Daily Prep on the Euro, Momentum, High and Low of Day Trading Strategies

– Weak vs scared market on gold

o Capital protection (indecision) = speed higher in the middle

 Avoid this market, high risk

o Weak Market = speed is higher at the edges

 Avoid buying or selling the breakout
 Buy the pullback for a long
 Sell the retracement for a short

– Using the PHOD and PLOD

o Above these the bulls are in charge
o Below these the bears are in charge
o Im always looking for trades to use this simple strategy

 Buy the break above the PLOD/PHOD
 Sell the break below the PLOD/PHOD

– When momentum goes from overbought to oversold in a short period of time

o 21r pointing down
o 13r now oversold on a short trade
o Expect the fast timeframe to be choppy
o Expect the slower timeframe to be loss choppy, more trend

– Auto Levels

o Finds the best price levels for my potential trades and then automatically moves those levels to our other timeframes.

o Slow = daily chart
o Fast = 60/30/10/3 min

 Slow = 34Range
 Fast = 21/13/8/4Range

– Trading a 10 lot

o I always recommend speaking with someone you trust before you invest any capital in your trading.
o Always begin in your DEMO to learn
o 2 weeks of learning
o 2 weeks of practice on DEMO
o Then go live with 1 contract

 If you have the cash, start with 2 contracts
 Very similar to 3 contracts, just drop the runner
 1 contract is a completely different type of trading style

o If my goal is to grow my account, I need to have a plan of attack.
o Every 2 weeks I will add 1 more contract

 Every 1000 they make they add another contract
 This is NEW equity

o 1 contract into 2, 2 into 3, and then we start structuring the trade management

– Average True Range

– Using momentum on different timeframes

o More timeframes that line up the better
o Most important momentum to watch is the one on the chart you are using to trade
o 13-range pattern = 13r momentum is important
o 4-range pattern, looking at ALL of the momentum indicators to confirm

– Automated Trade Management Strategies

– Why don’t we use Renko? They don’t show me the OHLC of the bar as easily as Range charts do.

o Im somewhat unfamiliar
o They blur the lines of the highs and lows

– Do you need a special computer?

o Don’t spend the money on a trading computer
o Easiest way to find a good one is to look locally and find a professional that can build you one.
o TigerDirect.com
o Dell.com
o Craigslist.com and look locally for a college kid

 Most ram
 Fastest processor
 Second-best video cards money can buy

• $1000
• $150

 Save your money on all the bells and whistles

• Video editing
• Music
• Use the smallest HD you can find (cheaper)

 Buy the best mouse, the most comfortable keyboard

o Make sure you have anti-virus
o ESET NOD32 (yearly sub, 40)
o 2 x 24” monitors, get them refurbished online (DELL)

– What should we expect for trading over the next three weeks?

o Less volume and less opportunities to trade
o Price action will be slower, and the day will end earlier

o You will not see those big dramatic daily moves, look for end of the day short covering rallies, runs on the stops, market manipulation

– Continuous contracts:

o They are a blend of the recent front month contracts
o They will NEVER be the same as the current front month
o Most professional traders will use the front month
o Wisdom of crowds…we have to follow the masses.
o More volume on the front month contract than on the continuous

– Fully-Automated Trading System

o Members training on Wednesday are the best times to ask auto trader questions
o Check out the video on the auto trader that is all the way at the bottom of the ADV course
o Recorded members training this week

– What is the AVG on the auto trader?

o 1500usd / contract / 30 days
o Open an account to be able to trade multiple markets and multiple contracts all at the same time.
o $20,000

 Euro $500 margin
 Crude: 1000-2000
 Russell $500
 Es $500
 Gold
 Dax
 Fesx
 Zb