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Day Trading E-mini Futures Trade Setup That Works Daily

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Day Trading E-mini Futures Trade Setup That Works Daily

day trading e-mini futures
Day Trading E-Mini Futures

Here’s a very specific day trading E-mini futures setup that occurs consistently several times every week. I love that it has a very clear logic to it. In other words, there’s a good reason it’s so consistent.

It’s also one of the easier trades you’ll find (not that trading is ever “easy”).

What you’ll learn from this video can be used by E-mini traders, but also stock market and Forex traders as well.

Enjoy the video and please leave your comments below.

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons at the very bottom of this article.

VIDEO TEXT:

Welcome to this video on Day Trading E-mini Futures. One of my favorite setups that I look for every single day. This is very, very reliable. I invite you to add this to your trading arsenal. So here it is.

It’s a volatility trade based on the behavior of traders that is fairly darn predictable. So this is not one of those trades that’s based on, oh you know some ancient Phonecian, numerology or something that’s esoteric , or astrology or anything like that. This is based on very real behavior of traders, especially those at the exchanges and on the floor.

I noticed this when I was at the Chicago Mercantile Exchange. Now I was on the floor and they have a real advantage there. A lot of the pits are closed down now but I’m talking back in the olden days when I was getting some training there and so I was down on the floor of Chicago Mercantile Exchange as a student.

THE ADVANTAGE OF BEING ON THE “FLOOR”

It was very obvious that people would trade very actively during the morning and then they would go to lunch. And we all know this that, I am not telling you anything that you don’t know there. But as I was watching the E-mini futures pit, it was very interesting because most people know that general rule. That the market’s most active in the morning and then dies down at lunch time and then volatility can come back in the afternoon.

However it was very interesting because when I was there, you could literally and physically see which traders were leaving and which ones were not. And that’s the real advantage, it really is. You could see whether, you know the whales were leaving or if they were staying into early lunch. Sometimes they wouldn’t leave and then other times they’d leave and they’d come right back. It’s almost like they are trying to fool people, heck I think they actually were. And because they knew, hey everybody knows this general pattern. Once everybody knows something, guess what, it’s going to stop working.

THOSE TRICKY DAY TRADING E-MINI FUTURES FLOOR TRADERS!

Sometimes they’d leave early, sometimes they’d stay late, sometimes they come back to lunch early and so forth. And yeah there’s an advantage of being able to see that. But if you’re not trade at the floor, you know I’m a screen trader myself, then there’s a general rule that we can follow and then we just have to watch the energies and the chart around that time.

So here it is, and again this works for day trading E-mini futures but you can use this for day trading anything. It’s really specifically for day trading, not for swing trading. It’s based around the time of day and that is the end of lunchtime when people are coming back and they start trading actively again.

HOW TO TRADE THIS AS A SCREEN DAY TRADER

Here’s how I do it now as a screen trader. There’s a little range of time so these times down here. These are California Times because I’m in California. That would be noon eastern so you can do this with stocks too by the way. Stock market works exact the same way. So this would be noon eastern and obviously then that’s 11 am central. Futures mostly trade out of Chicago, and so that’s the big futures market there. And you’re looking to for the market to go kind of flat here.

Then to come back in somewhere after 10:00 am PT which would be 1:00 pm ET. Sometimes they take longer than an hour. But it’s usually after this time and I’m looking at it anywhere from like about 10:15 to before 11. So, about 10:15 to 10:45 am PT. Kind of that half hour zone is really the matching zone that we’re looking for.

Okay, so if you look at this, and we’ve done some recent videos on Bollinger bands. Bollinger bands help you with this too because when the market stay down, they go into low volatility, and so you see the Bollinger bands squeezed together here. We’re looking for an expansion out of the contraction. That’s the whole point after lunch is over around this time. So that’s the setup.

HOW TO IDENTIFY THE DAY TRADES ON THE E-MINIS

Now how do we identify those trades? You can tap whatever trading method you use, whatever signals you use, whatever indicators you use. I don’t have time to go into my whole trading method, obviously we just a few minutes here. That’s one of the nice things about this is that you can really apply this to whatever technical analysis method you use.

If I’m using Bollinger Bands, it really helps. You know what I’d be looking for here, just to give you little indication is, you know first of all cycle high. This is a kind of an average momentum exhaustion pattern here for us. And then we look to trade in the direction of the expansion in here, if you watched my videos on Bollinger Bands. Bollinger Bands, we hit the lower band and they move away from each other and that’s a good indication of increased volatility in this direction. So that would be one example.

You can use this for day traiding E-mini futures as I like to do, but it will work with Forex and stocks as well, as long as you’re doing it during the lunch time of the market you’re trading.

EXAMPLE #1

Okay lets go the next day, we just do a couple of days in succession here. And let’s see, look around that same time. Alright so here we go, and each one, each setup will look a little different. Setup’s not necessarily the same all the time. What is the same, and we are looking for is the expansion of volatility.

Here we get a cycle high. And then this is the key here. So this time the market comes back up, makes another cycle high, but does not touch the upper Bollinger Band. That shows weakness to the upside. Therefore we are looking to go short, also momentum is decreasing. That’s momentum shift at the high.

Day Trading E-mini Futures

Therefore we’d be looking to go short and that’s exactly what happens. Volatility comes in dramatically to the down side. See this is the thing about volatility. It determines the range of your profits. And that’s why this trade is so good is because you are trading inside of low volatility and catching a new high volatility movement in the market.

EXAMPLE #2

Let’s look at the next day, we like to catch these big momentum moves. Why? Because well, lot of profits to them. That’s your reward, part of the risk reward ratio. Right here we go again. Around the same time, now you could, this one came a little earlier, came right at the end of lunch time, would be your signal. And you could trade this, a couple of different ways again.

Here we get our momentum signal to go long. Comes up, touches the upper Bollinger Band, alright. Then you can even wait a little later if you wanted to. And just take the first retrace in the trend here. In the sense of going quite a ways, get a nice move again. Big move in the direction of your trade. Which is good for profits, and we like profits.

EXAMPLE #3

Alright, and here is yet another one. That’s would you look at this, could be the last one. Because we are already kind of late here into this. So again notice, Bollinger Bands squeeze occurring. We touch the lower Bollinger Band, we do not touch the upper Bollinger Band, and then again Bollinger Band, as they start to move away from each other.

We go into the lower Bollinger Band. We’ve got a cycle high, we’ve got a lower momentum, momentum shift here, and that’s our key to take this in the direction down as it expands. Then again the whole moved, depending on how long you wanted to stay in it. Pretty good move, right. Pretty good profits there.

So that’s the idea, is to look for keys, I’ve given you couple of tips there, but you can use other methods as well. Whatever your trading method is, to look for trades coming out of lunch for increased volatility, for some pretty nice big trades. So that’s one way I day trade E-mini futures, you can use it with stocks as well of course.

GET ONE OF MY FAVORITE TRADE SETUPS FREE

Also, right now, I am giving away one of my favorite trade strategies, it’s called the Rubber Brand Trade. It has an extremely high win loss ratio. It’s a very simple strategy, you can learn it in about, well probably 26 short minutes. Get that video explaining the trade strategy absolutely free by clicking on the image in the top left corner. Or if you are on a mobile device, go ahead and click on the little ‘I’, with a circle around it, in the top right hand corner of this video.

And if you are not watching the video on YouTube, then there’s probably a link either below, or in opt in form on the side and however you decide to ask for the video, please I look forward to giving it to you. I will personally send it to you via email.

Pay It Forward My Friend

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

Leave a comment below telling me what other day trading strategies that works you’d like me to teach in the future.

Also I am giving away one of my favorite day trading strategies that work today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

For another excellent trading video, simply click here:
http://www.topdogtrading.com/e-mini-futures-profitable-strategy/

Go here to Subscribe to my YouTube Channel for notifications when my newest free videos are released:
https://www.youtube.com/user/TopDogTrading?sub_confirmation=1

 

If you plan to go passive investing, be prepared to make some active choices

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Passive investing is becoming quite popular these days. Investors are pulling their money from actively managed funds and putting it in passively managed funds – like index funds or exchange traded funds. For one thing, it costs less. However, financial advisors warn that investors should keep active funds in mind as well, and a combination of both is the best investment strategy.

Key Takeaways:

  • If one wants to be successful with passive investing they must have an active strategy
  • A good passive portfolio will likely consist of a mix of ETFs and or index funds that provide exposure to equities and fixed income
  • Financial advisors say to diversify and be sure not to chase returns. Doing so will lead to buying high and possibly selling low which diminishes profits

“Passive investing has been steadily gaining steam over time as investors pull their money from actively managed funds and instead pour it into lower-cost passively managed options, such as index funds and exchange-traded funds.”

http://www.cnbc.com/2016/11/18/successful-passive-investing-can-take-active-strategy.html

Valeant scandal: 2 pharmacy execs arrested for fraud

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Andrew Davenport, the former CEO of Philidor Rx Services (a mail order pharmacy) and former Valeant executive, Gary Tanner were arrested for a multimillion dollar scheme in helping customers get insurance coverage for higher priced Valrant drugs instead if cheaper ones. They’ve acquired over $300 million dollars and Tamner and Davenport used their shares to pay off debt, for homes, amd luxury items. They used secret email accounts and aliases to comunicate and they thought they were going to have a happy ending, riding off into the sunset, but that is clearly not the case now.

Key Takeaways:

  • Two executives from the Valeant drug company were arrested and charged with concocting a massive fraud scheme
  • The two men illegally converted Valeant shareholders’ money into their own personal nest eggs
  • Since the incident it is said that Valeant’s stock has crashed by 90%. The two men were said to have stolen over 40 million dollars from Valeant shareholders

“Valeant has become the focal point of anger from lawmakers and consumer groups over the dramatic drug price hikes at some pharmaceutical firms. Last year, federal prosecutors started investigating the way Valeant prices and distributes its drugs.”

http://money.cnn.com/2016/11/17/investing/valeant-execs-arrested-fraud-philidor/index.html

Day Trading Strategies That Work Today

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Day Trading Strategies That Work Today

Day Trading Strategies that Work
Day Trading Strategies that Work in Today’s Market

The markets are constantly changing, therefore day trading strategies that work today may be different from those that worked 10 years ago.

There are some tools that are timeless however, and one of those is Bollinger Bands, created by John Bollinger

Bollinger Bands measure the volatility in a market as the move from a high volatility cycle to a low volatility cycle. The can be used whether you trade stocks, futures, E-minis and Forex.

What you’ll learn from this video can be used by day trading and swing trading participants alike.

Enjoy the video and please leave your comments below.

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons at the very bottom of this article.

VIDEO TEXT:

Welcome to the video. I’m going to teach you day trading strategies that work in today’s markets. I like to use these myself and you can use them with the current method that you are already using.

So this is what I really really like. It uses Bollinger bands. You can see the Bollinger bands on here, and I just use very typical settings of 2 standard deviations on a length  of 20. You can test other inputs if you like to.

There are some common misconceptions about Bollinger bands. One of them is, for some reason new traders think that price moves between them so goes down to the bottom and then it goes up to the top one and then down to bottom one, then to the top one.

It’s supposed to hit the top and the bottom between every cycle. And that’s really not true at all. Now sometimes it will happen but that’s not really the idea of Bollinger bands. That’s one of the day trading strategies that work today.

HOW DO BOLLINGER BANDS REALLY WORK?

So the idea here is that it measures volatility. And there is a cycle in the market between high volatility times and low volatility times. What do I mean by volatility?

Volatility is when the market moves, makes a high and a low. And a high and a low. It’s that range. So we could say that’s a high volatility market in comparison to market that’s just making short ranges between the highs and the lows. That will be a low volatility market. Now these are non-trending. Volatility high and low. But the market could be moving in a direction as well. As we have here, we have a trend.

So one of the nice things about the Bollinger bands, by the way I do recommend John Bollinger’s book of “Bollinger and Bollinger Bands.” I’ve met him, nice guy. And that’s a great book too. And he is of course the ultimate expert. I guess he’s the one who invented these things. So he certainly knows a lot more about it than I do.

I then take this and I incorporate it into my own trading methodology. What I look for is a contraction of the Bollinger Bands and this is called a Bollinger Band squeeze. Very common trading method. Certainly did not make this up myself. I got it from others.

You’re looking for the Bollinger Bands to move toward each other, to get very close to each other. Here they are far apart, and here they are close together. So that indicates a low volatility cycle in the market. And what I’d like to do is then get in toward the end of that, when volatility comes back in. because I like to trade when there’s a lot of movement in the market. Where there is lot of range, lot of follow through because that determines my profits.

HOW TO USE DAY TRADING STRATEGIES THAT WORK TODAY

So how do I do that? That’s the big question. I wait until we’ve got these contracting together. Then I wait for them to start moving apart. Okay, see how they’re starting to move apart there. That’s the first indication that okay, we’ve got some increased volatility. Then I wait and I look for the last level. Either the lower Bollinger Band or the upper Bollinger Band, for the market to touch.

Look how it comes back and does not touch the other band. Does not touch the other band. So what that says is now the directional bias is down. It’s bearish. And I have also got my trend indicator which is confirming that as well that this is down, but I don’t want this to go up and hit the upper Bollinger Band, in order for the bias to be down.

We’ve got a cycle high here so this is about timing. That’s the whole thing, we’ve got trend down, the volatility is stronger on the down side than the up side. See how this move lasts longer in duration, time and price level than the retrace? That shows that there’s more bearish energy than bullish energy. That’s what you want, you want to trade in the direction of dominant energy.

TIMING YOUR ENTRIES AND EXITS

And then timing. This is our little timing indicator down here, this gives us the indication that time is ready to put in a high, and go back down in the direction of the dominant energy of the market. By the way if you are interested in this timing indicator. It’s really amazing and I am happy to give it to you absolutely free. Just send me an email at Barry@TopDogTrading.com.

I do live webinars where I give you the indicator and show you how to trade it. What signals are valid, what signals are not valid. And all of that. Takes about 30 minutes and it’s all for free. Simply send me an email and I will let you know whenever you email me, since these videos are out there for a long time, I don’t even know if I’d be offering it still when you happen to watch this video, but if I’m offering it, I will let you know when and where.

Okay, so now that we have got the dominant energy to the downside, touches the lower band, moves back up. By the way this black line, that’s a 15 EMA, look for that to hold. I don’t use the actual middle Bollinger band. I use the 15 EMA. And I want that to hold as resistance. And that shows again that if it can’t get above that, that shows energy to the downside, weakness on the retrace and we put all that together and then we look for to move back down, touch the lower Bollinger band again.

There is our move down, actually goes all the way down to here. That’s your lowest low. And then again we want, so we got strength to the downside, and then weakness moving back up. It goes to the 15 EMA, strength back to the downside, see how it actually will ride down the lower Bollinger band. It doesn’t even touch the upper one. That’s what you want for directional movements. That’s exactly what you want.

COUNTING WAVES IN A TREND

Now 5 wave pattern is about average for trend. And these aren’t Elliot waves. These are my own waves count. Here it goes down even further. Because it was so bearish. But we could, here again, comes back up to the 15 EMA. Another cycle high pattern. And it goes back down there again.

Now here is where I would get them. So it goes back up. Notice on this one, it comes back down but does not touch the lower Bollinger band. We get a cycle low and it does not touch the lower Bollinger band. To me that shows some weakness. And it is weakness. It’s, you still could have well close to the trading day here this specific time.

But for me, I am not going to tempt fate, it does make a lower low but for full disclosure and transparency, I just tell you I would definitely get out there because that is to me, in my mind signal of weakness is that it does not touch the lower Bollinger band here. So it is you know turns out to be a temporary decrease and you see here too, we get little bit of Bollinger band squeeze if you will, don’t know if statistically it is, but the lines are pulling back together again.

And hey we never know for sure when the final low is going to be in the trend or the final high. Nobody has that kind of foresight. The point is if you made some money, you’re doing good. If you got in here, and then you got out here. You’re done, good, be happy, take your money, go home and celebrate.

So that’s the Bollinger band technique. That’s how I use it along with. Can’t use it in isolation, or at least I don’t use it in isolation. But I use it with my trend indicator, cycle indicator, momentum and the wave counting.

So if you liked this video and you are watching it on YouTube, go ahead and click the thumbs up icon below and leave a comment, because that encourages me to create more free tutorials for you.

Also, I am giving away one of my favorite trade strategies, called the Rubber Brand Trade. Which has an extremely high win loss ratio. It’s one of the day trading strategies that works today and you can learn it in about 26 short minutes. Get that video explaining the trade strategy absolutely free by clicking on the image in the top left corner. Or if you are on a mobile device, click on the little ‘I’, with a circle around it, in the top right corner of the video.

And if you are not watching this on YouTube, well then there’s probably a link around this video somewhere, maybe in opt in form on the side of this page, and you can use those to go ahead and request the free videos. Once you do that, I will personally email that video to you along with my trade setup called the rubber band trade.

Pay It Forward My Friend

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

Leave a comment below telling me what other day trading strategies that works you’d like me to teach in the future.

Also I am giving away one of my favorite day trading strategies that work today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

For another excellent trading video, simply click here:
http://www.topdogtrading.com/learn-day-trading-strategies-that-work/

Go here to Subscribe to my YouTube Channel for notifications when my newest free videos are released:
https://www.youtube.com/user/TopDogTrading?sub_confirmation=1