Below you will see the screenshot update to the first trade that was done today 2/24/16. This was a short trade highlighted in this morning MDA SnapShot in the E-mini S&P that was, at least, a profit of $300 before fees. If you would like to follow these trades in real-time and have the ability to speak with me about them. Please subscribe to the newsletter and contact me directly. To get these updates sent directly to your inbox, please subscribe for free HERE. To see all MDA updates visit my blog page HERE.
Published 2/24/16 9:36 am central – Trade 1 Recap
Here is the chart showcasing the first leg of our position being hit. It is up to the trader to take partial profits or take the position off. I tend to never let a winning trade turn into a loser. So I often like to take partial profits and move breakevens when we catch some quick momentum to the trade. Sometimes this momentum is 5 pts sometimes it can be quick 10+ points. Kind of take what the market gives, you, but this is the real value of being able to trade multiple contracts. Also, we know risk up front with our zones so if we have extremely wide risk on a trade then trade less. If it is smaller and tight then be comfortable holding more positions. Always keep in mind more contracts is more risk. Should be comfortable with a stop out on every trade if it happens. We don’t like it but have to be able to handle it. If you do start adding more size and we get filled and it is taking longer than anticipated, that is where you can scratch off leverage. If you put on 5 contracts at entry and we are hovering around that entry for some time and you see some other markets not confirming your trade, it is okay to take all of the positions off or even scratch out at even or a tick or two in your favor or against you. It is a good thought process to have. If it does do what you want right away you will be rewarded. If trade immediately goes against you, follow the plan and look to lighten some if entry prices present itself. Just a few thoughts to provide you with.
As for the position, we caught that momentum lower which I was anticipating. I wanted to ride that first move lower because I know the EIA report could throw a wrench in our trade. Also, I saw crude oil starting to move higher as we were making lows so that signaled me that I may want to take some off.
We are currently trading @ 1893.00 This could be a re-entry short. if we see crude starting to move down. will see what the report says @ 9:30
Updated 30 min chart showcasing trade:(click for larger image)
Published 2/24/16 1:32 pm central – Trade 2 Recap
We had 2 entries today a short opportunity followed by a long entry this after noon, playing the same MDA SnapShot 30 Min Level. It just goes to show how things can quickly change in the markets. Also, it shows the importance of having a market awareness of outside markets and how they affect and lead other markets from going up and down.
If you were able to participate in both of these trades you would at least of made 15.00 pts or $750 per contract. This is following my 1 lot partial profit updates for a conservative point of view. I know traders who are following SDOE were able to get more out of each position on their own. Hopefully, my updates and approach are helping followers stay on the right side of the market.
For those in the 2nd position, it is making new highs @ 1918.50 which is the weekly POC we have been watching and on my morning update looking at the Daily chart it is a bullish confirmation if we can close at or above this level for time frame.
On the chart below my target zone is this 1920’s area. So I would look to offset a majority of your remaining positions at these levels or trail stops if you are not wanting to hold positions into the overnight.
Trade #2 30 Min SnapShot Chart: Click for larger image
Market Dimensions Advisory - Get Inside the Mind of Commodity Market Professional Andrew Pawielski! The Market Dimensions Advisory leverages Andrew’s own live trading and a career of working directly with professional traders, commercial clients and institutional business. This deep understanding combined with countless hours of technical market analysis have made Andrew proficient with trading execution and the trading process. Market Dimensions Advisory includes an email newsletter subscription. The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
Subscribe to Market Dimensions Advisory
Market Action Scanner
Market Dimensions Advisory - Get Inside the Mind of Commodity Market Professional Andrew Pawielski! The Market Dimensions Advisory leverages Andrew’s own live trading and a career of working directly with professional traders, commercial clients and institutional business. This deep understanding combined with countless hours of technical market analysis have made Andrew proficient with trading execution and the trading process.
Market Dimensions Advisory includes an email newsletter subscription.
The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
THE RISK OF LOSS IN TRADING COMMODITY FUTURES AND OPTIONS CONTRACTS CAN BE SUBSTANTIAL. THERE IS A HIGH DEGREE OF LEVERAGE IN FUTURES TRADING BECAUSE OF SMALL MARGIN REQUIREMENTS. THIS LEVERAGE CAN WORK AGAINST YOU AS WELL AS FOR YOU AND CAN LEAD TO LARGE LOSSES AS WELL AS LARGE GAINS.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.