Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
In this mornings pre market video (sent to coaching clients) the them was simply that every gap down has found responsive buyers, trade accordingly. The first hour was a chop fest as traders waited for news to emerge from Washington. The difficulty with random news is that is random. I don't enjoy having leveraged risk on in an environment where the wrong word from a politicians mouth can send my position to a stop. So, that being said, I have shifted more towards a quick scalping mode and leaving trailers to see if they catch a friendly wind. Hard to tweet that out. So instead lets put the elements in place that we do have and see if we can not leverage them.
1. All gap downs have consistently been bought up in the day session in the past weeks.
2. The market has absorbed every piece of negative news that has been thrown at it and we are at or neat all time highs in every US based equity markets. Not good or bad, right or wrong. Just is.
3. The long side has been the easy side in the day session.
4. Tick divergence has been the best entry to the short side, though big rotations down have been hard to come buy.
5. Its been a one way market, meaning once the market has picked a direction the counter rotations have been minimal to none.
6. Noe of this is the norm, just the result of a very heavy news influenced environment. It wont last forever, probably much shorter. Its not the first time and it always passes. The key is to adapt. How you do that is up to you. Trade less, trade long only with long entries after decent rotations down, trade smaller size. The key is if your not thriving to survive with your equity in tact along with your confidence.
Thats the facts as I see them. Would I like it to be a more favorable trading environment for my preferred style of trading? Yes. Does it matter what I want? No. Its just a machine (the market) and is not for me or against me. It just is. I have seen this before and it passes. We will return to out 2 sided trade and all will be well. Its just the nature of the ES. In the mean time, I will take what I can and avoid being overly digressive on the short side.
Remember, not matter what you hear in internet land, most traders lose. Period. Just the nature of the beast. My goal is to survive the challenges and excel when the market makes it easy; I assure you-- I will. In the mean time, I will just grind it out. Remember, anyone can trade consistently and profitably. Anyone. Email me if you would like to learn how.
Simon
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
THE TRADE REVIEW WAS CORRUPTED ON UPLOAD AND LOST.
MARKET PREVIEW(SENT BEFORE OPEN TO CLIENTS)
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Achievement of your happiness is the only moral purpose of your life, and that happiness, not pain or mindless self-indulgence, is the proof of your moral integrity, since it is the proof and the result of your loyalty to the achievement of your values.
MARKET PREVIEW-SENT TO COACHING CLIENTS PRIOR TO OPEN
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
A VERY LONG MARKET PRE-VIEW. HAD A FEELING TODAY WOULD BE EPIC
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
In today's video review I go over some of the basics of using the zones and how I adjust when the market does something I do not expect.
TRADE REVIEW
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
PRE MARKET VIDEO NOTES SENT TO COACHING CLIENTS PRIOR TO OPEN
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Was too tired to do a trade review, hope all did well.
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Totally wiped out tonight. So I am going to keep this brief. Failure to get above and hold Fridays low put sellers in charge this am . The White Zone was at 1707-1709. Buyers are in control above & sellers below. The further we rotate away from the WHITE ZONE, the less power or influence it has over market participants decisions. The key long opportunity came at Initial Support. In this AM's market preview sent to clients I said that I expected responsive buyers at Initial Support & that is exactly what we got. Strong responsive buyers pushed us up about 6 points to 1968 where we proceeded to chop with a down ward bent (sellers still in overall control.) As a side note, my trading early in the day has been less than I expect in terms of performance. I think this is in part to putting together the pre-market trade report so close to the market for my clients. Will make the adjustment tomorrow to have the pre market trade report out by 8am. Hopefully one small adjustment will have a big outcome change. Would like to see an increase in PnL this week as it is less than my average to this point in the month. Keep trading well folks. Have a good night.
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
As a trader you can not allow your frustration with the market to allow you to leave your trade plan. If you abandon your trade plan you leave yourself in the perilous position of having to figure everything out which causes anxiety as your caught between wanting to find a trade that will work and fearing that the next trade will just put you further from new highs in your account. If you feel that your trade plan is no longer valid, then you must step back a reassess what changes need to be made, write a trade plan for execution & create an appropriate risk management profile for the new trade. Assuming you can actually find a new edge. It takes time & that is actually a good thing. There are a few gifted traders that can jump from market to market seamlessly and do well; most of us are not that trader.
What I have found over the years is that my particular edge has been consistently profitable. Sometimes its wildly profitable and other times its only reasonably profitable. Right now, per example, I am up about 20 es points for the month. So not jaw dropping until you consider the environment. We have had an abundance of one way markets, not normal for ES trading & makes trading rotations very difficult. Furthermore, we have had an abundance of random news events that have really driven the market to make fast outsized moves, a dangerous trading environment. Lastly, many traders are simply getting crushed in this environment, so being profitable is actually quite nice.
After taking that into consideration, do the math on the PnL. That's 1000 dollars per contract traded. Trading 5 contracts thats obviously 5000 dollars, and we are not done with the month. I follow a system for systematically increasing my trade size. If your account size is 100000 per example, trading 1 car per 10000 in your account would have you up 10000 for the month. This comes out to over a 100% annualized return. Keep trading well and having a plan to expand to 15 contracts would yield you 150% . Please notice the word plan, a plan to increase size, hopefully based on successful trading. (increasing size as the number of successful trades grow)
Now nothing is guaranteed, especially in trading. But if you stay focused on an edge and a plan to execute that edge well, good things can happen. If we get into a better day trading environment, returns can really explode. But not if your jumping ship every time the environment becomes a little challenging. Not if your abandoning your risk model. Not if your taking random trades. Then your left to being pushed around by the markets. And when the market comes back to your edge? Well, you will be long gone; either threw losses or through missed opportunities because you did not stick to a game plan. You will simply look back and say, ugh, why did i abandon what was working. "I could have made so much". This is the story of the majority of traders out there. Do not let this be you.
To be clear, there are lots of ways to make money in the market. There is nothing wrong with having multiple strategies and trading multiple markets if you have the ability to do so. However, each strategy requires a plan and a true edge. Generally creating both take a good deal of work and can not be done overnight. Saying hey, this market overhear seems to be trading better, let me jump over there and take a few trades..... Without doing your proper homework, your asking for an ass kicking. Just how it goes. Most traders don't have an edge or a trade plan. I tend to be very slow to abandon mine. Focus, patience, perseverance and stability in my focus leads me to success. Randomness, lack of preparation, giving in to frustration, chasing a dollar. This is the road to ruin. Choose wisely.
Simon
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
THE BIGGEST PROBLEM WITH FOLLOWING TRADERS ON TWITTER IS TRANSPARENCY. IF YOU WERE TO LOOK AT TRADERS ON TWITTER IT WOULD APPEAR THAT EVERYONE KNOWS WHAT THEY ARE DOING. YET I HAVE MET SO FEW WHO ARE ACTUALLY MAKING MONEY. IF I HAD MY WAY, EVERY ONE WHO POSTS AN IDEA WOULD HAVE TO KEEP A RUNNING TRACK RECORD. EVEN IF THEY ARE NOT TRADING IT, AT LEAST YOU WOULD KNOW WHAT THEIR TRACK RECORD ON THEIR TRADE IDEAS IS. OF COARSE, YOU WOULD END UP WITH VERY FEW PEOPLE CALLING TRADES OR TRADE IDEAS.
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
You can not chase the market and expect to win. You pick your spots, let the market come to you. If your waiting for it to look perfect, your gonna have a long wait.
-Simon
ES:
NQ:
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Today was essentially a trend day up. If trend day up is not identified quickly then it can inflict major damage to a traders account. My goal is 2 fold on trend day up. 1) To avoid losing money taking counter-trend trades that get run over. If possible, to get on board in the direction of the trend day.
I essentially did not catch the we were in trend day up quickly enough. My early short was stopped for -2.25. Small enough damage. I pretty much waited for my next trade to develop. Much of the problem with this particular day was it was deceptively slow. Most trend days have a speed element to them that was not present this am. My trading rules are designed to keep me from having major draw downs on any given day and today they worked perfectly. My second trade was a short at Initial Resistance & I sat in it for what seemed like forever. Unable to get a rotation to the down side I covered for a 2 tick loss. Totally respectable. I do not consider myself the best trader in the world, far from it. What I do do very well is control my down days and keep them small and I extract the maximum on my up days and only take my highest odds trades. Thats it. It has kept me in the bis a long time and I suspect it will stay that way.
Clues to trend day up:
no attempt at gap fill
little to no counter rotations
never got below VWAP
NQ went up from the get go, in complete oposite behavior of prior day and something my coaching clients were looking for out of the gate.
Hope all did well. Still considering weather or not I want to trade tomorrow. Everyone and their brother will be trying to get in on the action. The swings and the power of the move in both direction could be insane. Last time we had 20 point ES moves each way--within two hours Not exactly my cup of tea. I trade pretty leveraged. So for now I am going in with no expectations and with the attitude of doing less is more. I simply want to survive crazy days so that I can cash in on the easy days. I do not consider moves generated by interpretations of mid day news releases easy as I have little to no edge there. Everyone is gaming this and I want to make sure I am not the sucker. Good night, remember, market will be here a LONG time. Just make sure you are here with enough capital to take advantage of the easy markets. ---Simon
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential
.png)
