March 2, 2011
- in Uncategorized by schooloftrade
Take More Trades as a Scalper, or Fewer Trades as a Swing Trader it’s YOUR Decision
– How to take more, or fewer trades every day
o Some traders like to always be trading
o Some traders like a slower pace of their trading day
o Some traders like to get in and out (scalper)
o Some traders prefer to hold trades and try to maximize the profit on the position.
o The slower the timeframe you use, the fewer trades you get each day.
o For day trading I use the 34range chart as my SLOW template.
o Slow = locates the S/R levels for me automatically
o If I wanted to take MORE trades per day I would load the SLOW template on a 21-range chart (faster than 34range)
o If I wanted to take FEWER trades per day I would load the template on the 55range (slower than the 34range)
– Planning around OPEX in March (Quad Witching)
o March is known as being a month with tough days
o Last month of the 1st quarter
o Many money managers are padding their Q1 results so they are unwinding positions
o Quadruple Witching is the 3rd Friday of this month
o End of the 1st quarter is the end of the month
o March 14th – 18th is Quad witching week and the end of the Q1 makes this a nasty time of the year.
o Week of 31st which is the end of Q1 which is another time to skip the markets for the day
– Wave pattern and seeing swing highs/lows (juan)
o Make sure we have the swing highs and lows as needed for our rules
o Without the swing highs or lows we risk the pullback/retracement becoming an EASY reversal instead.
– Inside Wave Patterns vs. Outside Waves
– Inside waves are higher risk b/c they do not get the higher highs/lower lows
The markets we trade:
– Euro
– Russell
– Crude oil
– Gold
– Aussie
– FDAX
– Grains (Corn, Wheat, Soybeans)
Chart templates:
55 range = Fast
34range = Slow
21range = Fast21
13range = Fast 13
8range = Fast
4 range = Fast4
What if we see BOTH big buyers and big sellers, what do we do? Check momentum, it gives us the DIRECTION, and then the big money confirms for us.
