Day Trading For Beginners, Market Commentary Schooloftrade

Well another great day of trading for the School of Trade. It’s quite evident that volume is slowly flowing back into the market, and although we might not be seeing the market conditions we’d like to, our set-ups combined with a strict disciplined trading routine makes it tough for the market to take money from us! Today’s trade totals were 2 for 2, with $330!

Our first trade of the day came on the Gold futures market (Symbol GC), not long after the opening of the open outcry pits at 9:00am EST. Prior to the open of the outcry pits, gold had been making new highs earlier in the morning and finally began to retrace off its highs, and continued its down trend into the open of the U.S equities market at 9:30am EST. Trading within the short term trend, at 9:10am EST we noticed that the Gold market had begun to pullback off one of our levels of support, and we looked to take it for a breaker short. We were able to enter the market with a basis of 1014.0 and once momentum turned to the short side, we were able to lock in +4 ticks (2 contracts) before closing our trade, with a total of +8 ticks ($10/tick).

Our second and final trade of the day came on the Mini-Russell market (Symbol TF). The U.S equities market open brought with it a large rally off the current lows of the day, and we soon looked to capitalize upon the retrace of the rally once it made new highs. The first half hour of the U.S market open brought with it great volume, and the Mini-Russell continued to trend higher until around 10:00am EST when the buying pressure was finally taken over by the sellers, and price began to consolidate, giving us a heads up on a future trend reversal. At 10:24am EST, after being given a swing low in price, we took the Mini-Russell short with a 2-step pattern. Our entry was at 617.4, and with the P.O.T indicator telling us the tape was moving fast enough, we joined the sellers and were quickly able to lock in some great profits at +4 ticks (2 contracts), +8 ticks and then after letting our final contract run, we gain yet another +9 ticks on the trade, bring it to a total of +25 ticks on the trade ($10/tick).