Trade Setups for Monday 13th, February 2012
Despite of strong gap down at Friday and many bull trap open market stayed strong. Actually we didn't saw trend day down, but also we didn't so bounce. It was more range action what gave again problem for intraday setups. On the daily indices charts we can see many small range bars after gap and most of action finished with open gap. I made SPY charts before few days and I will like that you all look again on weekly and daily time frame and I believe that you all can see big indecision. Because of that my focus will be with swing setups and bigger stops (on that way I will try to avoid whippy action and stops) and scalp trades based on 2/5 min time frame. I hope market action and behaviors rill give us better chance but at this moment that is what we have. We can't change market despite of frustration. I like tore mind again that risk is higher so please trade with small amounts. Market will back, always do and it will again. During day I will look for own way charts what will give us better risk/reward. I prepare action with two week free access to live trading room and my service. Those who are interested can just email me and I will give all info about that.
Wish you all great trading week
The primary focus of my service is to find Swing Trades. I look for intraday setups that have a potential to become swing trades. Since my membership is diverse I do post additional ideas (day trades, position trades and scalp trades). It is up to you to decide which trades are appropriate for your trading style. I do NOT personally take every trade. Your success depends on YOU taking trades you understand and like. I am always available to contact for additional trade explanation.
TRADING THE OPEN
During normal market conditions our regular setups generally do very well regardless what time they are taken. Trading right at the open always adds risk. It is recommended that new trades not be taken for the first 5 minutes the market is open. I will treat each new trade that sets up during this time as a gap trade and wait till the stock comes back and takes out its 15 minute high or low.
Trading is risky. It is our job as traders to reduce this risk and increase our chances of success.
IMPORTANT: Take only the opportunities that you really like and understand. Always enter a trade with a trading plan. If you have any questions, please feel free to ask me. There is a much greater chance of success in your trading if you understand the trade. That is very important. Taking just a few trades is enough to be a successful trader. Overtrading is probably the number one reason new traders fail. I personally mostly take swing trades. Please remember to keep that in mind!!!!!!!!!!!!!!!
If you have any questions, please feel free to contact me.
Good luck trading today!