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

Thursday, January 13, 2011

Trading ideas


Showing this 10-min. chart from Russell 2000 (TF).

It vertically leap in the open then drops a little bit in the R1 (red bar).

That is where the best entry for a long trade.

TF moves $100.00 per point, gaining 4 points gives you a profit of $400.00 for a contract.

But if you are a small retail trader like this one, trading TF especially during high volatility makes your nerve wracking because of the big (high) increments in value.

That's why preferably NQ and the YM is the most appropriate to trade, at least the pressure is not that much from trader's psychology.

Going back to the chart, reflecting them on the multiple time frame can show the right entry and exit.

Referring to 1-min. frame is the best way to watch its movement.

Also, the almost 24 hour chart in the e-minis can give you an edge in identifying the direction or its movement.