Market Commentary 1-18-10

SchoolofTrade.com Daily Commentary 01-18-10

Today was Martin Luther King Jr. Holiday here in the United States, which meant Bond & equity Markets were closed or closed early today.

Whenever you have a day with a Holiday, you will typically see less-than-desirable trading volume and will want to use EXTRA caution.

Most professional traders will opt for the GOLF CLUBS rather than the trading charts on a Holiday, but we chose to use this time productively for our members today, and did some education and lots of training.

One of the most important aspects of any traders’ skills is the morning routine…

Out morning routine is intended to do a few things:

• Physically Prepare us for the day ahead (wake us up!)

• Identify the News events for the day ahead

o Set our alarm clock to budget our time wisely around those news events

• Identify the market as either High/Low Volume, Sideways or trending

• Identify the most important levels of support and resistance

o We use our SLOW timeframes for the MAJOR levels of S/R

• Adjust our trading style to fit today’s market environment

• Mentally prepare for the day ahead

o Think like a trader

o Review notes from Yesterday

o Review your trading rules so they are FRESH in your mind

Today was a Holiday, so we spent the majority of the morning talking about this ROUTINE, and the many different things we look for during this time.

Once we had our routine completed we talked about our high-percentage trade set-ups:

• Wave: Trend-Continuation Pattern, 85% win ratio

• Breaker: Trend-Continuation Pattern, 80% win ratio

• 2-Step: Trend-Reversal Pattern, 75% win ratio

After reviewing the details of these set-up patterns we saw a few examples in the markets (which weren’t moving too well today due to the Holiday) and took as many questions needed from our Members & Guests.

We then went into our Webinar, which is normally ONLY on Tuesday and Thursdays, but today’s Holiday meant we wanted to offer some more opportunity to LEARN today (since there wasn’t much market to watch), and this was on “Growing Your Account from 1-Contract to 100 Contracts!”

This is always one of my FAVORITE webinars, 1 contract trading and growing your trade account, mostly because we have ALL been there before.

Almost every long term success story with our members BEGINS with 1-contract and the goal of building that account by aggressively searching for conservative, high-percentage set-ups.

Most guests are always a bit surprised when they see the details of this webinar, in fact, many traders disagree with how we structure 1-contract account growth, but when they SEE what the REASONS are behind it, it all starts to make sense…

• Focus on Consistency & Building Confidence….not buying the new Ferrari! 

• No Trade Management, 1 target, 1 stop loss

• 1:1 Risk Reward Ratio

• Plan on Making Mistakes!

• Focus on adding 1 new contract every 4-6 weeks

• Focused on consistency in your results at each level of your trading.

If you missed this webinar on Growing your account from 1 to 100 contracts, be sure to join the FREE 3-WEEK TRIAL and attend our trade room where you will be able to see the NEXT webinar in real time…you won’t be disappointed!

Previous Day’s SOT Video from YouTube: Review Our Trades From Yesterday!

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