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Market Commentary November 6, 2009Well another Friday has come and gone, and with it brought yet another profitable day for the School of Trade! We had a good amount of news evens come out throughout the trading day, from the Non-FarmEmployment Change and Unemployment Rate for the U.S at 9:30am EST to Canadian news andEuropean news as well earlier in the morning. With all this added volatility, it certainly had us being
extra cautious when taking trade, but didn’t stop us from making money! We were able to take six
trades today and went 6 for six with a total profit of $932. The beauty of our style of trading is that allyou need is a $4,000 dollar account! Because, for example today we took trades on the Euro futures,which has a $500 margin/contract and the Crude Oil, which only costs $1000 in margin/contract. Thisalso provides you with a nice 1.5:1 RISK/REWARD RATIO!(Futures Day Trading Account ManagementVideo) Our first few trades of the day came on the Crude Oil market (Symbol CL). The Crude Oil market basicallytrended down the entire day, with brief periods of pullbacks. Initially in the early morning hours theCrude Oil market sold off quite strongly, due to the Canadian Employment Change and UnemploymentRate, which came out at 8:00am EST. Once those negative numbers had passed, we began to look forour first possible trade, given the added volume in the market at that time(Identify Market SentimentFor Day Trading Futures)
. We didn’t have to wait too long, because with the open outcry pit trading
beginning at 9:00am EST, more volume was beginning to enter the market. At 8:54am EST weestablished that our classic breaker pattern had set-up in the market and we entered the market longwith a basis of 77.59. As our stop limit order was executed, we saw more buyers enter the market, viathe ticker tape, and were able to lock in profits at +4 ticks (2 contracts) and +8 ticks, for a total of +16ticks ($160).
 
 Our second trade of the morning, which also came on the Crude Oil, was taken shortly after the openoutcry pits began to pick up in volume at 9:00am EST. With the added volume in the market, we noticedthat price action was beginning to find a brief top for the moment being, and we quickly looked to takethe market short with our trend reversal trade, the 2-step(Price Patterns Technical Analysis FuturesVideo). At 9:18am EST we entered the market short with a basis of 77.77; the selling pressure
didn’t last
long, but we were still able to scalp off +4 ticks (2 contracts) before closing our trade out at a profit of +8ticks ($80).
 
 The third trade of the morning came shortly after the second, and once again on the Crude Oil (SymbolCL). After the U.S news had been released and the volatility had died down some, we looked to enterthe market once again, but this time with the trend, which was to the long side. With the U.SUnemployment rate coming out, the Crude Oil market began a strong rally, at which point we decided to jump on the trend and scalp a few ticks from it(Crude Oil Futures Day Trading Video). At 9:38am EST we entered the market long with a breaker pattern and a basis of 78.41. As the market continued its rally,we were able to take profits at our first profit target of +4 ticks (2 contracts) for a total of +8 ticks beforeclosing the trade ($80).
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