February 2, 2011
- in Uncategorized by schooloftrade
Day Trading Pattern Failures on Gold, Crude Oil, Russell and Euro Futures
– Failure Patterns
o For every pattern we have a failure of that pattern
o Members will watch the 5th video in the advanced course
o Members will come to training on Wednesday @1130am est to learn the patterns
o Members will come in every day and ask ME to help them identify the patterns
o Members will send me their trading results where they ON THEIR OWN MERIT identify the patterns.
o Failures are MUCH EASIER to spot when you have a strong command over the price patterns.
o So learn the patterns the COREECT way and then every time you see something that does NOT look correct you can rest assured you are looking at the wrong time to trade.
o Breaker Pattern failure = 2step pattern
o Failed 2step = breaker
o Wave Failure = looks like a 2step, but wont act like one
o Momentum gives us the clue to look for the possible failure.
– Wave into 2-step / 2-step into wave pattern combination
– Auto Trader
– We had an issue with the newest version of NT7 and our indicators downloading, so I had to fix that issue first, and I will be reviewing the auto trader as soon as it get that fixed.
– How much capital do I need to get started?
o Managed Accounts for MEMBERS
o $1000/contract
o $500/contract is margin for emini, bonds, currencies
o $1,000/crude and gold
o $1,000 bare minimum
o $1500/contract for the auto trader
o I trade 4 contracts = $4,000usd (bare min)
– Is the dollar volume more powerful than the other markets we trade?
o The dollar is more powerful, even though the volume is much lower than other markets
o Why? Because everything settles in dollars
o Sell crude oil = dollars
o Sell Euro = dollars
o Buy Gold, I give my broker USD and get GC contracts back.
o Buy gold = short the dollar
– Managing a runner to maximize your profit with trailing stop and final target
o Watch the video on exit strategies in the advanced course
o This Wednesday @ 1130am im doing a special training on our trade management strategies
o We will be talking about trailing stops, using your final target
o First two targets are usually left alone, we don’t move them.
o My final target, the runner, is placed at the next level of support and resistance.
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– How can we use the Asian markets to help our US session trading?
– Dollar and commodities are the biggest clues from the Asian session
– Watch the dollar reaction to the asian news, and trade from the reaction of the dollar.
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– How can you record the market?
– Market replay recorder is in your control panel in NT7
– Watch the video in the adv course on setting up your computer for trading.
– What’s the big deal with big round numbers?
o Psychological price levels
o “I remember buying gold when it was at 1,000”
o “ I remember selling crude oil when it was at 85.00”
o These are easy to remember, and traders use them as a barometer for how much price has dropped or risen.
o I trade around big round numbers. I wait 5 ticks above/below for an entry.
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– When is my next vacation? End of February, President’s day, then on Quad Witching = 3rd Friday of March 2011
