Trading to win using the Secret Code of the Illuminati

Tentative Action

Money Management

Ten points range to work with…better than those six point ranges we had during Holiday Trading.

We had some of the pieces right in today’s trading, but not all.

We liked the early short and test for support, and we liked the bounce from 58. What was annoying was the squeeze into the 68.

Short trades worked scalping, but it was obviously the hard way in hindsight.

We were careful not to delude ourselves, as we could see the rotation and the blue line trade.

Friday’s 69  held, and we had that as today’s key resistance.

I thought we might test lower this morning, but warned our traders that we had to assume 56 was the support target.

The traders who are reluctant to risk a  few points at the edges often lose the best risk/reward trades.

That idea of risk and reward was the theme of today’s seminar.

[07:58]  E: 10 and 60 in play

[08:01]  E: for now, all we know is friday aft squeeze up and dump

[08:28]  E: aggressive traders using the 67 gap as resistance

[08:29]  E: and the 59 low is support til broken

Good enough for gov’t work.

E: [08:30]  E: puts the 63 middle

[08:35]  E: all we can say is that we have tested the 57/59 area 2 time

[09:07]  E: nicholas darvas

[09:07]  E: how i made

[09:07]  E: 2 million

[09:07]  E: it will help u get the idea of “boxes”

[09:11]  E: Darvas was a dancer…

[09:11]  E: let your winners ride

[09:11]  E: key idea

[09:12]  E: most important to me…

[09:12]  E: he did not have to force trades

[09:12]  E: he had income from his “job”

[09:13]  E: so that he was not under the stress of watching little gyrations like we do

[09:13]  E: as a trader

[09:13]  E: if u accept day trading as your job

[09:13]  E: scratching out small wins

[09:13]  E: hit and run

[09:13]  E: and have your longer term accounts

[09:13]  E: be the “position”

[09:13]  E: it is same idea


[09:46]  E: take profits by the half gap

[09:47]  E: is advised

[09:47]  E: if u took the support

[09:47]  E: this is first hr range set up

[09:47]  E: if u are agg shorting

[09:47]  E: ahead of gap

[09:47]  E: scalp all we can do

[09:48]  E: this is the 456

[09:53]  E: [09:28]  E: and this immediate 64 resistance

[09:53]  E: [09:27]  E: bounces we will try to short

[09:57] TC 89: good start 2 week :)

[09:59] XX: Didn’t take this, saw it coming but … :(

[10:01]  Z: first hr pg 62.25

[10:03] TC 89: 58.25 is s1

[10:05]  E: ty great post

[10:07]  E: dont get caught

[10:07]  E: 56 is support target

[10:33]  E: half gap 64.75

[10:33] : Gap?

[10:34]  E: 67.25

[10:34]  E: using 66 as resist for scalp

[10:34] XX: I know are we heading there? Is what I was saying

[10:37] XX: Yep

[10:37] XX: I didn’t see the DB either

[10:37] XX : Stupid

[10:38] XX : But it was CLEARLY on my charts

[10:39]  E: first comes understanding

[10:39]  E: second comes execution


[10:51]  E: if market cannot fill gap this morning

[10:52]  E: then i think we retest the 59

[12:18]  E: do not over trade

[12:19]  E: market has not done anything other than range trade 10 pts globex

[12:40]  E: this is lunch trading

[12:40]  E: so do not feel compelled to do anything

[12:40]  E: primary trade was up this am

[12:41]  E: still like shorting bounces today

[12:41]  E: til proven wrong

[13:00]  E: if wrong

[13:00]  E: so what

[13:00]  E: it still is the idea

[13:00]  E: of xx

[13:00]  E: and we know it is not high odds

[13:00]  E: but it is the trade u need if u like the pb and test support idea

[13:29]  E: 62 lunch low

[13:30]  E: key now

[13:30]  E: PP 66

[13:31]  E: i think the shorts have been careless about defending first hr high

[13:31]  E: makes shorting harder

[13:31]  E: because above the blue line as well

[13:33]  E: the demon today is   67.5

[13:34]  E: so careful of the patient shorts now at the final barrier

[13:34]  E: if u like long side

[13:34]  E: and clearly the bears are wimpy in the middle

[13:34] TC 89: 66.25 is lwm

[13:34]  E: so over stay nothing if u short

[13:35]  E: yes

[13:35]  E: and this xxx

[13:35]  E: need hard fast bar

[13:35]  E: before lunch ends

[13:35]  E: or this wrong area

[13:40]  E: daily chart helps us see the idea of doji

[13:40]  E: the magnet?

[13:40]  E: is?

[13:41]  E: 1266.13

[13:46]  E: u cannot b stubborn if trade does not work

[14:02]  E: and 68 ovn high

[14:02]  E: so 2 pts risk

[14:02]  E: reasonable

[14:06]  E: 62 is supp from lunch

[14:06]  E: so take profits 63 area

[14:06]  E: then any more is good luck

[14:07]  E: if u had the courage to take the 66 short, you are a trader

[14:07]  E: never let this trade run against u

[14:10]  E: still range trading

[14:11]  E: lwm 66

[14:21]  E: market is still deciding this XX +/-

[14:23]  E: i think today is test  58 and hold day

[14:23]  E: and key is the close

[14:24]  E: 69 resistance

[14:24]  E: and we have the xx +/- becoming important now intra day

[14:25]  E: bears have not taken advantage of the push after lunch

[14:25]  E: we need to get help or are going wrong way

[14:26] TC : wimps

[14:26]  E: and i dont think this is strong bulls

[14:26]  E: just annoying ones

[14:26] TC : bulls are in miami

[14:26]  E: low volume

[15:10]  E: 4.) Find a trade idea with a Reasonable risk to reward ratio.

[15:31]  E: since friday bounced after the lunch low

[15:31]  E: i felt today was less likely to do so

[15:31]  E: that is why i preferred the short bounce

[15:35]  E: if u have been wrong way and still make money hit and run

[15:35]  E: u have good sense of timing

[15:35]  E: and are willing to play hit and run

[15:36]  E: it is still HARDER

[15:36]  E: than being right in the direction

[15:39]  Z: this is like watching bad sports team

[15:39]  Z: just makes you scream in frustration

[16:24] JG : thanks E and everyone for all the great insights

[10:39]  E: first comes understanding

[10:39]  E: second comes execution


Sanchez kept his cool… with time left on the clock…

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