Observe & Trade

A drop in the open from the two main index markets.

Selling in the open can make you a fast money.

It's the reverse movement from yesterday's action.

But there is no surprise on this, it's Friday (traders profit day).

Observing the market action can give us an edge.

That's the only way we can participate from the world of the Streeters!

Observe & Trade

Nice rebound today from the three core index market.

The market went down after the open but came back roaring after a couple of hours into the trading.

Notice the similarity of the pattern.

If one goes up, they will go up almost at the same time.

That's the advantage in trading the e-minis.

Just monitor to four index market and you can make a sure profit.

But trading is not just like that, don't trade just for the sake of trading.

Timing is important and pattern recognition is a must.

No confirmation, no trade!

Part V - Cornerstones of a Sound Trading Plan | Prudent Trader

Part V - Cornerstones of a Sound Trading Plan Prudent Trader

Observe & Trade

Showing a 2-min. chart from DIA (YM in e-mini futures).

It open below but turn to bullish mode after a couple of hours into the trading.

In trading, the first hour is the volatile part.

You can notice, the bears and the bulls are tagging each other until the bulls overcome the battle.

The safe entry is at 114.75 with the ascending 20MA as the confirmation.

Exit at 115.15 for a gain of +$0.40 per share.

Observe & Trade

The market made a dramatic "u" turn today to a bullish mode.

The three core index charts shows how they reacted simultaneously.

Trading them at the open can make you a fast money.

They can be relayed upon to the e-minis.

Monitoring these core index in a multiple screen can give you an edge in your trading.

Observe & Trade

As observed from these two chart in reference to the time frame.

You can see the difference how you can make a best setup (trade).

Using multiple time frame plays a big difference especially if you are a short term trader.

Comparing the one-min. and the two-min. time frame, you can easily spot when and where you can enter and exit.

In this probable trade, referring to the 2-min. chart as your base of recognition, you can conclude that you can short it from the pointed area.

And your best entry can be based from the one-min. chart that specifies clearly, in this case at around 3:15 pm. est. or at the price of 54.48 (the one under the descending 20MA).

Using multiple time frame can make you an "edge" in trading.

As they said in trading, if you don't know your "edge", you don't have one.

So in trading, know your "edge"!

Part IV - The Power of Compounding | Prudent Trader

Part IV - The Power of Compounding Prudent Trader