hello traders it's samurai trader here welcome to this training session well
it's really more of a Q&A I suppose answering some of the many questions
that I've received I have over 2,000 members of the day traders fast-track
program in 10,000 traders in my trading community and I've seen an incredible
increase in emails the last 2 or 3 days about my opinion on the current state of
the market well in the end traders my opinion means nothing the markets will
do what the markets do and if we consider a couple of key facts that
pres since President Trump has been elected it's a little over a year now
the markets have risen 37 percent it's also over 500 days since we've seen a
major correction in the market so it's about time in many ways that we had a
correction so we've seen a lot of these Corrections of course every year or so
we'll see an incredible move in the markets and this is where really we as
traders need to take a step back and consider a couple of major questions so
some of the major questions are do we actually trade the markets what do we do
do we stand aside do we take a break for a few days do we trade an alternative
market and particularly if we look at the equities markets some of them for my
style of trading have just been totally untradable that is I don't like
incredibly fast moving markets and we'll discuss some of the reasons why what
perhaps some of the alternatives may be so this won't be a long recording but
I'll cover a couple of key points some of the old dogs some of the very more
experienced traders some of this may be very fundamental for you very old school
but for some of the newer traders I'm going to cover some important points
understanding the risk if you're new to my channel or a new member of course
please remember that there is a risk in trading please pause the video and read
the disclaimer if you're new to my channel or just watching this video or
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better still join my channel visit my website and join the day traders
fast-track program visit my site you'll be able to discover a lot more about my
trading style what I do and a trading program etc but I don't want to turn
this into a big ad so let's move promptly on and discuss for last few
days so if we look at the volume for yesterday which was Tuesday / 6th of
February was actually Wednesday down under in Australia but if we look at the
US market a couple of really important things let's take the ES to begin with
it really started last Thursday Friday we saw an incredible increase in
volatility increase we normally we sort of see around 1.6 to 2.4 maybe
million contracts trade on the ES we actually saw on Tuesday four point seven
million contracts trade by the close of business so there was some incredible
volatility and even during the Globex session if I remember correctly that's
the overnight session there was over a million contracts traded the NQ which is
typically around a couple of hundred thousand maybe two hundred and fifty
thousand contracts there was eight hundred and five thousand so we saw some
real increases now a couple of areas it was were we saw an increase but we're
still fairly stable where areas like CL the black gold
okay so crude oil which typically it's around say around the six seven hundred
thousand mark we saw 773 gold was up by a good hundred thousand contracts so 457
but it was still what I call tradable that is it wasn't flying like the NQ the
ES and we're going to be of course discussing a couple of key points on
that at the moment but what I want to show you was the volume today so we've
now got the the markets of after close so down under here in
Australia where I am it's 7:54 a.m. so 6 minutes until the market closes in New
York so it is by the way for my Asian clients it is the 8th of every but it is
the seventh for our u.s. members now if we look at the es for last figures I
took a screenshot of it was two million three hundred and ninety six thousand
contracts and on the NQ 576 so we can see here a dramatic drop in the volumes
that we saw on Monday and Tuesday so the market is slowing down and that brings
up one of a develop one of the butt points that was really brought up
earlier was do we stand aside do we take a break if we're really hooked on
trading the ES the NQ or maybe the YM some of your equities funds yes I think
it's a good time to really stand aside because there are some considerations in
fast moving markets so let's take a few of them first of all if you trade a tick
chart a range of volume or a Renko chart of course where they're based either on
volume or a range in price they were absolutely flying and for my style of
trading where yes I will quite often use a market order but this you know it was
just almost gapping it was just flying it was under tradable now if you're
trading using a time-based chart whether it be a three minute or a five minute or
a 15 minute whatever time frame you may use the problem there of course was the
size of the candles you had incredible size candles and then if you're tucking
you're stopping under a three minute or a five minute
candle of course you had massive stops so we need to consider some of those key
points and which are the key considerations in fast moving markets of
a type of orders and the order fills so if you like to normally use a
say a limit order well the market was moving that quickly by the time you put
your order and it already gone past it and you weren't getting filled and if
you were using same market orders the slippage on those was absolutely
incredible and so that's something you needed be prepared for and of course if
you have a slower internet connection you are penalized even further so some
real considerations there when you're using market all limit orders it just
was near impossible now if we then take the size of the stops it's another big
consideration is that in fast moving markets if you like to say tuck your
stop under the closest swing high or swing low
you stops are incredibly large which meant which then mean your targets need
to be bigger if you wanted to try to stay within a one-to-one risk/reward it
makes it very very difficult in fast moving markets so it really gets down to
traders what do we really do when we have these sorts of market conditions
well if you like to trade the indices type market say the the NQ the ES if we
go look at what do we got the YM the DOW even the Russell very very difficult
when you've got high really incredible volume credible movement consider taking a couple
of days off remember the markets are going to be here next week next month or
next year but on the other hand you could consider other markets like if we
consider CL crude oil that yes we saw quite an increase in volume today but
it's um it's Wednesday in the US and of course we've got the inventory report so
that naturally brings a couple hundred thousand extra contracts into the market
but generally take staying away from the red flag news announcement your gold
wasn't bad CL was tradable you could then consider your currency futures
markets like the the euro the yen the Australian dollar so there are some
other markets which you should really consider
swapping to it's it's really it's only a couple of days usually so we see these
incredible times of volatility are usually over and wrapped up within two
or three days they settle settle down and so one of the things I do have to
say if you just have to trade have you got a trading problem are you taking a
gamblers mentality is that we need to be able to stand aside if the market
conditions are not right for our trading or consider another market and Cl gold
the currency futures have been mighty fine most of the time for trading so we
are seeing a slowdown so just remember of course volatility can increase but if
you if your trend trading etc you're not going to have too many issues if we see
in an increase in volatility so traders consideration is the type of orders
order fills there's either way and the size of stops and and a point of one to
say there of course even if you have got to stop and it is a large stop just
remember a lot of traders have been seen massive slippage on their stops it's
almost been gapping through their stops so what may have se been a ten tick or a
ten point stop they seen four or five ticks slippage
going through their stops in fast moving market so in closing really consider
taking a holiday for a couple of days or consider alternative markets so once
again traders if you're not a member of a day traders fast track program come
along and join us $197 you receive all of my set ups there's now over 100 hours
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Thank You members and general traders I'll see you on the next video