April 12, 2011
Day Trading the Golden lunch Session
What is the Golden Lunch?
o The time after 11am and before 12pm EST (noon)
o Usually this is more dramatic when we have a very slow open of the day
o We see this very often on Monday mornings without any major news
o When the last morning news event is sent out, the price will slow down, until 1130am est when the European markets close
o How do we know when to look for it?
§ No news on a Monday morning
§ No news on a Friday, NO GOLDEN LUNCH, end of the week
§ If the market opens and stay VERY slow
§ Sometimes there will be a minor news report (NatGas, Home Sales)
§ When the market is very slow and it doesn’t improve after 10am est
o How do we know when the Golden lunch will not be in play?
§ On Friday’s
§ Lots of IMPORTANT news today
§ Lots of speed from 8am through 11am EST
o How do I trade this golden lunch?
§ Beware of red pace of tape
§ Beware of slow speed, this is RED FLAG that prices may reverse
§ Trade with caution, don’t forget this will be the LAST MOVE of the morning
§ Im looking for the PERFECT trades to get in after 1130am
§ Im keeping my eyes peeled for slowing speed, this tells me we are too late
§ Take your money and RUN! Don’t get greedy!!!
§ Place your final target conservatively, and don’t get greedy!
– What are the different colors on the Time and Sales
o Green = Buyers
o Red = Sellers
– Difference between Fast Track and Advanced (Gina)
o Fast Track has NO flexibility, very strict rules (done to make you follow the rules)
o Advanced Method uses more flexible entry rules (we use compensating factors)
– How do we keep from trading in choppy zones?
– What sized account to you need?
– Discretionary trading?
o $500 for the emini’s way too small
o $1500/contract as my minimum
o $2,000 is ideal per contract
– Auto Trading
o $2,000 min account size, does NOT use overnight margins (1% drawdown on $200k account)
