Posts tagged ‘trading education’

E-mini Trading: Why do Clients Enroll in a New Course and Put Forth Little Effort?

By trader7757, 15 October, 2011, No Comment

One of the most unusual and disturbing phenomena I observe on a daily basis is the abysmal effort put forth by a small group of new e-mini traders in learning to trade. It is not unusual to have students enroll and then come to the trading room and try to share the dynamics of the previous course they had taken and blown out a futures trading account.

E-Mini Trading: Finding High Probability Setups

By trader7757, 15 July, 2011, No Comment

A quick scan of any of the popular online bookstores will produce a plethora of writers who claim to have a distinct set of high probability e-mini trading setups. For these traders, these setups are probably very successful and profitable. Unfortunately, any of these e-mini trading setups require a sizable software purchase or intricate analysis of candlestick formations. Whether all of these e-mini trading setups are profitable is beyond the scope of this article, but I am interested in presenting some generic setups that have been successful for a wide range of traders.

I emphasize trading with the trend and rely upon momentum for most of my profitable trades. I find when I trade against the trend, except in a few specific trades, I end up with a marginally profitable or unprofitable e-mini trade. For that reason, I’m going to recommend learning 2 “with the trend” trades and one countertrend trade that I have found to be reliable in my personal trading.

These traits include:

• Breakout and breakdown trades in and around areas of support/resistance
• Entering a trade in the trend after a retracement
• The Ambush Trade

Breakdown Trades in and around Areas of Support/Resistance

I probably don’t trade is often as some e-mini traders because I don’t feel there aren’t that many high probability setups available each day. But one of my favorite setups is at the open of the session and there is a support/resistance line in the proximity of the direction of the markets initial move. I will generally set a buy stop or sell stop 4 or 5 ticks above or below the resistance or support and wait for the price to come to my entry. I pay special attention to volume in this trade and like to see increasing volume is the price nears the support resistance line. Sheer momentum will often carry a price action 10 to 12 ticks past my entry for a nice stop. Often times, there is a great deal of institutional and professional trading volume in these moves and they are very successful.

Entering a Trade in the Trend after a Retracement

During the course of a trend it is common, almost probable, that the trending action will take a short break and retrace some of the ground it has gained. This makes sense, as at some point e-mini traders will begin to take profits and the trend will take a temporary sideways or downward break. Depending upon which author you care to read, the trend resumes about 70% or 80% of the time. So, as the retracement in a trend begins to wane, it is an ideal time to reenter the market in the direction of the trend and ride the second leg of the trend for a profit. I would say that this is probably the most common trade I take on a daily basis and it has a high degree of success.

The Ambush Trade

The ambush trade is one of the few countertrend e-mini trades that I truly have a high degree of confidence in initiating. With this trade the e-mini trader can draw a Fibonacci continuum on graph and wait until the countertrend retracement reaches between 50% and 62%. There is a high probability in this zone, commonly referred to as the ambush zone that the market will once again resume in the direction of the trend. This is a trade I take routinely when the price action has reached 55% of the entire length of the trend as measured by the Fibonacci retracement path.

A quick note here about probability is in order; because there is no such thing in will trading is a guaranteed trade. Every trade has a higher or lower probability of succeeding or failing. (Though it is hard to measure empirically) Even the best setups can fail miserably and disappoint. This does not, however, deter me from taking the same trade should I see it set up again. I understand probability, and even the best setups have a certain component of failure and their probability.

In summary, we have looked at two “with the trend” trades and identified the conditions that need to be present for them to have the highest potential for success. We have also looked at one “against the trend” trade that has a high potential for success. Since trading is based on probability, we know that even the best setups have the potential for failure and except that is a part of and e-mini trader’s mentality.

Real Live Trading Doesn’t Lie. Spend several days in my trading room and see if you can benefit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

Related Blogs

ES Emini Day Trading: Paying for a Trading System or Paying through Experience

By trader7757, 13 December, 2009, No Comment

Todays trading environment is a much different scenario, where many individual investors who have not been trained to trade through the institutional channels are active in the markets. There are some very good traders out there, but one statistic has stuck with me for quite some time. The novice trader has 70% failure rate, and usually within three months

ES Emini Day Trading Review: Trading Concepts

By trader7757, 10 December, 2009, No Comment

Are you ready for a comprehensive trading system that requires careful study and flawless execution? In the world of professional trading this dedication to self-disciplined principles is a pre-requisite, but my observation is that many amateur traders take a laissez-faire approach to trading. I would also point out, at this point, that anywhere from 70-90% of first time traders bust out their accounts within three months. This does not speak well for the preparation system most new traders employ. There is no room for free-lancing in the trading room, and those who do not remain disciplined lose their accounts fairly quickly.

I have never fully understood why any individual would take on new profession and not dedicate himself/herself to learning the business completely. Any skill takes a modicum of book learning and practical experience to master, and trading skills are among the most elusive skills to truly acquire. It takes serious book work and a considerable amount of paper trading before a prospective trader is ready to tackle the market with real money.

Trading Concepts employs a system of trading that is fairly straight forward and quite learnable. More importantly, it works if you take the time to execute it properly. There is nothing terribly exotic about the techniques in the Trading Concepts system, but there is an excellent mixture of the right trading techniques to make any novice successful. The are no esoteric mathematic formulae to memorize, nor do you need to purchase any of the $10,000 trading programs you see advertised in many of the trading magazines. No, this system takes some standard charting skill and an observant mind.

Do you have what it takes?

Let me say that the developer of Trading Concepts has what it takes, as he promised a lifetime guarantee of customer support to his students. Todd Mitchell, the proprietor of Trading Concepts impressed me as an individual of unusual dedication to the education of his students. My impression of Todd was one of great admiration for the pride he takes in turning out professional traders. He ought to be, too. He has been training traders since 1994 and his satisfied students are a large group who are very vocal in their support of their mentor.

Todd focuses on training students to trade the ES Emini. This is, so to speak, his bread and butter. He has the usual teaching aids to assist his students: an extensive manual with excellent documentation, on line training, a trading room and, as I have mentioned, a life-time guarantee customer support for his students. To the best of my knowledge, this is the only claim of this kind, and is certainly a strong point when considering his program. I have reviewed a dozen or so trading systems, and have been very critical of some, but find nothing but superlatives in recomending Todd Mitchell’s Trading Concepts, Inc. trading system. Like all trading programs, the real work lies with the trader, and your level of success will be directly proportional to the amount of time and effort you apply to learning and implementing the principles of the system. But if you have the motivation, everything is here to assure your success.

The pricing on Trading Concepts,Inc program was about half of what comparable systems are currently charging, and considering the long track record the program has put together, I find his program a bit under priced in comparison to his competition. But this mispricing of Trading Concepts, Inc is to your advantage.

In summary, if you are serious about becoming a full time trader, this system supplies all the tools you need to make the transition from the 9-5 dead end job to full time trader. Your success is up to you.

You can check out Trading Concepts here.

ES Emini Day Trading: Should You Pay to Learn to Trade

By trader7757, 26 November, 2009, No Comment

On the other hand, most novice internet traders don’t have the option of learning in an institutional setting, so they must learn from a number of sources. Yes, it is going to cost some money, but it doesn’t have to be a whole lot of cash.

What Does it Take to Become a Profitable Day Trader

By trader7757, 30 October, 2009, No Comment

I was reading an ezine article this morning and it went through a laundry list of things required to be a day trader. I suppose the author’s system might very well work, but it certainly seemed awfully labor intensive to be truly successful. It also was very capital intensive and relied upon the trader’s ability to forecast directional market moves. Yikes!

Step 1.

Decide what you want to trade. I try to trade the most highly leveraged investments I can find because it maximizes my return. For me, that would be index futures contracts. They are liquid, accessible and trade very much like equities. They are also highly leveraged, which gives the trader great potential for profit, and conversely, great potential for loss.

Step 2

Start with the YM contract, I believe it is easier to trade than the ES contract. Don’t start trading with real money, use a demo account and paper trade. You will need to learn a system to trade, and I have made some videos that hint at my trading technique but plan a launch of my entire system in the near future.

Step 3

Once you can trade on paper for consistent profits, it’s time to trade with real money. It is different with real money, and I can’t explain why, it just is. The hallmarks of a good trader are excellent technique and unfaltering discipline. Never take a trade on a hunch. You have a system, use it.

Check this amazing FREE trend anlysis report on any issue you trade, especially the eminis:

Step 4

Money Management is of prime importance in trading. Never risk more than 5-10% of your capital on a given trade. You should open an account with a minimum of $5000 and only trade 1 contract until you have raised your account balance substantially. Remember, 1 contract.

I have all sorts of recommendations for brokers, margins…etc, but that will come in time. For now, realize that leverage is a disciplined day traders friend.

One Indicator The Government Can Not Ignore

By trader7757, 26 October, 2009, No Comment

Here’s One Indicator The Government Can’t Ignore

There is an indicator which has been around since 1957. It has accurately forecasted every inflationary and deflationary cycle since.

I believe that this is the indicator that everyone should watch. If you trade stocks or futures and are interested in world trade trends, this is the indicator to track.

This is my third video on this indicator.

CLICK HERE FOR THIS ENLIGHTENING FREE VIDEO

Take a few minutes to watch todays short video and see how you can benefit from this indicator. There is no fee and there is no registration required.

The video is free to watch and there is no need to register.

CLICK HERE FOR THIS ENLIGHTENING FREE VIDEO

The Perfect Portfolio for 10,000 or 10,000,000 Dollars

By trader7757, 15 October, 2009, No Comment

So what’s going to be the best plan of action for your money in the next three years? Is the value of your portfolio going to be cut in half, or is it going to double? I have my game plan in place, do you have yours?

The Fractal Futures Trader