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Can a trading partner help?

Every trader from day one til years down the road should have a partner or mentor to learn from or collaborate with. It’s always great to bounce around ideas and see things you wouldn’t have noticed otherwise. The relationship between one or more trading partners can be more valuable than reading tons and tons of books on trading. You are gaining insight, ideas and most of all experience. The old saying goes, two heads are better than one. The nice thing about having a trading partner is that you share not only ideas but strengths and weakness. One will have a better outlook, better strategy or even better investment ideas. These become your strengths. The weakness are great to see from another person’s perspective because they can be pointed out and worked on. A partnership is one where you discuss trading pre-market, during market hours and do a recap at …

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Being on the right side

There will always come a time in a trader’s career where he or she will face the tough scenario of being on the wrong side of a trade. Either by a tiny bit or by scaling into a position to lower the overall cost average and hope for the best. What can you do to better your chances of survival when you’re not on the right side? Let’s first examine what happens when a trade starts going against you. There come times when everything looks great. Whether you’re trading with the trend or against it. And as soon as you enter your trade and get filled the market starts moving against you. What do you do? First thing is to assess the market environment and where your trade stands. And since we all know I’m a contrarian trader lets looks at what happens when a trend keeps going and you’re …

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Wall Street vs. Main Street

Oh, those famous terms. Wall Street and Main Street. Seems pretty straight forward right? Well, let’s take a closer look. What do they really mean and how does it affect the common trader and investor. Wall Street has always been the grouping of market makers, hedge funds, big banks and institutional traders. Main Street is your average Joe. Not to sound belittling in any way but that’s the simple and honest truth. Where do we as traders fit in? I’m not too sure. Nor do I care. But what I can say is both sides are on completely different spectrums and usually Main Street takes the beating in the markets. The point is we all as traders need to follow Wall Street and they’re moves. Think like them and act on it. Only then can we so called beat the system. We hear it all the time on CNBC. References …

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Taking advantage of the pre market

We all trade the markets when they open at 9:30 eastern time. But have you ever looked at or even thought about what the pre-market holds? The beauty of futures is that they can be traded literally almost 24 hours a day. This includes the pre-market that we see and never pay attention to. Keep in mind that the best times are when a major exchange opens. Such as in Asia or Europe. Otherwise, we are looking pretty flat. Let’s go over the basics and see why the premarket is such an awesome way to trade futures as well. I traded futures back when I spent some time in Europe. And it was amazing! Trading E-minis at 9 am European time and then again at 3 pm. Which was 9 am here in the united states? Double the opportunity to make money! However, for the sake of most traders here …

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Reading the candles part 2. Support & Resistance in futures trading

We’ve gone over the simple aspects of reading candles and the valuable information they give us. Today we will go over support and resistance and identify crucial moments in 5-minute candles and how they give us an edge in determining the perfect entries in futures trading. While trading the open with my partner Paul today, he brought up a great point. There are patterns of candles. Whether they are in a sequence of 2 or 3 or even 4 in a row that identifies a change in buying or selling pressure. As I looked into this I found that there was. I usually just overlooked this. Not the actual pattern but more so because it’s already installed in my brain so it comes second nature to me. This morning we were looking for short entries in the e-minis at around the 2368.00 level. 5 or 6 candles hit that level …

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