January 21, 2011
- in Uncategorized by schooloftrade
– Dollar Index and trading the News
o All the news events for each day are posted on the blog, and listed with our morning prep.
o How do we trade news reports? We don’t, we trade the REACTION to the report!
o Where can I see the most important reaction?
o The DOLLAR!!
o The DX has the most important reaction because it will move the rest of the market.
o Example: news comes out, the dollar stays quiet
o Wait for the reaction
o Example: news comes out, dollar moves quickly (higher speed, higher ATR, big money on the tape)
o Look for the next high % pattern
o Does the asian /euro news affect the US morning trading session?
o Not the same way that US news does, but it does affect it in the sense that it affects the BIASES of the traders in the US Session.
– What do we do when price breaks a trend line?
o How do we use a trend line? To get into and out of trades (remember we need to be FAR away from the trend line b/c it’s so sticky)
o When do we leave a trend line? I rarely ever remove a broken trend line…unless….
o When do we remove a trend line? When we see its value is gone. After price chops around it and erases the support/resistance level at that trend line.
– What does overbought or oversold mean to our trading?
– Momentum is the issue
– Above the 80, momentum is overbought
– Below the 20, momentum is oversold
– Long trade: I want momentum oversold (curled up from the low)
– Short Trade: want momentum overbought (curled down from the top)
– Day Trading in an LLC
o Recommend you speak with someone who is licensed or you trust in this department.
o Instead of trading as an individual I trade as an LLC
o Open my account with the LLC
o All money earned is earned in the name of the LLC
o Then I use my every day expenses as tax write-offs.
o You do NOT lose the 60/40 split for taxes on Commodities/Futures
– When is gold rollover?
o Check the blog/trade room resources / contract specifications for the video and description on how we trade gold, or any other market.
– Measures the speed of the orders coming into the market.
– What happens on the auto trader if I lose power?
o When you place your order and put your stops and targets live in the market it sits at the exchange so even when your computer jams or goes dead the stops and targets are still there.
o Not to worry.
o Call your broker, have his/her # ready, and don’t panic.
o If you live in area where power always cuts off, you NEED to invest the $500 in a battery back-up
o Will give 25 minutes to close things up, then you lose power.
– How many contracts do we trade?
o I trade 4 contracts (its easy for me to do the whole show with smaller risk in the market / it suits YOUR needs much better)
– Indicators we use
– All this info in the beginner’s course
– Why does the Time and Sales go blank sometimes? It gets overloaded with data and your cpu cant process the information fast enough (change the update interval on the time and sales inside properties)
– Auto Levels
o I use a fast chart to manage our trades b/c I see it as a visual depiction of price action with the benefit of using indicators.
o Scalper = always use the same trade management
o Day Trader = may always use, but most likely you are using the levels of S/R in the market.
o Swing highs/lows, trend lines, 2-tops/bottoms, etc
o Many ways to plan your trade management.
o Watch the members training from Jan 12, 2011
– Reasons why I can’t take a trade?
o Moves too quickly/slowly?
– What do the ‘shoulders’ have to do with a 2-step pattern?
– Big Money buyers and sellers?
o Larger traders with larger trading sizes
o Larger traders tend to know more than the smaller traders
o BIG MONEY has a big building filled with BIG MONEY analyst an BIG MONEY strategists
– How can we SWING trade with this method for the bigger moves?
o Yes it can!
o Same patterns, same basic fundamentals, just different trade management.
o Swing traders will use daily, weekly, hourly, 55-range, 34-range, and the 21-range is your fastest chart.
o Swing traders will use the support and resistance in the market to plan stops and targets. (very close to a day trader)
– How do we predict a price reversal?
o Speed: slowing speed is the first step
o Momentum/MACD: when momentum is overbought /oversold
o Big money: big traders step in against your position.
– What are these RANGE CHARTS? What timeframe is this?
– Getting into trades Quickly
– We never use market orders
– We use limit and stop limit orders in NT
– We have a specific strategy call the TRAP that we use to enter our trades.
– NEW VIDEO on anticipating trades and fast reflexes posted this weekend!
– What’s most important aspect of going to a live account?
– Video in the advanced course for going LIVE.
– Auto Trader: Jan 12, 2011
