Speculative trading is buying a financial instrument with the sole purpose of selling it for a profit at a later time. Now, why would anybody who owns an asset sell it for less then it’s worth? Why do merchants run sales on individual items, cutting their profits and perhaps even selling at a loss?
Supply and Demand
In the short-term time frame that traders deal with, stocks are just a product to be accumulated or distributed. Whenever there is confusion, go back to the roots of short-term price movement. Think in terms of a retail scenario. The purchasing manager of a chain of clothing stores after consulting with the companies fashion advisors has decided that colored jeans will be “in” this fall. The orders are made and 50,000 pairs of red, beige, and blue jeans are manufactured, and distributed to the stores in malls and shopping centers everywhere. As the season progresses, the blue, and beige colors sell very well. The stacks of red jeans are not moving. What happens next? The company advertising begins to feature models wearing red jeans. The mannequins in the windows all are wearing the red jeans. Fashion designers on morning TV shows “make over” audience members and promote red pants as a “fresh new look”. Sales pick up a little but the public just is not buying red jeans this season. So as the season winds down, the last of the inventory (mostly red) goes on sale at a substantial discount.
Now, consider this scenario. A fund manager after consulting with the firm’s analysts decides that the drug sector offers an attractive value. The orders are called in and the fund is soon the proud owner of a basket of 10 drug stocks. The drug sector does indeed pick up, business is booming. But out of the 10 stocks purchased, 3 are under performing badly. FDA approval of a new drug is slow to come, lawsuits from a side effect linked to a drug, and poor sales due to a tampering scare, have acted to dampen public interest in these issues. The fund begins to unwind these positions, selling into rallies and days of deep volume. The sector's bull move is picking up strength, analysts are showing up on TV and in the financial press talking bullishly about the drug's. Upgrades are issued, and targets are moved higher. It is now 3 months later, the under performers have been sold until the basket’s size is reduced to the 3 strongest issues. But the rally in the drug sector has been sluggish of late. The runup has been substantial, and there are large profits to be taken. The advice to buy drug stocks has been everywhere, and has begun to filter down to non-financial media. The coffee talk at the proverbial diner is about how this person has made a “killing” in PharmChem Industries. But hype aside, all those who wished to buy into this rally have done so. Trend lines are broken, we start to see the first lower highs form. The fund begins to sell. At first selling as opportunities present themselves. Then they start hitting bids, unloading their shares. With 50 points open profit, they are willing to chase the stock down to a level where buyers are present.
These are two different scenarios, one in the world of retail, the other in the world of stocks. Fundamentally, are they really any different?
Back to the beginning, let’s restate the question… Why would anybody who owns a stock sell it for less then it’s worth? Why sell a profitable position? There are many reasons, but within the cycle of accumulation/distribution there are 3 types of selling to scan for and identify. (invert this discussion for buying)
Selling because the trend is changing, and profitable positions are being unwound.
Selling because resistance levels are being challenged and positions are being lightened.
Selling because a chart pattern has failed and stop loss orders are entering the market.
A stock experiencing selling type 1 should be watched with a short bias, as it is likely that there are sellers of size in control of the market. A stock experiencing selling type 2 should be watched with a long bias, and scanned for continuation patterns, and other low risk entries. A stock experiencing selling type 3 should be watched with a short bias for a Stop Seeker short setup and then possibly long at support levels after the panic selling subsides.
Return to Top
Short Term Supply/Demand Imbalances
There are two basic types of supply/demand imbalances. On the long side, there can be more buyers then sellers. This market is characterized by strong trending moves with orderly wiggles. There are plenty of sellers, as the short-term player’s scalp in and out of the stock. The bigger time frame bulls use the wiggles as buying opportunities to build positions of size.
The second type of buying imbalance is in a market where there is an absence of selling. This market is characterized by big bars to the upside. The traders watching all feel that the stock is going higher, and are holding their sell order for a better price. Without many sellers on the offer, any bulls are forced to pay up for their shares. Instead of a healthy bull market with steady selling into strong buying, the constant turnover has ceased, and all those positioned are waiting for the perfect exit point. A market with an absence of sellers often indicates that the final push of the bull phase is unfolding. This “exhaustion bar” should be watched carefully, and if it terminates in an area of price resistance can be good as a short. Conversely, stocks often sell off in an orderly manner before reaching a crisis point and then becoming a market with no buyers. These exhaustion bars to the downside are what often occur after a successful Stop Seekers setup is taken. The exhaustion bar/snap back tendency must be studied, as a great Stop Seeker trade can become a mediocre one in a very short time if the position is kept open too long. Once in a Stop Seeker trade, you want the stop takers to be pushing and shoving to get out, forcing the stock lower and increasing the panic as the slippage grows. As a Stop Seeker short accelerates to the downside, watch for the ECN’s fighting to be the best offer to lift. Watch the time and sales for the selling to reach fever pitch, then subside. When this pause manifests itself, there are two options. If you have a strong opinion that there is more downside to come, cover ½ your position at the pause, locking in profits. Then move your stop loss to breakeven for the remaining shares. The second (and usually preferred) option is to cover all your shares, and move on to another setup.
Return to Top
Top 10 Things I've Learned as a Trader
Only trade if you have an edge. See Risk Evaluation.
Don’t force it. There are times when sitting on the sidelines is the best course of action. This is normal.
Wining trader’s losses are usually small and contained.
Win by losing properly. Be an expert at managing your losing trades.
Sell into strength. Sell when you can not when you have to.
Over analysis causes paralysis. Keep it simple.
Home runs are nice but pros take out the middle of most moves.
Pro traders quickly get into a position where they are playing with the market’s money.
A pro is quick to change his view if proven wrong and does not let his ego get in the way.
There is no Holy Grail. Great patterns come and go. The hallmark of a professional trader is their ability to be agile and adapt their style and technique to the market at hand.
Return to Top
Indicators Used Intraday to Help Time Our Tradess
Nasdaq Futures – five minute chart
S&P Futures – five minute chart
Compx – fifteen minute chart
NYSE Tick
NYSE Trin
CHARTS WE USE
All charts used are with simple moving averages and candlesticks.
Two and thee minute – 10,20
Five minute – 20,200
Fifteen minute – 20,200
Thirty minute – 20, 200
Daily – 10,20,50,100,200
Weekly – 10, 20,50,100,200
All our charts have histogram volume bars at the bottom.
Return to Top
Trading Room Priorities
Scanning for potential intra-day trades
Analysis of trades in play
Answers to questions regarding existing plays
Answers to questions regarding trading in general
Please reserve the use of capital letters for emergencies only. For example: You find yourself in the unfortunate position of being in a room trade due to a blown stop and you need help, this qualifies as an emergency. In adhering to this policy, it will help us identify when a true emergency is at hand.
Return to Top
Win Loss Clusters
No matter how good a trader becomes sooner or later he will succumb to the inevitable LOSING STREAK. It is during this challenging time that a clear understanding of Win Loss Clustering will help a trader retain his sanity.
Reasons for losing streaks may be blamed on improper use of a particular pattern, going against the trend, a bad mental state or a countless number of other reasons. But realize this, even if you do everything correctly eventually statistical reality will rear its ugly head.
Below are some Win Loss Cluster which will give you an idea of what to expect, depending on you win percentage.
In a random sample size of ten thousand trades (all are approximation and will differ from sample to sample).
40% win rate = potentially 10 wins, 21 losers
50% win rate = potentially 17 wins, 15 losers
60% win rate = potentially 21 wins,13 losers
Keep in mind, these are successive winners and losers. So to clarify, the trader who has a 50% hit rate, can expect at some point to win approximately 17 in a row and to lose approximately 15 in a row. Also keep in mind, this trader may lose 15 times in a row with one winner in-between and then another 15 losers. Pretty unlikely, but statistically possible.
Obviously, it becomes paramount that this trader better be well versed at risk management if he wished to survive in this sometimes unfair game of trading.
Return to Top
$100 BILL
Soldiers wishing to join the Special Forces go through unbelievable physical and mental hardships as they try to prove they have what it takes to be one of the world’s elite warriors. Those who succeed are true warriors, fighting in small task forces, and conducting their campaigns/waging their wars on a very personal level. Trading is economic warfare on a very personal level, and traders go through a lot of similer experiences as they fight their way through the learning curve hoping to count themselves among the few consistently profitable traders. Soldiers go through exercises designed to break down certain mental responses and thought processes detrimental to performance. Traders need to also break down and change certain mental processes.
Try this exercise. Take a $100 bill and throw it out a convenient window. Sit down in a quiet place by yourself and wait 15 minutes. After this time has elapsed, you may go outside and retrieve the bill. What thoughts are running through your mind as you sit? You are probably feeling foolish for doing this in the first place, and are trying to remember if there was any wind outside. Thoughts flit through your mind.
I could just run out and get it…
But I’m supposed to sit here for 15 minutes…
I don’t know this author from Adam…What does HE know? I just read about this stupid exercise, the author can’t make me do anything!
It IS windy out there, I knew it…
I’m not going to be able to find that bill…
What was I thinking?
I’m going to lose $100…
I make $X an hour, it is going to take me how many %#$& hours to make that $100 back?
I’m going to lose $100…
I’m going to lose $100…
I’m going to lose $100…
I AM GOING TO LOSE ONE HUNDRED DOLLARS!!!
These are some of the same destructive thoughts that go through your mind as you initiate, and manage your trades. They are counter productive and must be controlled and eliminated. Instead, what if the following were your reaction to the $100 exercise.
It is mid day, the area outside my window is quiet, no one is about. There is a bit of wind, so I may have to hunt a little. I routinely risk $500 or more as I trade, so if this exercise improves my trading substantially, it will be a 5 to 1 or richer risk reward endeavor. Nobody forced me to take this action, I am in total control at all times. But, bottom line… If for any reason I was unwilling to risk my C note, I would not have thrown it out the window! A controlled, emotionless, style is one that every trader must
Tuesday, October 10, 2006
Monday, September 18, 2006
Secrets of Trading
1
How the Open can make or break your day
The signals I use to determine the probable direction within 2 minutes of the open. This technique discloses what I utilize to successfully trade the open. As we all know, starting off with a winning trade at the beginning of the day gives you a confidence level that can help propel you to a very successful trading day. It all starts with the first trade of the day, and this method will show you how I get on the right side of the market minutes after the open!
The Open is actually one of the best times of day to trade if you know the "Secret". Markets open in one of three ways:
Balanced
If the market opens in balance many Traders will stand aside looking for opportunities a little later in the trading session. This is also the type of open many successful off- the- floor traders tend to stay away from also. This sort of open causes nothing but trouble for the average trader who tends to chase trends that may never materialize. The Secrets of an Electronic Futures Trader course teaches you how to identify this type of open immediately. This information has saved me many thousands of dollars or more in unnecessary losses.
Out of balance to the upside
If the market opens out of balance to the upside, traders will look for a way to buy the market as soon as possible. This is the sort of day where real money can be made. The Secrets of an Electronic Futures Trader course teaches you how to identify this type of day within minutes of the open, as well as giving you a precise method for entering and exiting.
Out of balance to the downside
If the market opens out of balance to the downside Floor traders will look for a way to sell the market as soon as possible. The Secrets of an Electronic Futures Trader course will also give you the precise entry and stop points. Within 2 minutes of the open you will now be able to trade with the same "edge" I've been using for years!
The first part of the trading manual covers all of the details of this exciting strategy including exact entry techniques, stop placement and trade management.
If you are part of our mentoring program your trading instructor will take as much time as necessary to insure that you completely understand all of the steps necessary to quickly and confidently identify the different types of opens and how to profit from them. Call now at 888-755-3846 for detailed information.
2
How to determine where the "real" support and resistance is everyday
Understanding support and resistance levels is an extremely important skill in any market, and it's absolutely critical if you plan on trading the S&P and Nasdaq E-Mini markets. Professional Floor Traders are aware of an entire range of major and minor support and resistance levels before the market opens each day. They also know how to calculate new levels as the trading day progresses. Knowing where the market may turn gives you an effective road map to guide you through the day.
Most traders calculate support and resistance levels incorrectly, and to make their job even harder, they generally don't know how to trade around them. Many traders will use an old high or an old low and assume they've found support or resistance. That just doesn't work. Think about it for a moment. If the market always stopped at old highs we could never have an up trending market, and if the market always stopped at old lows we couldn't have a down trending market.
The Secrets of an Electronic Futures Trader training course provides you with all of the information you need to correctly calculate support and resistance levels before the open each day. To make your trading even easier, we also have a daily e-mail service which provides what we believe are all of the important price levels each day before the market opens. (Highly recommended for both novice and experienced traders) These are the same numbers I and many other floor traders utilize each morning. Can you imagine the "edge" this information gives you over the average trader?
Let's face it; we all want to catch the big trending days, days when the S&P moves 15 or 20 points without looking back. Unfortunately those big trending days just don't happen that often. Most days the market doesn't trend very much in either direction, instead it will move between known support and resistance levels.
Knowing the location of these price levels is important, but knowing how to trade around them can be the difference between success and failure.
The Secrets of an Electronic Futures Trader course teaches you specific entry and exit techniques, including stop loss points and money management rules to help make your day as profitable as possible. There is even one technique that can help tell you what size profits you should be looking for. I know with a fair degree of certainty whether I should be looking for a 2 to 3 point profit, or if the odds favor 8 to 10 points! Do you know how much to look for? With The Secrets of an Electronic Futures Trader course you can level the playing field.
3
One simple technique I've used to pick intraday market direction with an amazing 80% accuracy
Would you like to know if a particular trade has an 80% probability of working? Would you like to know exactly where to enter that trade, and where to exit? Would you like to trade this technique with a 2 point stop loss or less?
Using just two key numbers each day, Floor traders and other professionals can try to pick the direction, entry price, stop loss and target price of a particular trade. It doesn't matter if the market is going up or down, this simple to learn method has a historical accuracy of 80%. In fact it's called the 80% Rule !
Each morning you will know what those two key numbers are. Then, if the set up is correct, simply enter the trade, set your stops, set your target price and sit back knowing the trade has an 80% expectancy of hitting the target. What could be easier?
The Secrets of an Electronic Futures Trader course spells it all out in complete detail. Everything you need to capitalize on one of my favorite secret trades. By the way people are usually amazed at how this one works!
4
<< Prev Next >>
Would you like to learn a simple technique to determine whether or not the market is really trending? How many times have you been fooled by your Stochastics or RSI indicators? How many times have you sold because your oscillators were screaming overbought. then watched the market dip a little and then continue higher, stopping you out for another loss?
Guess who bought the dip? That's right, the Floor traders and other in- the- know professionals. You see if a market is really trending there will always be reactions against the prevailing trend. Those are the signals Floor traders love. They know the public will fall for the "fade" nearly every time.
The Secrets of an Electronic Futures Trader course provides you with all of the state of the art techniques used to determine the "real" trend. It also provides you with the exact methods used to buy those dips, or sell the pops in a down trending market. And, best of all this powerful method can be traded in two ways. Using another method outlined in the course, you can follow the trend for a "homerun", or combine this method with Secret # 2, which gives precise support and resistance levels. Now you can confidently buy support and sell resistance, all in the direction of the prevailing trend. It just doesn't get any better than that!
If you choose one of our mentoring programs your trading instructor will help you determine which exit method might be most sensible for your style of trading and account size. They'll also spend as much time as necessary making sure you thoroughly understand this powerful "secret". Call for more information at 888-755-3846
5
This is an amazingly simple chart pattern that I and many other professional traders have used to try to determine accurate tops and bottoms.
When I started trading on the floor I noticed a lot of floor traders checking their alphanumeric pagers or "beepers" numerous times throughout the day. At first I thought they had other business or personal interests that were trying to contact them. Then I noticed these "beepers" seemed to be going off at the same times through the day. I did some checking and found there are services that issue a "page" whenever a specific chart pattern appears. That pattern often identifies turning points in the market. After doing the homework I found this simple pattern would be easy for the electronic trader to spot and, best of all, the off- the- floor electronic trader would see the pattern before the floor traders beepers went off.
The Secrets of an Electronic Futures Trader course contains all of the latest information regarding this exciting chart pattern. There are even two ways to trade the pattern, an aggressive approach and a conservative approach. The course teaches you how to quickly calculate the exact entry and stop loss price for either approach.
Now you can get the "edge" even before the Floor does.
If you are part of one of our mentoring programs your instructor will take as much time as necessary to make sure you thoroughly understand all of the rules. They will also advise you as to whether you should trade the aggressive or conservative approach based on your risk tolerance, account size and personal preferences. Call us at 888-755-3846 for complete details.
6
An extremely easy method Floor Traders and other professionals use to really load the bases.
There is a simple technique many successful traders use to determine whether the odds favor trading a larger position than normal. Let's face it, if you're going to trade more contracts than normal (increasing your risk), you need a good reason, and this is it. The rules are so simple it's hard to describe without giving it away in one sentence. Let's just say it has to do with the normal expansion and contraction of the markets.
The Secrets of an Electronic Futures Trader course gives you all you need to know to take advantage of this special "secret". When you read about this little gem you're going to kick yourself for not thinking of it yourself.
7
<< Prev Next >>
Setting and accomplishing realistic goals
We've all heard of the famous commodity "guru" who turned $10,000 into over $1,000,000 in one year. It's absolutely true! He did it, and the account statements are there to prove it, but do you really believe you can do it? You've also probably seen numerous ads and websites which claim phenomenal returns with minimal work.
You know the kinds of ads I'm talking about, " 87 winning trades out the last 90", or how about, "fed up Insider tells how he averages $5,000 per day from his mountain top retreat while spending quality time with his family and pets".
I believe promotional material like this does a lot of damage to the average trader. After reading enough of these things it becomes easy to believe, (maybe not consciously), that these sorts of returns are normal, or even worse, expected, not the exceptions or hype that they really are. Because traders want to believe these kinds of returns are not only possible, but also expected, they usually end up making poor trading decisions chasing the dream. Trading with unrealistic goals, or no goal other then "to make a lot of money" is a sure fire way to go broke, and quickly.
The Secrets of an Electronic Futures Trader course, and in particular our mentoring programs, can help teach you how to set realistic and attainable goals based on your experience, account size and risk tolerance. Don't underestimate the importance of realistic goal setting; it really is the difference between success and failure.
9
Mental sabotage
We've all heard that 80% or more of all traders ultimately fail. Have you ever wondered why? When asked, most failed traders will tell you it was the system or method they were using. They'll also tell you they had a few bad trades they couldn't recover from, or their dog chewed through the telephone cord just as their computer crashed and they couldn't get out of a losing trade. Everyone has a different reason, but when you hear enough of them, a pattern begins to develop. I believe most traders fail because they sabotage themselves.
You see the markets work very differently than most other things in life. There is more freedom in this business than probably any other business in the world. You can do what you want, whenever you want to do it. You can trade 1 contract or 5, buy the market or sell it, it's up to you. The only thing that holds you back is running out of money. Most people are just not accustomed to that much freedom.
Trading the markets is also much different than most things we normally do. In everyday life we exercise some control over our environment. If the room is too dark we turn the light switch on. If we want to go somewhere we jump in the car and turn the key. In trading you can't control what the market does. No matter how much you want the market to go in a certain direction; there is absolutely nothing you can do to force that to happen. You can't turn a key or flip a switch. Hoping, pleading, negotiating, screaming, --- nothing will make the market do what you want. So, if you can't control the market, the only thing you can control is yourself. Successful traders all understand and embrace this concept. Unsuccessful traders continue to try to make the market conform to their wishes.
The Emotion Free Trading element of the course has 3 sections. The first section is called, "Skills You Do Need", and is made up of all of the skills I believe you must have to be a successful trader. The second section is called, "Skills You Don't Need". Some of the chapter titles are, "Revenge Trading", "Fear, Anger And Greed", and "Wishing, Hoping And Praying". You'll love this section! I bet many of you could have written some of this from past experiences. The third section is called, "How To Improve Yourself", and is the most important of the three sections. It includes numerous step-by-step exercises to teach you how to act in your own best self-interest, and really deal with the emotional side of trading. Without these methods I would not have been a successful trader!
9
Over the years I have met hundreds and hundreds of traders. Most of them focus so hard on finding the perfect technical method or mechanical trading system they fail to realize that the perfect system is less than half the battle.
I believe successful traders need a combination of solid technical methods coupled with the proper mental discipline. I also believe it's difficult for some people to implement these tools by just reading about them. They need a real teacher, a mentor who's really "been there and done that" someone who has made many of the same mistakes they have and survived to trade another day.
Larry has been at the Chicago Mercantile Exchange for more than 17 years. Over the last several years, he's traded between 2500-5000 contracts daily at the Exchange. Our staff of trading instructors has an average of 10 years of trading experience. They're specialists who thoroughly understand all of The Secrets of an Electronic Futures Trader methods, but more importantly, they're dedicated to helping you become the trader you know you can be.
How the Open can make or break your day
The signals I use to determine the probable direction within 2 minutes of the open. This technique discloses what I utilize to successfully trade the open. As we all know, starting off with a winning trade at the beginning of the day gives you a confidence level that can help propel you to a very successful trading day. It all starts with the first trade of the day, and this method will show you how I get on the right side of the market minutes after the open!
The Open is actually one of the best times of day to trade if you know the "Secret". Markets open in one of three ways:
Balanced
If the market opens in balance many Traders will stand aside looking for opportunities a little later in the trading session. This is also the type of open many successful off- the- floor traders tend to stay away from also. This sort of open causes nothing but trouble for the average trader who tends to chase trends that may never materialize. The Secrets of an Electronic Futures Trader course teaches you how to identify this type of open immediately. This information has saved me many thousands of dollars or more in unnecessary losses.
Out of balance to the upside
If the market opens out of balance to the upside, traders will look for a way to buy the market as soon as possible. This is the sort of day where real money can be made. The Secrets of an Electronic Futures Trader course teaches you how to identify this type of day within minutes of the open, as well as giving you a precise method for entering and exiting.
Out of balance to the downside
If the market opens out of balance to the downside Floor traders will look for a way to sell the market as soon as possible. The Secrets of an Electronic Futures Trader course will also give you the precise entry and stop points. Within 2 minutes of the open you will now be able to trade with the same "edge" I've been using for years!
The first part of the trading manual covers all of the details of this exciting strategy including exact entry techniques, stop placement and trade management.
If you are part of our mentoring program your trading instructor will take as much time as necessary to insure that you completely understand all of the steps necessary to quickly and confidently identify the different types of opens and how to profit from them. Call now at 888-755-3846 for detailed information.
2
How to determine where the "real" support and resistance is everyday
Understanding support and resistance levels is an extremely important skill in any market, and it's absolutely critical if you plan on trading the S&P and Nasdaq E-Mini markets. Professional Floor Traders are aware of an entire range of major and minor support and resistance levels before the market opens each day. They also know how to calculate new levels as the trading day progresses. Knowing where the market may turn gives you an effective road map to guide you through the day.
Most traders calculate support and resistance levels incorrectly, and to make their job even harder, they generally don't know how to trade around them. Many traders will use an old high or an old low and assume they've found support or resistance. That just doesn't work. Think about it for a moment. If the market always stopped at old highs we could never have an up trending market, and if the market always stopped at old lows we couldn't have a down trending market.
The Secrets of an Electronic Futures Trader training course provides you with all of the information you need to correctly calculate support and resistance levels before the open each day. To make your trading even easier, we also have a daily e-mail service which provides what we believe are all of the important price levels each day before the market opens. (Highly recommended for both novice and experienced traders) These are the same numbers I and many other floor traders utilize each morning. Can you imagine the "edge" this information gives you over the average trader?
Let's face it; we all want to catch the big trending days, days when the S&P moves 15 or 20 points without looking back. Unfortunately those big trending days just don't happen that often. Most days the market doesn't trend very much in either direction, instead it will move between known support and resistance levels.
Knowing the location of these price levels is important, but knowing how to trade around them can be the difference between success and failure.
The Secrets of an Electronic Futures Trader course teaches you specific entry and exit techniques, including stop loss points and money management rules to help make your day as profitable as possible. There is even one technique that can help tell you what size profits you should be looking for. I know with a fair degree of certainty whether I should be looking for a 2 to 3 point profit, or if the odds favor 8 to 10 points! Do you know how much to look for? With The Secrets of an Electronic Futures Trader course you can level the playing field.
3
One simple technique I've used to pick intraday market direction with an amazing 80% accuracy
Would you like to know if a particular trade has an 80% probability of working? Would you like to know exactly where to enter that trade, and where to exit? Would you like to trade this technique with a 2 point stop loss or less?
Using just two key numbers each day, Floor traders and other professionals can try to pick the direction, entry price, stop loss and target price of a particular trade. It doesn't matter if the market is going up or down, this simple to learn method has a historical accuracy of 80%. In fact it's called the 80% Rule !
Each morning you will know what those two key numbers are. Then, if the set up is correct, simply enter the trade, set your stops, set your target price and sit back knowing the trade has an 80% expectancy of hitting the target. What could be easier?
The Secrets of an Electronic Futures Trader course spells it all out in complete detail. Everything you need to capitalize on one of my favorite secret trades. By the way people are usually amazed at how this one works!
4
<< Prev Next >>
Would you like to learn a simple technique to determine whether or not the market is really trending? How many times have you been fooled by your Stochastics or RSI indicators? How many times have you sold because your oscillators were screaming overbought. then watched the market dip a little and then continue higher, stopping you out for another loss?
Guess who bought the dip? That's right, the Floor traders and other in- the- know professionals. You see if a market is really trending there will always be reactions against the prevailing trend. Those are the signals Floor traders love. They know the public will fall for the "fade" nearly every time.
The Secrets of an Electronic Futures Trader course provides you with all of the state of the art techniques used to determine the "real" trend. It also provides you with the exact methods used to buy those dips, or sell the pops in a down trending market. And, best of all this powerful method can be traded in two ways. Using another method outlined in the course, you can follow the trend for a "homerun", or combine this method with Secret # 2, which gives precise support and resistance levels. Now you can confidently buy support and sell resistance, all in the direction of the prevailing trend. It just doesn't get any better than that!
If you choose one of our mentoring programs your trading instructor will help you determine which exit method might be most sensible for your style of trading and account size. They'll also spend as much time as necessary making sure you thoroughly understand this powerful "secret". Call for more information at 888-755-3846
5
This is an amazingly simple chart pattern that I and many other professional traders have used to try to determine accurate tops and bottoms.
When I started trading on the floor I noticed a lot of floor traders checking their alphanumeric pagers or "beepers" numerous times throughout the day. At first I thought they had other business or personal interests that were trying to contact them. Then I noticed these "beepers" seemed to be going off at the same times through the day. I did some checking and found there are services that issue a "page" whenever a specific chart pattern appears. That pattern often identifies turning points in the market. After doing the homework I found this simple pattern would be easy for the electronic trader to spot and, best of all, the off- the- floor electronic trader would see the pattern before the floor traders beepers went off.
The Secrets of an Electronic Futures Trader course contains all of the latest information regarding this exciting chart pattern. There are even two ways to trade the pattern, an aggressive approach and a conservative approach. The course teaches you how to quickly calculate the exact entry and stop loss price for either approach.
Now you can get the "edge" even before the Floor does.
If you are part of one of our mentoring programs your instructor will take as much time as necessary to make sure you thoroughly understand all of the rules. They will also advise you as to whether you should trade the aggressive or conservative approach based on your risk tolerance, account size and personal preferences. Call us at 888-755-3846 for complete details.
6
An extremely easy method Floor Traders and other professionals use to really load the bases.
There is a simple technique many successful traders use to determine whether the odds favor trading a larger position than normal. Let's face it, if you're going to trade more contracts than normal (increasing your risk), you need a good reason, and this is it. The rules are so simple it's hard to describe without giving it away in one sentence. Let's just say it has to do with the normal expansion and contraction of the markets.
The Secrets of an Electronic Futures Trader course gives you all you need to know to take advantage of this special "secret". When you read about this little gem you're going to kick yourself for not thinking of it yourself.
7
<< Prev Next >>
Setting and accomplishing realistic goals
We've all heard of the famous commodity "guru" who turned $10,000 into over $1,000,000 in one year. It's absolutely true! He did it, and the account statements are there to prove it, but do you really believe you can do it? You've also probably seen numerous ads and websites which claim phenomenal returns with minimal work.
You know the kinds of ads I'm talking about, " 87 winning trades out the last 90", or how about, "fed up Insider tells how he averages $5,000 per day from his mountain top retreat while spending quality time with his family and pets".
I believe promotional material like this does a lot of damage to the average trader. After reading enough of these things it becomes easy to believe, (maybe not consciously), that these sorts of returns are normal, or even worse, expected, not the exceptions or hype that they really are. Because traders want to believe these kinds of returns are not only possible, but also expected, they usually end up making poor trading decisions chasing the dream. Trading with unrealistic goals, or no goal other then "to make a lot of money" is a sure fire way to go broke, and quickly.
The Secrets of an Electronic Futures Trader course, and in particular our mentoring programs, can help teach you how to set realistic and attainable goals based on your experience, account size and risk tolerance. Don't underestimate the importance of realistic goal setting; it really is the difference between success and failure.
9
Mental sabotage
We've all heard that 80% or more of all traders ultimately fail. Have you ever wondered why? When asked, most failed traders will tell you it was the system or method they were using. They'll also tell you they had a few bad trades they couldn't recover from, or their dog chewed through the telephone cord just as their computer crashed and they couldn't get out of a losing trade. Everyone has a different reason, but when you hear enough of them, a pattern begins to develop. I believe most traders fail because they sabotage themselves.
You see the markets work very differently than most other things in life. There is more freedom in this business than probably any other business in the world. You can do what you want, whenever you want to do it. You can trade 1 contract or 5, buy the market or sell it, it's up to you. The only thing that holds you back is running out of money. Most people are just not accustomed to that much freedom.
Trading the markets is also much different than most things we normally do. In everyday life we exercise some control over our environment. If the room is too dark we turn the light switch on. If we want to go somewhere we jump in the car and turn the key. In trading you can't control what the market does. No matter how much you want the market to go in a certain direction; there is absolutely nothing you can do to force that to happen. You can't turn a key or flip a switch. Hoping, pleading, negotiating, screaming, --- nothing will make the market do what you want. So, if you can't control the market, the only thing you can control is yourself. Successful traders all understand and embrace this concept. Unsuccessful traders continue to try to make the market conform to their wishes.
The Emotion Free Trading element of the course has 3 sections. The first section is called, "Skills You Do Need", and is made up of all of the skills I believe you must have to be a successful trader. The second section is called, "Skills You Don't Need". Some of the chapter titles are, "Revenge Trading", "Fear, Anger And Greed", and "Wishing, Hoping And Praying". You'll love this section! I bet many of you could have written some of this from past experiences. The third section is called, "How To Improve Yourself", and is the most important of the three sections. It includes numerous step-by-step exercises to teach you how to act in your own best self-interest, and really deal with the emotional side of trading. Without these methods I would not have been a successful trader!
9
Over the years I have met hundreds and hundreds of traders. Most of them focus so hard on finding the perfect technical method or mechanical trading system they fail to realize that the perfect system is less than half the battle.
I believe successful traders need a combination of solid technical methods coupled with the proper mental discipline. I also believe it's difficult for some people to implement these tools by just reading about them. They need a real teacher, a mentor who's really "been there and done that" someone who has made many of the same mistakes they have and survived to trade another day.
Larry has been at the Chicago Mercantile Exchange for more than 17 years. Over the last several years, he's traded between 2500-5000 contracts daily at the Exchange. Our staff of trading instructors has an average of 10 years of trading experience. They're specialists who thoroughly understand all of The Secrets of an Electronic Futures Trader methods, but more importantly, they're dedicated to helping you become the trader you know you can be.
Subscribe to:
Posts (Atom)