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.
12-13-11; What is Sniper Day Trading? Day Trading is when you initiate a trade during a single session and you exit all positions before the end of the day. Some of those trades can last last minutes to hours depending on your method or style of trading.
The Sniper part comes in when you are able to zero in on your entries to such a degree that your risk is very limited and reward well worth the risk taken. I minimum risk reward ration is 1:1 and often much better at 2 or 3:1 and higher.
Every trader comes into this with different objectives and it is rarely the same for any two traders. Some try to trade all day and take several trades throughout. Others are more selective and only trade a limited number of times. I have done both over time and find that I enjoy coming to the market when I am ready and look for opportunities that will take me to 2-4 points for the session. I call that “my daily goal”. There are times that I will trade more and hit 3 or 4 times my daily goal and or higher. I don’t look for those days they just happen, usually about 2-3 times per month. That can make up for days I have a daily stop out, out which is right around 4 S&P points.
My choice for when I start to trade and for how long I trade and for how many points I will trade for, are all personal to me. It is different for everyone and there trading style should be apart of there personal trading plan. This is in addition to there trading method. That covers all the aspects of what a trade setup is and how it can be read. Where the trade is likely to go and how you plan on managing the trade once you get in it. That is all about the trading method.
The trading method is price action driven and that means, we always look to the price first as that is what always leads any trading indicator. The price is first so it only makes sense to learn how to read the price and that is all very possible.
We use more than one time frame and they fit inside each other actually acting as one chart. The first is a zoomed in view of the second which is larger as that brings the view to light in a way that can be exploited when you again know how to read the price.
I do have some charts that I trade with that have no indicators on them at all to keep a clean pure view what I need to see with my eyes apart from indicators. I do also have other screens that do have them up as it should only be a confirmation of what you are doing, but all for its own method reasons apart from any indicators and the influence it might bring. That is a very important point.
There is no substitute for learn how to trade this way. Doing so will empower and enable you to trade any Stock, Commodity, Forex or Index future you choose to.
It is a good practice to wait for the best entries, but I often as mentioned trade when I am ready and take what is available. That may not really be the best for the best results, but I figure I gain my freedom in its exchange. If I were to stalk a big trade move for hours before coming into it, I could make more, but I have to give up my time and have to commit more of my day to the screen. This is just a personal choice and I usually choose not to. I like the fact that I can come into the market for an hour or two, get what I am looking for and leave. That is not always that easy to do for many others as the market does tend to have an addictive element to it and that has to be acknowledged. Failing to accept that fact can lead to over-trading and trading fatigue which will weight down on your overall performance.
Getting impatient can lead you to make mistakes and I make my share of them. I made a bad trade today on entry and exit. Its not the norm but it happens. Fortunately I had three other nice trades, especially my last with increased size.
Every trader needs to have a solid trading method to follow and adhere to. You then need your own personal trading plan to complement your trading method which will encompass many things as mentioned above like trading style including time frames, when you plan to trade, how long you plan to trade and for how much etc. Not yet mentioned, you need to know how and what you are going to do to feed your mind with the right stuff to keep you balanced, committed, disciplined and patient. This is what Sniper Day Trading focuses on in full and what has helped me in my trading. Again this method is price action driven with clearly defined rules for entry, exit, stop placement, etc. It has a very simple element to it and a much more advanced element to it as well which comes over time.
That’s all for now as I will post my days trades under this. I have taken all indicators off my screen shots as I want to drive this point home to those who may be following. I wish you all the best.
See bottom of the article for last weeks trades: I have been having computer virus issues on my desktop and lap tops and had to resort to a third computer. Hope to get back on track with daily postings very soon. Thanks for your patients. Below is an article I did last week and could not get it posted until today. Hope you enjoy it. Vince
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As a trader, each day is a new beginning. If we have the ability to separate the past from the present and then remain neutral on into the future, than that is a great statement. That is usually not that easy for most people, no matter the profession, but is it possible?
The answer to that is a big “Yes”. It may not be that way for most people and thus traders, but it still remains a very strong possibility for those who can find within them the ability they need in order to do just that.
This is internal strength of mind to follow through with what YOU KNOW to be true. We may think many things but when we know something is true, that is were conviction comes from and when it is found.
The reason that is so, you act without hesitation and act knowing that the likely future outcome will take place as foresaw. That is a gift for those who get that far, but its not going to automatically take you where you want to end up.
Getting to where you want to go as a trader takes a little more. You need to act on only that which you KNOW TO BE TRUE and just leave the rest for the speculators. That is then what they do, but not us. The stock market is not random as some would suggest. It is a living and breathing entity and is made up of the collective minds of millions of people across the entire globe.
If you were to catch a closer look inside and see what they were thinking and planing well in advance, would that not be worth the price of admission. Traders leave a trail behind them as they make there way through the arena. Those worthy of interest, will rise to the top of the list. Where some gather, more are drawn and then you have a fully invested market filled with a multitude of idea’s. Those idea’s that rise to the top are the ones that control the field.
Trading is a very interesting world. It has a strong allure, but its rewards are reserved for those that can go beyond the masses. What does it take to arrive at a place that sets you apart from the rest of the world? It takes the ability to see things not as they are, but as they will be. You need to be a bit of a visionary in that, seeing where the price is likely to go, based on very similar conditions from the past. The past will always lend insight into the future. Those who fail to learn from the past are doomed to repeat it. Where have we heard that line before?
This can all be summed up with what is called a trading method. If you don’t have one, you need one. You can not leave your action up to random events, as they will only influence you to and fro, leaving you lost and confused. If you are new to trading and have not found that place yet, it may be coming soon. No one gets untouched from the sting of the markets as you learn.
Maintaining mental control as it relates to ones trading plan is the key for continual trading profits. If you are not sure, and have doubts, don’t trade. You should practice longer and apply the continual trading lessons that are sure to come your way. In time, your exposure can give insight, but not having the mental fortitude to follow through will just as well leave you as helpless as the one who does not know.
Get with the mental side of the game and gird up yourself to be worthy of the challenge, as not doing so will only leave you morally defeated. It all starts with a thought. You have the power to control your mind and make it follow your lead. If you leave yourself open to every inviting suggestion, then you will be sunk.
We as humans are predictable just the same as successful traders who are collectively able to move the markets, we have the ability to think as the masses think and look to do the opposite. Those results are often very duplicatable and what successful traders look for, thus giving them the undeniable trading edge.
Look for the trading edge as a large part of it is within you. Trade well, trade committed !
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Below is last weeks trades missed and today’s late trades, no trading yesterday.
Today, I again traded the emini Nasdaq market but it only lasted about 10 minutes. I only had two trades one very small stop out, and a reversal long for about 8 points. There was no need to keep trading as the easy and obvious came quickly and that was enough for the day. I posted the early morning screen shot below as I usually do on the days trades. I have been doing this for about a year and half daily and I think those that look on, like it. It gives them an idea of what is possible, even if they are trying to figure things out for themselves, which is OK as long as you are making progress. My trades below.
Trading is definitely a process where you will be tested in many more area’s than you thought was possible. It is imperative that you have a plan of action and it is clearly defined and not open for interpretation. This is so important as you need to have a way to measure the things you do so that you can do them consistently in the future. If you are all over the map and trading by the way you see and feel things shaping up, you are going to be in trouble and it won’t take long.
You can not guess in this business and if you do or find yourself doing that, you should just stop. Don’t take a trade where you don’t have the trading edge. You need to feel and know with a certain degree of confidence that you will come out on top each individual trade. When you have the lost the trading edge, you really should exit. Hitting the close button is just as good as any measure, but you can try to exit on a limit order if you think you can get out. Many times if things are heating up, it can pay to exit at the market but every situation is different and that is where some discression and market intuition can come in.
As far as your entries and exits, you need to have that ironed out and it needs to be clear as stated. If you have not done the work to get there, do it before you trade live and risk your capital. It is the responsible thing to do and that is the only way you can expect to ever get a bead on this trading venture you started.
Work on your mental outlook as well. If you are feeling overconfident, you will likely be setting yourself up for a humbling event soon to visit you. Your confidence needs to be based on your ability to execute the method that you have come up with. It is in the execution where you need to focus your discipline in on and exercise your trading patients to wait for those special moments.
Many times you will have to be willing to let the trade go by even if it hurts, as that extra time may be needed to really let the trade get into its most opportune time to get in. So, to get it, you have to be willing to let it go and not get it. At times, you won’t have the luxury to wait, as those moments can come and go quickly. It is designed that way many times on purpose so you can’t or won’t get it, but again, some of those moments will only come with time invested in the markets.
In the mean time, you will have your trading plan/method to fall back on until you build the screen time you need to get to where you want to be. That is also very valuable time invested as that is where you will see the nuances the market throws off and how to best play those based on your overall method to trade. So be patient and don’t be in a hurry. You will best serve yourself as you learn and slowly earn.
3-17-11; Today we saw the market start the day off with a large gap opening across the board. The Dow was up +161 and the S&P +14 points. There was good trades on both sides of the market through out the day, though after the open the range was a bit narrow.
In today’s trading, I made a few good trades and a few not so good. I took 8 trades in total with 5 profitable and three losses. My first and third trades were less than desirable, especially the third trade of the day. You can see from the screen shot below that according to the trade indicators, which are only a reflection of the method, I wasn’t even close. I can’t tell you what I was thinking, but it was just a “Bad Trade” with the timing way off. The other trades were OK and what I somewhat expected. My trading grade today, between a C+ and B-, probably closer to the C+.
The end result, I came up a little shy of my daily goal for one last reason. I forgot to change my contract size on my last trade and that made the difference. I left it alone with that and still have tomorrow.
So far, with tomorrow, being a positive day, I will have 5 weeks in a row of daily gains (all trades posted) and for that, I would have to give myself a solid “A”. Today’s trades below.
I will start today with a little continuation of where I left off. The winning day trader’s mindset. That term just came and jumped out at me right now, as it is the first thing I thought of when seeing what is it that traders need to bring themselves around to profitability, a winning mindset.
I actually don’t really like the term “winning”, because it equates itself with win/loose, and thus a possible gamble. For many, day trading is a form of gambling. I don’t like to even think or say that, but it is true no matter how hard some try and work around that, but let me explain first before you jump to conclusions.
If a trader is unprepared with no solid written trading plan, and no solid mental foundation to execute that plan, that is going to have to fall in the field of gambling. The reason is, you have not spent the time or energy needed to turn the odds in your favor and thus, you are left to chance for your results.
On the other hand, for the trader who does his due diligence and has a written plan that has been tested and has shown itself to be profitable, that is the trader who has the odds tilted in his favor. You can not expect to go up against professional traders and beat them out with little preparation and no trading plan.
I never feel like that, as I know I have the trading odds in my favor and thus it is no gamble, not up for chance overall.
Back to the point. A winning day trader’s mindset is all about being confident first in your ability to execute the trades and expect the right outcome. If you have uncertainty, or doubt, that is not going to work. You need to see and feel comfortable with what you are doing.
Trading is a very conditional effort. You will only take action when certain events or strong conclusions take place. Before that, you wait and wait, until it is time to strike, just like a “Sniper”. A trader working in the emini market does not have to hit home runs every trading session. You can hit singles and doubles (one or two points) and come out just fine, you just need to know what you are doing. If you are guessing, you are going to have troubles. No guessing. Get the right thinking working for you as well and practice.
You need to see a picture of the trade coming together and wait for it. Don’t be married to your idea’s of exactly which direction the move will go, because things change and you need to change with it. If you get stubborn and or your ego gets in the way, watch out. It is said, “Pride” comes before the fall, and that is not short, it means you are out of balance with the markets.
You need to approach the trading day, with little overall opinion and need to just interpret what you see. If you see a long trade coming together, get ready to take action, but don’t do it to soon, or to late. How do you do that? You need to have rules and a written plan to follow that will and or can give you the similar consistent results when you do the same things over and over again.
Without a clear picture, you won’t know what trade or setup is better than another or how much risk this trade has in it verse another. You need to see and know what you are going to trade ahead of time and then wait for it to come you, which could be long or short. Don’t go looking for it like a dear in hunting season. Often, if you let the dear come to you, you are going to spend less energy on the hunt and likely find the dear (trade) effortlessly.
Just try and relax and let the trades come to you and you will see the opportunities and make the trades. I would say, don’t even think about taking any trade is best. Saying to yourself, I will not take a trade today unless it is clear and what I am looking for in a good trade setup. If you can say that and wait, you will be making progress.
By waiting you are making a trade. Let me say that again, as many traders don’t really think about it that way. By waiting, you are making a trade. You can only do three things, “Long, Short, or Wait”.
You just took the pressure off of yourself to perform. Without that trading pressure, you will do better and again put the odds more favorably on your side.Trading can be simple, but it is rarely easy.
Much more to say and cover. I will likely continue with this in my next post. Good Trading to all.
1-22-11; Scalp trading, can be defined as picking off small price moves in any trading instrument for profit. It can be in day trading stocks, futures, or in my case the S&P emini futures market.
It is not difficult to participate in this venture, but doing it profitably is another thing. Most traders and or investors have a difficult time pulling money out of the markets on a regular basis. It is not that they don’t have desire, but being profitable on a regular basis has a few key components to those who can.
One of those being, trading discipline. One can only have this kind of discipline if he is informed on what to be disciplined towards. If a trader has no written plan, then he is just flying by the seat of his pants and could never expect to get consistent results based on how he or she feels. You can not trade by feelings. This is different from trader insight as I call it. That would be when after long hours of price analysis, you become tuned in to the markets behavior and get a feel for the rhythm of the market.
This is being in tune with what is, not trying to guess on the next market move. Most often, the market will tell you what it is going to do next. If you are in tune with the unspoken language that it throws off each day, you will be able to time these trading entries with precision.
So, you need a written trading plan first. I have written about this before and it is essential. Then and only then, you would be able to exercise discipline to follow that trading plan. So often, we are anxious about getting what the market has to offer, but that impatience is what clouds our judgment, which creates anxiety and we begin to make rash decisions that we can hardly understand. When we look back, we are in dismay, on how did we ever put that trade on there.
It happens to ever trader, whether they admit it or not. For some it happens all to often. Our job is to keep those times to a bare minimum if we want to become the consistent traders that we aspire.
Scalp trading is an awesome opportunity to profit from the stock market participation, only if we have the discipline to follow a plan, make a reasonable amount of profit and get out for the day. As you get more experience, trading for more or take all the markets gives, can be achieved, but that does take time.
Traders are all to willing to take everything they can right out of the gate, and end up getting nothing. It would be better to tell yourself that you are only going to make two trades today, if the market presents the opportunity. That way, you know you will not be over trading.
If the first one works out, you put yourself in a no loose situation for the session. If you exercise good discipline and wait for the best confirmed entry, you will only add to the days gains and end your session.
Over trading is a big problem for many traders especially the ones who are drawn to scalp trading, like I am. We often times are drawn to the action as day traders place trades, right, so, get in their and trade. That line of thinking will hurt the up and coming trader and steal any confidence that he had, sending him back to the drawing board. Don’t let that be you. Take steps to prepare yourself and your mind for your challenges.
This part is not easy and is so overlooked it is not funny. Traders fail to plan for the mind challenges that are certain to face them. They only end up reacting to them after it is well under way, as they struggle to try and get even. This mindset ends up working against you. You are focused on the money and it now has a hold of you, to the degree that you often don’t know what to do.
If you plan on taking two trades, you limit all of those possibilities for yourself to blow up, get frustrated, get even, rack up huge commissions against your account and do a number of other destructive things. You could call it, “The One Two”.
If you have a losing trade, you may still be able to have a wining day with your next trade. If you exercise trading discipline and only take a good method trade setup, that has a 2:1 trade ratio or higher, you will still come out slightly ahead for the day.
Tomorrow becomes a new day and you get go again. This type of approach will take longer to achieve the returns of your dreams, but at least you have a chance to attain it. Most traders are going to blow up their account in 30 days or less. Don’t let that happen to you. Scalp trading as a form of income can become a reality, if you have support.
If you don’t know what makes for a great trade and have it crystal clear in your mind, you then are only guessing. I don’t need to tell you what you can expect with that approach. It then boarders on gambling and no one likes to have that label attached to them.
If you trade high percentage trades, you are not gambling. The odds are in your favor for profitable results, only if you stay in control of your trading emotions. Lose it, and you become a statistic. Maintain it, and you can make a living from the markets, which would you rather see.
Let the rush of trading go by you. Fulfill that part of your life some other way that will not affect your finances. Let Scalp trading be what you first thought it could be for you. A profitable way to bring in extra income.
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My trading results for Friday, Thursday, and Wednesday in that order. Wednesday I was sick and traded anyway, you can see I lost my concentration and took many non method trades. The indicators are not my method, by any means, but they are consistent with it. I get all my entries by price action rules of the Sniper Day Trading Method. I did recover that day nicely, but I put myself at great risk by increasing size on my last trade. All three days were profitable with Friday being my best day as far as timing and following method rules.
Enjoy the rest of the weekend to all and see you on Monday’s Post.
Today is Friday the 13th day of August and the Index’s were down slightly -16 on the Dow and -3.50 on the S&P futures.
I guess the market needed to take a breather from yesterdays sell-off, as we did not go to far in the session today. A very narrow range was not exactly what I was expecting. I thought it would start to pick up, but it did not. The market went back to sleep. Come Monday, it is going to have to show its hand if in-fact the support from Thursdays market is going hold. That is key support and if broken, we are in a bit of trouble as I see it. I expect a bounce off this current level of at least 20 S&P points, maybe a little more, come the next few sessions. After the bounce, (if it comes) that is really the moment of truth for this market.
I talked about the market sentiment in yesterdays postings as the bearish sentiment dropped a lot. Last week we saw a 6% drop in bears as per “Stock Market news letter writers”. It went from 34% bearish to only 28%. That is significant, but the more important side is the bullish percent. That did increase from 38% to 41%, still a little on the light side. A figure of 35 is bullish and we are coming off of that now and a reading of 55 is bearish. This number does not have to get to the upper extreme for the market to sell off, just somewhere in the middle is enough. Tuesday the new numbers will be coming out and if we see a rally on those days, it could push the bullish camp to the middle of range and then the market can do what ever it wants from there. A strong signal a month ago has given only a modest market move, if in-fact this market is done, that I don’t know. One thing is for sure, one needs to play the price action as it relates. A big bounce will be setting itself up for a good predictive move either way at that point.
To better illustrate this, I have a “Daily Chart” of the S&P cash market up again as I did last week. I have new notes on it as I pointed out the potential for a big drop from last Fridays blog posting. Well, we did get the drop, now what. Go see the chart below and get the rest of the details of what we could expect.
In today’s trading, since the price action was so slow, I did not push it. I only had a few trades and called it a day. I had a little over 3 points gain and just 2 ticks of lose. It wasn’t to exciting, but trying to make something where there is little, is usually not a good idea. I could have went into scalp mode and tried to pick up a few more points, but when the prices are moving so slow and there is little volume, I really don’t like it. I would rather wait. My trades are below.
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Trading for a living is a traders dreams and at times dreams do come true. For this dream to come true, one needs to have a trading plan and a back up trading plan from the first one. Things do not always work out the way we would like, but having a trading plan to begin with, puts you miles ahead of other traders who have none. Finding the best trading instrument is also something one needs to contend with. I find that trading individual stocks are easier to trade than the S&P emini’s in a general sense, but I enjoy the trading leverage that comes with futures trading.
I find that trading for income is much easier than trying to trade all day for the sake of trading. If its the money we pursue, than trading discipline and patients is going to be in high demand. Without a high degree of trading discipline and the patients to go with it, you will end up working against yourself.
Traders do not realize that they themselves are there biggest obstacle to overcome. Read that last line again. That is right, we end up derailing our efforts to often by our lack of discipline and need for action. If a trader trades for income, then he gets what came for and leaves to enjoy the freedom that day trading was supposed to offer, or that is how it is supposed to work.
With the high degree of trading leverage that emini futures trading offers, you really don’t need to trade all day. Consistency in capturing 2-4 points per day on most days, with windfall days 2-3 times a month, should do the trick nicely. If a higher income is what you want, mastering the daily goal is the first place to start with small trading size. After that goal has been reached, then slowly increasing your size to the desired income level is next.
If an emini trader could master the 2-4 points a day average, highs and lows, including loosing days, which is 60 S&P points per month, x that by $50 dollars per contract traded and you have $ 3,000 per month. That is your minimum profit for one contract traded for the whole month. It not a lot of money, but increasing that slowly over the course of a year, could easily take you to 20 contracts. Now that is serious money, 20 x $3,000 or $60 K a month.
Increasing is an option and has its own set of psychological problems, but those limitations are usually our own inability to allow us to earn more. Our own self worth needs to be evaluated and we need to give ourselves permission to reach all of our financial goals as our plan calls for.
To day trade 20 lots in the emini market a trader really only needs about 20k in his account to put on a trade with that size, based on the trading leverage that is available to him. Each S&P point is then worth $1,000 dollars. That is a lot of bread, but that works against you just the same. Trading with that kind of leverage is definitely not advisable, but for every 3-4 thousand dollars of increased profits, one could over 3-4 months find themselves at that 20 lot level. Even averaging 2 points a day (40 points a month) will get you their in 5-6 months and give you the ability to take money out of the market each week.
It first starts with us and our mental attitude. Controlling greed and our emotions, while we trade for income. This is a marathon, not a sprint. Keep your trading funds safe until you truly posses the trading edge, then live your trading dream. (Part coming next posting)
This post is for Friday’s market as the Index’s pulled off Thursdays intra-day low of 1006.
The market had a negative bias to it on Friday after the open which lasted for several hours. We started to flatten out around mid session and then made a run for it. The market did a pretty good job, but just before the close, no one wanted to hold over the long weekend and things sold off quickly. Modest losses for the Dow and NASDAQ as well.
Where do we go from here? Well, everything is down except for the monthly charts right now. It is hard to say, but I would like this market to hold up for while before any major cracks take place, but the market is not going to listen to me. As the days go by, we will afford more of a move down, so as for the Dow to get to the 9500 area or so. The index’s are not exactly in sync and some backing and filling may have to be done to get things lined up with each other. The number S&P 1006 was significant last week, but as time passes, if will allow for the market to come down a little more. We had a 20 S&P point advance off of the 1006 number but I do see that there could be more room for things to settle in here. It is all pretty close. There is a chance that we could hold on to the lows set on Thursday and by Wednesday move out higher. I will just have to see how things shape up on Tuesday first.
There is a lot of room for the market to drop if it wants to, but if we can contain any new selling to afford the Dow to get to 9500 + or -, we could see a good move off of that number. The new sentiment numbers will come out on Wednesday morning and there could be new developments there. We were holding at 41% bullish and a reading of 35% or less should trigger a counter move up. Since the markets will be closed on Monday, that gives us only one day to see what it will do. A 6% drop is kind of a lot to drop in one week, but I have seen it happen plenty of times before.
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Friday’s trading was bit tough for me. It all turned out OK in the end, but I came up to my daily loss limit (4 S&P points) and could have went slightly over it if my last trade did not work out. My judgment was off and it caused me to struggle. I saw something, a big move coming and was acting ahead of the move so as not to miss it. I had built a position with three entries just before my last trade and it did not work out. Only a small loss around 4-5 ticks but I really needed to wait on that move for a better entry. The move was just brewing in the hopper, waiting to jump out, but I needed more patients. The last trade made up for all the mistakes and I hit better than my daily goal. I have similar notes on my screen below if you click on it, once and then again to blow it up if you care to see. Video of the last trade in U-Tube video gallery posted on Friday too.
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Steps for establishing your goals:
1) Start by doing what you know works, then experiment with new applications. When in doubt, try to do more of what your already doing that is already delivering the results you want.
2) Build the right back up scenario’s into your plan. What might go wrong? Anticipate the unexpected at every level of achievement and don’t let concern about your own status as others perceive it, keep you from making the right choices in the right situations.
3) Get feedback from the right people on the pros and cons of your trading plan. People who give constructive feedback want to see you grow and people who offer only negative thoughts want to see you stay the same. Don’t waste your time talking to people who want to make you feel bad about yourself or question your dream altogether.
4) Keep your eye on the goal, but don’t get tunnel vision as it relates to other obligations. You have to balance your goals as it relates to the big picture. Do something each day that takes you closer to reaching your trading goals and is a reminder to yourself that you are going forward and making progress. The key is balance all other things of importance so other things do not suffer at the expense of reaching your goal.
5) Keep learning and growing and remember no one does it all alone. If the problems down the road look too large to you while you are setting up your plan, remember, you will be a big person by the time you need to solve them. To often we hold off on growth because we worry, “How would I handle all these problems”. We assume that we will never be smarter than we are right now and that we will never run into anyone else who offers skills and experiences that complement your own.
If you are a struggling trader and want to bounce an idea or two off of me, feel free to send me an email and I will give you my constructive thoughts on it. Many times traders do not have anyone to talk to about what they are trying to accomplish and it can be frustrating, because they may be going in the wrong direction. I won’t be trying to get you signed up with my trading course unless you want to, but if you ask a legitimate trading question or questions, I will give you a professional answer, no more. It is up to you to ask. If you struggle with concentration and focus, ask me for a free copy of my E-Book on “The Power of Concentration”. Again, no strings attached and I will not be hounding you with this or that. Just ask for it and its yours, that is it, and again, if you have questions, I will be happy to answer. So, think it through and send me any email. We are half way through the year, make the second half count in reaching your trading goals.
If you have 60 to 90 minutes a day, a computer, risk capital, the Internet, mental discipline and “Sniper Day Trading”, I believe you may have what it takes to attain financial and time freedom by Day Trading the E-Mini Futures.
Emini Course and Mentoring Program
In my Emini Trading Course, I show you how to utilize a “Sniper Trading” type approach using my tested method to earn at least 2 points per day from the markets. You could learn how to make consistent profits in good or bad markets. Our method focuses on high probability trading, delivering you your points for the day. Day trading for a living does not have to be hard, if you have the right method, plan, course of action and someone to explain it to you in a live market trading environment.
Price action, is driven by emotional buying and selling decisions for a variety of reasons, all of which are present in the current price at any given moment. Our job, is to find the turning points that exist in each session through precision market timing. These turning points are present every day the markets are open. Sniper Day trading will teach you to clearly spot where these turning points are, using a trading mastery type approach. These points show up like consistent “Sniper” shots on your trading screen and are clearly defined by using the custom tools I have created.
We strive to teach our students to learn price action apart from indicators or tools, but they are helpful to point out what may not be seen in the beginning. I am sure what I have in full is not being taught by anyone and is unique to me and the many years I have spent developing and now clearly defining the “Sniper Day Trading Method”. The signals generated by my method will produce the same signals to anyone who is following it, there is really no gray area, only which trades you decide to take and which you let go by.
Sniper Day Trading Method
We trade with tick data and use multiple time frames in timing our trade entries. I have three different styles I trade and bring them up as the price action dictates. One is a “Scalp Trading Method”, (T-1 Trade) that is very accurate in picking up 2,3 or 4 ticks on the S&P. My stops are such, that this approach averages a one to one risk/reward ratio, but enjoys a very high percentage “Win/Loss” ratio. This is bread and butter for me.
The second style enjoys the benefit of my “Precision Turning Points” model, (T-2 Trade) and is usually traded with multiple contracts. The first part is scaled out around 1 point, which quickly brings me to a no loose position and the second half is usually allowed to run. I have four incredible ways to get out, all of which act independently of each other, but are uncannily similar in their results.
The last, is a “Pyramid Trading Method”, that when conditions are right, you are able to keep your first risk small but scale into the trade, adding positions in the direction of the trend, but only at very low risk entry points, keeping your stops down to 1 S&P point. Each one of these methods are very clearly explained in my 80 page trading manual and followed up in the DVD training part of my course. They will also be gone over in our live trading sessions.
While only needing to pull 2 points after commission per day out of the market, (8 ticks) catching a few scalp trades or a T-2 trade, is really all you need to hit your daily goal. I believe in setting realistic goals, which increase your chances to meet them. By having a clear mind, a solid trading plan, with position sizing risk limits and rock solid money management, you come that much closer to trade your way to financial and time freedom.
Examples of two typical trading days back to back, applying the Sniper Day Trading Method. It only took about 20 minutes to get my daily goal plus on both of these days.
Mental Discipline and Trading Psychology. I have told you what I can offer to you, but this is not all you will need for success. I am convinced that my method, custom indicators and complete approach could make the aspiring trader profitable on a regular basis, but do you have what it takes? Trading psychology plays a huge roll in all traders, whether they know it or not. You have forces constantly working against you. Success is only going to become a reality to you, if you have the qualities needed to pull this off. What you are going to need is * Discipline * Patience * Ability to follow rules * Control your fears * Get a grip on personal greed. Frequently, I talk about this in my daily blog, because they are too often why traders fail to reach their goals.
I offer a lot of support in this area as well, if you are a struggling trader and want to change, I have the tools, method and know how to likely turn you around, so that you can create the consistent income, free up your time and fulfill your dreams in becoming a successful day trader.
Mental Exercises
In my program I address some of these issues in a series of “Mental Training Exercises” that I have put together. They are designed to get your mind thinking and believing that trading for a living and meeting your daily trading goal is normal, natural and the only outcome you will accept. The titles in the first series are; * Financial Freedom * Positive Risk Taking * Holding your concentration while trading * Achieving your Trading Goals. The titles in the second series are; * Overcoming Trading Obstacles * Controlling Emotions while Trading * Overcoming the Fear of Failure * Creating Hope & Success.
These I believe are very powerful and are in, “the first person” and will become personal to you. They are a form of Neuro-Linguistic programming that can take you farther and bring you closer to meeting your trading goals. They are, in written form and in audio CD and created by me. My plans are to continue to expand these in the future and make any new additions available to students who come on board, all at no extra charge. These training series are specific to traders and cover issues they face.
Solutions for traders, Sniper Day Trading
I realize that not everyone is born with all the qualities a successful trader will need, but I feel it can be learned if you want it bad enough. Ask yourself, how much do you want to become a consistent successful trader ? The answer to that is going to make all the difference in the world.
I know personally the things that hold traders back from bringing it all together and I know exactly what to do to help them change. I believe I can help the struggling trader as well as the trader who has never done this before.
I can set you on a course that is tailored to your experience level and walk you through everything needed and expected. The good part is, you won’t have to go it along. If you have any question, I can not only answer it, but help you apply it, to get the results you will need. Our daily goal is not to hard to hit, 2 points + per day. We can take a conservative approach to help you get that goal regularly.
If you are honest and know you need help and are willing to work hard and change what ever you have to, then I am sure I can help. Trading for a living is possible, but you need to do different, be different and think different from the majority of other traders. If you first commit to yourself these things, then I will commit to you, which will bring you one step closer to the success that we all strive for. Lastly, I want to assure anyone with doubts, my method, straight up works. The only question that remains is, will you move forward and decide to make it work for “YOU”.
Price Action Day Trading
“Price Action Day Trading”, is the key to your long term success. The markets do something everyday that is consistent since they began trading, over one hundred years ago. It exists in all time frames and gets played out on trading screens across the globe each day. It is important to understand and learn, “good price structure” and how it is built. That is what I teach and that is what students get when they partner with me at Sniper Day Trading. The key is learning what to do and when to do it and why. If you don’t know the answers to those questions you will eventually fall short. Many traders use indicators to help them and that is OK. I have them and use them also, but I do not base my trading decisions on the indicators. I base it on good price structure and trade setups that happen over and over, day after day. Traders and investors are very predictable, they base many of there trading decisions on emotion. Knowing slightly ahead, how they will react when certain prices are reached and breached, give us the trading edge we look for. With that said, the indicators magically line up with our trading decisions which can give us the added confidence to put our money on the line.
Below is a typical trading day where you will see the trading, “Turning Point”. I have stripped away everything from the screen except two things. There is much more, but I just want to show you that the indicators line up with our turning points. Which came first the chicken or the egg. The chicken and that is price. Price is always first and the indicators are second. That being said, the indicators can help traders see what is already on the trading screen. I hope this explanation helps clarify in the minds of seeking traders that what we have and do is real and works.
What You Get With Sniper Day Trading
My E-Mini Trading Manual (hard copy 80 full pages) with future updates. (very nicely done)
Complete DVD video training package in very nice hard cover locking case / extra: will include method applied to stock trading.
Method explained throughout the week, with full screen video and audio illustration in both the T-1 and T-2 screens, “Turning Points”. Very powerful part of ongoing training. (This service will be included ongoing all at no extra charge)
All custom chart settings to build your trading platform and help by me if needed to set it up.
All of my custom and modified indicators I created, that will unmistakably identify my “TURNING POINTS” for the T-1 and T-2 trades, when applied to the method.
Method checklist work-sheet ( for examining trades against method).
Laminated 8×11 “Method Overview”, to pin up over trading screen. Laminated 8×11 “Mental Exercise Overview” pin up over screen.
Mental Training Exercises: eight titles – audio CD and in written form. On-going future title releases no extra charge.
Leather bound “Trading Journal”, to help you keep your thoughts, progress, questions and answers.
I will personally work with each trader by screen sharing technology and voice of I.P. through SKYPE, in a live trading environment. After you go through the material, we will set appointments for our personal sessions together. We will apply live market data to the method and I will show you exactly what to do and how to do it. The manual and video’s will give you a head start, but working with me personally will undoubtedly bring it all together. I will spend as much time as needed with each trader who comes on board until he or she understands the complete trading method.
If in the future if you have questions, I will always be here to discuss them and go over your charts to help point you in the right direction. I am not just selling my trading method, but offering much more, mentoring and getting you profitable. Traders often face mental barriers that hold them back, but they do not know exactly what it is or why they consistently make the same mistakes over and over again. I can uncover the problems here, find the solutions and set you on your new course.
My goal is to get each trader that joins with Sniper Day Trading to book at least 2 points per day and gradually increasing contract size to a desired income goal. I will do my part as stated above, will you do yours?
Futures Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any e mini trading system or methodology is not necessarily indicative of future results.
Daytrading Involves High Risks and You Can Lose A Lot of Money.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under or over-compensated for the impact, if any, certain market factors, such as lack of liquidity. Simulated e mini trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Additional Cautions
There are no guarantees or certainties in trading. Reliability of trading signals for mechanical systems are in probabilities only. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during the methods off times (and all methods or systems have off times) – If you are looking for guarantees, trading is not for you. Most people lose trading. One of the reasons is that they are not consistent and lack discipline. A method of system can help you become consistent, BUT you have to stick to the method like a formula. The ability to be disciplined and control your emotions is even more important than any technical indicators a trader may use. Worrying about the money aspect of trades (which is an emotion) can contribute to and cause a trader to make errors. It is important to trade only with true risk capital. You can find further information at: www.sec.gov
Frequently Asked Questions (Click on the Question to Reveal Answer)
Q. Can I trade more than 30 to 60 minutes a day?
A. Yes. You can break it up into two sessions if you like. Perhaps a morning session and afternoon session-make 2 point each session.
Q. Can I trade for more than two point a day?
A. My E-Mini trading course has advanced material for those who WANT to trade all day and earn more than two point a day. That’s fine to do, as long as you stick to the rules and not deviate from the trading plan. I personally do not advise it. The high side of the daily goal, four points, should be enough for most traders.
Q. Can I use this with Eminis other than the S&P?
A. Yes! my method works great with the NASDAQ Minis and the Dow Minis.
Q. What is a Day Trading School?
A. Many websites offer day trading training where you have to attend a classroom in a school. If you are not near one of these “schools”, you are out of luck. I offer my course as an “at home” learning experience. You learn at home, to earn at home.
Q. Is this a mechanical system?
A. Yes, and no. Yes, it is mechanical. No, it is not a “system”, it is a method. In my opinion, systems don’t work because the markets always change. Sniper Day Trading will give precise entry points that are highly accurate.
Q. How much money do I need to start?
A. Most brokers require a $5000 starting balance to begin. Amp Futures has a lower minimum opening balance of $ 2,000. That is very tight and offers little room for error, but it can be done if you have excellent discipline and really grasp the method. Following the rules for profitability is a must. Daily loss limit a must and may even have to be tightened to 3 points from 4. That is a daily loss limit of $ 150 dollars for the day. The worst you could do on any one day. So with discipline, focus and the right person, it is possible.
Q. Can I really make an income with a $5k balance?
A. Absolutely! Assuming you can follow the rules! If you can’t, then you will not make it, plain and simple. The choice, decision and outcome are up to you. You will have all that you need to make it. My method works, there is no doubt in my mind. The daily “Turning Points” video’s I do will be an incredible help. If you can build your contract size to just 4 contracts in 4 months time. Increasing your size just one contract per month over 4 months, you will be at a annual monthly income equivalent to making 100K per year, with averaging just 2 points per day. Some days you will hit 3-4 because the market will just give it to you, before you close the trade. That will make up for days you may fall behind. So again, yes it is possible.
Q. Can you recommend a good broker?
A. Yes, Tradestation Securities is the data vendor I use and also the broker, two in one. I have found that these guys are one of the best in the industry and have a very easy trading platform to learn. I recommend them also because it is easier and better to build your screen the way that I have it. We will be using the same platform and format.
Q. How much are commissions?
A. Commission are $2 dollars to buy and $2 dollars to sell per contract. It could be a little more or less depending on the volume you trade.
Q. How long will it take to learn this method?
A. I believe if you read the manual and watch the included videos, you will be underway to learning the Sniper Day Trading method within a week or two. You really need to review the daily trade videos and you really need to trade the simulator first. I will not tell you how long to trade the simulator, because everyone is different. You may need more than two weeks of simulated trading or just a couple days. Any experienced trader will be ready in a few day or so. The method is not hard to understand and apply, most people will grasp it quickly.
Q. What kind of support will I receive from you?
A. My undivided attention! I am not a sales man trying to sell 1000 copies here. I am a real day trader who makes his living from day trading-period. I truly want to see you successful. You will have my private cell number and email address and all the consultation you need.
Q. You mention discipline quite a bit. Why?
A. It’s that important. You need to be disciplined to follow the rules to the letter. That’s why I highly recommend listening to my “Mental Exercise Program” often. As mentioned I will be coming out with future releases of this and make them available to partners at no extra cost to them.
Q. Can I skip trading for a few days and still make money?
A. Absolutely. You will be making money every day you decide to trade! Of course you will not make money when you take a day off.
Q. Can I pay for my course in installments?
A. No. A simple one time payment is required. Please read our CFTC Disclaimer linked from the bottom of my home page. You should be well capitalized to trade futures and should not be trading with money you cannot afford to lose. If you cannot make a one time payment, you may not be ready for trading!
Q. How much can I expect to make in a year?
A. Great question. Personally I consider a $100,000 + a year good income for most people. Following my plan and trading 1 contract to start, and adding 1 contract after every $1500 profit,(every three weeks at 2 points a day) you could be earning well over the above amount a year in a very short time. Trading only up-to 4 contracts at 2 points per day would attain this goal. This is a very conservative approach and one that most should consider especially if you are new to futures trading. Everyone is different. If you do not follow the rules and lack discipline, all bets are off.
Q. Do I have to install your software on my computer?
A. No. I do not sell software! I am selling education materials only. If you don’t have a data package and broker, I really recommend Tradestation. They have it all, they are not perfect, but they have all the software you will need. My custom indicator can be set up on your screen without to much trouble and I can help with that if you need it.
Q. What if I lose my connection while I am in a trade?
A. You need to CALL YOUR BROKER IMMEDIATELY. Personally, I always have a back up computer with a Verizon Internet Card ready to go in case my cable modem goes out. It’s very prudent to have a backup and have your broker’s number on speed dial. I have not had this happen to me, but I am certain it could. I also recommend a battery back-up/surge protector in case the power goes out while you are in a trade.
Q. Will I make money if the market keeps going down?
A. Sniper Day Trading method allows you to profit from up and down markets! Go to the beginners page and read about shorting the market!
Q. Do you offer training after market hours?
A. I do offer an after hours market training to those who need it, but cover a lot of material in the daily video’s I put out after each trading session. This is usually a recap of the trading day and signals generated. I will schedule LIVE TRAINING WEBINARS occasionally as needed to help partners better fully understand some advanced features and how to read price action.
Q. Do you offer a live trading room?
A. Not at this time. I will be considering this in the near future, but not yet.
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