'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Tuesday, July 31, 2012

Tuesday's Choppy Market


A choppy Tuesday's market!

Seeing this kind of chart makes you feel you don't want to be in the market.

But that's how the market is, sometimes Mr. Market is confused, don't know where he's headed.

The market is on consolidation the past two days, expect a breakout by tomorrow?

I guess that what's going to happen, let's see!


My Live Interview From TST direct from CBOT

Below are excerpts from my Live Interview today direct from the pit at Chicago Board of Trade at 10:00 am. CST...

July 31, 2012; Tuesday

From TopStepTrader.com questions…

1. Why did you consider becoming a professional trader?
Answer:
I considered becoming a professional trader because of the freedom of working for yourself and the convenience of doing it at your own pace. And the benefit of making a living about the potential opportunities that the market offers.
2. How long have you been trading?
Answer:
I’ve been trading intermittently for 5 years now.

3. What product or products do you trade?
Answer:
The first three years I was trading stocks and then I switched to futures market last year trading the emini-Dow. Right now I am concentrating on NQ (Nasdaq emini).

4. Can you describe your first steps in trading compared to today?
Answer:
I can describe my first step in trading as horrible! Lots of frustration due to lack of funding and also lack of understanding of how the market works. I kept blowing-up my account because of the usual impression of looking for the shortcuts to make money right away. Right now I consider my trading has improved considerably, I learned the process of trading mainly because of my patience in learning how to put trades and continuously practicing my skills.

5. What have you done to improve your knowledge and skill?
Answer:
I did a lot of reading from hundreds of trading books, researching ideas and strategies from reliable traders’ and molding them into my own to suit my personality. Besides my journal that I write summarizing my comments of what happened to the market on a daily basis, I post ideas (in my blog) of how to put trades to further my knowledge and skills even if I am not doing actual trades, thus my daily encounters with the market is continuous and improving.

6. As a trader, what are your greatest strengths? Weaknesses?
Answer:
My greatest strength are when my parameters are congruent, that is, if I can sense the market is acting on a positive environment coupled with the signal of my strategy indicators, I can trade confidently. My weakness is my impulsiveness to trade early, so I am working on it by watching myself.

7. How do you handle highly volatile sessions, times when you are wrong more than right, and indecision?
Answer:
I try not to participate if the market is highly volatile. If I may participate, I try to wait when the market settles and from there figure out if its conducive to participate. If not, I remain on the sidelines and just observe - studying its movement until it closes. I stop trading and step back if I am wrong more than right.

8. What type of training have you received as a trader if any, and what would you suggest as the best type of education for a trader trying to go live?
Answer:
I did not receive any formal training except that I just read books and got ideas in my research from reliable sources and implement what I gather by making trades. It’s like trial and error. I failed a thousand times, and what I did was, I eliminated those thousands of failures and retain those ideas/setups that are working. And for traders wanting to go live, I suggest you go on simulation and keep on practicing putting trades. Record each trade and find out which one is working and which ones are not. Find a trading style or technique that suits ones personality and keep on doing it until it becomes familiar and workable.

9. What kind of advice do you have for novice traders or struggling traders looking to get better?
Answer.
Be patient and keep on practicing putting trades, even if you are not doing it live, make a journal (or a blog maybe) and record all your thoughts on what have you learned or the mistakes you made. Just like what I did, even if I don’t have an account, I am putting my real time trade ideas into work and posting them in my blog to monitor my progress. And you have to invest a lot of time. Keep focus and at the same time have a commitment.

10. What trading strategy do you personally prefer using and what kind of trading schedule do you have?
Answer:
I rely mostly through pattern recognition, the base and break trades that is building up from small tight bars consolidation with a sloping 9 and 20 MA’s that originates either from the pivot or the S/R levels. I trade early in the open especially if there is a big chance of capturing the breakout. If I get pummeled in the open, I will wait when the market settles between 9:30 to 12:00 Central Time and see if there is a pattern building up.

11. Have you taken the IDT and are you starting with the 70/30 profit split?
Answer:
Yes I did take the IDT course from my first Combine. I am starting with the 70/30 profit split.

12. How did having a loss limit help you become a disciplined trader?
Answer:
Having a loss limit helped me a lot to be disciplined because I don’t need to risk more of my capital.

13. What is your best trading day ever?
Answer:
I can say my best trading day ever is if I didn’t lose any and made a good trade early by capturing the breakout. In this way I don’t need to stay in the market for so long because I already accomplished my goal.

14. What are your goals as a trader with TST?
Answer:
To learn more by trading consistently and looking forward I can make something different and build a long term trading relationship with TST.

Thanks for having me!

Saturday, July 28, 2012

Friday's Market Conclusion

Missed the "meat" on this one last Friday due to some important appointment for most of the whole day.

Was in the market early and traded in the open and got whipped.

The lesson there is if you will not be in the market (trading time), don't trade at all.

That's what they termed "greed" in the market (or I am overtrading?).

As one great trading passages labeled, "you cannot trade the market all the time, only fools do!"

So I am a 'fool' last Friday.


Friday, July 27, 2012

Thursday's Trade

The market gap up in the open Thursday's session only to lose its strength till the close.

The only viable trade is the S/R level reference.

The entry for long is at the R1 (the support) and the exit is at R2 (this time the resistance).

When it comes to this kind of formations wherein the market turn sideways, the best option in finding trades is the S/R levels.

Like this one!


Thursday, July 26, 2012

Wednesday's Market Trade

The market drops in the open and made a nice reversal at noontime opening for long entry trade above the S1.

It made a nice consolidation above the S1.

The probable exit is at the arrow above before reaching the previous close.

Through price actions, it starts to lose its strength from that area.

Shown is the 5-min. chart.

Tuesday, July 24, 2012

Monday's Market Conclusion

The market drops hard Monday due to negative reports coming from overseas.

It recovers from the deep hole till the close but was not able to reach the previous close.

I guess it will be on the range/consolidation mode in the coming days.

Right now the market is on the steady range, let's see how it goes.





Saturday, July 21, 2012

Friday's Market Conclusion

The market turns negative last Friday's session due to bad news from overseas and profit taking.

The viable  trade is to sell short in the open and buy cover in the close.

From this 10-min. chart, the MA's giving clear confirmations how clear the trade is.

The crossover MA's are the signal when to enter and exit.



Thursday, July 19, 2012

Thursday's Market Conclusion

The market turn sluggish and quite choppy today.

Probably got tired of climbing vertically from yesterday's action.

And as I also mentioned from previous post, it might pause a little bit, and that's what happened from today's activities.



Wednesday, July 18, 2012

Wednesday's Market Conclusion

The market went upwards in the open and almost maintaining its momentum till the close.

I guess it might pause a bit by tomorrow and will regain its strength in the coming days.

Wednesday's Great? Trade

The market went to a stunning surge in the open and shown is the 3-min. chart opening for a long trade.

Buy in the open and sell above the R1 is the most appropriate trade to make.

Done trading for the day!

Tuesday, July 17, 2012

Tuesday's Reversal Trade

The market gap up in the open only to lose its strength and made a reversal before lunch time opening for a long trade at S1.

The most probable exit is at R1 as shown from this 3-min. chart.

Monday, July 16, 2012

Monday's Market Conclusion

The market went on the sideways today due to indecision.

The participants are gauging each others throat and waiting who's going to give in.

I guess the bulls are on the upper hand this week unless bad news might crop up from the calendar days that are due.

Let's see how the market behave the coming days.

Monday's Breakout Trade

The market open below and made a nice consolidation below the pivot opening an entry for a long trade.

It made a dramatic breakout above the pivot exiting the trade from the previous high last Friday's market.

Nice setup trade!

Saturday, July 14, 2012

Friday's Market Conclusion

The market made  a nice smooth move upwards Friday after weeks of losses.

That makes the market interesting because of the opportunities it offers whether on the up-swing or low swing.

That's what traders prefer, they can exploit the markets breakout leaving the investors eating the dust.

Like this 5-min chart from Friday's market, the chart speaks for itself.

Buying at the pullback and selling in the close is the classic preference for the profitable traders.

No need for too much fancy indicators or expensive expert subscriptions to rely on.

Just monitor the price actions and the trend, whether uptrend or downtrend.

In this case, it's on the uptrend, trade what your see!



Friday, July 13, 2012

Why You Shouldn’t Keep Porn on Your Phone | Joe Fahmy The Next Big Move

Why You Shouldn’t Keep Porn on Your Phone | Joe Fahmy The Next Big Move

Friday's Market Trade

Shown is the 2-min. chart for today's market.

The market went up in the open and made a pullback thereafter opening for an opportunity to put an entry for a long trade (lower arrow).

The exit shown at the above.

Tuesday, July 10, 2012

Monday's Market

The market yesterday drops hard in the open and went on a sideways move from thereon.

It did not recover from the hole.

Participants are confused where the market is heading.

They are waiting for the clue.

Sunday, July 8, 2012

How or Who You Are In Trading?

Been in the market for quite a while and after experiencing unimaginable failures and defeats, you will succumb to the temptation to discontinue involving in the market.

But if you have the passion and great understanding how the market works and the rewards that it offers, you will persevere in learning how to get involve with it.

But the market it's not just like that, as some or most aspiring traders tend to believe it...get rich quick scheme!

That's not how the market works, it takes a lot of hard work and learning.

Though you don't need to be a Phd, and even if you are an ordinary individual, you can trade the market and make money out of it.

Trading the market is not that hard, it is simple but it's not easy.

It involves emotional temperament towards the market movements and understanding of the behavior of the participants.

It's about the psychology of the market, because the market composed of individuals who participates in the determination of the price action.

Pattern recognition plays a big part in trading the market and the level of the price movements.

Once you get the feel and understanding the minds of the participants, you can have an idea how to get involve and trade the market.

It's all about reading the minds of the market and learning about yourself how to get involve (or trade the market).

Sounds simple?, but to get started in the market is to read books in trading and investing.

That's the hardest part for you will get confused which books are important and make sense based from your personality.

There are many information out there to find out which market or what market suits to your personality.

When I say personality, it's the type of person who you are whether you prefer a short term or long term involvement in the market.

It is like in a relationship, whether you want to get married for life (that's long-term investing); start living-in first (that's swing trading); live just by comfort (that's momentum or intermediate trading); or you want to live day by day (that's day trading).

It's all based from your likings and personality.

Friday, July 6, 2012

Friday's Market Trade

The market drops hard today due to unfavorable reports on the jobs market.

Shown is the 5-min. chart to make a short trade.

Thursday, July 5, 2012

Thursday's Market Conclusion

Shown is the 5-min. chart of the (QQQ) market activities in today's trading.

Seems a positive sentiment from the participants.

Thursday's Market Trade

The market drops early in the open only to make a major reversal from the (S1) support line.

The entry for long trade is from the S1 with exit at (R1), resistance level.

The S/R levels plays a major part in trading, they are basis for entry and exit points.

Though they are not conclusive, but they give some clues when to enter or exit.

The important in trading is the price actions.

Shown is the 5-min. chart where the entry and exit are pointed with an arrows.

Tuesday, July 3, 2012

Tuesday's Market Conclusion

The market made a nice upwards move today mainly due to the absence of the major market players.

Big opportunities today for the small retail traders for there's not much noise/volatility.

Tuesday"s Market Trade Entry

Shown is the 5-min. chart for today's market.

Not much noise for the participants are already on a holiday.

It will be a short trading day today in time for tomorrow's fireworks display.

Monday, July 2, 2012

Zigzag Monday's Market

The market moves on a choppy sideways today prior to holiday come Wednesday.

Seems most participants are already on a Holiday break except the programmers.

One can notice the erratic sideways moves the whole trading day.

I can surmise that the market is just consolidating prior to the next big move.

Today's market consolidates mostly within the previous close and above the pivot line.