Trade Aptitude

day trading swing trading technical analysis May 10, 2024

Today’s Best S&P Futures Turning Points: Buy 5231.25 stop 5227.25. Short 5296.25 stop 5300.75.

Thursday’s results: Shorting 5249.50 filled in the Globex session (3AM ET) and stopped out.

The World Index: (+100/-100) jumps from +14 to +50 with all major world markets Bullish.

Catalysts: Fed’s Bowman @ 9:00. UofM Sentiment (Preliminary) & Inflation, Fed’s Kashkari, and Logan @ 10:00. Fed’s Goolsbee @ 12:45.

Quick Tip: Fast Moves

Everyone loves a fast move in your chosen direction. Study enough price charts and you’ll see a recurring pattern: fast move up, base, fast move down. Sometimes the base is non-existent, and a pivot is formed. This pattern happens in reverse as well.

Fast moves stall and/or reverse more often than they just keep going. Taking some if not all your profit is never a bad idea. You can always re-enter at a better price during...

Trade Aptitude

personal development psychology May 09, 2024

Today’s Best S&P Futures Turning Points: Buy 5185.25 stop 5181.75. Short 5249.50 stop 5253.50.

Wednesday’s results: Neither trade triggered.

The World Index: (+100/-100) improves from -14 to +14, mixed sentiment and low volatility.

Catalysts: Jobless Claims @ 8:30. 30-Year Bond Auction @ 13:00. Fed’s Daly @ 14:00.

Quick Tip: Is it fun?

In James Clear’s awesome book Atomic Habits, he reveals “The Truth About Talent.” While there is a genetic component to the answer, it’s not the only component.

Talent also comes from learning, training, and practice. But before you agree to dedicate yourself to all that work, you need to really like what you’re doing. It’s difficult to persist when you don’t like something. It’s easier to persist when you do.

Clear offers a few questions to ask yourself so you can “pick...

Trade Aptitude

risk management technical analysis trade planning May 08, 2024

Today’s Best S&P Futures Turning Points: Buy 5185.25 stop 5181.75. Short 5249.50 stop 5253.50.

Tuesday’s results: Neither trade triggered.

The World Index: (+100/-100) drops from +29 to -7 with Asia Bearish and the western world mildly Bullish.

Catalysts: Crude Inventories @ 10:30. Fed Speakers: Jefferson @ 11:00, Collins @ 11:45, Cook @ 13:30. 10-Year Note Auction @ 13:00.

Quick Tip: Fractals

One common rule in many trading strategies is to honor the trend from a higher time frame. If you’re day-trading a 5-minute chart, consider the 30-minute trend. If you’re swing trading a 60-minute chart, consider the daily trend.

There is more to be gained from this multiple time frame analysis.

Markets are fractal, meaning the price patterns on the chart repeat themselves in different time intervals. With this knowledge, here’s some ideas for gaining edge:

1. Entries...

Trade Aptitude

personal development trade planning May 07, 2024

Today’s Best S&P Futures Turning Points: Buy 5185.25 stop 5181.75. Short 5249.50 stop 5253.50.

Monday’s results: Shorting 5206.50 triggered at the close of the cash market and wasn’t taken. If you converted it to a swing trade it was only worth 4.25 points.

The World Index: (+100/-100) drops from +60 to +29 as the Bullish sentiment fades on lower volatility.

Catalysts: Fed’s Kashkari @ 11:30.

Quick Tip: Intuition

The best way to start trading is to have a plan with an edge and the discipline to execute without emotion.

Once you’ve arrived there you will have considerable experience and that leads to intuition. The interplay between these two can often be the difference between a profitable trade and a significant loss.

Experience is gained through considerable time observing markets, making trades, witnessing cycles, and understanding economic indicators.

...

Trade Aptitude

personal development psychology May 06, 2024

Today’s Best S&P Futures Turning Points: Buy 5156.50 stop 5152.25. Short 5206.50 stop 5211.25.

Friday’s results: Shorting 5142.00 was filtered out during the Non-Farm Payrolls release/volatility.

The World Index: (+100/-100) remains at +60 with all open major world markets Bullish.

Catalysts: Fed’s Barkin @ 12:50, Williams @ 13:00.

Quick Tip: Perfect Practice

If you were an actor you would not only memorize and practice your script, but you would listen to or watch a recording of your performance to hone your act. Repeatedly. Practice and review.

This sequence is the formula for mastery. It applies to anyone wanting to truly master their profession including traders.

It’s critical that you practice in simulated mode before risking real money. You want to develop “mental muscle memory” and confidence.

It’s even more critical that you develop a ...

Trade Aptitude

trade planning May 03, 2024

Today’s Best S&P Futures Turning Points: Buy 5065.00 stop 5059.25. Short 5142.00 stop 5146.50.

Thursday’s results: The buy at 5054.25 stopped out.

The World Index: (+100/-100) soars from +8 to +60 with the all open major markets Bullish.

Catalysts: Non-Farm Payrolls @ 8:30. Final Services PMI @ 9:45. ISM Services PMI @ 10:00.

Quick Tip: Trading Styles

Yesterday you chose your primary asset class to be trained in, stocks, options, futures, or Forex. During that training you’ll be learning a rule-based trading strategy. (If you missed the prior blogs click here to read them).

The best way to get started trading is to have specific rules to follow. Entries and exits. Position size. Risk management. All these rules combined are your strategy. Eventually you’ll have more than one strategy but to start it’s best to focus on mastering one.

Strategies can be lumped into basic...

Trade Aptitude

trade planning May 02, 2024

Today’s Best S&P Futures Turning Points: Buy 5054.25 stop 5049.50. Short 5127.75 stop 5132.25.

Wednesday’s results: The short at 5092.50 was filtered out during the FOMC volatility.

The World Index: (+100/-100) soars from -50 to +8 with the open major markets mixed on lower volatility.

Catalysts: Jobless Claims & Trade Balance @ 8:30. Factory Orders @ 10:00. AAPL reports after the close.

Quick Tip: What to Trade

Yesterday you determined your time and starting capital commitments. Next is the asset class you’ll trade. (If you missed the blog click here).

Best choices…

Position Traders (weekly time commitment): Stocks (high capital requirement) and Forex (low capital).

Swing Traders (daily time commitment): Stocks (moderate capital), options, Forex, and futures (all low capital).

Day Traders (hourly time commitment): Stocks...

Trade Aptitude

trade planning May 01, 2024

Today’s Best S&P Futures Turning Points: Buy 5004.75 stop 5000.25. Short 5092.50 stop 5097.50 (filtered out during FOMC from 14:00 to 15:00).

Tuesday’s results: Buying 5082.75 stopped out.

The World Index: (+100/-100) plummets from -7 to -50 with most major world markets Bearish.

Catalysts: ADP Employment @ 8:15. S&P MFG PMI Final @ 9:45. JOLTS, ISM MFG PMI @ 10:00. Crude Oil Inventories @ 10:30. FOMC Rate Decision @ 14:00 and Press Conference @ 14:30. AAPL reports after the close.

Quick Tip: Time First

A friend told me he wanted to start trading and asked what he should trade, stocks or cryptos.

The asset you choose to trade is not decision #1. Your first consideration must be time. How much time do you have and want to commit to trading?

A retired empty nester has all the time (and likely money) to trade whatever she wants. Her brother who is still working 50 hours...

Trade Aptitude

psychology risk management trade planning Apr 30, 2024

Today’s Best S&P Futures Turning Points: Buy 5082.75 stop 5078.25. Short 5176.00 stop 5181.75.

Monday’s results: Neither trade setup triggered.

The World Index: (+100/-100) plummets from +50 to -7 with mixed sentiment and lower volatility.

Catalysts: Employment Cost Index @ 8:30. Housing Price Index @ 9:00. Chicago PMI @ 9:45. Consumer Confidence @ 10:00. AMZN/AMD earnings after the close. Waiting on FOMC.

Quick Tip: Fix FOMO

Fear Of Missing Out (FOMO) in trading is the anxiety from the thought that others are winning while you’re on the sidelines.

While your trade plan has entry rules to follow that should eliminate FOMO, it’s hard not to feel it when an asset or the market is soaring or plunging and you’re idle.

FOMO breeds impulsivity and that usually means extra risk you shouldn’t accept.

Solve this by having an abundance mentality....

Trade Aptitude

day trading futures trade planning Apr 29, 2024

Today’s Best S&P Futures Turning Points: Buy 5082.75 stop 5078.25. Short 5176.00 stop 5181.75.

Friday’s results: Neither trade setup triggered.

The World Index: (+100/-100) eases from +64 to +50 with all major world markets Bullish.

Catalysts: Nothing on the economic calendar. Waiting on FOMC.

Quick Tip: Which Contracts?

One of the many benefits of day trading Futures is there are many markets to trade. Stock indexes, currencies, interest rates, metals, energies, etc. Each of these markets will have its own structure at any given time: Trending or not, volatile, or not.

The question becomes which contract(s) you should trade and when. Here’s a quick look at filtering for candidates:

1. Volume. Without adequate volume you’ll experience slippage and not perform as well in the real world.

2. Margin. Check with your broker and determine whether your account size can afford the...

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