Friday's Market Trade

The market made an upside move in the overnight session only to make it choppy in the regular open.

Not quite a tradeable market but a scalping system of trade.

Notice the pattern, it's like a "sling shot" (y), seems trying to send a message that the market might hit/attack you if you are not ready trading Friday's market.

Lots of volatility, partly because of Bernanke's Jackson Hole meeting.

Was able to trade this one after 10:00 am. ET but my first trade flopped, got stopped out.

Able to recover after then when it consolidates and the price action turns favorable.

Exit my trade (in-between the breakout) for I profess Bernard Baruch kinda' trade, "I make my money selling early"!.

After that, the market turns choppy till the close.

 

 

Wednesday's Trade Setup

Was not able to post some setups the past week or so for quite busy making trades and analyzing the market trends.

It's been an awful trading the market this month of August and if you're not that nimble with trades, you will get chopped.

One very important lesson I learned this month is not to overtrade and not to succumb to greed.

Once you make a decent profit from a few trades in the morning, stop trading for the day or else you will just give back what you made especially if you are in the market the whole trading day.

Trading the market in the afternoon session is an exercise of greediness, for the market at this time are being controlled by the HFT's.

That's where discipline counts.

For today's session, the market drops in the open and made a dramatic "v" formation opening a reversal trade setup for long (arrow below).

You can add another share/contract when it consolidates below the pivot.

Exit at your own target from thereon.

Friday's Market Trade

The market gap down last Friday's open and made a nice consolidation above the support (S1).

It made a "u" turn from thereon opening for a long trade.

Exit is at the close or within the resistance (R1).

 

Remove This Word From Your Vocabulary

From The Kirk Report...

Friday, August 17, 2012 at 01:37 PM
This market has been tough on many of us, including some of the smartest and best of the bunch. But, in the end, it is never the market that is our own worst enemy, instead it is always ourselves.
Recently I read the comments by Louis M. Bacon of Moore Capital Management who announced he was returning $2 billion to his investors. The reason he gave to The New York Times was that he had found it difficult to invest given the impossibility of predicting the European situation. He was quoted as saying, “The political involvement is so extreme — we have not seen this since the postwar era. What they are doing is trying to thwart natural market outcomes. It is amazing how important the decision-making of one person, Angela Merkel, has become to world markets.” Translation? What Mr. Bacon proposed was that it is impossible to make money in the markets when there is heavy political involvement, because political involvement introduces unpredictability in the market.
This is complete balderdash! Let me tell you something I learned many years ago. The moment you convince yourself that something is impossible, you have already failed. This is also exactly why Mr. Bacon, who I’m sure is a really bright and decent fellow, has already started down the path to his professional demise if he truly is absolutely convinced that investing in this market is impossible.
Over the years I’ve been told by more people than I care to count how it is “impossible” to make money in the market and that is “impossible” for anyone to accurately time the market. You know what, for these people, it is impossible because they’ve already convinced themselves of it. But, one lesson I’ve learned in my 20 years of trading the markets, is that nothing is impossible.
I’m not only talking about my own experiences here, but also in watching so many traders come and go through the years. In my 20 year career I’ve watched the smartest people you’ve ever seen blow themselves up and lose all of their money. At the same time I’ve seen the most miserable of failures achieve tremendous success in the market. You know what the key difference between these two groups of people is? In the end, what mattered most for the successful, was their undying, unshakeable belief in themselves and their abilities. Never, not for one second, did they think what they were trying to achieve is impossible. Because the moment they did, it would be “game over” for them.
So, if you’ve entertained such thoughts lately (and who honestly hasn’t?) it is still not too late to get back on the right track and remove the word impossible from your vocabulary. Moreover, the next time you hear someone say something is impossible, understand that for them, they are absolutely correct. But, for you, it means limitless opportunity so long as you’re willing to step up and do the work, believe in yourself even when you fail (and you will), and keep trying like no other. Do this and you’ll discover that what others see as impossible, can become your reality.
To remember this important lesson that will serve you well both in the markets and out, pick the quote from the list below that resonates best with you and write it down somewhere where you work. The very next time you hear yourself start to think something is impossible, review your favorite quote and keep working!
My Favorite Quotes On Impossible:

“There is nothing impossible to him who will try.” – Alexander the Great
“Without faith nothing is possible. With it, nothing is impossible.” – Mary McLeod Bethune
“Impossible is just a big word thrown around by small men who find it easier to live the world they’ve been given than to explore the power they have to change it. Impossible is not a fact. It’s an opinion. Impossible is not a declaration. It’s a dare. Impossible is potential. Impossible is temporary. Impossible is nothing.” – Muhammad Ali
“We are all faced with a series of great opportunities brilliantly disguised as impossible situations.” – Charles R. Swindoll
“The only place where your dream becomes impossible is in your own thinking.” – Robert Schuller
“We would accomplish many more things if we did not think of them as impossible.” – Vince Lombardi
“Because a thing seems difficult for you, do not think it impossible for anyone to accomplish.” – Marcus Aurelius
“Most of the things worth doing in the world had been declared impossible before they were done.” – Louis D. Brandeis
“Impossible only means that you haven’t found the solution yet.” – Anonymous
“To the timid and hesitating everything is impossible because it seems so.” – Sir Walter Scott
“The difference between impossible and the possible lies in a man’s determination.” – Tommy Lasorda
“I only want people around me who can do the impossible.” – Elizabeth Arden
“I wouldn’t say anything is impossible. I think that everything is possible as long as you put your mind to it and put the work and time into it.” – Michael Phelps
“Nothing is impossible – some things are just less likely than others.” – Jonathan Winters
“By striving to do the impossible man has always achieved what is possible. Those who have cautiously done no more than they believed possible have never taken a single step forward.” – Mikhail Bakunin
“I tell you the truth, if you have faith as small as a mustard seed, you can say to this mountain, “move from here to there” and it will move. Nothing will be impossible to you.” – Jesus Christ
“There is only one thing that makes a dream impossible to achieve: the fear of failure.” – Paulo Coelho
“No one gets very far unless he accomplishes the impossible at least once a day.” – Elbert Hubbard
“Some of the world’s greatest feats were accomplished by people not smart enough to know they were impossible.” – Doug Larson
“To believe a thing impossible is to make it so.” – French Proverb
“I have learned to use the word impossible with the greatest caution.” – Wernher von Braun
“Believe and act as if it were impossible to fail.” – Charles Kettering
“What we can or cannot do, what we consider possible or impossible is rarely a function of our true capability. It is more likely a function of our beliefs about who we are.” – Anthony Robbins
“It is impossible to win the race unless you venture to run, impossible to win the victory unless you dare to battle.” – Richard M. DeVos
“So many of our dreams at first seem impossible then they seem improbable and then, when we summon the will, they soon become inevitable.” – Christopher Reeve
“It’s kind of fun to do the impossible.” – Walt Disney
“The word impossible is not in my dictionary.” – Napoleon Bonaparte

Tuesday's Trade Setup

The market gap up today in the open  and shown from this 5-min. chart is the viable trade setup.

The entry is at the lower arrow within the R1 and the exit is at upper arrow just before reaching the R3 level.

Monday's Trade Setup

The market surge in the open giving room for a long trade.

Buying in the open below R1 and selling above the R2 is the nice profitable trade setup.

Though it was a choppy move as seen from this 5-min. time frame, but the upward move of higher highs kept the trade alive.

Friday's Pullback Entry

The market gap up today opening for a long entry when it pullback.

Was early to put trade in the open and lost quite a bit.


But recover the losses when made another trade from the pullback.

A positive sentiment today in the market due to favorable job and economic reports

Thursday's Reversal Trade

The market gap down today but made a dramatic reversal opening a long trade entry at S1.

To make a safe exit is at below the  R1 as pointed in the upper arrow.

Shown is the 1-min. time frame.

Nice reversal trade!

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!

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.

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!

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.

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.

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'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'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'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'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!

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!

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.

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.

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'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'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'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.

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.

Why Traders Are 'Glued' to Their Desks - Yahoo! Finance

Why Traders Are 'Glued' to Their Desks - Yahoo! Finance

Friday's Market Conclusion

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

Not much noise when it gap up in the open.

Bears are covering in darkness.

The Market On A Two Day Spring

Showing the 10-min. chart from yesterday's market and today's on-going action.

Follow Through

The market continues to rally...

Friday's Market Entry Point

The market gap up today and shown is the 1-min. chart entry point for a long trade.

Let's see how it goes.

Market At The Closing

Shown is the 5-min. chart 15 minutes before the close.

From my ealier post, I mentioned that the market can't get any lower from my short cover trade.

Though it drops a little bit further, but recovered extensively as shown from this concluding chart.

Hang'n 'em there "trading" buddy...

Just  a simple thoughts in trading regarding the hiccups most if not all traders encountering about the markets unpredictable moves.

What we can do is just "hang'n 'em there buddy"...

That's how the market is, it's all ups and downs but if you can take the opportunity that the market offers even just to monitor its moves and the education it brings, it's all worth it.

And don't hesitate to take a break, the market will be there tomorrow.

As the famous quote from great traders, you can't trade the market everyday, only fools do.

Most aspiring traders i'm sure are getting pummeled by the 'monstrocities' market swings, we cannot avoid that.

All we can do it take whatever the market brings and learn from it.

When the market settles, the bright side of the market rises.

Thursday's Market Trade

The market drops down today due to unfavorable reports from the governments healthcare law and from overseas woes.

Shown is the 5-min chart where the most probable short entry is at S3 (support) level with the cover at the lower arrow.

I think that's the most the market can go lower today because of the big gap when it went down in the open.

But who knows?

Wednesday's Market Conclusion

The market made a tight consolidation within the R2 level only to lose its grip and went downside.

Lack of follow through from the bulls.

Market sentiments is still in quandary.

Shown is the 5-min. chart that attest the participants lack of conviction.

Wednesday's Trade Entry

The market gap up today and shown is the 5-min. entry point for a long trade.

Let's see how it goes.

Tuesday's Market Conclusion

A choppy market moves in today's trading.

The open entry got stopped out.

Shown is the 5-min. market conclusion where it closed on the positive side.

That's how the market is, it's all about probabilities.

Tuesday's Trade Entry Point

The market gap up today and shown is the 1-min. chart entry point for a long trade.

Let's see how it goes.

Monday's Market Trade

The market drops hard today and shown is the 5-min. trade.

Shorted at the upper arrow and cover at the lower arrow, S3.

Trading Facebook (FB)

I mentioned from my previous posts that to get involved personally in the FB IPO is just to trade not to invest.

And now looking at this latest chart, it's really a good way to trade.

I mentioned also that when it consolidates at the price of $27.00, FB is a buy...buy...buy...

So if you bought it at $27.00 then, you are now raking some smart profit.

Just take a look at this latest chart (1-hr) and make your own judgment that trading it is the better way.

Just wait for the right timing, that's why technical analysis is better than the fundamentals.

Trade what you see as they always emphasized in trading.

Friday's Market Trade

The market made a tight consolidation till late noon (ET) and made a stunning move upwards till the close.

Buying at the open is the most probable entry to make a profitable trade this Friday.

Shown is the 5-min. chart.

"I didn't shortcut anything"

"It was a journey for myself," he said. "I don't want to compare it to any other player. Everything that went with me being a high school prodigy when I was 16 and on the cover of Sports Illustrated to being drafted and having to be the face of a franchise; everything that came with it. I had to deal with it, and I had to learn through it.

"No one had [gone] through that journey, so I had to learn on my own. Everything that came with it, I had to basically figure it out on my own."

And then, James would say: "I'm a champion, and I did it the right way. I didn't shortcut anything."

Thursday's Short Trade

The market was a little bit choppy early in the open.

But it shown a downtrend move when it crosses the S1 the second time.

That is where the most probable entry on the short side.

From thereon, it went down lower from S3.

I guess the participants are taking their profits.

Boring Market

Yesterday (Wednesday) and today's market can be considered a non-trading day.

As can be seen from today's chart, the market is quite choppy.

Can't distinguished what the market is doing.

This is the time to stay out in the market and just watch from the sidelines.