Recent Posts

The truth behind CNBC. And why it should matter to you

We as traders and or investors watch CNBC all the time. I watch it daily. Why? More so for the background noise to be completely honest. All the financial gibberish they spew out is quite laughable at times. I mean yea we can get valuable information such as earnings releases, major news announcements or jobs numbers. But even then I see the moves happening before they report it. Interesting how that happens huh? I thought so too. There are two important things to remember. Remember the old saying “buy the rumor, sell the news”? Well they do both! They already know the numbers. And so do the big players. Why do you think the futures make huge moves a few seconds before the release? That makes a hell of a difference in fast paced trading. That’s the advantage they have. Knowing so much information that we just can’t gain access …

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Timing the market isn’t easy. Instead focus on a solid entry point

To know the perfect time to enter the market would mean you are a market maker. There is no way to perfectly time the market. The price action you see on the charts happen because in the moment, it needs to get to a certain price and in a certain way. To beat the market, your going to have to figure out how to play the waves. There will be times where your heart tells you, now, go now, now is the time to enter. What does the price action do? blow right past your entry. Lets discuss. First off, why did you take the trade? you took it because you assumed you were going to profit. Just like everyone else who thought that, typically, you didn’t profit! am I right? unfortunately I am. The only way to make money in the stock market long term, is by feeling out …

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The Market Is Rigged. You Enter And It Goes Against You

Ever feel like you are always on the opposite side of the trade? how is this so? After all, it seems like no matter what you do, you always have it wrong. This is my quest to conquer why this happens. Lets break it down. In order to win on a trade, you need to have the right price at the right time then sell off at the right price and the right time. Most newbie traders feel they only have to get the direction right. Thats not true. How many times have you been in a position, only to sell off at the top and then it comes all the way back to your entry. When looking at the bigger picture, it went back to your entry after how many candles? How did it get back to your entry? The market is most definitely rigged in my eyes. Now …

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Thank God it’s Friday. Why I’m cautious on trading the Friday close.

This article is pretty simple and straightforward. We talk about caution and patience all the time. There are times as traders we look at the close and say wow this is such a great setup. I need to get in this. However let’s ask ourselves one important question. What is as equally important in trading as growth? That’s preservation of capital. We can’t do that when we put positions on overnight and have to let the mercy of the market hand us our fate. The beauty of trading futures is that that we can literally trade them 24 hours a day. Within reason of course. There are slow periods as well as times when they close for maintenance. So placing a trade late in the afternoon when the volatility creeps back in isn’t as bad. We can monitor them and trade as necessary. Unlike Monday until Thursday, Friday presents a …

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Take what the market gives you. Don’t dictate what you want

All the time we find ourselves in a position where we say to ourselves, “if only it hits this price” or “I’ll wait for another candle or another move”. Whatever you subconsciously say to yourself, it happens all the time. You want this. You want that. Does the market care? Hell no. The market will go in whatever direction it wants. And the moves can be extraordinary. So what happens in this situation? How do you snap out of it? Again this is a touchy subject because it dives back into my previous article of trading on emotion. Let’s see what the causes are and how to remedy them. This topic isn’t as sensitive as trading on emotion. Only because it contains a bit more sanity. It’s just dealing with finding perfect entries and price points. Not a big deal in the bigger scheme of things. But still an issue …

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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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Reading the candles. Why they matter

One of the most overlooked tools in a traders arsenal are the candle sticks. We all know what they are. But did you know just how useful they can be? I trade with 5-minute candles. Many people also choose 1 minute and 15-minute candles. For the sake of this article let’s stick with the 5-minute candles. They are simply put price action within every 5 minute period. They set a low and high and give you an idea of where the trend will go. And whether there is good volume and where it is coming from. When combined with other indicators and a few mental tricks I will go over, you’ll see just how important they can be. First let’s look at the candle and how it helps us assess a trend. There are so many things we could go over. Such as dojis, falling stars and other setups that …

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The secret to trading. Keep it simple

I’ve heard it and seen it over and over. “This guy uses like 4 or 5 indicators and it sounds so good. He’s making it work.”Anyone can make an explanation sound so perfect your like wow this must be the real deal. It’s actually so far away from the truth. Trading is a simple game. Long gone are the days of earnings releases and news announcements. Now we are simply trading on human emotion. And of course, computers however that’s another topic. When it comes to looking at your charts it should be simple and clean. You shouldn’t be confusing yourself with the new holy grail of indicators and in the end, lose money anyway. I’ve learned through my years of trading that the best way to trade is to keep it simple. There is no need to re-invent the wheel. The only indicators I use measure momentum and volume. …

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Why trading E minis is the best thing ever!

I’ve traded almost everything in my trading career. From stocks and options. To commodities and even forex. But one investment vehicle stood out and has become my bread and butter. Those are called futures. More specifically, E-minis. Maybe hands down one of the best to trade as a day trader. This is my opinion of course since they have brought me insane success. Let’s first go over what E-minis are in the first place. E-minis are simply a futures contract that tracks the S&P 500. It’s traded on the CME. That’s the Chicago mercantile exchange. It trades in terms of ticks and points. One tick is .25 and equals $12.50. One point is $50. So case in point if you buy a contract at 2300.00 and sell at 2301.00 then you made $50 dollars. E-minis trade under the symbol ES. You need permission to trade these. Which your broker will …

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