$320 In Profit Today, Going 2/2 In The Trade Room

Our first trade of the morning came on the Crude Oil market (Symbol CL). In the early electronic trading hours, the Crude Oil market had rallied roughly a dollar, and then began to consolidate at its highs until the start of the open outcry pits began trading at 9:00am EST; at which point price rallied even stronger into the $81 price level. The opening of the U.S equities market at 9:30am EST brought the Crude Oil market even higher into the 81.50 levels, but the rally didn’t last long, and it started to pullback strongly as sellers entered the market and buyers ended up taking profits. It wasn’t long before the Crude Oil market was testing the high $79.00 price level once again, giving us even more opportunities for possible trades ( Crude Oil Futures Day Trading Video). We finally were able to execute one of the School of Trade’s set-ups, the Breaker short, at 11:15am EST. With price action as well as the trade pattern setting up perfectly, our order was executed at a basis of 80.57 and the sellers in the market didn’t wait long before selling the market even further. The selloff allowed us to take profits at +4 ticks (2 contract), +8 ticks and +16 ticks for our final contact, netting us a total profit of +32 ticks on our first trade of the morning ($320).

Our second trade of the morning came shortly after our first, when we began to see increasing price action via the Pace of the Tape indicator, on the British pound futures (Symbol 6B). The British pound futures trended higher for most of the morning, and it wasn’t until the late morning that it started to take back about 50% of its rally. With the price action finally showing us a top around 11:00am EST, we waited patiently for another quality set-up to take into the lunch hours of the U.S markets. At 11:59am EST price action finally gave us a great opportunity, setting up a Breaker pattern to the short side. We were able to enter the market with a basis of 1.6340, and waited patiently for the market to make its decision on a direction. After seeing price action slow down considerably to a crawling pace, via our P.O.T indicator, we made the decision to exit our trade early, at our entry price (+/- 0 Ticks). Granted, the bottom soon fell out of the market , which would have resulted in a profitable trade for us, but it is of utmost importance for all traders, of any skill set, to react to price action, and not try to predict it, which is exactly what we did; and it saved us money (3 Key Components To A Day Trading System Video)