https://davidoengland.com/wp-content/uploads/2015/10/doe_logo_trans-with-tagline2015.png 0 0 David O. England https://davidoengland.com/wp-content/uploads/2015/10/doe_logo_trans-with-tagline2015.png David O. England2016-06-15 20:36:412016-06-15 23:54:52EOM Futures Action 6.15.16
A while back I read a strategy on how to trade Futures-it went like this.
Target an important announcement…place a stop buy above and a stop sell below. After the announcement, it will
go one direction and hard. Just follow this strategy and you will make tens of thousands of dollars.
First, anytime you hear a strategy that states how you will make mega dollars, don’t walk away-RUN.
Earlier today, I posted the following instructions..(see below)…..the chart shows what happened. Both trades were stopped out…traders were whipsawed with this flawed strategy.
Later in the day, an official Simple Simon Sell Signal hit…and the SPX dropped 8 pts. plus. This is 8 x $50 = $400 per contract. A nice payday for learning and implementing this strategy.
I continue to work on the Future’s Workshop curriculum and strategies. Since we will be trading with up to 50 -1, leverage, I will not roll it out until all bases are covered, so to speak. Once complete, I will release the dates and times. It will be at least three evenings and one session during the day to experience live trading.
I will give out this Golden Nugget. When trading announcements, learn to sit on your hands for at least an hour or so after the announcement. Let all emotional and program trading get completed. Then if a SS Buy or Sell Signal hits, then it is fair game.
Here was the post from earlier today along with today’s action-see below.
Here is a fun exercise for those wanting to learn more about “day trading” and/or trading SPX “Futures.”
My Futures Day Trading template is below.
Around 1 PM CST, the Fed Announcement on interest rates will be made.
Currently, going into the announcement, buying is coming in…as I type, some profit taking from the last three point
run is hitting.
For those Paper trading the announcement…..
At 12:59 CST…
1. Place a Stop BUY…..two points above the current price with a trailing stop of two points
2. Place a Stop SELL…. two points below the current price with a trailing stop of two points
See which order hits first…and if both get hit and then get whipsawed with protective stops.
This is for educational purposes only…
Watching and learning.