Day Trading the Golden lunch Session

What is the Golden Lunch?

o    The time after 11am and before 12pm EST (noon)
o    Usually this is more dramatic when we have a very slow open of the day
o    We see this very often on Monday mornings without any major news
o    When the last morning news event is sent out, the price will slow down, until 1130am est when the European markets close
o    How do we know when to look for it?
§  No news on a Monday morning
§  No news on a Friday, NO GOLDEN LUNCH, end of the week
§  If the market opens and stay VERY slow
§  Sometimes there will be a minor news report (NatGas, Home Sales)
§  When the market is very slow and it doesn’t improve after 10am est
o    How do we know when the Golden lunch will not be in play?
§  On Friday’s
§  Lots of IMPORTANT news today
§  Lots of speed from 8am through 11am EST
o    How do I trade this golden lunch?
§  Beware of red pace of tape
§  Beware of slow speed, this is RED FLAG that prices may reverse
§  Trade with caution, don’t forget this will be the LAST MOVE of the morning
§  Im looking for the PERFECT trades to get in after 1130am
§  Im keeping my eyes peeled for slowing speed, this tells me we are too late
§  Take your money and RUN!  Don’t get greedy!!!
§  Place your final target conservatively, and don’t get greedy!
–          What are the different colors on the Time and Sales
   Green = Buyers
o    Red = Sellers
–          Difference between Fast Track and Advanced (Gina)
o    Fast Track has NO flexibility, very strict rules (done to make you follow the rules)
o    Advanced Method uses more flexible entry rules (we use compensating factors)
–          How do we keep from trading in choppy zones?
–          What sized account to you need?
–          Discretionary trading?
o    $500 for the emini’s way too small
o    $1500/contract as my minimum
o    $2,000 is ideal per contract
–          Auto Trading
o    $2,000 min account size, does NOT use overnight margins (1% drawdown on $200k account)

    schooloftrade

    Click Here to Leave a Comment Below

    Ralph - April 12, 2011 Reply

    This training is fantastic. I WILL be joining the lifetime track as soon as I can get together the funds for the tuition and adequately fund my trading account. In light of today's question on account size, which I have as well, I'm not sure whether your answer included CL and GC in with the eminis? I'm wondering how much I need to place a trade with three contracts (when I am up to speed)? In visiting CMEGroup.com, I get the impression that CL requires $6750 per contract, which is what TradeStation currently requires. Is this the answer to the question or am I misunderstanding margin required for day trading? Sorry, most of my experience has been with forex and I'm just beginning to come up to speed on futures. Thx!

    Joseph James - April 12, 2011 Reply

    thanks for the feedback Ralph, and im looking forward to working with you!

    lets answer those questions…

    First, your broker may charge MORE than CME exchange requires, and TradeStation is always much higher than what we can find elsewhere.

    TS has higher fees and higher margins than the brokers we work with, so contact us directly for a list of brokers that will offer lower fees/margins.

    Crude Oil overnight margin = $6750

    TradeStation may charge more than that, its their choice.

    You wont need that much to trade with us. we rarely hold trades overnight.

    Our brokers require $1500-$2500 per contract for Crude Oil and Gold Futures.

    You can easily get away with $2000 per contract to start, and that includes the Auto Trader as well.

    The old days of $10k per contract are over, and I look forward to sharing more of this with you as a client!

    dont forget, you can find ALL the contract specifications on our blog.

    See you tomorrow in the live trade room!

    JJ

    Joseph James - April 28, 2011 Reply

    more info!

    remember to look for a news event TOMORROW morning that will also negate the golden lunch b/c traders will be waiting for more info.

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