Day Trading Methods Euro Currency

Market Commentary July 22, 2009

Yet another Wacky Wednesday for trading today; on a day when most people would have given back all their profits for the week, we were able to end the day with profits! Even though our trades will show more losers than winners were taken today, it’s a testament to the James Wave trade management and strict stop loss levels that helped us keep our profits today.

Our first trade of the day came on the Crude Oil market (Symbol CL) at 3:57am EST. We took the Crude Oil market long with a 2-step at a price of 64.83. Once in the trade we actively managed it through our trade rules and ended up exiting early because we quickly saw sluggish price action come across the time and sales window. We closed the trade at -2 ticks or a total of -6 ticks on 3 contracts ($10/tick).

The second trade for the day came on the Dax Futures (Symbol FDAX) at 4:18am EST. Once again this trade set-up as a 2-step to the short side where we entered marketed based on the increased speed of the tape, and got a basis of 5076.5. From our entry price at 5076.5 we then took profit at +4 ticks, +8 ticks and +18 ticks totaling 30 ticks or 15 full Dax points! ($35/point)

About an hour later we saw yet another 2-step set-up on the Dax Futures (Symbol FDAX). At 5:03am EST we entered the market short at a basis price of 5062.5, unfortunately this 2-step short reversed rather quickly on us and our trade discipline got us out of the trade at a loss of -7 ticks (3.5 points) for a total loss of 21 ticks when trading 3 contracts.

Our fourth trade of the day came just prior to the US Market open at 8:46am EST on the Crude Oil (Symbol CL). A classic James Wave 2-step formed to the long side and we were able to enter the market at 64.46. We quickly watched our tape and saw the short term market sentiment changing, we closed our trade out, taking a small loss of 5 ticks of -18 ticks total on 3 contracts, ($10/tick)

The fifth trade of the day came on the Crude Oil (symbol CL) once again. This 2-step set-up occurred at 9:37am EST where we entered long at 64.00. With momentum on our side and seeing great follow through in the tape, we took profit at +3 ticks, +6 ticks and +2 ticks for a total of 11 ticks. ($10/tick)

Only minutes after our trade on Crude Oil we saw another great 2-step pattern on the Euro Futures (Symbol 6E). We entered the market long at 9:41am EST with a basis of 1.4172. We watched price action carefully to see if any significant follow through would come, after price tested our first target three times, our rules told us it’s time to get out. We ended up closing the trade with a scratch and with nothing gained or lost, it was a great example of how having discipline in your rules will save you money!

Our last trade for the day came on the E-Mini Russell (Symbol TF). Once more we saw a 2-step form to the long side. We were able to enter the market at 10:59am EST with a basis of 525.1. While in the trade, unfortunately we saw major sellers come across our tape, and realized quickly this trade would not hold to the long side, so we closed out quickly for only a -1 tick loss (-3 ticks total/ 3 contracts) at $10/tick.

Even though today we have more losing trades than winners, here’s how today’s Totals added up: 2 For 6, totaling $ 242.50 in profit!