Trading Veterans Day

Another profitable day for the School of Trade, and on a Holiday of all days! Before we start our commentary, we at the School of Trade just want to say thank you to all veteran’s out there for protecting this great nation of ours! Due to today’s holiday, the volume in the market wasn’t the greatest, but we certainly made the best of it. We were able to scalp off two trades today, going 1 for 2, which equates to a 50% winning ratio, 1 win, 1 loss, and we still made 19 ticks! Our one loss of the day was closed early due to price action and our ability to also have mental stop losses for higher risk trades allowed us to know when to exit early, resulting in a smaller loss than it could have been; which kept us in the green! (Futures Day Trading Account Management Video) With yesterday’s profits reaching $710, today wasn’t too bad considering the holiday, and we walked away with another $190!

Our first trade of the morning came on the Crude Oil market (Symbol CL). The price action was relatively smooth, considering the holiday, and we were still able to identify some great set-ups. The price of oil began to rally early on in the morning, reaching a high into the $80/barrel price range before pulling back. The pullback didn’t last long though, and continued its trend higher into the 10:00am EST hour. This is when we began to watch our ticker tape very closely, to see how the buyers/sellers reacted around the highs of the day, and not to our surprise, the sellers stepped in swiftly to send prices lower once again. This created a great inverse head and shoulders pattern and we began to look for a possible short trade (Price Patterns Technical Analysis Futures Video). At 10:46am EST we finally were able to find our set-up with a Breaker short pattern and entered the market with a basis of 79.49. Once our order had been executed, it wasn’t long before the market began to sell off rather quickly, allowing us to take profits at all three ATM targets of +6 ticks (2 contracts) +8 ticks and +7 ticks, for a total of +27 ticks on our first trade of the morning ($270).

Our second and final trade of the morning came on the Gold market (Symbol GC). Gold didn’t make new all time highs yesterday, but it sure did today! The early price action in the European futures trading hours sent the market higher as buyers pushed it to an intra-day high of 1119.0. Shortly after making this all-time high in price though, the market quickly pulled back into the 1115 range. This is when we looked to capitalize on price action in the Gold market (Gold Futures Day Trading Video). The pullback continued later into the morning, and the trend began to change to the short side. While watching our technical indicators, we began to notice a possible shift in momentum between the sellers and buyers, and watched price action closely to try and confirm this. After price gave us a swing high above our trigger line, we placed our pending order in the market long, for a 2-step pattern. Our trade was executed at 11:14am EST with a basis of 1113.1. As soon as our order was executed though, price action began to slow down, and the trade quickly turned into a rather higher risk set-up. After seeing this, we quickly used a mental stop loss to exit the market, and cut our losses, closing out for a small loss of -8 ticks ($80).

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