Best times to Scalp, Day Trade or Swing Trade depends on your Trading Account and market sentiment

Did you know that your account size can affect the type of trades you take?

Did you know that even if the long term trend is down…we can still buy the lows?

Did you know that while im waiting for a swing trade I can execute a day trade in the opposite direction?

We are always looking for the best patterns to earn profits, and today’s video will review how we search for patterns, and how some patterns may be chosen instead of others.

Question:

– How to decide which type of trade to take? Day trade, scalper, swing trade

Size your account?

– Is it larger? Small?
– Larger the account the larger the risk per trade I can take

How much risk do you WANT to take?

– Does a $100 loss scare you?
– Does a $500 loss scare you?
– Does a $1000 loss scare you?
– Do you have no fear of losses?

What is the market telling us?

– Is market sentiment long?
– Is the market sentiment short?

Where is my pattern?

– Which chart has the best pattern?
– Where do I see the best option?
– There will be some patterns that look better than others

Example:

#1

– Small Trade Account

– Do not have a lot of risk tolerance
– Market says to go short
– Check my 34-range…..too much risk, stop is too wide (slow timeframe)
– Check my 21-range….still too slow…stop is too wide, too much risk
– Check my 13-range…I have a good pattern, but I have less than 10 ticks for this day trade to move.
– Check my 8-range….i have a PERFECT pattern on the 8-range, use a tight stop = less risk

o Scalp trades
o Low risk on each trade
o Tight first target to lock up profit
o They use the same trade management every time
o 4/8/Runner, 6-8 tick stop

– Check my 4-range….another perfect pattern

o Scalp trades
o Low risk on each trade
o Tight first target to lock up profit
o They use the same trade management every time
o 4/8/Runner, 6-8 tick stop

Large Accounts:

– Higher risk tolerance
– Market Says to go short
– Check my slow chart first

o 34-range : 30-50 tick stop

 Is it a good pattern?
 If it is take it!

o 21-range: 20-30

 Is it a good pattern?
 If it is take it!

o 13-Range: 10-30

 Is it a good pattern?
 If it is take it!

o 8-Range: Scalpers
o 4-range: Scalpers

– Which is better, Euro (6E) or Aussie (6A)?

o Euro is the most liquid, its most trader

 Tick = 12.50usd
 3am – 2pm EST
 Great for European and US Traders
 Strong dollar correlation

o Aussie is one the best markets for swing traders because of its large dramatic moves

 Tick = 10/tick

 Perfect for overnight trading, our friends on the opposite side of the world are just getting started when we are finished our day

 Perfect for anyone looking to trade overnight, or if you have a day job and you cant trade the US session

 Or if you cant sleep and you want to trade!

• Yes, they trade together, but they rarely will ever lead with any consistency.
• If I had to chose which to be the leader….the ES….most volume
• Similar to the DAX and FESX

o FESX leads b/c it has more volume

– Can the e-mini’s be used together for a correlation?

– Trading Grains

o Wheat, Corn, Soybeans
o Completely different than equities, commodities, and currencies
o They have their own schedule

 Harvest
 Rain
 Plant schedule

o Grains traders are older than most equity traders
o Very active
o High margins = very whippy and very volatile
o Limit-up/down, the exchange has to halt trading b/c the price has moved too much
o Small window of trading opportunity

 1030-215 , wait for 1100am to see good price action, and then we slow down around 1230pm

– Price and Volume / candle?

o Inside the data box

– Different Auto levels colors (how do we treat these?)

o Yellow: double-tops/bottoms

 A little more risky because of the type of level

o Red: S/R Levels

 Take these with confidence, these are the best levels!

o Orange: Big Round Number

 Avoid these at all times

– Opening Range

o I use the range of the price action, no matter what the time is
o OR = 930-10:00 first half hour

– Which timeframes? Why use 13/21/34? Fib Numbers
– Momentum Yellow and Red Line

o I only watch the YELLOW line, that’s why its thicker