74 Ticks We Listened to the Market Day Trading Gold Futures

Today was one of those days that reminded us why we love being traders.

Monday, Tuesday Wednesday this week were very challenging, and we were frustrated by the lack of movement and the inconsistency in the price action as the market digested some very important information from Congress & the Fed this week.

Today, however, was a different story, and days like today remind us why we patiently trade through days like we saw earlier this week, but we KNOW that days like today will soon return.

Today was marked by frequent patterns, and our rules lined up very frequently.

We took 6 trades today on Euro, Crude Oil & Gold Futures

With the exception of the Gold trade @ 911am EST, we didn’t see much more than a little bit of movement against us today, so the day was pretty easy.

One thing we spoke about today in the room was that having TIGHT stops allow us to make it through the hard times so we can be in a positive MENTAL position to trade again when the market gets better for us.

Today was a good example of how keeping the tough times to a minimum and maximizing the good times is the secret to longevity in this industry.

6 trades today, 6 winners

Review Our Trades From Yesterday!

See Our Market Commentary For The Last 7 Months

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TODAY’S TRADE ROOM QUESTIONS:

Where can I find today’s news?

http://schooloftrade.com/news

Pace of Tape Indicator:

– Fast timeframe

– Short term sentiment indicator

o Tells us where the BIAS is…up or down

o Is the market looking up or down?

– Compare the current speed w/ the previous speed:

o Decreasing: negates the move

o Increasing: confirms the move

How many markets?

– Universal Patterns (work on ANY liquid market)

– Gold, Crude Oil, Euro, Russell, Pound, DAX, ES

– Any timeframe, Any chart (5-min, 55tick, 1000Vol)

– Range Charts = patterns look better, identifies a slow and sluggish market b/c it won’t move w/out range

– 3 monitors (2 will be ok)(high-resolution video cards)

Charts Jammed? Ctrl+Shift+Esc


How much capital do we need?

– Not Securities traders, so we DO NOT need 25k

– 1 contract minimum (welcome small accounts)

– $500/contract (CL $1000)

– 3 CONTRACTS = $1500 ($2000)

– 4 CL = $4,000 ($5,000)USD

Schooloftrade.com/news

– Nightly Video

– News Headlines from the prev day

– Tomorrow’s News Events upcoming

Trade Management:

– 4 Contracts traded

– 6-tick stop

o ATM = move my stop for me automatically

 Video: Set up your Workspace

o NOT using a trailing stop (except for the 1st target)

– 3 targets

o 4/8/Runner

o Quick target = lock in profit

 Move stop to entry +1 (make $)

 Eliminates Risk

 Guarantees I will NOT be a loser on this trade

– Easiest Way to prepare for your entries:

– Slow down

– Fewer charts

– Only 1 market

– Watch for 1 pattern

– Don’t try to watch too much

– Only takes a split second to miss the move

– Entry Rules are cleared

– Know where your TRAP entry is

o Worse case

o Best case

– Wait for your trigger/confirmation

Trap Entry:

– Entry technique for our members

– We do not GIVE it away here in the room

– Identifies the Best and Worst Case scenario

– Uses limit orders (buy/sell stops) to enter the trades

o Do NOT use market orders

 Too sloppy

 They force into the market, which may be at a bad price (beware)

100% Automation coming out w/ NT 7.0

TradeStation = best for developers, swing traders

Day Traders need faster execution, more stable platform

RJ Obrien way too expensive (margins, fees, poor execution)

IB = requires to connect to their connection first, then the charts connection (too many variables to go wrong)

IB has too high margins and way to expenses

We GIVE you the charts, market data, indicators, templates

Grow your account?

1 contract at a time, add that new contract to the closest target

TrendLines = way too inconsistent, areas of CONCERN, so I don’t trade around them, I avoid them 

Don’t have range charts?

– Look at other options, range charts should be standard

– Tick Charts are a decent substitute, but they wont be the same

– We give you the charfts and data w/ membership

o Includes range charts, etc

2 very important Mentors:

Father Time

Hard Work

Has your method changed? YES!

– Markets change every day

– The only thing CONSTANT is CHANGE

– Fundamentals are the same

o FEAR AND GREED

o Patterns

o Use of indicators

 Changes: stops/target

 Specific markets, how we manage the trades

 Size stops, size of our account

– What’s the best way to endure the test of time?

o Understand why price moves the way it does?

 Tape Reading

Daily Goal: can be the WORST thing you have in your mind

Set your goal low = 5 ticks, 15ticks, 30 ticks

– 2 losses and im out (market is not in my favor)

– 100t/ 4 contracts = move to a simulator

I don’t trust indicators that require a math calculation:

– Why? People will find ways to use them incorrectly

– Then I cant count on the other traders having the same levels as I do

o Self-fulfilling prophesy

 Example: High of Day

• Everyone has the same

• No calculation

• No volume needed

• It’s the HIGHEST price today, bottom line.

• The MOST people are watching those levels

Review Our Trades From Yesterday!

See Our Market Commentary For The Last 7 Months

Save on Cost of Membership by answering these Trading Quizzes!