Day Trading Fast Track With A Live Margin Account.

– Fast Track method, and going Live

o We did members training on July 14th 2010, so watch the video on the Fast Track Method for more info

o Intended for new traders or experienced traders looking to kick some bad habits

 Uses pre-determined entries (3-set-ups)
 Uses limit orders for entries
 The goal is NOT making money
 The goal is LEARNING, and the byproduct of learning is MONEY/PROFIT
 Teaches you patience, discipline, and how to handle a loss.

 You are going to take losses, but with our 1:1 risk/reward ratio (trade management) on the fast track this teaches us to trust our rules and wait for the final end of the week result.

 Start on DEMO, and then after 2 weeks of consistency in making MONEY then move to your live account

o Example:

 New trader
 Trading on a DEMO using the Fast Track
 Ready to go live
 But wait! Its August, and this time of year is the most challenging you will see
 As we get closer to labor day, it will only get worse
 Keep practicing, with the intention of going live the first week after labor day holiday
 13th of the month of September
 Lets assume you have a small account (< $2000)

• 1-contract, 13-range chart with a 10/10 (stop/target)
• 1-contract, 21-range chart with a 20/20 (stop/target)

 Let’s assume a large account

• 1-contract, 13-range chart with a 10/10 (stop/target)
• 1-contract, 21-range chart with a 20/20 (stop/target)
• Or we can also trade larger

o 2 contract (trade management will be the same as always)
o 3 contract
o Etc.

 You don’t need to change the way you’re trading after 2 weeks if you don’t want to stop trading the Fast Track

• Just move to live trading, and start adding contracts.

 Start with 1 contract, same 10/10 (stop/target)
 Every 2 weeks add another contract, assuming of course you made money those 2 weeks
 So after 6 week

• 2 weeks on demo
• 2 weeks on 1 lot
• 2 weeks on 2nd lot

• You could also add contracts as soon as you have earned another $500 / $1000 in your account, depending on the margin per contract.

 Some traders, myself included will stop trading after 2 stops

• Summer time markets have lots of fake-out breakouts
• This makes our limit order entries much less profitable than during other times of the year.
• Right now (summer) the Fast Track is NOT going to be the best option simply

What are 3 ways to manage your trades?

o Using the Pink line on the Trade Management Chart
o Discretionary exit using the MACD, POT, Momentum

 Example: Long trade I will flatten my trade when I see

• MACD below Zero line
• Momentum pointing down
• Red Pace of Tape with Sellers

o Set it and forget it! Set the final target and we wait for it to be filled.

 Plan your first 2 targets, and then let the trade run.
 Example: scalp entry long on the crude oil

• My profit targets of +5/10 or +4/8 get filled, and then I will identify my FINAL target and then sit back and watch it run

o My stop will be at my entry +1tick to make sure I don’t lose any money when it gets filled.

– Trading inside a sideways market

o What do I do if im in the middle of the sideways market? Where can I trade?

 You gotta wait!

o Sell the highs, buy the lows, and avoid trading the middle

 If you’re in the middle, you need to wait for the highs or the lows to be tested.

– How many ticks away from the Red ‘Auto Levels’ is considered ‘too far’ or ‘chasing’

o The average trader we begin chasing after 5 ticks

– Trend Lines, when do we draw them?

o Morning Prep every day @ 745am – 830am EST we set everything up

 Trend lines
 Notice our patterns
 Define our potential trades for the day ahead
 You cannot put a value on this morning prep.

– Easiest way to find a wave pattern

o After a breakout, when the price begins to pull back /retrace off the new highs/lows

Day Trading Patterns:

Gold Futures:

We’ve already taken over 150 ticks out of the gold market on the way to new highs today, and now we’re looking to sell these highs to make money on the way back down.

We can see a 2-step short setting up on the gold 13-range chart with entry below 33.4.

We have a trend line at 33.5 on the 21-range which is acting as support, the best option is to make 100% certain we break that trend line and take entry below the 33.4

Targets will be 32.5 (1/2), 31.1 (1/4), and then all the way down to test the channel highs at 27.0 (1/4)

We can also look for a breaker long, as we do expect the highs on gold to be tested again today.

Long above 36.1 with profit targets of 37.2 (1/2), 39.0 (1/4), and then all the way to the top of the channel at 40.0 (1/4)

Euro Futures:

The euro just tested its top of the channel at 2710, and now we’re looking to sell the highs of the channel.

We have a 2-step short reversal pattern setting up on the 13-range chart.

Looking for entry below the swing low of 72, with profit targets of 65 (1/2), 50(1/4), and then down to 2615 which is the next support level.

You can also use tape reading to determine if you will hold this trade through 2615 (1/4)

If we see big sellers and lots of SPEED at the 2615 level, look to hold the trade through 15 down to 2590.

At 2590 I will do the same, read the tape looking for large sellers and if we have increasing speed with those large sellers I will then hold my final target down to the bottom of the channel at 2570 (1/4)