are and why we do what we do that we can uncover our weaknesses and strengths. In uncovering our weakness, we can then take responsibility for our trades and not lend to the theory that the markets are out to get us. That is flawed thinking and can be a simple example of how we get what we most often are afraid of.

In uncovering something as so simple as our thoughts and taking them captive, we have to face ourselves and do something about those flawed thoughts. Left untouched, it can wreck havoc on our ability to reach our goals.

So many traders can not understand themselves and why they do what they do, only to see what they have done after the dust settles in horror.

When traders pull stops because they can not accept the fact that they might be wrong, there are underlying problems in his or her thinking that is at the root of those actions. Again, left untouched a trader will only see looses in his account as an end result and have no idea why.

To often, traders give up there current trading method, thinking that the method is flawed, instead of looking within themselves as described above.

This is what I want to uncover in laying the ground work above. Some may not agree with my assessments of what we are made up of and my description of the soul and that is OK. It is not the spirit I will be discussing, but the soul, THE MIND, THE WILL, THE EMOTIONS.

My source for all the above is the Bible as all of what I said is back up with numerous scriptures. I did not give them as a specific references, but if anyone wants them I can provide that.

As we continue to study this topic and come up with practical applications on what we can do as traders to improve our overall performances, it will become clear that this is an area that is overlooked and in great need of discussion and training.

More to come in the next sessions. Trade well, trade committed.   Vince

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Market getting ready for Huge Move

Thursday, September 29th, 2011

Today is September 29th, 2011; The market took off to the upside early on this morning Thursday for a 21 point advance. The bulk of it came from the Globex pre-market session but the S&P and Dow did have about 30 minutes of follow through after the open. That set the stage for a huge drop all the way back down to yesterdays closing price of 1149, back to zero. There it set the stage for move back to the middle at S&P 1160 and yet again a move back down as I write. It is currently 9:18 West Coast with the markets open for a little less than 3 hours so far today.

Above are my trades for today and again missed the early action. Plenty of good potential trades short today as you can see. The signal at the top was just at the market top and secondary trades are as shown. Some of those entries are better than others but that is just the indicator signals.

I trade a solid trading method that has nothing to do with the trade signals although it matches up with them almost perfectly. That is the truth of the matter, as knowing when, why and where to enter all ahead of time before a signal is generated as shown is what is needed and will come as a trader learns how to read and interpret the price as it relates to the method.

There are some good trading programs out there and some worthy of traders efforts, but this is my connection with the trading markets and it is serving me and members well.

Today’s trading went OK, but I totally jumped on the first trade to soon, seeing what the second trade series was likely to produce as it did. Again, the market needed more time to absorb the drop as things settled into position. Again, jumping the gun in seeing where prices were going to go for the short term, 1160, came in to early. I eased in small and added at the same or higher prices, never averaging down, and got stopped out for a little bigger loss.  Feeling confident, re-entered little at a time on the advance for the 1160 target.

I could have avoided the two series of losses, but I needed the trade I talked about in a recent blog, a “no trade”.  That means just waiting for the highest potential turning points as it relates to the method. With an approximate gain of about six net points, the end result was very good.

I traded for one hour and started to follow the market just a few minutes before first entry. The time for reward ratio is very good and more than enough to call it a day. The markets are likely to continue to be active and looking for a market turn around either late today or tomorrow for much higher prices in the days to come. A very unpopular opinion, but one I will hold onto until something changes. A closing low of 1120 on the S&P will make me re-think my position, so until then.

Days back I liked the long side of the market at its closing price of 1128 and think we have a good shot to regain all loss ground from last week and whole lot more. Stay tuned and good trading to all.

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Great Day Trade Call !

Wednesday, September 28th, 2011

Today is Wednesday, September 28th, 2011;  We saw a pull back in today’s market as was expected.

We now are in a position to really move. Tomorrow is Thursday and would expect a powerful move in tomorrows session and or at the latest Friday. I think the up move will continue as I wrote three trading sessions ago and will take many by surprise.

A confirmation of a continued move up will come in a break of yesterdays highs of 1190. I liked the market long from a closing basis on 9-23-11, three sessions ago, at S&P 1129. I mentioned then and continue to mention now that I think we will continue to see higher prices in the weeks to come. If we break S&P 1120 on a closing basis I will give that call up.

In today’s market I mapped out a move short, from 1172 to a target at 1144, a 28 S&P point move that I thought had a good chance of coming  to pass. I did enter at 1172 for the short but could only hold for 10 points of the move at its best point. You can see in the chart above the entry and exits.

I took three trades today with 2 positive and one small loss for a very good day. You can see the turning points as I usually show them, with good potential at other turns as well.

I have not been up for the open the last couple of weeks, but I have not missed anything that I could not get later in the sessions. Been doing very good lately, with the increased movement but even with days like yesterday, where it could have been hard to come out with such a small range, turned out nice. That is because, being able to read the price action in such a way as to let it tell me what it wants to do and listening, has validity to it.

Some days, it pays to scalp a point or two here and there, but it can also pay off to ride the moves if you can. Today, even though I could see the target at 1144 as per my trading method in a “trade to target”, but in a higher time frame, I was not able to hold for the full move. Scaling out on some, does make it easier, but it is still hard to hold for hours to a target, at least for me. It is a little outside my comfort zone, but it might not be like that for others.

At the end of the day, being up with as little pressure and stress, is the key. In trading for hours, I or any trader gives up something, “time and energy”.  It still takes energy to sit though a move even if you are comfortably profitable in it. How much energy can you expel and still be OK. So, it does take something out of you and again, may not be big deal for others. Just being able to do see it and do it in part is of value as I wrote to my group today. We are all still learning and no one has arrived in the trading world. Becoming a great trader takes work and dedication. Anything of value rarely comes easy.

The best to all, trade well and committed !

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Market Move Taking Many by Surprise

Tuesday, September 27th, 2011

Today is Tuesday September 27th,  2011:  We saw some nice follow through in today’s session early on with a large gap opening higher and holding to yet higher prices into the afternoon. I only traded for less than 30 minutes in the morning, but later in the mid day was pointing out how the market was going to go to 1189 as a top for the last move. It came together perfectly and went a few ticks over the 1189 mark I called out to my group in a training session I had going. From that point, resistance did come in and a very nice short took hold late in the day. All something clearly seen within the trading method.

Early on, the market was in a very narrow range, much different than we have been accustom to seeing, but you will see days like this. Many times, when you have a huge gap opening, you will get a restricted range.  The bulk of the move came in the gap higher which many were not able to participate in except those trading in the Globex pre-market. The gap higher and its accompanying interest coming in after the open, helped to hold up the market and limit any selling. Those that wanted in, took every opportunity to get long at small pull backs and so supported the gap higher. Until prices reached the target high of 1189 my call and actual 1190, there was no longer any reason to stick around as the move was complete and the smart money hit the doors running, thus the large late day sell off.

Knowing that 1189 was an important trade to target in today’s trading would have given you insight in holding for higher prices if that is withing your trading model. I did not want to stick around and be exposed to the market all day and being in the market for only 20 minutes with a modest trading goal in hand worked for me today. I do have an interest in trying to hold for larger targets and many times I do, but I always balance that with time. I value time as a commodity that I can never get back. The more time I can free up to do the things I like to do, is of great value to me and so there is the balance.  /  My trades from today below.

The market as mentioned and as you can see above early on, was a little choppy, but often that is just fine for me. Either way, trending or choppy, the method will perform.  It is us that just need to read it and get in sync with the price action. If you try and impose your will on the market, you will be humbled. We can’t trade for what is not there just because that is what we want. If you take that stand and you can, then you need to be prepared to wait for hours and even days for some.  The market is the market and what ever we want does not matter to it. You either conform to it or wait until you see what you like, but be prepared to wait, because waiting is a trade just like a long and or a short. Many traders have never thought about that I am sure. Waiting and not taking a trade, “is a trade”.  It is a “no trade”, which again is a trade position. You are waiting for your conditions to come together.

For me and the way I trade, I don’t have to wait long, 10 minutes, 5 minutes, 15 minutes, until what I need to see comes together and then it is down to moments for the entry, which is done without hesitation. As mentioned above, that style appeals to me and I like it. I can get a few points from a variety of market conditions, get out and be off. Time off is one of the things that trading is supposed to offer as a benefit the last time I checked. (pun intended)

Anyway, I took only one trade and scaled out for + 1.75 points, +4.75 points, and +2.50 points, an easy day for what could have been a difficult day for many. The second exit I had a trade to target in mind at the top but ended up closing a few ticks off that high.

The trading indicators are very consistent and is my own twisted version of something to give me a near perfect guiding light that reflects my trading method. The trading indicators are not the trading method.  All members  learn how to read the price structure as it relates to the method. Which came first, the chicken or the egg?  Well, that may not be a good example, but which comes first, the price or the indicators?  “SURVEY SAYS________ “   ‘The Price’ .

When you learn how to read the price and enter where you should, at the “Sniper Holes”, then you will not experience very much draw down after entry and is a great way to trade. I could never sit through 3-4 points of draw down on a regular basis while things shaped up for an advance. I think I would die if I had to do that in the hope that it will pan out. That is no way to trade. Members can get there entries down to ticks and that can still produce several points when proven right, which can be often.

Day Trading is not a easy venture, but for those who are willing and see the opportunities, the rewards are endless in offering you the time to do other things that you really love to do and bring a richer more meaningful existance to your life. It is possible for many more traders who find out what it is that they are lacking. It might not be your method, but it could be you, so look within first for your answers, you just might find what is missing.

Best you all,

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Follow up on Market Calls

Monday, September 26th, 2011

Today is Monday September 26th, 2011 and want to do a follow up to the market calls recently made.

First let me post my trades from today and will keep my comments short unlike Friday’s post.

I have been getting up a little later and so missing the early parts of the sessions recently, but that is not always bad. It gives a little insight into what is happening and what may continue to happen as things move along.

I took 4 trades total, 2 were for pretty good gains, with one for a small loss and one nearly flat. An average day with only 45 minutes invested trading and a little better than 50 minutes in follow the market. From that stand point a perfect day.

I gave myself a B- grade as my second trade had poor placement but good overall direction still. The short did not produce within the time it should have and just exited nearly flat. I added on 1 and that one had -1 tick. The last long, I did not get filled at the high tick and exited at my increased stop, close but no cigar. I may have been a little harsh on my grade, but I can’t change that now. An easy day overall with little struggle.

The afternoon session I did live video’s for my group and called out several entries on the way to a 1155 target that I was talking about in my Friday post and in my video’s.

I stated in Friday’s post that we should see 1155 within the morning session or unless we get it in the premarket. I should have took that a little farther as we did see the best part of a 25 point S&P call to 20.75 points a couple hours before the open.

The next part could have pushed that completion to the afternoon session of which we did complete that call right at the end of day with a point or two to spare. I could see that early on and choose to talk about it in a recorded training session with my group.  I showed them all the reasons why that was the likely target for the session and it was nice to see it come to pass.

The next follow up call I made yesterday in regards to the metals was that Silver was going to continue to fall until 26.50 and that would be a great area to buy as a long term hold. Well, the metal did drop an additional 10%+ in just that one session and hit $ 26 and change and reversed course all the way back up to the $30 area. Wow, that was fast.

The point there would be that the market respected the numbers that the method identified with great confidence. I would expect that low to hold even if we back fill a little lower from here. If anyone can buy physical silver at the upper 20’s area, that I believe would be a great long term buy. I expect the metals to do well for the next few years and reaching well over 100 per ounce.

We have some work to do currently to get things turned around which at this time we have not yet done, but am expecting big things in the next 12-18 months. It is a great alternative than  just letting cash sit in the bank and or participating in the Treasury market. A portion of ones assets in metals is prudent even with the volatility. Time here will heal many woes.

As far as the Stock Market in general, I believe we have put in a tradable bottom and higher prices overall I feel can be expected. That is not a popular opinion just as I wrote that on Friday when the market was 272 Dow points lower. It takes a lot of courage to make a call like I did, but when you know what you can expect from the market as per my trading method, which is very unique, it is in reality not that hard to do.

I can be wrong at times and I did in part get the final target on my last S&P call coming up short, but that is trading. I will get many more right than I will get wrong and if one trades with good trade management, partial profits should be taken while on the way to the full target.

This is all in the daily market that I am talking about, of which I don’t really trade but look at and many others do as well. I like to follow and call that out because so many follow it and it is an easy way to point out that my trading method works in various time frames as my members can testify.

The other part is that this is really just for me. To exercise my skills to call market turning points in the daily market, the hourly market and on down to various tick charts. The method works across various time frames and is customizable to the trader who is flexible.

I have more to say, but will save it for tomorrow, until then, good trading to all.

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Perfect Call on Gold & Silver Sell Off

Saturday, September 24th, 2011

Today is Friday September 23, 2011 and we saw the markets stabilize from the frenzied sell off of the last few days.

We never made it to the top of where I thought we might get to this round in the S&P (1245),  but that has a silver lining for the long term bulls.

Be sure to read at the bottom of this post my call on the Gold and Silver sell off made seven days ago, where I did get that one right, spot on.

Before, I start getting into the what is going on with the markets, I would like to recap my trading day first.

I took good method trades except for one that stands out. My third trade was a long and I had no business doing that, a small 5 tick loss, but other than that, the other two losses are just trading losses that happen. My second trade would have worked out OK with my 5 tick stop in place, but closed it out at -3 ticks before I saw prices go to where I thought it might, but that is OK with me as I had reasons for it.

I was really looking at that last trade, where prices really moved up. I could see this one coming as per the method with solid “trade to targets” along the way. I road out the smaller turning points and remained with the plan for that move. The 5 point trade with the first contract coming off, sure was nice to help take the pressure off for the pullback that followed. Adding on at the arrows would be aggressive, and I thought about it, but was happy enough with the slightly higher contract count from lower levels.

Seeing the last trade, with its “trade to targets” helped give me a very good day on the session, a good three times plus my daily trading goal overall.  This was one of those days that like to hit 2-3 times per month that is over and above the regular 3-4 point + daily trading goal that I regularly hit. In this market, it has been a higher overall point total for most days, but the market volatility is offering it, so we take what it offers with as little struggle as possible.

You can see that the trading indicators match up nicely with my entries when I do the right thing, but you can also see that when I don’t do the right thing, you can again spot it as it does not match the indicators.

I don’t trade off the indicators, if you can believe that, but the trading method apart from trading indicators will give me the exactly same spots for entry, but based on a totally different set of method conditions and rules.

Current members can testify that this is true, but I will add, that the indicators will confirm very nicely what we are trying to do, as time and time again, it just works.

The key is being able to trade the method by its set of straight forward rules and conditions.  I would think that it should not be that hard to pick up 3-4 points per session when you follow the trading method and in reality, it is not. The truth is as traders we need more than the ability to follow a trading method. We need to be able to execute it and keep our emotions in check.

Letting ourselves, defeat ourselves, is what happens so often in the trading world, that it is hard for many to admit it to others and more importantly themselves.

When you are able to admit this fact that you don’t know but are willing to learn by doing the hard work to find out how, first to trade a solid method that is consistent with the natural rhythm of the markets and then work on yourself to uncover the hidden weaknesses that we all tend to cover up. It is in exposing those weaknesses that we will get a real sense of progress, that will be lasting and not just a temporary surge of hope that is not founded upon anything of lasting substance.

Jumping around looking for the Holy Grail in trading is not going to be the answer. There are many good trading methods out there and some I am sure work well and there are some I am also sure that don’t.

The point is, if and I would say that one more time, “if”, you have a solid trading method that can deliver what you want out of the markets, then you really need to work on you, from a different standpoint, internally. That is where traders run off course.

I don’t have time in this post to go into those things that can be done to start that work, but I will likely in future posts. I know I have covered some of this in previous posts, but new perspectives, idea’s and skills are constantly being added into the mental side of trading for me and that always gets passed on down to members. So let me end this portion of my post as I can see I went down a totally different path from the start.

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The recent days sell off has a silver lining to it. We did come up short this go around in my last call for S&P1245, but did still go pretty far along that path. I can admit this last target wasn’t reached in the daily market, but the good part is, this sell off has flushed out a lot of the long term holders of the last couple months.

We have re-tested the lows and do expect the market to hold somewhat in this area to counter with a strong rally back up that will potentially take us to much higher levels than the 1245 number we never saw to this point.

Everyone has become very bearish on this market. There are many calling for a large continued drop below the 1000 mark on the S&P and I can see why, but it can not be that obvious for everyone to get that one right. There are numerous polls out that show the level of bullishness has dropped to extreme levels, especially with this latest drop. I cannot be apart of the “Herd” and agree with them at this time.

I am looking for support and a strong counter trend rally to start sometime this week for again, much higher levels than the 1245 mentioned, so that is the silver lining. I could be wrong so don’t take this as investment advise.

Currently, for Mondays session. I can see a 25 point move up within the first 90 minutes of trading. We could get that in the night session first, but I see a clear path of at least that amount.

Lastly, on September 14th, 7 trading sessions ago, I wrote in my blog that Gold and Silver was going to drop. I said then on Wednesday that by Friday and as soon as tomorrow, (Thursday) we were going to see a sharp fast sell-off in Gold, a minimum of $150 dollars per oz. Then the price was 1826 per oz and that would bring prices to a minimum of 1675 per oz.

Seven trading sessions later we saw NO higher prices and the drop did start on Thursday, the next day and 7 days later we stand at 1639 per oz. completing that call, currently a drop of 187 dollar per oz, over 10% and Silver did come along for the ride as mentioned. I see support in Silver coming in at 26.50 or so and feel that would be a great buying opportunity for a long term hold.

Currently Silver is $ 30 per oz, so we could see a little more to come for the metals and again, I think this will be a spot to pick some up for a long term hold, but that is just my opinion. This would be physical Silver and Gold for that matter. When Silver hits that 26.50 area, Gold will find its level of support at that same time. The target on Silver looks easier to call than the final support on Gold, so Silver will help find the timing and support of Gold, again all my own opinion and not a recommendation for others to buy or sell.

I went way over in this post, but there is a lot going on and lots to say. Lets give the markets some time to see how the next few moves will play out.

As day traders, the daily markets don’t really matter much, but its good to look at and follow for overall direction. I wish all my readers the very best. Feed back and comments are always welcomed. Vince

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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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Stock Market Sell Off

Thursday, August 4th, 2011

Thursday, August 4th, 2011 we saw the Stock Market sell off. Down over 411 points at one time late in the session as I write this at 12:00 pm West Coast time.

Last week, I wrote about how Corporate insiders have been selling at the largest ratio since this kind of data was being collected, 1974.  The ratio was 13 to 1 selling vs buying. It may have gone unnoticed for some, but that was a big piece of news that should not have been taken lightly. That piece of news could have tipped you off to this stock market sell off. The extreme was recorded about two weeks ago now and it has proved to have been a good sign to sell at the top. Market sentiment had also gotten very bullish, to the point which was another warning sign. Those readings work in reverse as the majority is usually wrong.

Some will say, this is signaling another recession and they may well be right, that is assuming that we were out of the first one. For many people this has seemed like a depression, but will it get worst?  That is for the markets to decide right now and they will. I think we could see 1188 on the charts at a minimum, but you never know how fast it might come. The Fed may come in and decide to do QE3 and pump more money in the system and or they could drain it. They hold the power to move markets indirectly and it happens.

I did not post yesterday, but will put up my trades for yesterday and today. It was a quick session for me yesterday about 20-30 minutes, and it lasted a little longer today, about 90 minutes. Both days picking up my daily goal. I got a late start today and just as well. This gave me a chance to see what the markets real intentions were. Rally back up to fill the gap, or continue the down trend lower.                         Today’s trades here first

Yesterdays Trades

Note;  The trading indicators are not the trading method, but it is consistent with it. It makes for a nice confirmation and guide for sticking to a structured market trading plan.  You can and will know when you trade out side that, as the trading indicators will let you know and the market will often let you know by stopping you out for a loss as I did in today’s session with two trades.  I was able to come back pretty easily, when I waited for the trading method to tell me what to do. Following our emotions can be misleading and that is why having a disciplined approach will take you to your trading goal, that is, if you have something that works.

You need three things to happen to get the results we are looking for. The right “Time – Space – Energy”.  When you have the right time to enter, you have the trading advantage, when you have the right space or you can say, place on the chart, which takes up space, you have the trading advantage and when you have the right amount of stored energy, you have the trading advantage.

All three of those things work together to get you what you want, price movement and profit. You have the ability to harness those three things as they work together all for your advantage, if you know how to do it and do it consistently.

Having and keeping the mental advantage is just as important and the two go hand in hand. Here you need both as well, to get the whole picture working for you.

There is plenty a trader can do to get his mind in shape, with one being my free E-Book on “The Power of Concentration”.  It is on the front page of my website and is a great addition for those seeking to get a handle on focusing your energy to accomplish a desired goal. Its an easy and interesting read and its free.  I won’t be pounding you with follow up queries to do any more than your free request for the E-Book. If you have questions or comments, you can always email me, but that’s it. The book is just to help those in that area.

What ever your method or trading plan, be consistent or as best you can. That way if you find something that works, you will have a good chance to duplicate it again and again. If not, your efforts will be left to chance and we all know that is a gamble. Which would you prefer?

Trade well, trade committed.

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Scalp Trade the S&P Emini’s

Wednesday, July 27th, 2011

Let me start by posting my trades here on top for today and yesterday and then I will get into a little lesson below. Today’s trades first and yesterdays under this. Trying full screen view so you won’t have to click twice for full screen.

Yesterdays trades below;

7-27-11; To  Scalp Trade the S&P Emini’s, traders need to be prepared in more ways than one. You need to “yes” have a solid trading method and plan to follow, but it is essential to be mentally prepared. Distractions can take you away from the easy and obvious trades that the market shows each day.

Last week I mentioned over trading as a possible problem for some traders and that holds true, but not being afraid to scalp trade your way to your trading goals for the session is a life skill that does not come easy for most.

Is it possible?   It sure is, but not without being prepared in all ways. A trader should have his affairs in order. If you are being hit with stressful events at home or say at another job, you will struggle. It will most often spill into your trading life. How are traders handling those chanllenges and events as they come up? For most, not well. It is best to pause if you are under undue  pressures coming at you from other angles. You will not be helping your situation if you find yourself pushing.

Trading for living or extra income needs to be something that is not heart or gut wrenching. It needs to be relaxed, but attentive and focused. To many traders push when they should wait and wait when they should enter. That can be brought on from a lack of discipline and fear. Both of those are very common in this business.

To scalp trade the emini market as I mentioned in my opening line, preparation and hard work is needed. Much of the hard work is not in pouring over the charts to hone your skills, but within each and every traders mind.

The determining factor for success, once you know how to trade and what is expected of you, is the mental side. You can know how to do everything, but still get it wrong. Don’t overlook what you need to do to balance yourself and hold yourself accountable.

I have some traders who send me there trades to help keep themselves accountable to someone outside of themselves. If you know someone else is going to be looking on your enteries and exits, you will be a little more attentive and selective. This is a form of trader coaching and is very hard to do by yourself.

For the most part, trading is a very private and that is how most trade, but in exposing your weakness you have the ability to transform that into your strengths as you are mentored through the process.

I do this for myself by writing my blog and posting all my trades for the session for all to see. This is for me, to help hold myself accountable and expose my strengths and weaknesses.  I am thankful for the experience because many times I do find myself talking myself out of a bad trade and that works.

The trading method will easily show you where your entries can come in at and the trading indicators will confirm and or deny that fact, but in order to scalp trade those moves you need to know what you are doing. You can not guess. If you find yourself doing that, you need to stop. There is no room in this business for those who are guessing at the moves. That is gambling, pure and simple.

If you put on a move just like you have done dozens and or hundreds of times and gotten consistent results from it in the past, the odds are you will get the same percentage of results in the future and thus you have the trading edge and advantage over those who are guessing.

This is not just any percentage of results, there is a consistent logic built into the market because it is made up of people and people are predictable once you know there ways. The key is knowing there ways and exploiting that to your advantage. Day trading is a zero sum game, one wins and one losses. A transfer of wealth to those who don’t know to those who do know. Ask yourself, which group do you fall into?

Trade well, trade committed,

Vince

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