Todays trade plan is again to focus on execution towards the middle to back of the zones on first touch.  Buyers will be in control off the open.  I will be looking for signs of a trend day up.

NOTE: Interested in learning how to become a consistently profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour session for only $200.  Its a great deal.  You can contact me at TRADENPERFORM@GMAIL.COM to set up a 15 min chat on skype to see if we match.

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

Performance of 1st high odds trade since inception of blog on 4/19/13

Model is up 47 points per contract from the start of the blog last month. (APRIL 19TH) One well defined trade at a time. Obviously there are additional trades derived from my trade plan, i am only highlighting 1 trade. I am now only highlighting the first trade of the day due to the difficulty in making small alterations as the day goes on. The point is to show that all you need is one good trade with an edge. If you would like to learn how to trade like a pro you may contact me at: TRADENPERFORM@GMAIL.COM
Link to full spread sheet:        https://docs.google.com/spreadsheet/ccc?key=0Ap5hOyO4ONQLdEh4blB3aU81Smk0a1VBVFZZRnVqb2c&usp=sharing

NOTE: Interested in learning how to become a consistently profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour session for only $200.  Its a great deal.  You can contact me at TRADENPERFORM@GMAIL.COM to set up a 15 min chat on skype to see if we match.

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

ES TRADE REVIEW FOR 05/24/2013

1) THE ES trade plan called for focus to be placed on the back of the trade zones on first touch. The WHITE ZONE was originally placed at 1645.25-1647.50. ES opened at  1639.50 & pushed up into the 1641-1643 ZONE.  Responsive buyers stepped in at the middle of the zone & pushed down to the 1636.25-1634.25 zone.  A trade placed from the middle of the 1641-1643 zone yielded a potential 7pt + potential trade and easily hit the 2 points a day I so often talk about on my blog.  All you need is one good trade to build an account.  That is it.

2) Responsive sellers were able to push all the way to the back of the 1636.25-1634.25 Zone where responsive buyers stepped in once again.  Again,  For traders with less aggression the idea is to only trade in the direction of control & only on first touch.  More aggressive traders may choose to trade both directions regardless of control but the risk of a losing trade grow significantly.  The same goes for 2nd & 3rd touches into a zone.  Responsive buyers were able to push ES back above Globex lows & back into the 1641-1643 zone.   I tweeted out that the WHITE ZONE should be moved down from 1645.25-1647.53 to 1641-1643.  In addition I mentioned on twitter that the close above 1643 on a 5 minute bar put buyers in control & trap late shorts.  My focus now would be on the long side.

3) After chopping around for the better part of NY lunch buyers pushed ES up to 1645.25-1647.53 resistance zone. 4) The back of the zone found sellers who were able to eventually push down to the top of the 1641-43 zone.  While on paper the push up & the push back down looked pretty easy I would argue that it was mentally very difficult & required a great deal of discipline to execute.  Both trades simply chopped for an hour or more.  It is exactly this type of environment that chops traders accounts to bits.  Nerves build up over time & small gains are taken by many at best, the trade is entered & exited many times by less disciplined traders racking up unnecessary & painful losses at the end of the week.

4) Finally, Just an example of why I do not fade the last hour.  With 30 minutes to go till the old 3:15 close shorts started to scramble with ES moving up 7.75 points to close on the high of the day.  It also demonstrates the power of the WHITE ZONE.  By knowing who had control & adhering to a  less aggressive risk profile you free yourself from these kind of hits which take a toll not only financially but also emotionally.  Maybe its worth considering.

Looking back on the end of the day my focus & discipline were well rewarded. Did I get every trade? no.  I did however get enough of my setups to top off an excellent week.  Trading like a professional does not mean capturing every move nor does it mean getting every trade right.  It does mean knowing yourself & just how much risk you can financially and emotionally handle.  It means trusting yourself to follow your own rules, what ever they may be.  It is also KNOWING you have an edge.  That means stats are carefully taken, attention to small details, carefully journaling my trading decisions both numbers wise & emotional responses to my decisions.  I do this on good days and bad days.  That is how I survive & thrive as a professional trader.  Its not easy & it takes work but it allows me to accumulate profits and get to play in the market every day.  Wouldn't you like to have that for yourself?  

There are methods & steps to attaining this type of performance.  If you are serious about getting your trading to a consistently profitable level  & are tired of losing money or trading in cycles of boom & bust you may consider contacting me. Individual coaching can be highly effective in setting you on the path to success & ending destructive patterns in your trading.  I offer an introductory rate of $200 for 3 one to one coaching sessions that have helped many get on the path to consistent profitability in trading.  You may contact me at TRADENPERFORM@GMAIL.COM

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

BEFORE/AFTER S/R TRADE ZONES FOR 05/24/2013

TRADE PLAN IS TO FOCUS ON THE BACK OF THE TRADE ZONES ON FIRST TOUCH. ALL YOU NEED IS ONE HIGH ODDS TRADE TO GROW YOUR ACCOUNT

NOTE: Rates have gone up for my 4 session introductory coaching sessions.  I will honor the $200 for 4 sessions of 1 on 1 coaching till Sunday Night 11:59 PM central time.  Its an amazing value.

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

ES TRADE REVIEW FOR 05-23-2013

The Plan for the day was to focus on the middle to back of the  S/R TRADE ZONES to account for the increased volatility in the market.  The primary concept of the trade plan is the WHITE ZONE.  Above the WHITE ZONE buyers are in overall control and sellers below. ES opened below the 1638-1640 WHITE ZONE  placing sellers in control.   1) The Back of the WHITE ZONE offered great trade location for a 6 point rotation to the downside.  Remember all you need is one solid trade a day to build an account and my highest odds strategy I discuss here often is predicated on 1 high odds trade for 2 points.

ES was unable to reach Initial Support and Responsive buyers were able to push ES back up & through the WHITE ZONE.  Each time a zone is tested the odds of a successful counter-rotation diminish. I often will  choose to focus my efforts on only the highest odds trades.  2) Buyers pushed ES all the way up to the  1644.50-4646.50 PREMARKET RESISTANCE ZONE where again the middle to back of the zone provided great trade location.  Again,  this provided a 6 point rotation lower back down to the WHITE ZONE. 3) The push down into the WHITE ZONE was the first since buyers gained control & the same set up again provided great trade location for what became an eventual 15 point rotation higher to 1654. 4)  There was one final clean set up for the day on the first test down into PREMARKET RESISTANCE ZONE after it was broken to the upside.  Again the middle to back of the zone  provided great trade location for a potential 9 point rotation higher.

Quick note,  I experienced a technical issue & lost the EOD data.    ES Chopped around from approximately 1648-1652.  If you have followed me for any amount of time, you know I am no fan of the last hour.   All in all a fantastic day. Would be nice to keep a two sided market like this for a while.  Hope everyone did well.  Again,  Sorry for the delay in posting the review.  Off to put together today's trade plans.

NOTE: Rates have gone up for my 4 session introductory coaching sessions.  I will honor the $200 for 4 sessions of 1 on 1 coaching till Sunday Night 11:59 PM central time.  Its an amazing value. 

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.
  

ES S/R TRADE ZONES FOR 5-23-13

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

ES TRADE REVIEW FOR 05-22-2013

WOW,  what a day.  I am going to do a quick review but there was simply too much to go over every blow by blow.  Before i do that though,  Let me go over some basic concepts.   

1) WHITE ZONE.  When trading above, buyers are in control.  This is designed to protect me.  I am focusing primarily on longs & being very cautious on taking shorts.  Just the opposite when below the WHITE ZONE.  

2) Initial Resistance/ Initial Support  I expect responsive buyers or sellers to step in at these zones and make a significant push in the opposite direction.  Does it happen always, no, but it happens often.   When these zones are placed at new all time highs they are based on calculations & are therefore not as accurate as other zones.

Once one of these zones are hit,  I am much more cautious of taking a trade in the direction of control without a significant counter rotation back towards the WHITE ZONE.  

3) The first time into a zone has the highest odds for a small counter rotation up.  When I say small I mean 5 to 8 ticks.

4) Trade location.  The most aggressive location to place a trade is at the front of the zone.  The least aggressive point to place a trade is at the middle to back of the zone.   The farther back you can place the trade, the least amount of risk you have to take to see if the zone will hold.  

The location of the zone itself is an edge.  

I am only going to cover the highlights of today because i could write a book on the trading that took place today.  If you have a specific question, please hit me on twitter or email me.

So, anytime you have the Fed Chair testifying it can be a HARD day to trade.  I dont like hard days.  I actually like easy.  I could live the rest of my life without another FED day.  Secondly,  there is alot of fantasy about days like today.  Most traders don't catch these moves;   the size of rotations exploded and the speed of the moves accelerate. The stops that work for you most days just handed you losses today. If your not accurate with your chart work the market will punish you with moves against you for early entry. Most of the good patient traders I know made money, a few hit home runs. Everyone else who was even off a bit with their entries and exits had a alot of stops & frustrations.  

I mentioned early on that not trading on a fed day was totally acceptable and maybe even advisable.  I was certainly slow to pull the trigger myself.  All that being said, I am going to hit the highlights tonight and leave it at that.

  

1) ES opened in the 1667.50-1669 zone & imminently drove higher up into Pre Market Resistance.  Responsive sellers were able to drive ES down from the middle of the zone to 1670 but it was short lived.  Everyone was waiting for BEN.  It was simply advisable to wait it out. As soon as Ben said good-morning it was off to the races.  Since we were above the WHITE ZONE the focus was on longs until Initial Resistance at 1681-1683.  We hit the back of the zone with a +1000 tick & the final push up & high of the day came on a negative tick divergence which often leads to fantastic trade location.  Again,  the zone was a calculation done prior to market open & was very close to nailing the top if not exact.  

2) Since we had hit Initial Resistance zone this was a good location to close out any trailing longs & for aggressive traders to initiate shorts.  I am very reluctant to take longs once Initial Resistance has been hit without a significant move lower.  You had to pay attention to the rotations.  We traveled up 20 ES points from the prior days close so a five or 6 point rotation down was not going to do anything for you.  You needed to think in variables of 10's.  The back of the WHITE ZONE would give you a approximate rotation down of 12 points.  A little more than half of the move up.  

3) From the back of the WHITE ZONE, which by the way this was the first test since leaving, ES rotated all the way back up to the front of Initial Resistance at 1681-1683. (4)  Again,  this was a 10 point rotation up.   Again,  I expect sellers to come in at Initial Resistance until they dont.  Each time a zone is hit the odds of the counter rotation fall but the odds are still there.  

5) From here ES eventually worked its way down to the white zone.  This was the 3rd test of the White Zone and there was no meaningful tick divergence and we have been in the process of setting lower highs and we just saw the smallest rotation up fo the entire  1st half of the day.   

6) Once the WHITE ZONE was broken,  all my focus shifted to the short side.  The WHITE ZONE primary purpose is to protect me.  There was no reason for me to think long below without significant compelling reason.  Initial support at 1660 -62 would be a logical place to look for a turn.  Unlike the Initial Resistance, Initial Support has been tested several times, once we closed below on a five minute bar it was broken.  A tight stop behind the zone was all that was needed to test if it would hold. Once broken the first upside test gave excellent short location for what turned out to be a 12 point move lower to 1646-1648. I pointed out going into the last hour that trading this time of day can be very difficult  I skip it.  My guess is many traders got burned either playing for counter rotation up or stung by the rotation up at the end of the day when panic sellers did not materialize and ES pushed up 10 points.  

Money goes quick in an environment like this.  Know what your high value trades are and focus on those locations.  Don't get caught up in the moment to moment action.  Simply knowing what side to focus on combines with trade location is a HUGE EDGE.   

 “You’ve got to think about big things while you’re doing small things, so that all the small things go in the right direction.” 
― Alvin Toffler

NOTE: Rates have gone up for my 4 session introductory coaching sessions.  I will honor the $200 for 4 sessions of 1 on 1 coaching till Sunday Night 11:59 PM central time.  Its an amazing value.   

Contact: TRADEnPERFORM@GMAIL.COM

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.