5/5 $720 In Total Profit, In The Live Trade Room

Market Commentary November 10, 2009Well it was another great day of trading for all of us at the School of Trade! There weren’t too many news events to worry about in the markets today, really with the exception of only a few members of the FOMC committee speaking around 10:00 and 11:00am EST. We really didn’t see too much disruption in the price action of the markets we traded; who knows, maybe traders are finally starting to ignore these guys! Either way, it didn’t stop us from having a great day in the markets, going 5 for 5 with a total profit of $720, and all being done with a trade account as little as $4,000! (That’s almost a 20% return on your account today).

Our first trade of the morning came earlier than usual, and was a refreshing way to start our trading off with some consistent profits on the Gold market (Symbol GC). As I am writing this, the Gold market has not made new all time highs today; I know a shocker right! But don’t worry there were still some great swings in the market this morning for us to take some trades. The gold market has kept a rather strong base today right around the $1100/oz range, and by the end of trading it will be easy to see that strong buyers came across the tape to keep the market up most of the day (Identify Market Sentiment For Day Trading Futures). Earlier this morning though, after breaking new highs for the day, it was clear for us to see, while reading the ticker tape, that the buyers would not hold the market up for long, and so we watched closely to spot a potential School of Trade set-up. We didn’t have to wait too long either, as the gold market was seemingly hitting a new high, the buying pressure on our P.O.T indicator began to slow, and we entered the market with a trend reversal trade called the 2-Step, to the short side. Our order was executed at 8:30am EST with a basis of 1103.2; which was a great entry price to have because soon after the market took off to the down side, giving us the ability to take profits at +4 ticks (2 contracts) +8 ticks and our final contract getting us an additional +8 ticks, for a total of +24 ticks ($240)

Our next trade did not occur until a few hours later, due to the U.S markets opening up and the FOMC decided to speak, we waited patiently for the right opportunity to show itself in the market. As we began to scan the markets for a possible set-up, we found one in the Crude Oil (Symbol CL). At 10:20am EST we were finally given a set-up to take, with a Breaker pattern long, this was a little higher risk for us than usual, but with the ticker tape showing us buyers were entering the market strongly, we decided to enter ( Crude Oil Futures Day Trading Video). Our order was executed at 80.31 and we were able to scalp off a few ticks before the market pulled back on us, giving us profits of +4 ticks (2 contracts) for a total of +8 ticks ($80).

At this time in the morning, the markets really began to move, giving us some great trading opportunities. Our next trade also came on the Crude Oil (Symbol CL). The market had begun to find a top shortly after our previous trade and the sellers were waiting patiently to reverse the market. We began to notice this change in momentum from reading the ticker tape as well as our Pace of the Tape indicator and decided to join the sellers by entering the market with a 2-step short order (Price Patterns Technical Analysis Futures Video). At 10:31am EST our trade was executed with a basis of 80.40 to the short side; without even giving us time to react, the market quickly dropped and filled our first target of +4 ticks (2 contracts) before pulling back slightly and closing our order out for a total profit of +8 ticks ($80).

The fourth trade of the morning, and also on the Crude Oil, came only minutes after our previous trade and once again to the short side (Scalping Futures Day Trading Video). After our third trade had been executed, the Crude Oil market had continued its downward trend, and so we instinctively looked to enter the market with that trend. With selling pressure still flowing into the market, we placed a short order to be executed at 80.22. With our sell order being executed at 10:38am EST, the market continued its sell off, allowing us to lock in profits for our trade account at +4 ticks (2 contracts) for a total of +8 ticks ($80).

The fifth and final trade of our morning came on the Gold market (Symbol GC). Since our first trade on the Gold market, price action had been pushed up even further, making new daily highs into the U.S market openings (Gold Futures Day Trading Video). The buyers continued this trend later into the morning, but we soon noticed that more sellers were taking positions and more buyers were taking profits. Seeing this change in momentum, we began looking to identify a possible short trade. At 10:50am EST we finally were able to execute our order to the down side with a Breaker price pattern. With our trade being executed at a basis of 1106.0, we caught the sell off at the perfect time, because sellers soon flooded the market, giving us the ability to take profits at all three of our targets for +4 ticks (2 contracts) +8 ticks and another +8 ticks, giving us a total of +24 ticks on our final trade of the day ($240).Review Our Trades From Yesterday!
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