المتاجرة العملات الأجنبية مقابل واحد في المعيشة قوات الدفاع الشعبي المحرر

تجارة الفوركس من أجل العيش تصبح تاجر الفوركس المهنية ليس من المرجح أن تكون عملية سهلة بالنسبة لمعظم الناس. فإنه يأخذ مزيج من العديد من المهارات المختلفة كل معا معا لضرب حقا علامة. ونسق نجاحك الخاص لا يعني الفذ. هل يقرر شخص ما أن يريد أن يصبح طبيبا ثم يقرأ الكتب أو يذهب في عدد قليل من المنتديات الطبية أو ربما يأخذ بعض الدورات التي يعتقد أنها مفيدة سوف تصبح بعد ذلك طبيبة على مستوى عال هو طفل يحب كرة القدم قادرة على ممارسة ببساطة في حديقة محلية أو في المدرسة واكتساب المعرفة والخبرة المناسبة من أجل أن تصبح رياضي محترف أو هي لعبة من المرجح أن تكون مختلفة في الايجابيات واقع تداول العملات الأجنبية هو أنه عندما تذهب العيش، كنت تلعب في الايجابيات من اليوم الأول . متأكد من أنك قد تختار للتجارة البسيطة أو الجزئي حسابات الكثير، ولكن كل هذا لا الحد من المخاطر الخاصة بك لا يزال التداول ما أساسا في نفس السوق. لذلك على عكس المهن الأخرى، والتجارة لديها القدرة على منع نمو ونمو الفرد. لذلك ما الذي يستغرقه لضمان أنك تأخذ الطريق الصحيح في طريقك لتصبح المهنية تاجر الفوركس دريف والعاطفة والادمان سواء كنت تعلم من غرفة نوم الغيار أو كنت التداول في جولدمان ساكس، تحتاج إلى أن يكون وفرة من محرك الأقراص، والعاطفة والطموح. ثاتس الحق خصوصا في الواقع إذا كنت تأمل أن يكون بعض التجار النار النار الساخنة. وهذا هو جوهر تداول العزم المطلق على جعله والبقاء ناجحا. وبدون هذا الموقف والسعي لتحقيق التميز، والأنا والخوف والجشع واليأس في الحصول على الطريق. والتفاني وقوة الاعتقاد تساعدك على البقاء على مسار عندما الأمور لا تذهب دائما طريقك. ميتيكولوس الطبيعة والفضاء الذاتي يجب أن نفهم أهمية إعطاء في لهذا النهج. وكثير من الناس خاضوا مثل هذا القتال لأنهم لا يتقبلون تماما شيئا يرون أنه جامد وغير مرن. ولكن ما لا يرونه هو أنه من خلال التداول بطريقة صارمة، وسوف تتعلم أن تثق ضمنا أنفسهم ويكون لها خط الأساس للتنمية. من خلال فهم طبيعة حافة التداول أي أن احتمال الفوز على عدد من الصفقات مواتية وأنك لا تعرف أبدا ما إذا كانت التجارة المقبلة سيفوز أو يفقد المتداول سوف تبدأ في تطوير في مثل هذه الطريقة التي هي أقل عرضة للانزلاق الانفعالات. نلقي نظرة على هذه ونرى كم أنها في نهاية المطاف تكلفك على مدى شهر. سوف يلاحظ العديد من التجار أنه إذا كان للقضاء على هذه الخسائر الضخمة، فإنها ستكون مربحة. ولكن أيضا، من خلال التداول باستمرار لديك القدرة على إنشاء خط الأساس للتنمية. فكر في ذلك لمدة دقيقة. إذا كنت تحاول إجراء ملاحظة من أجل استخلاص استنتاجات صحيحة، كيف يمكن أن تجعل من معنى النتائج إذا كانت المدخلات عشوائية تداول العملات الأجنبية من غير المرجح أن تجعلك غازيليونير بين عشية وضحاها. إذا كنت تبدأ التداول وجعل كومة كاملة من المال، أنا آسف أن تنفجر فقاعة الخاص بك، ولكن هذا هو على الارجح واحدة من إن لم يكن أسوأ شيء يمكن للمبتدئين من خلال الذهاب. 1) المال في هذه الفترة ليس من المرجح أن تكون كبيرة في مخطط كبير من الأشياء (بقدر ما يبدو كما هو عليه في ذلك الوقت). 2) الأرباح سوف تتغذى إلى توقعات غير واقعية ومن المحتمل أن يسبب المبتدئين لتصبح فرسان مع السيطرة على المخاطر. 3) سيؤدي هذا السلوك في النهاية إلى خسائر أكبر (وربما أكبر بكثير) من المكاسب الأصلية. 4) من المرجح أن يؤدي التراجع إلى أن يصبح المتداول أكثر حذرا ويعرقل تطوره أكثر من ذلك. كمتداول، من المهم جدا أن نفهم أنك سوف تأخذ الخسائر وهذا الاتساق هو الهدف بدلا من محاولة لضرب هوميرون كل التجارة. هذا هو أكثر أهمية عندما كنت قد اتخذت بعض الخسائر في صف واحد الكثير من التجار يأتون ونستك عندما تحاول استعادة جميع خسائرهم في تجارة واحدة. الاتساق هو حول كسب المال، ولكن علاوة على ذلك عن كونها قادرة على تكرار النتائج من خلال إجراءات تجارية متسقة في السوق. لديك أيضا لفهم ما نقاط القوة والضعف من المنتج الخاص بك. على الرغم من أن تداول الفوركس يوم ممكن هناك خيارات أفضل هناك إذا كان هذا الطريق الذي ترغب في اتخاذها. ولكن حقيقة أن لديك مثل هذه السوق واسعة مع العديد من أزواج مختلفة للتجارة هي ميزة كبيرة. وإذا كنت التجارة عدد قليل منهم، ثيريس أكثر من فرصة جيدة يتم إعطاء الفرصة للقبض على واحد أو اثنين من التحركات الضخمة في السنة. لا أعتقد أنه إذا كنت لا تجارة الفوركس يوم أنك لن تكون نشطة إما. الصفقات يمكن أن تجري في الكثير من أزواج مختلفة في أي وقت واحد أن كنت فعلا أن تبقى مشغول جدا على أي حال. تداول الفوركس أو أي شيء آخر لهذه المسألة هو حول وجود تقرير للنجاح ثم وضع مسار قوي للوصول الى حيث تريد أن تكون والتمسك بها. فقط لأنك لا ترى نجاحا مباشرا مع نهج معين، إذا كان يقوم على منطق سليم، ومراقبة المخاطر المناسبة والحساب الخاص بك هو رسملة بشكل مناسب ثم ثيريس كل فرصة أن مع الممارسة سوف تكون قادرة على تحويل الزاوية في مرحلة ما. C القفز وتغيير الاستراتيجيات من المرجح أن يؤخر أهم مرحلة تاجر يجب أن تذهب من خلال تطوير ضبط النفس الخاصة بهم. نيتبيكس لديها عدد من استراتيجيات رائعة لتداول العملات الأجنبية بما في ذلك الاتجاه الطائر. جامعة بريميير التاجر و كيلتنر أجراس. حتى عندما كنت على استعداد لالتزام مسار لتصبح تاجر الفوركس المهنية، لماذا لا تحقق بها. تداول الأسواق، من قبل جون كارتر انضم فبراير 2006 الحالة: عضو 313 المشاركات مرحبا بكم في مجلس شيكاغو للتجارة (كبوت) التداول الدروس سد - ذاكرة للقراءة فقط. اسمي جون كارتر، و إيف تم التداول بنشاط لمدة 17 عاما، منذ كنت طالبة في المدرسة الثانوية، و بدوام كامل منذ عام 1996. أنا رئيس التجارة في الأسواق، وشركة تراديثيماركيتس. شركة معلومات الأسواق المالية تأسست في عام 1999. أنا أيضا كتا (تجارة السلع مستشار) ومبدأ تجارة الشفرة، وهي شركة إدارة الأموال. يتم اختيار اللقطات اليومية من النشرات الإخبارية التي أكتبها كل يوم بشكل تلقائي للعملاء في عدد من الوسطاء. وبعبارة أخرى، أنا جعل التداول المعيشة بلدي. لقد وجدت كبوت صغيرة الحجم داو ليكون عقد الآجلة كبيرة للتجارة، وخاصة بالنسبة للأشخاص الذين بدأوا للتو من العقود الآجلة التداول. فبمجرد البدء، أعني أي شخص يتداول بنشاط لمدة تقل عن خمس سنوات. بعد أن قلت ذلك، إم العثور على المزيد والمزيد من كتاس ومديري الأموال الاستفادة من جميع الفوائد كبوت صغيرة الحجم داو لهذا العرض. حجم هو جدا كوتيكيكوت مما يعني أنه يمكن وضع أوامر كبيرة مع الحد الأدنى من الانزلاق، وهذا يعني أيضا أن التاجر يمكن أن تتحرك من والخروج من هذا العقد بسرعة وكفاءة. وبالإضافة إلى ذلك، وأنا أحب أن استخدام كبوت صغيرة الحجم خيارات داو للحصول على وضع لحركات أكبر كوتسوينغكوت السوق. إيم أيضا العثور على العديد من الفرص التجارية مع أطلقت بالكامل إلكترونيا التداول كبوت الإلكترونية 100 أوقية. الذهب و 5000 أونصة. عقود الفضة، وكذلك الخيارات المتاحة الآن على هذه العقود. وبالطبع هناك بعض المسرحيات لطيفة المتاحة على واحدة من المفضلة القديمة، و كبوت 30 عاما السندات الآجلة. وسوف نناقش مسرحيات محددة في جميع هذه الأسواق في هذه الدروس التجارية. كان إيف فرصة للعمل مع الكثير من التجار، ووجدت أن العديد منهم يعيشون في حالة من التدفق المستمر، عالقة بين عالمين التي تجمع بين كل من أسوأ وأسوأ أن التداول لهذا العرض. فمن ناحية، يمكن للتجار الفرديين التحرك داخل وخارج الأسواق مع سهولة وكفاءة الأموال الكبيرة التي يمكن أن تحلم بها فقط. وللتجار حرية اختيار منافذ محددة لأنفسهم لا يستطيع صندوق المعاشات التقاعدية الضخمة تحقيقها أو تكرارها. ومع ذلك، مع الكثير من الحرية يأتي السعر: الأسواق لا يمكن أن يحمي التاجر منه أو نفسها. فالتاجر الفردي، على خلاف مدير الصندوق، غير خاضع للرقابة وله حرية التصرف دون أي رقابة بأي طريقة يختارونها. هذه الحرية عادة ما تعزز العادات السيئة، والنتيجة الصافية هي السوق التي تتحرك وتزدهر في مثل هذه الطريقة لمنع أكبر عدد ممكن من الناس من كسب المال باستمرار. هذا هو السبب في أنه من الضروري للتاجر للعثور على مجموعة من إعدادات عالية احتمال لمتابعة. مرة واحدة يتم اكتشاف الاجهزة، ومن ثم يصل إلى التاجر أن يكون الانضباط لمتابعة مجموعة محددة من القواعد لكل من الإدخالات ومخارج. التجار الذين يقومون بذلك لديهم ميزة على الجميع، واحتمال أكبر للنجاح. التجار الذين لديهم احتمال ضعيف للنجاح تعتمد عموما على مشاعر الأمعاء الخاصة بهم لإدارة الموقف. وخلاصة القول هو أن التجار الذين وضعوا مجموعة من القواعد للتجارة من خلال فرصة للقيام بذلك بدوام كامل من أجل لقمة العيش. تلك التي لا تهتم لتطوير مجموعة من القواعد تصبح اللحوم الطازجة لبقية منا لا ينبغي أن يكون من المستغرب أن نسمع أن تعلمت كل هذا من خلال أفضل معلم أن السوق لهذا العرض: الألم والمعاناة واسعة النطاق. والدي، وسيط مع مورغان ستانلي، حصلت لي بدأت خيارات التداول عندما كنت طالبة في المدرسة الثانوية. واصلت التجارة بنشاط من خلال المدرسة الثانوية والكلية. وسرعان ما طورت نهجا متسقا للغاية لتداولي: أود أن أحول بشكل روتيني حساب 10،000 إلى خمسة أو ستة أرقام منخفضة على مدار السنة. وأود أن ثم شراء نفسي قطعة من تأجير العقارات واثنين من العبوات لطيفة. ثم أود أن أجلس وأقرر ما هي الأشياء الأخرى الأفضل والأفضل التي أردت شراءها. بمجرد أن أحسب ذلك، وأود أن أعود إلى التداول. المسلحة مع هذه الرؤى من كوتبيجر وأشياء أفضل، وكنت أود أن الغوص مرة أخرى إلى الأسواق. وهناك شيء غريب ثم يحدث لي: وأود أن تميل إلى إعطاء بقية حساب التداول الخاص بي في أقل من شهر، وأود أن تبدأ من جديد من الصفر. هذا لم يحدث مرة واحدة ولكن ثلاث مرات. وكانت التجارة الأكثر تميزا تقع خارج الكلية، عندما تمكنت من إعادة معظم حسابات التداول التي تبلغ 150،000 حساب في أقل من أسبوع (وهذا ما يحدث عند شراء 200 نقطة تداول أوكس عند 7.20 وبيعها بعد ذلك ب 75 سنتا) . لحسن الحظ كان لدي ما يكفي من العقارات في هذه المرحلة التي يمكن أن بيع واحدة من العقارات لرفع حصة تداول جديدة. هذا تسبب لي أن أذهب على كتي التجار السعي. كوت أنا ألقى كل من المؤشرات بلدي وبدأت جديدة مع مخطط نظيفة. زرت مع التجار الآخرين، تلك التي كانت ناجحة القيام بذلك لأكثر من 20 عاما، من خلال العديد من ظروف السوق المختلفة. الشيء الذي ضربني عند زيارة مكاتبهم هو أن لديهم جميعا أنظمة بسيطة جدا، ولكن حيث تفوق كان في منهجية التداول الخاصة بهم. خلال هذه الزيارات، كان هناك شيئين قصفت لي: يمكنك معرفة سوق أفضل من أي تاجر آخر على قيد الحياة، ولكن إذا قمت بتطبيق منهجية التداول خاطئة إلى أن السوق، وسوف تفقد المال. يمكنك معرفة المزيد عن التحليل الفني من أي تاجر آخر على قيد الحياة، ولكن إذا كنت تتاجر في السوق الخاطئة لشخصيتك، وسوف تفقد المال. وكان هذا فتحت العين الحقيقية على كل من التهم، ولقد وجدت أن داو صغير الحجم كبوت هو سوق كبير للتجارة لكثير من الشخصيات الشعوب. هذا شيء سوف أتحدث عنه لاحقا. كان هناك شيء آخر عن هذه الزيارات التي أيضا رن جرس معي. استغرق مني بعض الوقت لمعرفة ذلك، ولكن أخيرا حصلت عليه: كلما ركزت على الاجهزة وليس النتائج، فعلت غرامة. كلما ركزت على النتائج وليس الاجهزة، حصلت على قتل. لماذا هذا مرة واحدة حصلت على يدي على حساب تجاري لائق الحجم، وأود أن تبدأ في التفكير في أشياء مثل، كوتي تريد تحويل هذا الحساب إلى مليون دولار. قهوة بدلا من التركيز على الاجهزة، وأود أن تركز على جعل مليون دولار. وهذا ما دفعني إلى القفز إلى عادات التداول التي تدمر جميع التجار: تراهن على كل صفقة واحدة، لا تستخدم محطة لأن كوثاد التجارة للعمل بها، والتركيز على جعل مليون باكز بدلا من الإعداد التجاري. بعد أن أدركت ذلك، بدأت أفعل أمرين مختلفين: أولا، بدأت أخذ أي أرباح من حسابي التداول في نهاية كل أسبوع. وهذا ما جعلني أركز على إنتاج دخل ثابت، بدلا من القيام بعملية قتل كبرى. ثانيا، بدأت المنافسة بين مختلف الاجهزة التي استخدمتها. وبهذه الطريقة يمكنني قياس أداء كل من بلدي الإعداد في نهاية كل شهر. الاجهزة التي جعلت المال، واصلت استخدام. الاجهزة التي فقدت المال، وأنا ملقاة. كان هذا مهما بشكل لا يصدق لتداول بلدي. الطريقة الوحيدة التي يمكن أن تبقي منافسي الذهاب كان لتنفيذ الاجهزة التجارية بلدي بنفس الطريقة في كل مرة. في أي وقت أنا انحرفت عن الإعداد القياسية، وأود أن علامة هذا أسفل في بلدي مجلة التداول باعتبارها كوميمبولس trade. quot أنا تتبع الأداء على هذه أيضا. بعد حوالي ستة أشهر من تتبع بلدي الصفقات الاندفاع (نجاح باهر، وهذا السوق تسير أعلى، ولدي للحصول على)، أدركت أنهم لم يجعلوا لي أي أموال. أنا أطلقت تجارتي الاندفاع وتعلمت أن التمسك مع الاجهزة بلدي. وبمجرد أن بدأ هذا العمل بشكل متسق، بدأت التركيز على التداول بدوام كامل، وأنا نظرت إلى الخلف. كان جزء كبير من انتقالي الذهني وتطوير ما أسميه دولة العقل كوفربوينسيونال، شيء ما سوف أتحدث أكثر عن في القسم 6. تم إنشاء هذه الدروس التجارية للتاجر النشط، ومجموعة من الاستراتيجيات المعروضة في كل من مكتوبة من خلال مقاطع الفيديو التي أستخدمها حاليا في التداول الخاص بي. أنا مناقشة مستويات الدخول والخروج ووقف الخسارة بالضبط لجميع هذه الاجهزة. سوف التجار اليوم الذين يستخدمون هذا القرص المضغوط تعلم لماذا الاعتماد على المؤشرات وحدها هي لعبة خاسرة، واكتشاف استراتيجيات محددة للوصول الى التجارة في وقت مبكر، وتعلم الاختلافات في معرفة متى الكفالة، ومعرفة متى لشنق لركوب. وسوف يتعلم المتداولون البديلون كيفية تخطي التحيزات الخاصة بهم والسماح للتجارة باتخاذها في الوقت الذي يؤكد فيه تحرك السعر أنه سيكون خطوة جيدة للقيام بذلك. في حين أن هذا القرص المضغوط يهدف إلى التجار بدوام كامل، وهناك الاجهزة في جميع أنحاء هذا الدليل من شأنها أن تعمل للأفراد الذين يعملون بدوام كامل، وقادرة فقط على التجارة بدوام جزئي. هذا هو ما فعلته لعدد من السنوات، ولها مزايا إذا فعلت بشكل صحيح. يتم استخدام استراتيجيات التداول اللحظي المفضلة لديك بشكل رئيسي على عقود داو المستقبلية ذات الحجم الصغير كبوت. ومع ذلك، لدي أيضا بعض الاستراتيجيات المفضلة التي يمكنني الاستفادة ل كبوت الإلكترونية 100 أوقية. الذهب و 5000 أونصة. العقود الآجلة للفضة، فضلا عن سندات الخزينة الأمريكية التي تبلغ 30 عاما. في هذه الدروس التجارية، سوف أقضي بعض الوقت في مناقشة أسواق العقود الآجلة وكيفية عملها. هذا هو للمبتدئين الذين لم يتداولوا العقود الآجلة - نهجي سوف تأخذ الغموض منها. من هناك، سوف أتحدث عن السبب في أنني أفضل التداول داو الصغيرة الحجم كبوت على الأسهم، E-ميني سامب، و E-ميني ناسداك. بعد هذا القسم، سوف أتحدث بعد ذلك عن استراتيجيات التداول الرئيسية اليومية و سوينغ. آمل أن تساعد هذه المعرفة على تحسين برنامج التداول الخاص بك بنفس الطريقة التي تحسنت بها الألغام. التداول هو المهنة الأكثر خادعة في العالم. لا يمكن للشخص المشي إلى المطار، والانتقال إلى 747، والاقلاع على المدرج دون أي تدريب مسبق. ومع ذلك فإن الناس سوف تفتح بشكل روتيني حساب وبدء التداول دون أي توجيه من أي نوع. بالنسبة لي، كان أكبر الفرق في تداول بلدي عندما تعلمت تجاهل عقلي والتركيز فقط على حفنة من الاجهزة الجيدة. مرة واحدة تعلمت الاجهزة، وكان التحدي القادم أن يكون الانضباط لمتابعة لهم بنفس الطريقة، في كل مرة. فعلت ذلك عن طريق تسجيل نشاط التداول الخاص بي والتركيز على نتائج كل الإعداد. على الرغم من أنني لا يمكن الوقوف على كتفك ومساعدتك مع الانضباط الخاص بك، ويمكنني أن تظهر لك الاجهزة التي يمكنني استخدامها للتجارة لقمة العيش. إذا كنت غير مألوف مع سوق العقود الآجلة، تأكد من قراءة القسم التالي (القسم 2) حول كيفية عمل الأسواق الآجلة. وإلا يمكنك القفز الحق في الاجهزة. هيا بنا نبدأ. انضمت فب 2006 الحالة: عضو 313 المشاركات هذا هو السؤال الذي أحصل عليه في معظم الأحيان من قبل التجار الآخرين الذين ليسوا على دراية بأسواق العقود الآجلة. بدأت قبالة كمخزون وخيارات تاجر، لذلك أنا أعرف ما كنت أفكر. انهم مخيف، الحق حتى الآن في تجربتي، مرة واحدة كنت أفهم ثم التجارة الآجلة، وأنت لا تعود إلى الأسهم. فكر في ذلك على أنها بلبوركوت كوتكيك التي سوف تساعدك على فهم أفضل للأسواق الآجلة. هذا هو بأي حال من الأحوال كومبريهنزيفيتير كتب كاملة مكتوبة على هذا الموضوع. ومع ذلك، إذا كنت قد تداولت الأسهم فقط، والأسواق الآجلة وربما الغموض وربما حتى تهديد قليلا. ولكن إذا كنت قد تعلمت بالفعل أهمية إدارة الأموال الصارمة، وسوف نقدر حقا ما العقود الآجلة لهذا العرض. عادة، مرة واحدة الناس في محاولة تداول العقود الآجلة، فإنها ببساطة وقف تداول الأسهم. سهولة الدخول على كلا الجانبين الطويل والقصير والقدرة على التركيز على عدد قليل من الأسواق بدلا من مئات الأسهم يجعلها تغيير منعش للعالم من الأسهم. هنا هو كيف تعمل: أولا، وهناك أنواع كثيرة من العقود الآجلة. يمكنك تداول أي شيء من النحاس إلى القهوة، من مؤشرات الأسهم إلى الفضة، أو من لحم الخنزير لحم الخنزير إلى البلاديوم. لا تقلق بشأن معظم هذه الآن. في مرحلة ما، بعد أن تصبح مرتاحا مع تداول حفنة من هذه، قد ترغب في النظر في أكثر منهم. ولكن أنا أعرف العديد من التجار الذين تداولوا سوق واحدة كل من حياتهم التجارية وتفعل بشكل جيد للغاية، وشكرا لكم. هذه هي الأسواق الآجلة الرئيسية التي أتابعها: كبوت صغيرة الحجم داو (يم) E-ميني سامب (إس) E-ميني ناسداك (نق) كاملة الحجم 100 أوقية. الذهب (زغ) كامل الحجم 5،000 أوقية. الفضة (زي) سندات الخزانة الأمريكية لمدة 30 عاما لاحظ أن بعض هذه هي كوتمينيكوت وبعض هذه هي كوتيفول-size. quot هناك عقود كاملة الحجم على داو (دج)، سامب 500 (سب) وناسداك (ند)، ولكن هذه هي حفرة المتداولة وأنا أفضل لتجارة العقود الإلكترونية كوتمينيكوت أصغر. لماذا بسبب الشفافية والفورية من التداول الإلكتروني. الجديد كامل الحجم 100 أوقية. الذهب و 5000 أوقية العقود الإلكترونية الفضة هي تغيير منعش من عقود التداول الذهب القديم (غ) والفضة (سي). مرة أخرى، أنا أفضل بكثير أن التجارة في النسخة الإلكترونية من هذه العقود على الإصدارات المتداولة حفرة. وهناك أيضا كبوت مصغرة الحجم الذهب (يج) وعقود صغيرة الحجم الفضة (يي) الإلكترونية التي هي جيدة للتجارة. حقيقة أن كبوت على حد سواء كاملة وصغيرة الحجم الذهب والفضة الآجلة يعني ببساطة لديك خيار لتداول العقد أكثر ملاءمة لحجم حسابك. والشيء المهم الذي يجب أن نتذكره في الطابق الأرضي (كما هو الحال في البورصة التجارية) هو التركيز على العقود الإلكترونية بدلا من العقود المتداولة. فالتعبئة الإلكترونية فورية، كما أن الأسواق تتسم بالشفافية التامة، مما يفسح المجال أمام جميع المشاركين. وبالإضافة إلى ذلك، يبدو أن الاتجاه في الحجم يتدفق من عقود الحفرة وفي العقود الإلكترونية. الالكترونيات هي حيث العمل هو، وهذا هو المكان الذي تريد أن تكون التداول. للحصول على الرسوم البيانية على العقود المذكورة أعلاه، سيكون لديك لإعلام المورد الاقتباس الخاص بك الذي تريد إضافة علامات الاقتباس من سم (إس و نق) و كبوت (ل داو والسندات والذهب والفضة). كبوت ميزة، كبوتس المنتج البيانات، ويقدم لمدة أسبوعين تجريبية مجانية لاقتباسات والرسوم البيانية التي يمكنك استخدامها للتحقق من كلا السوقين دون غمس أي أموال. بالمناسبة، فإن علامة كوت-مينيكوت وصفت من قبل سم (شيكاغو ميركانتيل إكسهانج)، وهذا هو السبب في أن ترى كوتيميني الحجم دوكوت بدلا من كوت-ميني دوكوت لأنها تتداول في كبوت (مجلس شيكاغو للتجارة)، وهو تبادل مختلفة. على الرغم من أنني اتبع يم، إس و نق، أنا أفضل التداول يم. سوف أتحدث عن السبب في أنني أفضل التداول في القسم التالي. هنا هو شريط فيديو يظهر لك كيفية العثور على معلومات إضافية بشأن العقود الآجلة التي تريد التجارة. وهذا سوف تساعدك على قفزة الضفدع قبل أي التجار بداية أخرى. النقاط الرئيسية: كيفية العمل في المستقبل أولا، عند شراء العقود الآجلة، أنت لا تشتري جسديا أي شيء. هذا هو مجرد وسيلة للمشاركة في حركة سعر السوق من اختيارك. إذا كنت تعتقد أن السوق سوف تتحرك 10 نقطة، يمكنك شراء العقود الآجلة، طويلة أو قصيرة، وكسب المال على هذه الخطوة إذا كان يذهب في الاتجاه الخاص بك. أيضا، إذا كنت تملك العقود الآجلة مؤشر الأسهم التي تنتهي، فإنك لن تحصل على مجموعة من شهادات الأسهم ملقاة على عتبة داركم. سيتم تحويل العقد المنتهية الصلاحية إلى نقد، وسترى النقدية في حسابك. لحركة السعر: إذا كان لديك عقد واحد في E-ميني سامب، وأنه يتحرك 1 نقطة (أي من 1032.75 إلى 1033.75) الذي يترجم إلى 50 في الربح والخسارة (بامبل). بالنسبة ل E-ميني ناسداك، فإن الخطوة 1 نقطة تساوي 20. بالنسبة ل داو صغير الحجم كبوت، خطوة 1 نقطة هي 5.00. لذلك، إذا كنت تشتري 3 سامبس، وتحصل على 10 نقطة، وهذا هو 50 × 10 نقطة × 3 عقود 1500.00. بالنسبة ل ناسداك و داو، هو الشيء نفسه، إلا أنك ستستخدم 20 نقطة لكل ناسداك و 5.00 لكل نقطة على مؤشر داو. ويوضح الشكل 2.1 تجارة داو ذات الحجم الصغير من كبوت مع 10 عقود. في الرسم البياني أعلاه، تحرك 27 نقطة في داو صغير الحجم كبوت مع 10 عقود هو 1350.00. وبطبيعة الحال، فإن هذا يسير في كلا الاتجاهين لذلك إدارة الأموال هي المفتاح المطلق لتداول العقود الآجلة. فمن الضروري أن تعرف توقف قبل أن تبدأ، وكنت التمسك بغض النظر عن ما. في التداول الآجلة، على أمل والصلاة يمكن أن يؤدي إلى الخراب. ومع ذلك، فإن الشيء الجميل حول العقود الآجلة هو أنها سريعة جدا ويملأ نظيفة بحيث يمكنك الحصول على توقفت، ثم بضع ثوان في وقت لاحق كنت على حق في العودة. لا يمكن أن تكون خائفا أن تأخذ خسائر صغيرة، الفترة. إعادة العينية ليست سوى لجنة بعيدا. تم إنشاء عقود إلكترونية خصيصا للتجار: فهي فائقة السائل وتملأ فورية. إذا كنت تعتقد أن السوق هو الذهاب الى اختراق، يمكنك شراء الأسهم مثل إنتك ومشاهدته الجلوس هناك في حين أن السوق هدير على دونك. كنت على حق في ماركيتبوت اختيار الأسهم الخاصة بك لم تتحرك مع السوق. مع كبوت صغيرة الحجم العقود الآجلة داو كنت تتداول في السوق. انه ما هو عليه. لا توجد ألعاب. يمكنك قصيرة على دونتيكثيس يجعل فرقا كبيرا في محاولة للحصول على شغل خلال انهيار. إذا كنت قصيرة كلاك الاقتباس في السوق على انهيار، قد لا تحصل على شغل لمدة 20 سنتا حتى أن لديها ارتفاعا. إذا كنت تقصير العقود الآجلة كوتات السوق على انهيار، وتحصل على ملء سريع في سعر السوق الحالي. مع الأسهم، كان لديك كتيبولتسكيوت لفترة من الوقت حيث يمكنك تعيين هذه مع الوسيط الخاص بك وقصيرة الأسهم على دونتيك. أونفورتوناتلي، تمت إزالتها مؤخرا. اعتدت أن أكون متداولا كبيرا لخيارات أوكس لتداول اليوم. بعد تداول العقود الآجلة، توقفت عن تداول خيارات أوكس. ينتشر و قسط من الخيارات الآن تبدو سخيفة. أين يمكنك أن تكون ميتا على التحرك اللحظي و لا تزال تخسر المال سوق خيارات أوكس على الرغم من أنني لا تستخدم خيارات التداول البديل، فإنني لن يوم تداولها مع القطب 10 قدم. وليس عندما تكون عقود داو الآجلة ذات الحجم الصغير نظيفة جدا وفعالة. يمكنك أن تفعل معظم الصفقات الخاصة بك كوتات ماركيتكوت والحصول على يملأ جيدة، على عكس الأسهم وخاصة على عكس الخيارات. للأسهم، تحتاج 25،000 إلى التجارة اليوم. للعقود الآجلة يمكنك فتح حساب مع 5000 (أو أقل) والتجارة اليوم. لا توجد قواعد تداول أو تصنيفات اليوم. لشراء واحدة من العقود الآجلة التي نوقشت في هذه الدروس التداول، تحتاج حوالي 2،000 في حسابك. هذا يختلف من قبل وسيط، ويمكن أن يكون أقل، ولكن هذا هو متوسط. ويسمى هذا الكودبوسيتوت المال المطلوب من قبل وسيط قبل أن تتمكن من بدء التداول يسمى الهامش، ويمكنك أن تفكر في ذلك مثل اخماد 3 دفعة أولى على منزل. حتى إذا كان لديك حساب 10،000، يمكنك شراء 5 عقود، وأحيانا أكثر من خلال الاستفادة من معدلات هامش أقل خلال اليوم. ومع ذلك، لأغراض إدارة الأموال، وأنا أوصي بحرارة إعطاء بعض التفكير في كيفية العديد من العقود التي تتاجر في حسابك. هذا جزء هام من خطة التداول الخاصة بك. فقط لأنك يمكن أن تتداول 5 عقود في حساب 10،000 لا يعني أنك يجب أن التجارة عادة عقد واحد لكل 10،000 إلى 15،000 التي هي في حسابي. بهذه الطريقة سوف يتأرجح حسابك لا تكون شديدة، وسوف تكون قادرة على التجارة مع رئيس المستوى. واحد تاجر تاجر الصفقات الألغام 1 عقد لكل 50،000 في حسابه. وقال انه يجعل المال ولم يتم التأكيد أبدا. بالنسبة للحسابات المدارة، عادة ما أقوم بتداول عقد واحد لكل 25،000 حساب. على العكس من ذلك، لقد رأيت البرامج التي تقول أن تأخذ حساب 5000 والتجارة 5 عقود، وبذلك يمكنك جعل ستة أرقام في السنة. هذا هو مجنون وكنت أفضل من التبرع أن 5000 للجمعيات الخيرية، لأنك سوف تفقد كل ذلك التداول بهذه الطريقة. هناك عدد قليل من الضمانات في صناعة العقود الآجلة، ولكن فقدان كل من تداول المال الخاص بك مع هذا الهامش أوتموت الكثير من كوتماكسد هو واحد متأكد من الرهان المتاحة اليوم. هناك الآن العقود الآجلة على الأسهم. باستخدام العقود الآجلة الأسهم المتداولة في الولايات المتحدة في أونيتشيكاغو كما الصفقات سوينغ جنبا إلى جنب مع العقود الآجلة للمؤشر هو وسيلة رائعة للتجارة والتحوط الرهانات الخاصة بك. على الرغم من أن بعض الرموز لديها حجم الفعلي المنخفض، ويستند حجم فولكسكوت على أساس من المخزون الأساسي. إذا كنت ترغب في شراء 100 عقد (1 عقد 100 سهم من الأسهم)، وكنت وضعت في أمر الحد بين بين العرض والعرض، سوف تحصل على ملء فوري تقريبا. مع العقود الآجلة، في نهاية العام لم يكن لديك لسرد كل العقود الآجلة الفردية كما تفعل الأسهم الخاصة بك للإعفاء الضريبي في الولايات المتحدة. تحصل على نموذج 1099 من الوسيط الخاص بك مع إجمالي الربح أو الخسارة لهذا العام. كل ما وضعت على الإقرار الضريبي الخاص بك هو هذا الرقم على 1099. وهذا هو أسهل بكثير وأقل من ذلك بكثير وقتا طويلا من إدراج كل التجارة، مثل لديك للقيام مع الأسهم. والخبر السار هو الضرائب للأسهم، لديك لعقد لهم أكثر من سنة للحصول على تصنيفها في أرخص سعر كوتلونغ معدل الربح. في المستقبل، تحصل على 1099 يقول، على سبيل المثال، 20،000 في المكاسب لهذا العام. من هذا، يتم التعامل مع 60 من المال على المكاسب على المدى الطويل (انخفاض معدل الضريبة) و 40 على المدى القصير. هذه هي قاعدة كوت 6040quot. هذه القاعدة تصدق حتى لو ذهبت شقة في نهاية كل يوم تداول. يمكنك تداول العقود الآجلة في الجيش الجمهوري الايرلندي الخاص بك. هذا يعني أنك يمكن أن الأسهم قصيرة في إيرا الخاص بك (الأسهم الآجلة واحدة) أو المؤشرات، والتي لا يسمح لك القيام به في إيرا العادية. لإعداد إيرا الخاص بك لتداول العقود الآجلة، تحتاج إلى الذهاب أولا من خلال شركة الثقة التي أنشئت خصيصا للقيام بذلك. ما تفعله بعد ذلك هو فتح حساب مع شركة الثقة، وبعد ذلك سوف سلك الأموال إلى وسيط الآجلة الخاص بك. وبهذه الطريقة يبقى تصنيفها ك إيرا وأنت لا تضطر لدفع الضرائب على أي مكاسب. ليس كل وسيط الآجلة من ذوي الخبرة مع هذا. إذا كنت ترغب في القيام بذلك، تأكد من العمل مع وسيط الذي فعل هذا من قبل. إنها طريقة واحدة لتحقيق التنويع في جزء من صناديق التقاعد الخاصة بك. ولكل مؤشر من عقود العقود الآجلة أربعة عقود يتم تداولها كل عام: آذار (مارس)، حزيران (يونيو)، سبتمبر (U)، ديسمبر (Z). سوف ترغب في التداول في أقرب شهر، حيث أن حيث يتركز حجم. على سبيل المثال، إذا كان اليوم هو 15 فبراير 2005، فإن أقرب شهر هو عقد مارس 2005. للحصول على عرض لعقد مارس 2005 على داو صغير الحجم كبوت، سوف تدخل في الرمز والشهر والسنة. في هذه الحالة، سيكون هذا يم (رمز)، H (شهر مارس)، 05 (عام 2005). سيكون الرمز الكامل YMH05. هذا هو ل ترادستاتيون. ل إسيغنال سيكون يم H5. كل خدمة اقتباس مختلفة قليلا. عندما ينتهي عقد واحد، كنت مجرد بدء التداول العقد المقبل بها. تيب: تنتهي العقود الآجلة لمؤشر الأسهم في نفس اليوم الذي تنتهي فيه الخيارات، في يوم الجمعة الثالث من الشهر الذي يتم تداوله فيه. ومع ذلك، سترغب في بدء التداول في الشهر التالي من الأسبوع قبل انتهاء الصلاحية، حيث أن كل حجم التحول إلى الشهر التالي يوم الخميس من الأسبوع السابق. السندات في الواقع التبديل ثلاثة أسابيع في وقت مبكر. كل عقد يختلف قليلا. إذا كنت أرينت متأكد، فقط اسأل الوسيط الخاص بك، وكتابة عليه ووضعه بجانب جهاز الكمبيوتر الخاص بك (أو البريد الإلكتروني كبوت أو سم لمعرفة ما تحتاج إلى معرفته، إذا لم تكن مدرجة بالفعل على مواقعها على شبكة الإنترنت). وبهذه الطريقة سوف أبدا فوضى هذا. أيضا، لأن هذه العقود الآجلة تنتهي في تواريخ مختلفة في المستقبل، هناك دائما فرق السعر بين عقدين على أساس توقعات الأسواق من حيث يستقر كل عقد. في حين أن عقد مارس 2005 قد يقول 10686 ل داو الصغيرة الحجم كبوت، عقد يونيو قد يقول شيئا مثل 10694. نلاحظ أيضا أن هناك عادة ما بين 10 إلى 20 نقطة مختلفة بين كبوت صغيرة الحجم داو السعر الآجل و داو جونز الصناعية أفيراجيلتسوبغتسمتسوبت النقدية. هناك تفسير معقد جدا لهذا ينطوي على قيمة كوتفير و كوتفوتشر برايس بروجكتسوت و يادا، يادا، يادا. صورة أكبر هذا هو مجرد شيء ليكون على بينة من. ضع ذلك في الاعتبار أثناء تبديل العقود وحساب المحاور. ثاتس الأساسيات. المفتاح هو مجرد الحصول على راحة مع تخطيط وسيط الآجلة الخاص بك. هل بعض كوتوبابر ترادسكوت على محاكيهم للحصول على يشعر من النظام، وعند بدء تشغيل، مجرد تداول عقد واحد للحصول على يشعر كيف يعمل. سوف تجعل الأخطاء، وخطأ في 1 الكثير هو أرخص بكثير من خطأ على 10 الكثير أو أكثر. إذا كنت قد استخدمت أبدا وسيط الآجلة من قبل، تأكد من التحدث إلى التجار الآخرين للتحقق من معدلات ومستويات الخدمة، وهكذا دواليك. إذا كنت تريد بعض المزيد كوتفوتشرز 101quot القراءة، و كبوت لديه منشور يسمى كوترادينغ في العقود الآجلة - مقدمة إنترودكوت يمكنك أن تقرأ على الانترنت أو طلب مجانا، بالإضافة إلى ثيريس البرنامج التعليمي التفاعلي على الانترنت المتاحة في منطقة التعليم من كبوت. دعونا الآن نلقي نظرة على لماذا دبو الصغيرة الحجم كبوت هو العقود الآجلة المفضلة لي للتداول. انضم إلى فبراير 2006 الحالة: عضو 313 المشاركات الآن بعد أن قمنا بتغطية العقود الآجلة 101، دعونا نلقي نظرة على لماذا أفضل التداول في داو (يم) صغير الحجم على مستوى إس أو نق، ومن أجل ذلك، الأسهم الفردية و خيارات. وفي أبسط صورها، ترتفع األسواق على أساس يومي ألن الطلب الحالي على األسهم يتجاوز العرض الحالي. هذا ليس له علاقة مع كونه في سوق الدب العلماني، سوق الثور دوري، ونسب بي عالية أو ماريا بارتيروموس اختيار قلادة. هذا له كل ما يتعلق بما التجار على استعداد لدفع ثمن الأسهم أو السوق اليوم. لا يهم إذا كان الطلب يتم إنشاؤه بشكل زائف من قبل صندوق التحوط الذي يقتطع من الشارع (شراء كميات كبيرة من مخزون واحد لاستنزاف صانع السوق من المخزون، مما اضطرهم لشرائه مرة أخرى بسعر أعلى). أو الضغط الذي يضرب السروال ويجبرهم على تغطية، أو إشاعة أن الأسهم التكنولوجيا الحيوية يجري تحاصرها مارثا ستيوارت. الطلب هو الطلب، وهذا هو ما يدفع الأسواق إلى أعلى. والعكس صحيح أيضا: إذا كان هناك الكثير من المعروض في السوق، وسوف تنخفض الأسعار. على الرغم من أن العرض والطلب يمكن أن يكون أكثر صعوبة لقياس مع سهم واحد، فمن السهل جدا لقياس مع مؤشر شعبية مثل دولتسوبتسمتلتسوبغت. هذا هو السبب في أنني أشعر بقوة أن واحدة من أفضل العقود هناك للتجارة على حد سواء بداية والتجار المحترفين هو شيكاغو داو من الصفقات الصغيرة الحجم داو العقود الآجلة. The specific reasons are as follows: Bang for the Buck For disciplined traders who use live stops, the leverage in trading CBOT mini-sized Dow futures over stocks is a huge plus. Better Spreads than the E-mini SampP and E-mini Nasdaq The CBOT mini-sized Dow has the same specifications as the popular E-mini SampP contract: 1 point in the E-mini SampP about 10 points in the mini-sized CBOT Dow 1 point in the E-mini SampP 50 10 points in the CBOT mini-sized Dow 50 Figure 3.1 shows movement in the Dow and SampP over the exact same time frame. The Dow has moved 13 points lower (from the high at point 1 to the low at point 2), and during this same time, the SampP has moved 1.5 points lower. The Dow moved lower in thirteen 1 point increments. However, the SampP made a similar move in 6 quarter point increments. A quarter point on the SampP about 2.5 points on the Dow. This is a huge different in the spread The key here is that a trader will get picked off on stop runs less frequently if he or she uses the CBOT mini-sized Dow over the E-mini SampP. Why is this Again, the E-mini SampP moves 1 point in 4 quarter point increments. The CBOT mini-sized Dow will move an equivalent 10 points in ten 1 point increments, giving the trader six extra places to place a stop or target. This is a huge advantage over trading the E-mini SampP and will save a trader a lot of money over the course of a trading career. By trading the CBOT mini-sized Dow, the trader is essentially cutting the spread by 60 percent. That money goes straight into the traders pocket. In addition, due to the spread, you will get your stops picked off more in trading the SampPs on stops that are placed equivalently on YM. I will show specific examples of this in Section 5. The spread is even worse in the NQ. Whereas the SampPs will move 1 point in 4 quarter point jumps, the Nasdaq will move the same 1 point in 2 half point jumps. This goes back to what I talked about earlier in quottrading the right market for your personality or trading method. quot My Multi-Pivot system (one of the strategies I will talk about) works good on the SampPs, but it works great on the CBOT mini-sized Dow, because of the way the market is quotbuiltquot and the way it moves. Liquidity Although perfect for the smaller retail trader, the CBOT mini-sized Dow has caught fire and now has the liquidity to move size, chalking up daily trading volume of well over 100,000 contracts per day. In trading, volume begets volume, and YM will continue to expand even more as traders, commodity trading advisors and managed funds take advantage of the trading advantages for this contract. Figure 3.2 shows weekly volume growth in the CBOT mini-sized Dow since its inception. Keeping on the Path of Least Resistance A trader can watch the 30 stocks in the Dow to get a very good idea of how the index is acting or is going to act. I like to place all 30 Dow stocks in a window and have them automatically sorted from strongest to weakest each day on a Net Change basis. Getting a feel for all 500 stocks in the SampP 500 at a glance is as impossible. Figure 3.3 shows all 30 Dow Stocks sorted by the Net change. With this I can glance at it and see that 22 out of the 30 of the stocks are red (down on the day). This filter gives me a clean, easy downward or upward bias to the market as I can watch more stocks going red, or going green, as the markets start to fall apart or try to improve. If a trader currently is in an individual stock, he can have all kinds of outside influences move the price. Maybe insiders are dumping their own stock. Maybe an analyst has just issued an upgrade while his trading department is dumping shares off to an unsuspecting public. Maybe the company is giving positive forward guidance as its last hope to stave off bankruptcy proceedings. The factors affecting an individual stock are endless. However, when investors in general want to sell stocks, the Dow reacts by heading south. If they want to buy, the Dow spurts green. The quotDow effectquot encompasses individual investors, hedge funds, program traders and arbitrage traders. In addition, the Dow moves actively in all buy and sell programs. Supply and demand at its finest - this is what makes the CBOT mini-sized Dow futures contract such a beautiful instrument to trade. This, combined with the much tighter spreaders than the ES or NQ contract, make it the best contract to trade for intraday trading. Now that we have covered how futures work, and why I like to trade the CBOT mini-sized Dow, section 4 will discuss why you should diversify your trading into precious metals and bonds, and then well start looking at my trading strategy. Joined Feb 2006 Status: Member 313 Posts There is one very good reason to know how the Gold, Silver and Bond markets work, and that reason can be summed up in one word: OPPORTUNITY. Although the Dow is one of my favorite markets to trade, there are plenty of times when it is stuck in a trading range, going nowhere. As you can see in the chart below, while the Dow was stuck in a trading range over a period of four months in 2004, Gold, Silver and Bonds all had nice, very tradeable up trends. Although the chart below is based on a daily timeframe over the course of nearly half a year, the same thing happens on all time frames, from the 1 minute chart to the weekly chart. While one market is chopping, another market is trending. Traders have the best opportunity to make money in markets that are trending. By watching all four markets, you can rotate your trades into the markets that have the best trends, and stay out of the markets that are chopping around. Gold: Trading Where the Action Is By trading gold, you will be in good company. No other market in the world has the universal appeal of the gold market. For centuries, gold has been coveted for its unique blend of rarity, beauty, and near indestructibility. Nations have embraced gold as a store of wealth and a medium of international exchange, and individuals have sought to possess gold as insurance against the daily fluctuations of paper money. Gold is also a vital industrial metal, as it is an excellent conductor of electricity, is extremely resistant to corrosion, and is one of the most chemically stable of the elements, making it critically important in electronics and other high-tech applications. Thats all well and good, right But as a trader, all I really care about is if the market in question provides good trading opportunities. Over the last several years gold has become a great market to trade with plenty of volatility and trending price action. One of the biggest questions I get regarding these other markets is a simple, yet essential question: How do they work in regards to my PampL If I buy gold and it goes up 4.00 an ounce, how much money did I just make Lets take a look. CBOT full-sized 100 oz. Gold Futures CBOT mini-sized 33.2 Gold Futures As you can see in the charts above, a 1.00 per ounce move in CBOT full-sized 100 oz. Gold results in a 100.00 per point per contract move, while a 1.00 per ounce move in CBOT mini-sized 33.2 oz. Gold results in a 33.20 per point per contract move on your PampL. Both contracts are great to trade, and the decision on whether or not to trade the full-sized Gold depends largely on your account size. If you are trading a smaller account (under 25,000) it is probably better to stick with the CBOT mini-sized Gold. Silver: Great Volatility Silver has attracted mans interest for thousands of years. In ancient times, silver deposits were plentiful on or near the earths surface. Relics of ancient civilizations include jewelry, religious artifacts, and food vessels formed from the durable, malleable metal. In 1792, silver assumed a key role in the United States monetary system when Congress based the currency on the silver dollar, and its fixed relationship to silver. Silver was used for the nations coinage until its use was discontinued in 1965. At the turn of the century, an even more important economic function was emerging for silver, that of an industrial raw material. Today, silver is sought as a valuable and practical industrial commodity as well as an appealing investment. The largest industrial users of silver are the photographic, jewelry, and electronic industries. Again, this is all well and good right But as a trader, can we do anything with this market The answer is a resounding yes. Later in these lessons, I will be showing examples of specific plays with silver, but for now lets make sure we understand how it works in relation to the PampL. CBOT full-sized 5000 oz. Silver Futures Joined Feb 2006 Status: Member 313 Posts When it comes to executing a specific setup, traders generally fall into three categories: Those that know the setup like the back of their hand, but fail to make money due to a flawed trading methodology Those that know the setup better than their spouses bad habits, but fail to make money because the setup is being used on the wrong market Those that know the setup better than the varied plot lines on Alias . but fail to make money because of poor money management The point of this, of course, is to emphasize the importance of establishing a trade setup from a three-pronged approach. In addition to the actual setup, there also needs to be a foundation from which to operate the setup. This foundation consists of the following: The trading methodology, the money management technique, and the knowledge of the best markets to trade for that particular setup. In other words, its a lot more than just quotwhats the entryquot Without this additional data, a trader is like wounded antelope in the center of a lion pride, where it is not a question of quotifquot the antelope is going to get whacked faster than a newly discovered FBI informant within the Mafia, but rather of quotwhen. quot For a trader without this three-pronged approach to their trade setups, the possibility of ruin is not a question of quotif. quot Its only a matter of quotwhen. quot I utilize 8 setups in my daily trading routine. My first, favorite, and the one that determines my trading for the rest of the day, is based on the opening gap. Each day in the market there is one opportunity that represents the lowest-risk trade available, and that is the opening gap. Gaps occur when the next days regular cash session opening price is greater or lower than the previous days regular cash session close, creating a quotgapquot in price levels on the charts, similar to that space we see each night between David Lettermans two front teeth. However, when it comes to gaps, not all markets are created equal. Gaps in quotsingle itemquot markets do not act the same as gaps in quotmulti-itemquot markets. Examples of quotsingle-itemquot markets include bonds, currencies, grains and energies. These markets are made up of a single component, and a news item on this single component controls the entire market, instead of just a portion of it. On the other hand, a quotmulti-itemquot market such as CBOT mini-sized Dow makes a great candidate for gap plays, because there are individual components of this index that will respond differently to various news items. This means that, although the market may gap up on a news item, there will be individual stocks within the index that will either ignore the news or sell off on the news, weighing the index down and creating an opportunity for the market to fill its gap. Dow Gaps Are Best Although the Dow is the best quotgapquot market to trade, the individual components of this index do not set up consistently for these plays. Individual stocks are like politicians, in that each day they can produce a fresh skeleton from the proverbial closet. Earnings announcements, corporate scandals and insider deals can create gaps in price that never get filled. Due to the unpredictable nature of the individual stock, they make poor candidates for gap fills. Along these same lines, the Nasdaq market is heavily weighted towards technology, and gaps in price can take longer to fill as the technology news of the day plays out. In addition, the SampP 500 has such a broad array of stocks, that it can make it more difficult to get a clean gap fill. In the end, the Dow represents a small group of large, individual stocks from different industries, and it is therefore the best market to play when it comes to gaps. The magic of gaps is that they are like an open window, and like all windows, at some point they are going to be closed. The key, then, is to be able to accurately predict when the days gap (window) is going to be filled (closed). What is as important as analyzing the gap itself is analyzing the market conditions that produce the gap. The reason for the gap is immaterial. What matters is the pre-market volume. For example, a professional gap with high pre-market volume can take weeks to get filled. Much more common are gaps that are news reactions or fishing expeditions. These are smaller in nature, fill quickly and can be faded regularly. The question, then, is if I ignore the reason for the gap, what is it that Im looking for that determines whether or not I will take the setup The key action I am watching is the pre-market volume in a specific set of cash stocks. I particularly like to watch KLAC, MXIM, NVLS, and AMAT. What Im looking for is the pre-market volume in these stocks as of 9:20 a. m. Eastern time, 10 minutes before the regular cash session open. If these stocks are trading under 30,000 shares each at this time, the gap (up or down) has an 85 chance of filling that same day. However, if it jumps up to 50,000 shares each, the gap only has about a 60 chance of filling that same day. On these particular days, the midpoint of the gap has an 85 chance of being hit, so I do take this into account on these particular days. Finally, if the pre market volume jumps to over 70,000 shares each, the chances of the gap filling that same day drop to 30. Why does this work Think about it when comparing a car driving on an empty tank of gas versus a full tank of gas. If the market is really set up to move, then there will be real volume coming into the cash market. If the market is just setting up a head fake, then the volume in the cash market will be low, as there wont be any conviction in the move. Ignore the news and follow the money. Here is how I use this information to manage my trades: lttable borderquot1quot cellpaddingquot0quot cellspacingquot0quot widthquot631quotgt lttbodygt lttrgt lttd valignquottopquot widthquot257quotgt Pre-Market Volume in Key Stocks lttdgt lttd valignquottopquot widthquot112quotgt lttdgt lttd valignquottopquot widthquot262quotgt lttdgt lttrgt lttrgt lttd valignquottopquot widthquot257quotgt Less Than 30,000 lttdgt lttd valignquottopquot widthquot112quotgt Joined Feb 2006 Status: Member 313 Posts Most beginning traders are taught by their brokers to use 3:1 risk reward ratios, risking one point to get three points. As the traders wonder why they always get stopped out just before the market turns, their broker is tallying up commissions generated on the day. In general, wider stops produce more winning trades. They key with wider stops, of course, is to only play setups that have a greater than 80-percent chance of winning. The gap play Im describing, with the parameters that I use, has a greater than 80 percent chance of winning. What is important to remember for gap plays is that an active program of trailing stops will negatively affect your winloss ratio. Once the parameters are set in place, the best thing a trader can do is to walk away and let the orders do their job. Although tweaking is a good thing to do when giving a car a tune up, tweaking the parameters of a gap trade will not work. One important thing to remember: If 80 percent of these plays win, that means 20percent of them lose. I actually like losing trades for one main reasonthis leaves an quotopen gapquot in the markets. An open gap is like a magnet, and there is an 80 percent chance that the markets will fill than gap within 10 trading days. Whenever the markets leave an open gap, I mark that level on a Post-It Note and place it on my computer. Lets take a look at an example in this next video. Here is a link that will launch a four fminute video on your screen. In it you will hear me talk about gaps, with a few example plays. The example of that last 62 point gap in the video you just watched is my favorite type of gap. I called it the quotBahamas Gapquot as it represents a low-stress trade. The gap fills quickly and is a pleasing move in which to participate. It should be noted that gaps of under 10 Dow points are not worth playing. Lets take a look in more detail at the video you just watched. As Ive already said, I always love it when you have these quotopen windowsquot out there in the markets. As you saw in the last video, they act as black holes, eventually sucking prices back to their gapping levels. You always want to be conscious of where the open gaps are located, and I like to use a chart like the one posted below to give me a continuous visual reference. As you can see, the gaps will come back and get filled at some point. Now, lets take another look at the chart I used in the video: This chart was traded using a 100,000 account, and utilizing 9 contracts for a full position. On August 18, we gapped up a modest 44 points in the Dow prior to some economic numbers, as seen in the prior video. I short at the open. We rallied, sold off into the economic numbers, and then shot higher once the numbers were released. I had a 66-point stop, and the markets rallied just through that level, producing a loss of 330 per contract, or 2,970. I head into the next trading day knowing there is now a quotblack holequot gap below. I can actually hear the sucking sound. The next day we have a modest low volume 13 point gap higher that works out quickly, for 65 per contract (585). The day after, we get a nice 52 point gap lower that takes a few hours to fill, but creates few headaches, for 260 per contract (2,340). The next day we get a 44 point gap higher that comes close to our stop but eventually fills the gap for 255 per contract (2,295). Finally on August 22 we get the quotsucker gapquot when Intel announces quotcautious upside earnings revisions. quot The market explodes and gaps up 62 points, right into key resistance. I short the gap, as the pre-market volume is again low. Six bars later, my target is hit for 62 points or 310 per contract (2,790). The sucking sound of the black hole below is getting louder . During the afternoon session we get a bear flag consolidation. I set up a quotsell stopquot at 9392 to let the market take me into a breakdown of that flag formation. I get the fill and set my stop above intraday resistance at 9455. My target is the 818 quotblack hole gapquot at 9304. The market spends the rest of the day on its hands and knees, dry heaving, trying to hold back the internal pressure. This pressure proves to be too much and the market eventually falls over. I hold my position over the weekend and Monday morning the markets quickly fill the gap for an 88-point gain or 440 per contract (3,960). These are a series of great trades, and I encourage you to watch the video again to see how they operate. Gaps are the one moment of the trading day where everyone has to show their poker hand, and this creates the single biggest advantage for the short-term trader. Understanding the psychology behind the gaps is paramount to playing them successfully on a daily basis. The gaps are so powerful that many traders make a nice living playing these set ups alone. The key is to know how they work and to develop a solid methodology and set of rules to trade them. After reading this article, the serious trader will have a better foundation for a plan to trade the markets successfully on a full-time basis: a proven set up to play, markets that best fit that set up and a plan of action to maximize the play. That is pretty much everything the trader needs to survive and thrive in this greatest of professions. Trading the markets is the greatest job in the world. There are no bosses offering contradictory instructions and, even better, no employees to baby sit. Each year thousands of people flock to the markets like lemmings to the sea. Yet, many fewer than that manage to avoid flinging themselves over the proverbial cliff. How does a trader break away from the herd and ease into a consistently profitable trading routine The key to staying profitable consists of sticking to the following three concepts: Staying in the Right Frame of Mind Keeping on the Path of Least Resistance Knowing What to do When Things go Wrong Staying in the Right Frame of Mind In a moment we will look at a very easy and potentially very profitable strategy to trade the CBOT CBOT mini-sized Dow. Before utilizing this or any strategy, however, a trader first must create the optimal mindset for executing trades. This is very similar to the quotchicken-and-eggquot theory: Without a professional state of mind, a trader simply cannot produce consistent profits over the long haul. In a similar vein, without that egg, the future existence of the chicken is over Being a professional is all about maintaining a state of mind, and a trader is never going to make consistent money until he or she achieves that frame of reference from which to operate. Here are five nuggets of wisdom that Ive learned over the years to help establish the right frame of mind: Professional traders focus on limiting risk and protecting capital. Amateur traders focus on how much money they can make on each trade. Professionals always take money away from amateurs. Embracing your opinion leads to losses. When a trader rationalizes a decline by saying things like, quotthey are just shaking out weak hands here, quot or quotthe market makers are just fishing for stops, quot then the trader is embracing his own opinion instead of listening to the market. This is also called quotbeing an amateurquot and leads to a one-way revolving door called financial ruin. Amateur traders turn into professional traders once they stop looking for the quotnext great technical indicatorquot and start controlling their risk on each trade. In reality, traders are not trading stocks, futures or options. They are trading other traders. Be aware of the psychology and emotions behind the person who is taking the opposite side of your trade. Professional traders actively take small losses, and they do so because they know their most important job is to protect their capital. After all, re-entry is only a commission away. Amateurs resort to hop e to save their trades. In life, hope is a powerful and positive thing. In trading, hanging onto a trade based only on hope is very similar to a trader spending the rest of his life filling holes in rotten teeth when he has no skill as a dentist. In other words, it aint pretty. Once you get in the right frame of mind, you will be in a much better position to execute trades in a professional, and therefore profitable, manner. Now lets take a look at discovering which side of the market to trade. Heres the key: Professional traders do not care about being on the short side or the long side of the market. They care about being on the right side . Keeping on the Path of Least Resistance The finely tuned art of technical analysis involves a process similar to a jury weighing the presented evidence during a trial and then deciding upon an outcome. By the same token, my final trading decisions must be backed by evidence, not by emotion. The stronger the evidence, the greater the likelihood that a specific price action may occur. By contrast, the stronger the emotion, the stronger the likelihood that a trader is about to imprint the exact high or the exact low of the day. Based on this, I use a very simple technical system to trade the CBOT mini-sized Dow futures. Before we look at this, lets take a step back and see how I view the big picture each trading day: As the above video shows, before the trading day starts, I always like to glance at the larger time frames first. The key to consistent profits is to trade on the path of least resistance. The path of least resistance starts from the larger time frames and moves down through the ranks to the smallest time frames. Think of the weekly chart as a thousand pound weight on your chest. Then think of the five-minute chart as a Two-pound weight on your chest. Which is going to create more pressure on your body It is ridiculous to try to move the two-pound dumbbell without taking into account the larger 1,000- pound weight bearing down on top of it. During the week of May 2, 2003, the weekly chart experienced an upside moving average crossover and it hasnt looked back. I dont care how many books are being published that discuss the coming doom of the world economies. I dont care how overbought we are. I dont care how many traders are flaunting their superiority in that they would never go long stocks in this environment (Bearish geniuses in 2003 were almost as common as bullish geniuses in 1999). What matters to me is this: Is the current big picture perspective one based on too much supply or too much demand This weekly chart makes it crystal clear that, as of this writing in early Jan 2005, current demand for Dow stocks continues to exceed the current supply. Sure, half of this demand is from frantic short covering, but that doesnt matter. Again, demand is demand. فترة. By glancing at the charts I showed you in the video, I know to spend most of my energy focusing on the long side. I will keep any shorts I initiate on a tight leash. I will follow this procedure until this situation reverses itself and the 9 period moving average is trading below the 18 period moving average on the weekly chart. Until that happens, there isnt much point in fighting the trend. That is a losing game. For the trading day Im about to show you, I jotted down the following information based on the Weekly, Daily, and 60 minute charts I showed you in the video. This gives me an idea of where the quotheavy pressurequot is located. I use a table like this: lttable borderquot1quot cellpaddingquot0quot cellspacingquot0quotgt lttbodygt lttrgt lttd valignquottopquot widthquot136quotgt lttdgt lttd valignquottopquot widthquot233quotgt Pressure Heading into the Day lttdgt lttd valignquottopquot widthquot137quotgt lttdgt lttrgt lttrgt lttd valignquottopquot widthquot136quotgt lttdgt lttd valignquottopquot widthquot233quotgt lttdgt lttd valignquottopquot widthquot62quotgt lttdgt lttd valignquottopquot widthquot62quotgt lttdgt lttd valignquottopquot widthquot75quotgt lttdgt lttd valignquottopquot widthquot137quotgt lttdgt lttrgt lttbodygt lttablegt Although this system is deceptively simply, it is very clean about keeping a trader on the right side of the trend. Trades can be set up on all time frames, and there are, of course, ways to maximize this system utilizing a few other indicators. A very effective addition is the Keltner Channels with a 3.0 average true range. Keltner Channels are similar to Bollinger Bands in that they will form what looks like a moving average trading channel on your chart. With this quotchannelquot in place, a trader can get out of his position if prices hit one of the upper or lower bands of the channel, instead of waiting for the next crossover to liquidate. If I get out of a position when it hits a Keltner Channel, I still wait for the next crossover to initiate my next position. Keltner Channels are canned indicators that are available on most charting systems. Traders are notorious for tweaking systems, and that is a good quottweakquot for this system. However, it also works fine without them. The biggest mistake I see people making with this crossover system is they use stops that are too tight and they are too aggressive about trailing them. I place a 50 point stop in the YM and I dont trail it at all. Trailing a stop on this setup will almost always get you out at a bad price. Let the system do the work. When Things Go Wrong: Exchange Crashes Weve covered my first two topics, Staying in the Right Frame of Mind, and Keeping on the Path of Least Resistance. Now, lets take a look at the third, Knowing What to do When Things go Wrong. Because as sure as the sun is going to rise tomorrow, things will go wrong On Thursday, May 1, 2003, the Chicago Mercantile Exchange crashed at 11:40 a. m. Eastern time, and trading in the E-mini SampPs was halted at the 905.00 level. They were still halted at the end of the day, even though the big contracts rallied strongly to close at the 915.00 level. Globex did not reopen until the next morning. A lot of people were stuck short with E-mini SampPs during this time, including myself. What to do Many newbies froze. quotI had no idea what to do, quot said Scott Sether, a private trader from St. Paul, MN. quotIve been trading E-mini SampPs for about six months, and to be honest I was like a deer caught in the headlights. My broker told me he would keep me posted on when they would reopen. All I know is I couldnt get out of my trade until the next morning. I was short ten contracts and I lost 6,500.quot Many traders were stuck short this day. The floor traders knew this. How did they react Sometimes a picture is worth a thousand words. Imagine the floor traders as a bunch of sea gulls. Then picture the traders who were stuck short as a recently unguarded sack lunch on the beach. Get the picture When the CME finally reopened the next morning, traders who were stuck short ended up having to swallow some sizeable losses. The key, of course, is for traders to know about their available choices if something like this occurs in the future. In this instance, Scott could have hedged by going long two of the big SampP contracts. However, it turned out that his broker is one of the many quote-brokersquot out there that only trades electronic futures and does not trade any open outcry products. Scratch that idea. In addition, if a trader was short only a couple of E-mini SampPs, it would not have been appropriate to hedge with the bigger contract (one big contract five minis). So what to do In this instance, Scott could have gone long the CBOT mini-sized Dow, which is what I did. Once I was alerted to the trading halt, I immediately went long an equivalent number of CBOT mini-sized Dow contracts on the CBOT. Once completed, because of the high correlation between the Dow and SampP, I was perfectly hedged through whenever trading would again resume, which turned out to be the next morning. When it became evident that the market was going to quotkill the shortsquot who were stuck, I continued to pile on additional contracts to my CBOT mini-sized Dow trade. Not only did I completely hedge my losses in the E-mini SampP, I made nice profits on every long CBOT mini-sized Dow I owned over and above my hedge amount. By the time the CME opened the next morning, the SampP had rallied more than 15 points. What turned out to be a disaster for the unprepared trader turned into a windfall for traders who were prepared for the worst-nightmare scenario. It is important to be aware of the different choices a trader has each day. Awareness brings empowerment and the ability to turn the inevitable glitch on an exchange into a powerful trading opportunity. There is a ton of information out there, and many traders get easily confused on what to use and how to use it properly. By getting in a professional state of mind and by focusing on trading the CBOT mini-sized Dow, a trader has the best of both worlds an easy view of the current supply and demand situation and a clean instrument with which to trade that information. This simple system will keep the trader from second guessing himself, will keep a person on the path of least resistance, and will keep losses small while allowing winners a chance to run. And thats about everything the trader needs to make a living at this greatest business in the world. Joined Feb 2006 Status: Member 313 Posts One of the simplest and most effective position entry techniques I use is based on what I call multi-pivot levels. The main advantage of this system is that it is price-based as opposed to indicator-based. By the time most indicators generate a buy or a sell signal, the move is already well under way. By following this price-based methodology, there are many instances where I get into a trade before the indicator-based traders, and I usually end up handing off my position just as a buy or sell signal is being generated on a stochastic or other oscillator type system. This is also a good system if you dont have time to stare at the charts all day long, or have a penchant for chasing the market higher and lower. Playing the pivots automatically creates trader discipline because the entries and exits are pre-determined before the trading day even starts. There is no big mystery or secret to the pivots. They are readily available and have been around for a long time. These are support (S) and resistance (R) levels calculated by floor traders using a simple mathematical formula. These levels became widely known and have moved off floor. Today many traders are aware of them and try to use them, but in my experience they are using them incorrectly. To add to the confusion, there are different formula versions and different time frames that are used when calculating pivots. So, to get started, lets look at what I use, which is one of the standard pivot formulas: lttable classquotnobordertableleftquot alignquotcenterquot borderquot0quot cellpaddingquot0quot cellspacingquot0quot widthquot300quotgt lttbodygt lttrgt lttd nowrapquotnowrapquot valignquotbottomquot widthquot300quotgt R3: R1 (High - Low) lttdgt lttrgt lttrgt lttd nowrapquotnowrapquot valignquotbottomquot widthquot300quotgt R2: Pivot (High - Low) lttdgt lttrgt lttrgt lttd nowrapquotnowrapquot valignquotbottomquot widthquot300quotgt R1: 2x Pivot Low lttdgt lttrgt lttrgt lttd nowrapquotnowrapquot valignquotbottomquot widthquot300quotgt PIVOT: High Low Close3 lttdgt lttrgt lttrgt lttd nowrapquotnowrapquot valignquotbottomquot widthquot300quotgt S1: 2x Pivot High lttdgt lttrgt lttrgt lttd nowrapquotnowrapquot valignquotbottomquot widthquot300quotgt S2: Pivot - (High - Low) lttdgt lttrgt lttrgt lttd nowrapquotnowrapquot valignquotbottomquot widthquot300quotgt S3: S1 - (High - Low) lttdgt lttrgt l ttbodygt lttablegt Once a trader has this formula, then the key data that is needed is the high, low and close of the previous session. For my own trading, I like to utilize 24 hours worth of data to capture the highs and lows. However, I will use settlement prices for the close, as this is the closing price that matters. Once I get this highlowclose data, I plug it into an excel spreadsheet with the formulas listed above. This information generates seven important levels for the next trading day: a central pivot, then three levels above (R1, R2, and R3) and three levels below (S1, S2 and S3). The central pivot has the most weight of the seven levels. In addition to these daily levels, I also utilize the midpoints between these levels (you can also go through and add the weekly and monthly levels to provide additional target levels). It is important to note that it is extremely rare when a stock index hits its R3 or S3 levels. This is important to know because if a market rallies to R2 or a sells off to S2, that usually ends up being the exact high or the exact low of the day. This knowledge will help temper a traders emotions and keep them on track to follow this system. This is a fade play. Im looking to buy pullbacks to pivot levels or sell rallies to pivot levels in teh direction of the prevailing trend. Trading rules for pivot buys (sells are reversed): Set up an intraday chart that shows 24-hours worth of data, so you can view any overnight highs and lows. Insert the pivots and the midpoints onto your chart. The first pivot play is done in conjunction with a price gap. If there is a price gap down, then buy a decline into the closest pivot level. If there isnt a playable gap (over 10 YM points), then wait until 9:45 a. m. Eastern time to initiate the first play. I wait for the markets to penetrate a pivot level, moving up at least halfway to the next pivot level, then I set up a bid to buy the first retracement back to the first violated pivot level. I enter my trades with limit orders only. I Place orders quotjust in front ofquot the pivot. For YM I use 3 points. For example, if you are trading the YM, and the pivot level is 10000, then I would buy a decline to 10003 and short a rally to 9997. Sometimes the pivot will be an odd number, such as 10003.68. In this case I always round in the direction of the trade. So, if Im bidding for a long, I will round 10003.68 to 10004, and my bid will be 10007 for a long and 10001 for a short. My stops and targets, then, would be quotjust in front ofquot these appropriate long and short levels. Once filled, place an order to close the first half at the next pivot level, and the second half at the pivot level after that, using the same quotjust in front ofquot parameters. I place a 20 point stop for the YM. If the first target is hit, move up the stop to your entry level pivot, minus the quotjust in front ofquot fractions discussed in rule 3. For example, if you get in to a YM long position at 10003, and the pivot is at 10000, then your new stop would be 9997 once the first target is hit. If I am in a trade at the market close, and neither my stop or target has been hit, I will close my position out quotat the marketquot at 4:10 p. m. التوقيت الشرقي. I dont initiate any new positions after 3:30 p. m. Eastern time, but I will manage existing positions into the close. The markets never have a sustained move above R3 or below S3. If we trade to those levels, I will always fade the move. If I get two losers in a row, Im done with pivots for the day. In Figure 7.1, the CBOT mini-sized Dow futures open mixed and begin selling off early in the session. I place an order to short the next rally to midpoint at 10118, but I dont get filled. Once we break down through the Daily Pivot, I move my order to short down to 10091. This time I get filled, and I place a stop at 10111 and an order to cover half my position at 10069. Im filled on the first half of my order, and I then move my stop down to 10097. My next target is 10041. My next target is hit and Im now flat. The market continues to move lower and tests the next pivot level. I place an order to short at the pivot level above, right at 10035. The market is acting really slow. I put my orders in place and go grab some lunch. By the time I get back Im still not filled, which is why I absolutely love the low volume August trading. It takes a couple of hours but I end up getting filled later in the afternoon. I place a stop at 10055 and my first target is 10015. This target is hit quickly and I move my stop down to 10041. My second target is hit at 9988 and Im now flat. Since the market continues to trend lower, I place a bid to short at the next overhead pivot level and I place an offer at 10008. The market trades right up to this level but I dont get filled. When the market collapses I move my offer down to 9982, but this doesnt get filled either. In Figure 7.2, the markets open mixed and rally into the midpoint at 10189. I set up to buy the first pullback and I place an order at 10163. We come very close to this level, but not quite, and I dont get filled. The market rallies through the next pivot level, and I move my bid up to 10192. The market doesnt even look back and keeps on going, moving up through yet the next pivot level. I move up my bid against to 10221. This time I get filled and place a stop at 10201 and my first target is 10238. The first target is hit quickly and I move up my stop to 10215. My second target is hit at 10261 and I am now flat. The market rallies and I place an order to buy at 10267. I dont get filled and the market closes near its highs. In Figure 7.3, the Dow gaps down and I place in a bid at 10077. I get filled and place a stop at 10057 with my first target at 10090. My first target is hit and I move up my stop to 10071. The Dow continues to rally and my second target is hit at 10104. I place an order at 10096 in order to buy the next pullback. I get filled and place a stop at 10076. The market slows to a crawl for the next hour and nothing happens. Then momentum begins to pick up and Im out of my first half at 10104. I raise my stop to 10090. My second target is hit at 10118. The Dow continues to rally to the next pivot level. I place an order to buy a pullback at 10124. I dont get filled. The market pushes higher to the next level and I raise my bid to 10144. I get filled and place a stop order at 10124 with my first target at 10157. My first target is hit quickly and I raise my stop to 10138. My second target is hit at 10171 and I am now flat. The market continues to rally to the Daily R3. This is a rare event The markets hardly ever get through R3, and I always fade initial moves to these levels. I place an order to short at 10185. I am filled and place a stop at 10205. The markets push up to 10200 and fade into the close. Since neither of my parameters are hit, I cover at 4:10 p. m. Eastern time at 100176. The pivot levels work so well in this regard for three reasons: The first, and most obvious, is that a lot of traders watch these daily levels, so there is a self-fulfilling prophecy involved. The same can be said for Fibonacci Levels, but they do not hold nearly as well as the pivots. Why I elaborate on this in the next two points. On the floor, it is a traders goal to grab two points in the SampP 500 and get out, or 20 points in the Dow and get out. The floor traders all operate in a big circle, with the longer term players in the center of the circle, and the newer players on the outskirts. In its purest form, the traders in the center will get in on a trade, lets say its a long, and then sell their position to the guys on the outside of the circle. What happens is that the traders on the outside, by the time they see the market moving, are the last ones in the pit to get in on the move. If they are lucky, they will then be able to turn around and sell it to the public. As the guys on the outside are selling to the public and closing positions, the guys in the center are selling to the public and opening new short positions. And the cycle renews itself like this throughout the day. This causes a specific dynamic in the markets, generating specific cycles of speed and rest on an intraday basis. They focus on the pivot levels to base their entries and to also gauge market action. The pivots play on this in that they are spaced out to catch these quotpatches of momentum. quot A Dow Pivot is usually 30-50 points apart, and this is the type of movement that perpetuates the cycle I just described. Like a hawk, the floor traders in the center of the circle are catching half this move, dumping it, and waiting for the next level to be hit. One of the main reasons these pivots work has to do with the vast majority of inexperienced traders out there. The floor traders start a trade, and the inexperience of most traders causes the momentum that finishes a trade. How Because the average trader relies on a lot of different quotindicators, quot they are getting in and out of their positions way too late, which causes losing trades and a specific cycle of market movement as their stop placement slowly and steadily increases the velocity of market movement in the direction of their stops. Indicators are just that, an quotindication. quot This is like your girlfriend slapping you across the face, and you taking it as an quotindicationquot that she might be angry with you If it takes a slap across the face to realize this, then you are following the wrong indicators. By the way, all market indicators are the wrong indicators, as they are all lagging. Price action is pure. This over reliance on indicators by the majority of traders is what helps this system to work. By the time the average trader gets a buy signal, the pivot play is almost over and users of this system will be selling their position to the indicator-based trader. Then the subsequent reversal that takes place is because of all the stop losses sitting out there, like trout sunning themselves on top of a lake. easy targets for the hawks who come swooping down from overhead. The market pauses, drifts down, and picks up steam and rips through all of the stop losses, pausing when the run is over. This quotpausequot generally happens at a pivot level. Its where the floor traders are beginning to accumulate their next position for the next cycle of play. Now knowing how this cycle works, lets take a look at a video of a live trading day where I played the pivots, where I sold half at the next pivot level and used a trailing 8 and 21 period exponential moving averages to trail the second half of my position. Ive worked with many traders, and one of the things they find most valuable is to look at exactly the same chart Im looking at throughout the trading day. In this next video, I discuss a recent day of trading that focuses on the pivots, but also combines my discussions regarding moving averages and gaps, as well as utilizing some of my own indicators. Lets take a look at the trading we did in the CBOT mini-sized Dow on Friday, January 7, 2005, using the pivots in the video. The pivot levels work mainly because of the psychology painpleasure cycle that perpetuates the markets each day. Traders who follow only indicators will buy a position when it is halfway to three-quarters the way off its pivot, and it is these traders who provide the stop losses to perpetuate the next cycle of market movement. If you rely only on indicators for your entries, instead of using the price action of the pivots, you will get in and out of these cycles too late, and you wont make any money trading. What is nice about this system is that a trader doesnt have to watch it very closely once he or she is in a position. Im not an aggressive trailer of stops. I like to get in a position, set my parameters, and then focus on other things. Depending on a traders work situation, he could do this at the office, especially on the West Coast of the U. S. and especially if he had an order system that automatically bracketed trades. This way you can place the parameters, and then go to the next meeting or appointment. Let the parameters baby-sit the position . This is much better as well because it takes human emotion out of the equation. Joined Feb 2006 Status: Member 313 Posts I like to focus part of my trading day on scalp plays, where Im jumping in and out of the market with a little piece here, and a little piece there. However, I also like to focus a part of my time on catching potentially bigger intraday moves, as well as multi-day and multi-week moves. What Ill do is focus on scalp plays in one account, and use a second account for swing plays. The quotSqueeze Playquot is a diverse setup that can be used for both scalp plays and swing trades. The Squeeze Play takes advantage of quotquiet periodsquot in the market when volatility has decreased significantly, and the market is building up energy for its next major move higher or lower. This indicator was introduced to me by my trading partner, Hubert Senters, and it has become an integral part of my own trading plan. These quiet periods are identified when Bollinger Bands narrow in width to the point that they are trading inside of Keltner Channels (I just use the default settings on TradeStation for both of these indicators). This marks a period of reduced volatility and signals that the market is taking a breather, building up steam for its next move. I use this signal on various time frames. On the CBOT mini-sized Dow, for example, a squeeze on a two-minute chart can move 10-20 YM points, on a five-minute chart 30-50 points, and on a daily chart, several hundred points. The kicker, of course, is that the smaller the time frame, the more frequent the signals. A two-minute chart may fire off 3-5 signals in a day, while the daily chart will fire off 6-7 signals over the course of an entire year. This is a momentum play. I will buy strength and sell weakness. Trading rules for buys (sells are reversed): Set up a 24-hour chart so the overnight activity can be accounted for in this indicator setup. The quotheads upquot on this indicator is the first black dot. This is not a trade signal, but a quotheads upquot that a trade signal is setting up. The signal on the indicator is the first gray dot after a series of black dots (this will be shown in detail in the charts that follow). Once the first gray dot appears after a series of black dots, I go long if the histogram is above zero. Once the signal fires, I just place a market order. This is a momentum play and I dont want to be messing around with limit orders that may not get filled. For day trades, I place the following minimum money management stops. If the stop is also near a key price support level, I will take that into consideration and adjust accordingly. For example, if my entry is 1104.00 on the SampPs and the Daily Pivot is at 1101.75, I would move my stop to just below that pivot level to 1101.50, for a stop of 2.50 instead of 2.00. I find that nine times out of ten, I just use the default stop. For swing plays and position trades (taken off the daily charts) I place the following stops. I take into consideration the same key levels as discussed in number 4.My target is based purely on the momentum of the trade. Once the momentum signal starts to weaken, I get out of the trade at the market. I dont trail stops. Lets look at some example trades. The chart in Figure 8.1 shows how to set up the elements of this play into whatever time frame you want to view. For intraday trading, I like to watch the five-minute chart. You can watch the one - and two-minute charts, but generally these signals are not as powerful as the five-minute signal, though they are tradeable. The Keltner Channel is the pair of thick black lines and are set at the default parameters of on TradeStation of 20 and 2. The Bollinger Bands are the thinner, gray lines and are set at the default settings of 20 and 1.5. At the bottom is a 12 period (on the close) momentum oscillator. At point 1, you can see that the Bollinger Bands have gone inside the Keltner Channels. This indicates that the market is going into a quiet period, and it is a quotheads up. quot This is not a signal just a heads up that when the Bollinger Bands pop back out, it will be time to take a trade. Here you can see that the Bollinger Bands have come back outside the Keltner Channels. It is time to take a trade. If the momentum oscillator is above zero at this point, I go long. If it is below zero at this point, I go short. I dont mess around with limit orders. I just jump in at the market. This is just an example of what triggers the entry and exits. I will look at specific plays in a moment. One of the things Hubert did was turn all of the things in the first chart in Figure 8.2 into an easy to read indicator, which is what I now use. You can see on the bottom when the Bollinger Bands go inside the Keltner Channels, the dots turn black. This is a heads up that the markets have entered a quiet period. At this point the Bollinger Bands come back out of the Keltner Channels. Since the Momentum Oscillator is above zero, this is a long signal. On the indicator, this is measured by when the dots turn back to gray after being black. When I see that first gray dot, that is my signal to take a trade. Then, if the histogram is above the zero line, I go long, and if it is below the zero line, I go short. Again, this is just to show you how the indicator works. In the next examples I will go over some actually plays. I prefer to take off all of the quotclutterquot that is on the price chart and just use the indicator. But now you know how the indicator works. On the two-minute chart of the CBOT mini-sized Dow in Figure 8.3, we get a black dot a little after 10:00 a. m. Eastern time. This is a signal that the Bollinger Bands have narrowed and are now trading inside of the Keltner Channels. I know when I get the next gray dot, I will have a trade signal. In this case, the gray dot happens right away. Usually there is more than one black dot, but once in a while it will just have the single instance, and thats ok. I find it is best to just take the signal when they come. Humans tend to mess up their trading when they try to out think their positions. When the next gray dot appears, the histogram is above zero, so I place an order to buy YM at the market. I am filled at 10164. I place a 20 point stop at 10144. My target is open as Ill be waiting for the momentum to falter as my exit signal. The market pushes higher and Im watching the histogram. As long as it makes higher highs, I stay in the trade. When it makes its first lower high, I will get out. At 10:30 a. m. Eastern time we get a lower high on the histogram and I exit at the market. Im out at 10198 for a gain of 34 points. In Figure 8.4, on June 28, the markets traded in a tight range all morning, creating a long series of black dots on the 5 minute YM chart. Remember, the black dots indicate that during this time frame, the Bollinger Bands are trading inside of the Keltner Channels, marking a period of very low volatility. A little after 1:30 p. m. Eastern time the first gray dot appears. The histogram is below zero, so I take a short at the market. Im filled at 10426 and I place a 20 point stop at 10442. The goal is to stay in the trade as long as the histogram is making lower lows (or in the case of a long, higher highs). It makes its first higher low nearly two hours later, and I exit at the market (if you were just watching the momentum oscillator, you would exit as it starts to turn higher). Im out at 10325 for a gain of 101 points. In Figure 8.5, on September 10, the five-minute squeeze on YM fires off. About an hour earlier there was a single gray dot, and I went long here. However, the very next dot went back to black. This means that the Bollinger Bands came out of the Keltner Channels, then went right back in. This is a rare occurrence, but when it happens, I just get out and wait for a solid signal. In this case I was in and out and lost 6 YM points. About 50 minutes later we get the setup again and the dots turn gray. For this next trade, with the histogram above zero, I go long and place a 20 point stop. I am in at 10263 and I place a stop at 10243. The histogram continues to move higher until 1:30 p. m. Eastern time, at which point it starts to lose momentum. I cut the position loose at 10309 for a gain of 46 points. In Figure 8.6, a little after 10:00 a. m. Eastern time on July 1, the first gray dot appears on the five-minute YM chart. The histogram is below zero, so I go short at the market. My entry 10402. The markets drift down and the histogram begins to level off. The markets continue to make lowers lows and suddenly the selling accelerates, pushing the histograms down deep into their range territory. They begin to bottom out around 11:20 a. m. Eastern time and I cover at the market. Im out at 10312 for a gain of 90 points. In Figure 8.7, on September 2, the five-minute YM chart goes into alert status around 1:15 p. m. التوقيت الشرقي. Six black dots appear, showing that the Bollinger Bands are trading inside the Keltner Channels. When the next gray dot appears at 1:50 p. m. Eastern time, the histogram is above zero so I go long at the market. I am filled at 10183. I place a 20 point stop at 10163. The market cruises higher and the histogram begins to start making lower lows at 3:30 p. m. التوقيت الشرقي. I exit at the market and am out at 10278 for a gain of 95 points. Not every five-minute squeeze ends up with a big move like this, but Ive found that when there is a big move, it is generally kicked off by a squeeze on the five-minute chart. I have a rule in trading that says, quotNever fight the direction of the five-minute squeezequot It supersedes all of my other intraday trading rules and setups. We looked at a lot of five-minute squeezes on YM, so I wanted to look at a daily squeeze as well. In Figure 8.8, at the end of November, the daily YM went into quotblack dot modequot, and I awaited the next gray dot. We got it on December 1, and since the histogram was above zero, I went long shortly after the open and got filled at 9804. I placed a stop at 9654, 150 points below. The YM rallied into early January and started losing momentum during the second week of the New Year. I exited on January 9, soon after the open at 10506 for a gain of 702 points. Joined Feb 2006 Status: Member 313 Posts Daily Squeezes and Options on the CBOT mini-sized Dow I like to use the daily squeeze to set up option plays on the CBOT mini-sized Dow. This way I can be positioned for bigger moves that occur when the daily squeeze fires off, but still be able to intraday trade in the same account without offsetting my position. Lets take a quick look at a video that shows how to use options and the daily squeeze together. Using the Squeeze for Gold and Silver The squeeze also works great for the CBOT 100 oz. Gold and 5,000 oz. Silver futures contracts, as well as the CBOT mini-sized Gold and Silver contracts. I watch the daily as well as the intraday charts on these contracts, always alert for the next squeeze signal to fire off. Using the Squeeze for the U. S. 30-Year Treasury Bonds The squeeze is also one of my favorite ways to play the U. S. 30-year Treasury Bond futures. I will use this on both daily and intraday charts. Lets look at some static charts, and then well watch another video. I love using the five-minute squeeze on the YM, but it works on other markets as well. In Figure 8.9 is a chart of the U. S. 30-year Treasury Bonds. Around 11:30 a. m. Eastern time the dots turn black, signaling that we are entering into a period of very low volatility. About 90 minutes later we get a gray dot, and since the histogram is above zero, I go long at the market (Point A). Im filled at 111 932 (Point C). I place a 7-tick stop at 111 232 (if you arent familiar with bonds, 1 tick is 31.25. So if you lose seven ticks, that equates to 218.75, or approximately 44 YM points). The momentum starts to peter out about forty minutes later, and when the histogram makes a lower high (Point B), I exit at the market. Im out at 111 1132 for a gain of 2 ticks (Point D). At one point I was up 10 ticks on the trade (the equivalent of 63 YM points) but the market rolled over quickly, which can happen. Whats more important is to stay in the signal until it ends. This way when a big move happens you will be able to stay in the trade and let your profits run. On this five-minute chart in Figure 8.10 of the U. S. 30-year Treasury Bonds, we go into quotblack dotquot territory around 10:45 a. m. Eastern time, and I set back and wait for the next gray dot to appear. This happens a little after 12 Noon Eastern time (Point A) and since the histogram is below zero, I short at the market. Im filled at 110 3032. I place a stop at 111532 (If you are not familiar with bonds, each point goes up to 3132. When it goes to 3232 it becomes a new point. For example, when bonds are at 110 3132 and they move up 1 tick to 110 3232 this reads as 111, and so on). The momentum to the downside builds and bonds sell off. Once the histogram makes a higher low (Point B), I cover my short at the market and Im out at 110 2632 for a gain of 4 ticks. Around 1:30 p. m. Eastern time we go back into quotblack dot modequot and I get prepared for my next trade. About 45 minutes later we get our first gray dot (Point C) and since the histogram is below zero I short at the market. Im in at 110 2132. I place a stop at 110 2832. Bonds sell off and move lower into the close. I cover at the first higher low at Point D and Im out at 110 1632 for a gain of 5 ticks. The market rolled over again quickly thereafter and closed on its lows. On this daily chart of the U. S. Treasury 30-year Bonds in Figure 8.11, we can see that these markets consolidated heavily for nearly a month during most of April 2003. When the first gray dot appeared after this consolidation (Point A), I went long and was filled at 113 1332 (Point C). Because this is a daily chart, I give the trade more room and use a 35 tick stop at 112 1032. Bonds rally through the entire month of May, finally losing momentum in June. Bonds get nearly as high as 122 before crashing on economic news (Point D). That kicks off a lower histogram reading (Point B), and I exit at the market at the end of that day, getting out at 119 3132 for a gain of 6 1832, or the equivalent of a 1,312 point move in YM. Squeezes show me when the markets go into quiet mode. The only reason markets go into quiet mode is because they are building up energy for their next major move. I like to be on the alert for this move, and of course on the alert for the direction of the move. With the squeeze, I have a clear indication of when to take the trade, and once Im in, I just dont mess with the trade. When it starts to lose momentum it is pretty clear, and that is the signal I use to get out. Joined Feb 2006 Status: Member 313 Posts In watching the markets over the years, Ive observed that most reversals take place after three consecutive higher closes, or three consecutive lower closes, and this tendency is valid for all times frames. The key to this setup is that it is based on consecutive quotclosesquot and not just intraday or daily high and low price action for an individual bar. In other words, the highs and lows are not important. Im not interested in three higher price highs or three lower price lows. I want to see where the action settles or closes, as that is where the rubber meets the road. The hard way to follow this play, especially intraday, is to stare at the charts and keep track of consecutive lower or higher closes until you get three in a row. This can cause a person to go bug-eyed, as well as insane, and is recommended only for those who get a thrill from quotthe little things in life. quot Im not a big fan of staring at charts and would be a prime candidate for the mental hospital if I did this with the naked eye. Instead, Ive developed a simple indicator in TradeStation that will quotpaintquot the first bar in the sequence after the third bar has met the criteria for a signal. Once I see the paint bar, I just place a market order and Im in the trade. Even better, I set up an audio alert so that if Im down the hall, Ill hear the signal and come back to my computer to place the trade. This works when Im on the phone with my wife as well, though she has yet to appreciate the importance of the signal and my urgent need to hang up in the middle of our conversation. Such is the life of a trader. Here is how it works: I am watching the charts and I get three bars in a row that make higher closes. At the close of the third consecutive bar, my paint bar appears on the chart, and it is marked over the first bar in the sequence of third bars. I place an order to go long at the market. To get out of this long position, I just wait for three consecutive lower lows to occur, and that will be my signal to exit the trade, and potentially go short. Although this is a very easy trade to execute, it may not make sense right out of the gate. Dont worry, if this sounds a little unclear, we will be looking at some charts soon enough. I use this signal on various time frames. For scalping the CBOT mini-sized Dow, Gold, Silver and U. S. 30-year Treasury Bond futures, I like to use the 144 tick chart and the five-minute chart. For swing trades, I will use both sixty-minute and daily charts. THIS IS A MOMENTUM REVERSAL PLAY. I WILL BUY A REBOUND AFTER A SELLOFF UPON CONFIRMATION AND SHORT A PULLBACK AFTER A RALLY UPON CONFIRMATION. TRADING RULES FOR BUYS (SELLS ARE REVERSED): Set up a 24-hour chart on intraday charts so the overnight activity can be accounted for in this indicator setup. This can be used on all time frames. The larger the time frame, the larger the parameters and potential move. For daily charts I will use the regular session hours. After three consecutive higher closes, go long at the market, at the close of the third bar in the sequence. The trade is valid until you get three consecutive lower closes, at which point you would exit the trade. If the market is still open for an intraday trade, you can simultaneously exit a long and establish a new short position. If Im in an intraday trade (fifteen-minute chart or smaller) and the market closes before giving an exit signal, I will exit at the market 4:10 p. m. التوقيت الشرقي. For time frames that are sixty-minutes and above, I will stay in them overnight and exit at the next signal. This could be the next day for a sixty-minute chart, and it could be a month later for daily charts. In Figure 9.1, in this daily chart of the CBOT mini-sized Dow futures, a long signal occurs on August 10, which paints the August 6 bar. I go long at the close of August 10, and Im filled at 9916. Im now waiting for the next reversal signal in order to exit the trade. The next signal hits on September 7, nearly a month later. Im out at 10278 for a gain of 362 YM points. This is a good example of a play for people with insomnia, or who are living in a time zone overseas that is contusive to this type of trading. In Figure 9.2, on October 1, a reversal signal setup on the U. S. 30-year Treasury Bonds in the wee hours of the U. S. night. Im working on my newsletter late at night (the pros and cons of writing a nightly newsletter), and I take the short. Im filled at 112 132. I will stay in the trade until the next reversal signal. A few days later I get a reversal signal on October 4. I cover at 111 832 for a gain of 2532. For those of you who are not familiar with bond pricing, 132 31.25. So a move of 2532 781.25 per contract. I wanted to use this last example in Figure 9.3 to show how I would flow in and out of positions intraday, going both long and short. The first signal on October 6, in YM, was painted at 10:35 a. m. Eastern time. This means, of course, that I am going short at the close of the last bar in the sequence of three bars, which is 10176. The next reversal is noted on the chart at point 3. I cover at 10169 and simultaneously go long. The easy way to do this is to double the amount of contracts you are trading on your exit order. So, if you are long 10 contracts, then you place an order to sell 20 contracts in order to exit your 10 long contracts, and at the same time establish a new position that is short 10 contracts. The next signal occurs at point 5. I go long at 10186 and simultaneously go short at this same level. The next signal occurs at point 7. I cover my short at 10173 and go long at the same level. Figure 9.4 is a good example of a swing play on the CBOT 100 oz. Gold contract. On November 4, there is a buy signal on the daily charts, and I go long at 433.00. The market moves steadily higher, without much in the way of pullbacks. Finally, on December 7, I get a reversal signal and Im out at 453.70, a profit of 20.70 per contract, or 2070.00. This also works great on the 100 oz. Gold intraday, as well as the 5,000 oz Silver contract. Take a look at the following video for example plays in the CBOT mini-sized Dow, Gold, Silver and U. S. 30-year Treasury Bonds. This setup is especially useful for traders who like to try to buy bottoms or short tops. While it is foolish to short a stock just because its quottoo high, quot or buy a market because its quottoo low, quot its fine to short that high flyer or buy that all out loser once you get a reversal confirmation with this signal. It doesnt mean that the exact highs or the exact lows are in place, but it does mean that there has been a temporary shift in power, and it is your signal to step in and establish a position. Whether this is an intraday reversal on a five-minute chart, or a total market reversal off a daily chart, the concept is exactly the same. In addition, this play is based on pure price action, and I appreciate its simple and effective nature. Joined Feb 2006 Status: Member 313 Posts The best intraday trades take place when a trader is able to catch the major portion of an intraday reversal. One of the best ways to do this is with a specific price pattern that we call bricks. We call them quotbricksquot because the price pattern that is formed looks like a bunch of building blocks that have been placed on top of a regular bar chart. These building blocks are formed on the chart due to specific price action. A series of three consecutive higher closes will form an quotupquot brick, and a series of three consecutive lower closes will form a quotdownquot brick. If you have a hard time pulling the trigger, this is a good play to use with BUY STOP and SELL STOP orders, as you will see in a moment. If you dont have a hard time pulling the trigger, then you can just wait for the signal and then go in at the market. This is one of those plays that is difficult to explain, but easy to show. In this case, a picture is worth at least 1000 words. Lets go through the trading rules and then go over a couple of actual plays. THIS IS A MOMENTUM REVERSAL CONFIRMATION PLAY. TRADING RULES FOR BUYS (SELLS ARE REVERSED): Set up a 24-hour time frame on an intra-day chart so the overnight activity can be accounted for in this indicator setup. This is best used on smaller time frames, typically under five minutes. Once a market shifts direction, count backwards to the third brick in the formation. Then draw a horizontal line across the top of this third brick back. Once the price action breaks above this horizontal line, go long. Hubert and I use this setup on the CBOT mini-sized Dow, and we both manage this trade differently, so I will go over both of our methods. For Hubert, he places a 10 point stop from the entry. Then when he is up 10 points, he sells half his position, and moves his stop to breakeven -3 (so if his entry was 10545, then his new stop is 10542). If the market goes up another 10 points, he sells a quarter of his position, and then moves up his stop 6 points to breakeven 3 (so if his original entry was 10545, his new stop is 10548). He then hangs onto his last quarter of the position to exit at his discretion. This typically involves a move that accompanies an extreme tick reading. For myself, I will get into the same trade and use a 20 point stop. I will exit half my position at 15 points, and then stay in the trade until there is a brick that has formed in the opposite direction. I dont trail the stops. Both methods have worked well for us, and this is a good example of how different traders can take the exact same setup and modify the trading methodology to fit their own particular personality. Lets take a look at some actual plays: On this two-minute chart of the CBOT mini-sized Dow futures in Figure 10.1, a long signal occurs around 1:00 p. m. Eastern time when the price action reverses and crosses above the horizontal line created by the third brick back in the series. The quotupquot bricks are blue, and the quotdownquot bricks are red. In this instance, YM rallies up to 10689. Our entry is at 10629. Hubert is using a 10 point stop and Im using a 20 point stop. Hubert exits half at 10639, a quarter at 10649 and the remainder at 10675 when YM comes up against key resistance. I exit the first half at 10644, and I stay in the second half until the bricks reverse and Im out at 10672. On this two-minute chart of the CBOT mini-sized Dow futures in Figure 10.2, a short signal occurs around 11:00 a. m. Eastern time, when the price action reverses and crosses below the horizontal line created by the third brick back in the series. In this instance, YM declines to 10646 before reversing. Our entry is at 10704. Huberts stop is 10 points, while mine is 20 points. Hubert exits half at 10694, a quarter at 10684 and the remainder at 10668 when YM sells off through key support on an extreme tick reading. I exit the first half of my position at 10689 and exit the second half at 10658 when the market reverses and generates a new brick long signal. The brick plays can take a little while to understand exactly how they work. Hubert has put together a video that shows how bricks work in more detail, as well as discusses additional sample plays. This setup is great when trying to catch an intraday reversal. Too many traders try to do this but end up getting burned. They short the market and it just keeps going higher, or they buy the market and it gets flattened. There is no reason to try to catch the exact high or the exact low in a market move. That involves too much risk and has a low probability of success. With this confirmation signal, a trader will be made aware of when the move is confirmed to be over, and still be able to catch the quotmeat of the move. quot Joined Feb 2006 Status: Member 313 Posts Trade The Markets was founded by John Carter in 1999, and is an online provider of short-term financial market commentary designed for both swing and intraday trading of stocks, options and futures. We focus on the power of short-term price movements to produce steady profits. We are just as likely to be long as we are short. Utilizing leading software and core trading techniques, our strategy for stocks is to scan through thousands of price charts each trading day. For futures trading, most of our intraday trading techniques are focused in the CBOT mini-sized Dow, Gold and Silver, as well as the U. S. Treasury 30-year Bond futures. We apply a combination of technical analysis, pattern recognition, and market outlook to discover short-term, high probability trading opportunities in these and other markets. Who Are the People Behind Trade The Markets Everyone who contributes to Trade The Markets is a full time trader who either had the benefit of learning to trade from a successful mentor, or graduated from the school of hard knocks8212losing money every way imaginable before developing their own successful trading rules. We all trade full time for a living, and most of work with managed funds and accounts. This website was the natural outcome of posting trades with each other, and the desire to help out others who want to give trading a shot. By posting our research to the site each evening, and by calling out live trades in our audio live trading rooms, we are helping ourselves because it forces us to do a full night8217s worth of research each evening, and gives us an extremely disciplined approach to the markets. Were also helping our members and have shown that we can also save traders valuable time--when you are running short on time, we still do a full nights worth of research and post our findings and specific trading ideas for the next day. What8217s The Different Between Your Stuff and Others There are four things we specialize in that make us stand out from the crowd: Entry and Exit Point Focus, Real Track Records, Education, and Accountability. We are a quotno-hypequot site that focuses on what works over the short term. And we post all of our trades, the good, the bad, the great, and the ugly, so you can evaluate for yourself how we do in all market conditions. We offer three newsletters that focus on stocks, options and futures. We also have a live audio trading room where our voices come out through your computer speakers, and we are able to share the charts we are using live with our members. In there, we discuss our trading philosophy and record our trades as they happen, in real time. The newsletters are generally published five days a week and have intra-day updates. Each focuses on a particular area of the markets. Each newsletter provides market commentary, a model trading portfolio, trading ideas with specific entry, exit, and stop loss price levels, and tips on how to find these trades on your own. Our typical holding period is a few days to a few weeks, making it ideal for part time traders who don8217t have time to sit in front of their computers monitoring the markets all day. If you click on the link below, you will see a recent example of our 8220E-mini amp Single Stock Futures Newsletter8221 where we focus on setting up swing trades in the CBOT mini-sized Dow, Single Stock Futures, U. S. 30-year Treasury Bonds, and other markets. View the PDF below: In the Live Audio Trading Room, we focus mostly on intraday trading of the CBOT mini-sized Dow. The Live Audio Trading Room is geared towards active, full time traders and it has been a huge hit with our members. The link below will hook you up to a video that talks more about our philosophy and backgrounds, as well as some information about our newsletters, trading room, and opportunities for further education and experience. Free two week trials are available for everyone at our site, tradethemarkets. By logging into the live trading room, you will be able to ask questions 8220free8221 for two weeks. This is a great way to get any questions asked about this tutorial. However, please confine your questions to between 12:00 Noon 8211 2:00 p. m. Eastern time, as we are trading the rest of the time. Room membership is limited, and you must be voted into the room by the existing members if you wish to stay beyond the two weeks. If you have any questions regarding any of the trading strategies presented here, please feel free to contact me at jcartertradethemarkets. or call us toll free at 888-898-8118. If you have any questions regarding the CBOT mini-sized Dow, Gold, Silver or U. S. 30-year Treasury Bond contracts, feel free to contact the CBOT at wwwcommentscbot.