Webinar

    Not that we’d forsaken them. They are still our main workhorse for getting into trades, and we worked them pretty hard during this session. It turns out that when the trend is particularly strong, we needn’t wait for a pullback from the sweet spot to do the trade at the green line. Not only will a pullback from p itself work, and often, but so will pullbacks from p2 to p. There are some nuanced shadings to consider when you set up these trades, but you will see for yourself that the rules are not unusably subjective.

Using just two or three of our Hidden Pivot entry tactics in various time frames creates more intraday opportunities than we are able to exploit. This session provided good evidence of this as we looked to force trades in several popular vehicles. We’ve done this before, but with some new refinements, particularly in the way we use rABC setups, it’s possible to find good trading opportunities all day long, even when picking trading vehicles at random.

For those of you who are just getting started as traders, thinking small can be the straightest path to big success. In this lesson you will see further evidence that it’s possible to force small, winning trades practically at will, all day long. Master the Hidden Pivot tricks you need to get to this point and the same tactics will work in size as your confidence grows.

Before the opening, I posted explicit instructions in the Trading Room for an E-Mini S&P ‘buy’ that produced a relatively quick gain of about $2400. The trade went against the trend, as our trades so often do, following an instruction sent out the night before. Imbibe the details to sharpen your understanding of rABC set-ups and how we can use them not only to trade comfortably against the herd, but with risk under tight control.

  Because it was the first day of the month, the markets were especially volatile during this session. We stuck with base hits nevertheless, focusing on executing countertrend rABC trades when the dominant trend has not quite reached its ‘D’ target. The lesson ended with a forced trade in the E-Mini S&Ps that enticed two students aboard with real money. See for yourself how well they were rewarded for about 90 seconds of unstrenuous work.

We shouldn’t be intimidated by algos and their vaunted trading machines. Most of the developers are math majors whose rules-based systems often fail to anticipate the occasional craziness of human behavior. Our trades will generally fall between the algorithmic cracks, and the evidence of this is that they continue to work. But only because our own rules continue to evolve. This lesson focuses on examples of how we get our edge.

Winning trades seldom originate in the comfort zone. In fact, we should most want to initiate trades when we feel a gnawing sensation of fear in the pit of our stomachs. The last thing we need is to get into a trade at the same time everyone else does – i.e., in their comfort zone. In this lesson, we looked at rABC and other set-ups from the perspective of the ‘discomfort zone’. Find it, use it, and your trades will more often than not be instant winners.

There are some new tricks here, including a nifty way to use ABC patterns to naked-short options. In this case, we looked at AAPL puts with ten days left on them as the stock was barreling higher. There is also an extension of the rules governing ‘mechanical’ buys that opens up new opportunities at the red line. Students were encouraged to come to the next session on March 6 armed with trading set-ups likely to trigger that day. See ya then!

Here’s an illuminating selection of subtleties, including a close look at two rABC winners that had gone out as recommendations the night before. One, a bottom-fishing foray in April Gold, produced a gain of as much as $2200 overnight for anyone who jumped aboard when I posted the advisory in the Trading Room around dinner time. The other, explicitly detailed in a fresh E-Mini S&P tout Tuesday night, nailed – within 1.00 point – a pre-dawn high that gave way to a 20-point pullback worth as much as $1000 per contract. The high was not exceeded until the final hour of the regular session.