March 11, 2011
- in Uncategorized by schooloftrade
Morning Prep is perfect for Day Traders looking for the best way to start their trading day
–REVIEW THE MORNING PREP
– What’s the most important thing I learn from taking notes?
o When I write things down, I remember them
o So I can share them with my clients
o Easier to read the notes if ESL
o I can go back and learn from different things we saw in the market
– CONTRACT ROLLOVER
o Your broker or your charting provider will usually give you a heads up when the markets are rolling over
o WHAT DAY SPECIFICALLY DO WE ROLL FORWARD?
o When the volume on the NEXT front month is higher than the current front month
– DAILY GOAL, MAX LOSS RULES
o Daily Goal = 30 ticks per contract per day, both FT and ADV
o Daily Loss = 2 full stops (not consecutive, but it helps)
o First try and find out why the loss occurred:
§ I make the wrong decision
§ The market does not give me the trade we expected (assume all rules ok)
§ Consecutive losses should be looked at VERY CONCERNING, move to a demo
§ You may not have your emotions under, over-trading
§ If they occurred 2 mins apart, that’s too soon, they are considered consecutive
§ If they are more than 20 minutes apart I don’t think of them as being consecutive b/c the market will be in a different area, not still chopping you out of the same bad spot as the first loss.
o I never stop trading, this gets me out of my rhythm
o If I hit my goal, I move to a demo to KEEP the rhythm going
o If I hit my max loss, I move to a demo to try and EARN THE RHYTHM BACK, ill need it for tomorrow.
– When is a good week off in MAY 2011?
– May 3-may 6 (cinco de mayo)
– May 16-20, no news on that fri 20th
– May 30th Memorial Day (biggest Holiday)
