October 7, 2011
- in Uncategorized by schooloftrade
3 Clues for Day Trading NonFarm Payrolls Crude Oil & Russell Futures
800am EST
The markets are trading inside their previous day’s ranges, slow and sloppy ahead of the 830am Non Farm Payrolls.
830am EST
Non Farm Payrolls come out as-expected for the most part, an increase in the payrolls, but as expected with everything else.
Dollar is falling in a short term down trend, so the bias with this trend will be the LONG SIDE this morning until that changes.
900am EST
We took three trades on crude oil futures this morning, including a fast track winner for 17 ticks per contract selling the range highs above the price wedge.
Now we look at the gold futures which is in the middle of Thursday’s range so we want to wait for the highs or the lows to be tested for our first trade on gold futures.
Price alerts are easy to use so we don’t forget when to look for the next trade on gold futures.
925am EST
We need to wait through 935am EST get past the US open.
The euro currency futures are at the highs of multiple range and price channels, and the Dollar Index is moving higher off the lows of the bear price channel it developed earlier today.
The Dollar Index is the biggest factor in the euro currency futures trade today.
If the DX makes new higher-highs we want to sell the euro currency futures below the PHOD 3445.
If the dollar keep trading sideways we need to keep waiting on the euro currency futures.
If the dollar drops to new lower-lows I will then buy pullback on the euro currency futures up to the price wedge highs and HOD at 3500-1311 and then look to sell short once again.
1000am EST
We wait patiently for the 10am wholesale trade news to come out and then we can trade the reaction to the news.
Everything appears to be slowing down right now, which we expected, so we need to be careful and stay aware of the TIME of the day today. After 1045am we expect things to be much slower.
Mini-Russell Futures just failed above the PHOD so the sellers were too strong at the highs and we now have a short term sideways range to trade with.
As price rises I’m selling the highs of the price channel and the HOD starting at PHOD 672.0 and up to the highs above the HOD. If price falls I’m buying the lows of this range at 663.6 and then with new lower-lows I will sell retracements below down to the bull price channel lows where I will buy at support. As price falls to new lows below the price channel I am buying at support on the way down.
1005 am EST
Dollar index is trading to new lower-lows so the markets we trade most are trying to rise now.
Let’s remember that as price slows down, this correlation on the dollar breaks down.
Questions from our trade room
Success rate for training new traders
– The plan works well, it works consistently, and its easy to learn
– If you can follow the follow the plan I will 200% guarantee your long term success.
– Example: John is a new member and he follows the plan:
o 10 days of practice
o 10 days of 1 contract
o 10 days of 2 contracts
o 10 days of 3 contracts
o Etc
o Etc
– Example: Peter is a new member who does not follow the plan
o 10 days of practice
o 10 days of 1 contract
o LOSES, FRUSTRATION, CONFUSION
o Trying to use his old indicators, trying to use other patterns, and do too much too fast.
o Keep it simple, follow my plan, you WILL be successful.
– Forex trades 24/5 it never closes b/c there is NO REAL MARKET, its called synthetic
– Futures trades deal direct to the market in real time.
– 45 minutes a day the market is closed for EVERYONE (pit and electronic), for maintenance on the servers.
– Tax advantages are HUGE for futures traders
– Watch this video on our youtube page for tax advantages over FOREX
Is there a SPREAD in futures?
– In futures spread = diff between bid and ask
o Bid = sellers
o Ask = buyers
– In forex the spread is the profit the broker uses above the cost of the currency.
o Euro currency futures = 1.3400
§ With a spread you buy it at 1.3405
§ Artificial spread
Futures can be scalped or swing traded. You cannot scalp the forex.
Lots of waiting on forex charts to set up patterns.
The only thing you don’t use is the reading tape and the speed. Everything else is the same.
– Crude oil futures = .01 = $10
– Eur/usd pair (forex) =
– Standard Lot = $10/ pip
– Micro Lot = $1/pip
– Account Sizes can be $100 or $1,000,000
How much did we make compared to how much we used?
I trade 4 contracts in my trade room
I need $1500/contract (recommended)
$1500 x 4 = $6,000usd in my trade account
190 ticks of profit x $10/tick = $1,900usd
I used $6,000 to earn a $1,900 return. 31% ROI
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Crude oil futures = $1000 margin & $10/tick
Euro currency futures = $500 margin & $12.50/tick
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Zooming in/out on NT7: ctrl + up/down arrow
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Colors of the candlesticks matter for your trade?
– Yes, watch the video lesson on the blog for more info
21r wave fails, do we watch momentum on 13r?
– Watch momentum on the 21r first, and use the 13range as another compensating factor.
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– Use the video lesson on the blog
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Review trade #1 on crude oil futures
– Dollar index dropping
– Crude oil futures makes new higher-highs above resistance
– Buy the pullback above those resistance levels overhead.
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How do we use the Pace of Tape Indicator? (tape reading as well)
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How do we use the trade management chart?
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How do you use (how much money do you need) our Automated trading system?
– $2,000 / contract on the Auto Trader
– $1,500/mo / contract
– Low drawdown, does not over trade (2 trades per day)
– Comes with advanced membership.
Fast Track = discretionary trading method where I give you the EXACT rules to follow and YOU take the trades along with me in our trade room.
Auto Trader = you set it up on your chart and it does 100% of the work for you! You can take profit manually, scale-out of the position, trail your stop.
