Why Preparation Leads to Successful Trading – Trade Setups 5.31.16

Slow day today for us, and we started out with a couple of losing trades.  Losing trades are part of the business.  As a trader I expect to have losses, and by expecting to have losses I deal with them a lot easier now than I did when I first started.  When I first started to trade I didn’t expect to lose, and the losses were much harder to heal from.

We kept our losses in check today because we believed it could be a slow day.  Why did we believe it could have been a slow day?  It all comes from my preparation.  Today, the ES gave us a range bound look on our Beacon Indicators, and the rest of the markets we follow were not in key areas for day trades.  No stories or themes from headlines in the overnight trade, as well as coming off a three day weekend.  

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Correlations in the Dollar Giving us Opportunity in Gold – Trade Setups 5.26.16

This morning we were once again focused on the Dollar to be the leader. Lately, we’ve been seeing our Beacon Indicator levels showing us the dollar moving in opposite directions against Gold and Euro. Today we had opportunities in both Gold and Euro to line up for shorts while the Dollar was at support. It is important for us to see these types of correlations line up for confirmation, because it solidifies our reasoning for a trade. The more confirmation we have, the more confidence we have in our execution.

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What Rallied E-Mini S&P (ES) Today, 15 Ticks in Euro (EC) – Trade Setups 5.24.16

This morning I talked with our traders about the bullishness I was seeing in equities, in particular the E-mini S&P.  I have been tweeting the past few weeks about the flattening of the 2/10 and 5/30 year yield curves.  This flattening typically means bearish action and ES futures ignored this action. ES also ignored the rally in the Dollar, which is also typically bearish.
When the cash markets opened today ES drifted higher.  There was no real way for us to get into a trade because we did not get a setup to trade off of.  You don’t catch every move, even if you believe you know the direction of the market like we did today in ES.  

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9 Point Long Scalp Setup in Crude Oil – Trade Setups 5.23.16

Earlier today, I tweeted out “Knowing when to trade and when not trade has never been more important in the trading business. No more walking-in and clicking. #patience”

Today was a no trade for us in the ES, but CL provided a scalping opportunity.  It generated a long with tight targets.  Due to the slow conditions, I recommended to our traders that if they were to take the trade, just know that the markets are quiet and taking most or all of our profits at target 1 may be all she wrote.

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