hello traders its a samurai trader here welcome to this training session on the
29th of January 2016 I've got a lot to cover today so I'll actually break this
up over a number of videos because I'm going to cover some trades that I've
took today myself and also a lot of questions from trader students and
traders over the last week or two so before we get underway of course if you
haven't already done so please read the risk disclaimer and let's get into it so
master your tools master your setups master yourself this takes time I deal
with really two types of people brand new traders or those with very little or
no experience or experience to very experienced traders many of the
experienced traders need to retrain themselves that is they've lost a lot of
money trading or perhaps it's not making it as yet traders you need to stop
trading real money draw a line in the sand and give yourself time so if you're
an experienced trader the challenge for you is you need to retrain yourself and
to break some of your old training habits and of course I cover this
extensively in the day traders fast-track program but you really need
to do it but you can do it and for new traders if you're brand new to trading
you need to give yourself time you'll hear me talk about this regularly that
it's like an apprenticeship or an internship you've got an opportunity to
master and be involved in one of the greatest income business opportunities
in the world today but it takes time you know you're not going to pick it up
overnight so be kind yourself and give yourself time and I like to talk about a
minimum of 90 days and that's before you start trading one or two strategies
which we're going to get to in a moment but traders stop trying to do everything
overnight if you've been losing money you need to go back and reach
showing yourself remember traders when we blow our accounts once or twice we do
do psychological damage to ourselves we become skeptical we don't we no longer
trust ourselves and these are all issues that we need to deal with this takes
time so that's point number one the next point I'm going to talk to you
about when we look at the charts in a moment is information overload of course
I teach you I'll what over 12 different strategies and techniques for trading
but remember you only need some master one or two of these to be an incredibly
successful trader if you try to master too many of them you will fail because
of information overload you can only think of so many things at once and
that's really important likewise when you first if you're a new
student and you first look at the program you see so much information so
many videos remember the first 30 days just go through everything so thoroughly
take copious notes it's just so important and when you do start trading
and even when you start using the simulator use it on one or two
strategies not all 12 or 13 okay so build it over time and the next thing is
here is something that I want to remind you of and this is I've got this poster
on my desk under my screens here I'm patient I'm disciplined I'm focused I'm
a sniper one shot one kill I'm a rules-based pattern trader now the
reason I'm such a good trader is that and I'm not saying this to be get a
Stickle it's just I'm great at seeing patterns I've trained myself to
recognize patterns never don't always work and remember it doesn't have to be
a perfect pattern for an example if something looks like a double bottom or
a double top but it's not perfect it's still probably going to react the
same way likewise when I've got a lower high or a
higher low if it's perhaps it's taken 40 candles to form that or 20 on another
time whatever it's still probably a lower higher or a high low
so remember trading is not perfect but after a period of time you become very
very good and that's really trade is what I'm looking for I'm looking for
patterns but t25 is a pattern t2 is a pattern t1's a pattern the 89b is
a pattern you know they're all patterns so after a period of time you will learn
these patterns but getting back to the original thing just before we go to the
charts now I want to remind you of be kind yourself give yourself time take
your time particularly if you've been trading for a period of time and it
hasn't been working for you you need to retrain yourself so let's go and have a
look at some charts and we'll talk about a few things here so what we're looking
at trade is is price action on the ES 1000 now I'm going to honored some other
videos by the way we're going to do a recap on the NQ when we're going to do a
recap on some forex trading so I'm going to do probably three or four videos
today so I'll be answering I've got a ton of as I mentioned questions and
things that like explain from students and other traders so I'll do that over a
number of videos so this one here getting back to this this is the ES 1000
volumes which is I really like now remember last week we had some incredible volume
though we were seeing I think the top day there we had over 4 million US
contracts ES sorry trial contracts trade which means you have to jump from
in my opinion a 1000 share bar or volume bar up to a 2,000 or even a 3,000
because the markets moving that quickly so be aware of that
so yes during normal market hours I will trade the 1000 however when the market
goes crazy you need to lift your time frame or at least I do anyway that is if
it's moving too quickly and the other thing if it's done which I wanted to
mention too is that if it's going absolutely crazy maybe you should just
sit the day out not even trade for the day you don't have to try every day
remember what we saw last week over those 2 or 3 days
crazy price action I mean some of it at times almost untradable and there's
another reason why it becomes untradable if you're a one contract trader and if
you only have three or four thousand dollars in your account remember the
rules of risk you never ask any more than two percent absolute maximum and if
you're hoping for an example um if we take this here if the markets going
crazy and you want to put your stop two ticks below this little swing low the
market might be up here it means you might have a twelve ticks top which
might make it a three or a four percent risk on your account now remember in
trading traders we have what we call Murphy's Law if it's gonna happen it
probably will so you know the day you start putting these big stops in if you
put your stops two ticks under the under these little swing lows or above these
swing highs you're going to get stopped okay and it hurts your account it really
does but then that shudders your confidence please remember that so one
of the questions I had is what do we do with our stops in fast moving markets
well here's one way of looking at it we are momentum traders which means that
you know hopefully we're in a position where the markets really moving for us
so if we have a fixed stop so rather than say tucking if we were taking this
counter trend rather than tucking our stop down here if the markets moving or
even above here if the markets moving and we use a fixed stop that's okay too
you don't have to go and tuck your stop above your swing high swing low I prefer
to do that however it's a consideration and the type of trade you're taking for
an example t25 what our t25 t25 s our momentum
trades okay so you got a one candle this is almost a t25 almost a t25 this is one
candle here that's the t25 now a t25 of course in
fast moving markets okay to go with one candle pullbacks here you've got
at t25 you've got t25 and you've got good momentum so therefore you can have
smaller stops and remember when I talk about a six to eight ticks stop on the ES
that's at $12.50 per tick remember on the NQ it's five dollars a tick or $20 a
point on the YM it's five dollars point and there you need generally like on the
133 NQ you need a stop of at least 12 to 14 ticks if you're going to put your
stop above your closest swing higher swing low
so remembering traders and this is a question that has been asked your stops
are different from market to market and this also gets back to you doing a bit
of fun spending some time looking at the market you're trading what may be the
ideal stop to spend some time on that so let's move along here I focus on two or
three strategies or techniques maximum okay if ever I get any spelling errors
traders please forgive me so um and the reason I say that it's really easy to
get confused because I'm going to show you a pile of things here on this chart
but remember I've been doing this a long time it makes it easier but I still get
overwhelmed and make mistakes so this is where you really want to minimize so
let's have a look at a couple of things I wanted to point out first of all when
you get these um L_-lines I call these we get these T1 signals which is our
paint bar which does not form until this third bar ticks down you've got a
lower high right these are a great trading opportunity but they don't
always work just remember that but I do like them so quite often you'll see me
mark these up and I may not explain what they are it's bits in my own trading
it's what it's just a lower high or a high low all right we've got the bubble
and let's have a look here and we might come back and do another video in a
moment I want to minimize this to under 15 minutes but here's what I want to
first point out here is with the channels now when I'm doing one-to-one
coaching and in the live trading room by the way we'll be drawing channels as we
go but well I'm training trade is one-to-one
we always do channels because let me just put a cave yet on that providing
the markets not moving too quickly if the markets going crazy you don't have
the time to do a lot of these things so in a slower market like today we draw
channels now here I'll go use my pivot lows pivot the pivot then I'll just
extend it right okay so I'll draw pivot the pivot and
extend right now what I want the point here is that the pivot lows I like to
see it a t1 now look at this here see you've got your t1 signal there and
you've got another one here I've just drawn a trend line from there to there
now look what happens when I extend that to the right where are we to the right
let me just move along here a little bit I want to show you something here it's
right at the top of the screen notice how price action come up and bounced
straight off that trendline so we've got basically a wedge being formed now up
here I had a pivot low the pivot low I do a trendline extended a parallel line
up here and so instead of price action coming up here continuing it hit this
other one and bounced off just start drawing them um I could spend a whole
session actually I should really do another training session just on drawing
these in because this is really relevant on a failed trade I really want to show
you here and it was actually a silly mistake and this is really gets down to
hey we all make mistakes and but sometimes like if they come off it's
still a higher probability trade but in this particular case I want to give you
a little rule that will people out of some of these that I did not follow so
here I've got my paint bar here so you can see it here see how I've got this
lower high here right there now this also was the first 89b in a new trend
traders I should have set this out should would coulda but I didn't i
shorted here on this candle even though this candle is a green candle I went to
jump in I was just trying to get a better price but I'd already had a 89b
signal and this stung me for eight ticks okay so I had eight ticks
automatically on my trading dumb I didn't change it and that cost me gee
so it was an expensive trade now what I wanted to point out a couple of things
here for you to learn from is number one it was the first 89b so trading
against the first 89B a new trend which is silly to trade against so I just
shouldn't have done it okay on top of that look at this trend line okay it
bounced off it to a tick basically can you see that so here is my low just
there okay and their trend line extended it right come up and we come down we
bounced off it we went up and then we bounced off this other one and you can
see here we're basically forming what I call a wedge anyway in here okay so we
bounced off there then it went through now what's also interesting is we punch
through it there went up there and we had a perfect t20 now just the point is
here that I wanted to point out be very careful in trading against your first
and sometimes even your second 89b's in a trend because the 89b's is you
know are a great trade so if you look up here remember I mentioned with your
89b's its a target your upper pivot okay so if we go up here and let me just just
going to move this on my computer screen here I just want to show you something
here okay so we've got this pivot high extend that to the right and of course
it's 89b head down here at the signal our entries on the closures over
a little the triggerline here right so it was good for a good 10 ticks
it went up there and exceeded that swing high we had here so I trade it against
that and it bit me hard so hey that's it so then why did I take this trade well I
took it because of my lower t1 okay that's why I talking so there is a
couple of things there and by the way I hadn't drawn in the trendline at that
stage all right if I had if it things may have been different so I drew that
in saw that gave myself a kick but then you
know what you line up Phoenix trade so what we're going to do is I'm going to
do a second video because I'm going to explain some other trades why I had
three entries here so I'll see you on video two