Stops and Targets Trade Management Day Trading Futures

-          Stops and Targets

o    What type of trader are you?

o    Scalper = always use the same stop and first two targets

o    6-10 tick stop

o    Target = +5/+10/Runner

o    Day Trader = stops and targets can be the same, but often they are different

o    10-20 tick stop

o    I can also use standard 10 tick stop or 20 tick stop, but make sure you use standard targets too.

o    I can also use support and resistance in the market im trading.

o    Targets = +10/+20/Runner

o    Swing Trader = stops and targets will ALWAYS be DIFFERENT.

o    Always use different stops and targets.  Find support and resistance on the market you’re trading and use that for your stops and targets.

o    What’s my risk tolerance?

§  Do I have a problem taking losses?

§  Am I unafraid of small losses?

o    What’s your trading experience?

o    10 years of experience or 10 minutes or experience?

o    The more experience you have the wider your stops

o    The wider you stops the wider your targets can be.

         

-          Why does the profit target NOT get filled sometimes?  Liquidity.

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-          What is my definition of the perfect pattern?

-          My job as a new trader is to find MY PERFECT PATTERN and then practice until you know it more than anyone else.

-          JJ’s perfect pattern is a trend reversal 2-step off the HOD/LOD

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-          Divergence arrows, how important?

-          Use the notes and watch the video in the advanced course to learn more.

-          The slower the chart timeframe the more important the arrow signal.

-          4range arrows are NOT as important as the 21range arrows.  Slower = more important.

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-          Large accounts with low volume markets, how do we trade these?

o    Under 20 contracts you have no issues ($50,000)

o    Above 20 contracts you now need to worry about slippage and lack of liquidity.

o    Entry will not be as good, it will be a little bit different b/c of slippage.

o    Need to give my targets room to be filled.   

o    Multiple timeframes for double confirmation, what do we use and when?

o    Two Most popular ways to use multiple timeframes:

o    Trend lines:  mark your TL on the slow chart and use that trend line as your guide when trading on a faster chart.

o    Momentum:  im looking for multiple timeframes to have momentum pointing in the same direction.

o    Example, looking long:  all momentum curling up.

o    What are the different market personalities

o    Moving stop to breakeven, what are my options?

          

-          Why is it more difficult to trade the Euro breakouts?  Its high volume, similar to the ES           

-          What if my power goes out while you’re in your trade:

-          Find a new set of underpants (scared!!)

-          Call your broker

-          Toll free number, best thing is to have a toll free number directly to the trade desk.

-          Stops and targets are still active, they are already on the server, not YOUR computer.

-          If you lose power or your internet often (once a month) I would suggest a backup

-          Power backup is easy ($300)

-          Internet back-up may be tough, so look in your area and get some sort of back up plan in the works.

Different market personalities:

-          High volume , lots of moves (good)

-          Low volume , no moves (bad)

-          Long Bias (dollar was dropping)

-          Short bias (dollar was rising)