Using Volume for Scalping and Day Trading Futures Contracts SchoolOfTrade.com

Have you ever noticed that I don’t watch VOLUME like most traders?

Why Not? It’s because we have better tools at our fingertips, and the volume indicator doesn’t do much good for the most recent price action….we need something a little better!

Today’s video we review some very important topics:

• Using Volume in our trading
• Our effective Fast Track trading Method
•  Acceptable risk for chasing trades above/below my entry point

 
– How do you know the volume?

o Reading the Pace of Tape Indicator

 Green = Fast (Good)

 Yellow = Medium (OK)

 Red = Slow (Concerns)

• Decreasing Red Pace of tape = avoid the trade!

o I don’t use a normal volume indicator because it’s a little too sluggish for me.

– Fast Track Method:

o Place limit orders at the entry locations

o Very easy to learn method, and it works amazingly well for new traders and veteran traders that are trying to develop the best habits for their trading.

– Trade Management:

o Log into your advanced for more info on stops and targets
o Scalper I use the same stops and targets
o Day Trader I will use different stops and targets depending on the timeframe im using to enter the trade

 Slower timeframe will use wider stops and wider targets (always use the same LOW risk/reward ratio)
 Fast timeframe will allow for much tighter stops and targets

– Speed: Why does it make for better trading?

o More speed = more consistency

– Max amount of risk for your entries

o Risk per trade has to do with the pattern and the timeframe
o I like to enter my trades within 5 ticks of the entry point (worst case scenario)
o I use the TRAP entry technique for my entries, which is covered in the advanced course.