Identify the Lowest Risk Day Trading Opportunities for Any Market

– Highest percentage trades = most confidence so find YOUR trade!

o Define the type of market

 Trending market?

• Trade with the trend; need to know where my BIG PICTURE Highs/Lows are
• Then make sure we are NOT buying into the highs, or selling into the lows
• I can trade against the trend, but I need to break the trend line that supports the trend.

 Wedge pattern? (consolidating market)

• The highest percentage option is to buy the lows and sell the highs (trade inside the wedge
• The other option is the breakout of the wedges

o Find additional support below the wedge for short breakout
o Find additional resistance to trade the breakout long

 Channel Pattern (trend market)

• I can buy the lows and sell the highs trading INSIDE the channel

• If we want to trade a breakout, look for additional resistance for the long trade and additional support for the short trade.

 Narrow sideways range (no trend)

• There isn’t enough room to sell the highs or buy the lows

• Look at the MAJOR levels around you above and below and use those major levels to sell the highs and buy the lows

 Wide sideways range (no trend)

• Assuming there is enough room for a trade to work we can buy the lows and sell the highs
• Every time the market tests highs/lows we have 2 options

o Failure/reversal
o Breakout

– What does Low volume do for your trading?

o How do I determine a low volume day?

 Slow speed of the tape

• I look for RED and very low (< 100) on the pace of tape indicator

 It wont tell you a low/high volume DAY, we don’t care about that, we focus on whether its high/low right NOW.

– Correlation between the DAX and the Dollar (DX)

o Negative correlation
o If the dollar is rising the dax will be falling

 DAX = early morning euro market
 Trades from 3am – 1130am EST

– Saving your workspace and creating a back-up

o Once you have your charts set up, save the workspace (file/workspaces/save)
o Create a backup copy:

 My documents/ NT / Workspaces
 Copy the workspace file
 Paste that file somewhere OUTSIDE of the My documents/ NT
 Create a folder on my desktop for these.

– Do I ever increase my stop loss ever?

o Don’t want to ‘curve-fit’ my trading for today’s market
o Trade Management: where do I place my stop?

 Scalpers use the same trade management every time (standard)
 Day trader I will use the levels the market gives me

• Swing highs/lows
• Trigger Lines
• 2-tops/bottoms

o Trailing stop on Fast Track Method

 More on this in training tomorrow

– News ‘chatter’ is when the news wire begins speaking about something going on

– Is it important to watch the Pace of Tape VALUE?

o Most import factor for the POT is whether its rising or falling
o The actual indicator value is still important because it tells us Red/Yellow/Green
o Faster speed = more consistency in our trading
o So yes, the color (disposition) of the POT is also very important.

– How do we stay in business without charging monthly fees?

o We make our money in the markets
o Unlike other educators who makes all the money on sales.

– Advanced membership includes

o Live trade room LIFETIME
o Charts, NT
o Market data
o Everything you see ME using