Thanks To Our Proper Trade Management, We Ended Up On Top.

The School of Trade had yet another day of profitable trading! Granted, the profits we not what we were used to see, unfortunately, but you can’t make 10-20% returns every day! Most of the markets today ended up down, and even with a better than expected Unemployment Claim in the U.S, it wasn’t enough to keep traders from selling the market shortly afterwards. We took a total of 3 trades today and went 1 for 3; thanks to our proper trade management, we ended up with a profit today of $50 (Futures Day Trading Account Management Video).
The first trade of the morning was taken on the Crude Oil market (Symbol CL). The Crude Oil market’s overall trend this morning was down, with brief periods of pullbacks. Since the start of electronic trading in the European trading session, market participants decided to sell Crude off rather strongly until more volume entered the market with the opening of the U.S markets. At 9:00am EST, with the start of open outcry pit trading, as well as anticipation for the U.S. Unemployment Claims being released at 9:30am EST, the market began to consolidate at its lows for the time being. With claims coming out better than expected, the Crude Oil market began to take back some of its sell off this morning, and the buyers seemed to be taking control of the market ( Crude Oil Futures Day Trading Video). With buyers in the short term control of price, we began looking for possible entries to the long side. At 9:48am EST we got exactly that, when a Breaker pattern to the long side set-up for us. We entered the market with a basis of 78.52, but unfortunately price action did not go our way on this trade, and with a brief pullback in price, we were stopped out for a loss of -18 ticks (-$180). The decision to take the trade initially was a good one, our price pattern set-up great, but unfortunately we didn’t get the best overall result, which will happen to all trades from time to time.

Our second trade of the morning came on the Gold market (Symbol GC). The Gold futures once again made new all time highs today, early on in the European trading session, reaching a high of 1123.4. This high didn’t last long, and buyers soon took profits as sellers entered the market, pushing price back down into the 1110’s. After making the new highs, with the exception of the U.S Unemployment Claims rallying the market briefly, the overall trend was down. To take advantage of the added volatility in the market after the Unemployment Claims were released, we looked to enter the market with the short term trend, which was long once again (Gold Futures Day Trading Video). At 10:01am EST we finally got our chance to take the Gold market long, with a Breaker pattern. Our stop limit order was executed with a basis of 1116.4, and we soon watched as larger buy orders came streaming across the ticker tape, allowing us to take profits at all three targets of +4 ticks (2 contracts) +8 ticks and +7 ticks for a total of +23 ticks, putting us back in the profit for the day ($230)!

The third and final trade of our morning came on the Crude Oil market (Symbol CL) and only minutes after our second trade on the Gold market (Scalping Futures Day Trading Video). With the Crude Oil Inventories being released at 12:00pm EST, we were cautious about taking another trade off the Crude Oil market and we made sure to watch price action closely in order to keep our profits for the day. At 10:06am EST we saw a great set-up on the Crude Oil with a Breaker pattern to the short side. The stop limit order was executed automatically at 78.46, and we watched as price action began to continue to the short side. Before entering the trade, we knew due to the time of day and price action that it was a higher risk set-up, and so we made sure to keep a tight stop on our trade. Fortunately and unfortunately we closed our order at our entry price, due to price action, and although we didn’t make any profit on the trade, we still maintained our profits for the day, and once again added more profits to our trade account, albeit a small amount.

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