Day Trading the SP Futures with Initial S/R and the NYSE TICK

Written by Mike Reed


Continued from page 1

Whenrepparttar SP futures make a quick surge to a strong resistance zone, and then loses momentum at or nearrepparttar 148261 zone, while concurrentlyrepparttar 148262 TICK registers an extreme high reading (usually over +1000), this sets you up for a high-probability short entry, with a hard stop just aboverepparttar 148263 resistance zone.

These counter-trend trades "fade" (meaning to enter a trade againstrepparttar 148264 trend)repparttar 148265 intraday emotional extremes, and may come atrepparttar 148266 beginning of a new trend - giving you a chance to hit a "home run." More often, however, they become scalp trades that don't last long, sometimes less than a minute. Either way, they are high probability trades if you time your entry well.

It takes a lot of practice to time your entries just right on these trades, and you have to be ready to get out immediately (before your hard stop is hit) if you sense that your edge has disappeared. It is difficult to sense whenrepparttar 148267 edge (probability of success) of a trade is gone *before*repparttar 148268 trade changes from a small gain to a small loss. Practice will help *if* you know what you're looking for.

Most traders believe you have to wait for your hard stops to be hit before you can know that a trade's edge is gone. This may be true for most traders, but it doesn't have to be true for you.

Mike Reed is author of TradeStalker's RBI Trader's Updates. Mike has been trading the Market for 23 years. His support and resistance numbers have been published on the internet since 1996. His nightly support and resistance zones are specific and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader's Updates. http://www.TradeStalker.com - Copyright 2005 Mike Reed


Day Trading Success-The Key is Survival

Written by Mike Reed


Continued from page 1

The following guidelines will sound radical, but they have guided me in making my living from trading for many years.

1. If a trade doesn't go your way withinrepparttar first one to five minutes, get out. I usually get out within one or two minutes as soon as my perceived edge is gone.

2.If a trade goes against you inrepparttar 148260 first few seconds, begin drawing in your hard stop and/ or your target, trying to get out ofrepparttar 148261 trade at break even.

3. Never let your hard stops get hit. When it happens, you may want to take a break and get some fresh air.

4.Hard stops are adjusted to market conditions. Atrepparttar 148262 moment (July 6,2005) I am using 1.50 point hard stops onrepparttar 148263 SP futures.

5. Never move your hard stop away from your entry point, hoping that a bad trade will turn around.

6. If you find yourself *hoping* as you trade, it is a clear sign that you are not following good survival (money management) principles.

It will be impossible to put these principles together without a set of high-probability setups. Without good setups, trading is just a flip ofrepparttar 148264 coin.

Mike Reed is author of TradeStalker's RBI Trader's Updates. He has been trading the Market for 23 years. His support and resistance numbers have been published on the internet since 1996. Mike's nightly support and resistance zones are specific and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader's Updates. http://www.TradeStalker.com


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