November 26: Wednesday Recap

Today Trader Rick looks at how some of the patterns and setups in the last video update played out, how to use price action to confirm a 3X setup, and provides an outlook for the rest of the week.

• ES Dragon pattern.
• Canadian Forex Dragon pattern.
• Eurostoxx 50 price action reversal & a couple of 3X setups.
• ER (TF) continuation pattern and how to trade it.
• Euro Forex fibonacci levels and what to look out for.

Markets will be closed on  Thursday for Thanksgiving in the United States and an early close on Friday.  Expect the next video update to be uploaded this weekend.

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Dealing with the ‘F’ word

Many traders suffer from the effects of fear whilst trading, and fear can manifest itself in several ways;

• Fear of losing money.
• Fear of losing a trade.
  
• Fear of giving back profits.
• Fear of leaving money on the table.

Fear induced trading can often lead to paralysing indecision and unforced errors that an otherwise rational trader would never make. Of course, the ability to act and trade in a rational manner is of paramount importance to those who desire consistently profitable results.

So how do we cut out the fear?

Many traders wrongly assume that the way to beat fear and irrational trading is to meditate one’s self into a zen-like state before switching on the charts and and taking hold of the mouse. Very often however, the real nub of the problem is typically much more basic. Usually, fearful trading is brought about by two things; A lack of confidence in one’s self and one’s edge.

Ask yourself now, honestly. Do you have an edge? Can you prove it?

• Have you back tested and forward tested this edge?
• Have you simulated this edge in live markets across varying market conditions?
• What is the size of your average winning trade compared to your average losing trade?
• How many of your trades are winners?
• What is your risk/reward ratio per trade?

All these questions are vitally important in the pursuit of rational, consistent trading. If you cannot answer them, or if the answers are not satisfactory, then you may wish to carefully reconsider whether you do indeed posess an edge in the markets or not.

Posessing a quantitatively verifiable edge is only one half of the equation. The other half is the issue of self confidence and your own ability to consistently execute your edge according to your own trading plan. It is surprising how many traders inexplicably deviate from their proven edge and trading plan through a lack of discipline, often the result of lack of proper training and preparation.

How do we instill self confidence in our trading?

The answer is deceptively simple. Practice, practice and more practice. Practice in a risk-free environemtn until executing that trading plan becomes an automatic and effortless expression of yourself, until you know exactly what to do and when to do it. This is the same principle as used by every elite performer who spends hours perfecting their techniques. The boxer trains in a gym, a chess champion spends hours in solitary practice, and the trader hones their skills on a simulator. This topic of simulation has been covered in more detail in my previous article.

Unfortunately, there is no shortcut for the discretionary trader. It takes a lot of effort and a lot of practice to develop enough confidence in yourself and your edge. Eventually though, if you persist with quantifying your edge and perfecting your ability to execute it consistently, you can and will reduce the effects that fear has on your trading. Well drilled soldiers perform best in the heat of battle. Now it is up to you to drill down and prepare yourself for the internal battle against fearful trading.

Until next time, good trading to you and I hope this article was helpful.

sam@efuturevision.com

November 24: Outlook for Monday – There Be Dragons!

Here’s what we have for you in the video outlook today;

• What Rick is looking at if the Dow moves higher this week.
• An inverted head & shoulders ES pattern that broke neckline and hit target.
• Counter-trend ES setup and how to trade it.
• Some great Eurostoxx50 3X setups both short and long, including a price action trend reversal to catch the end of day rally.
• A mini Dow 3X trend setup that also caught the end of day rally.
• Possible inverted head & shoulders pattern forming in the Canadian Forex.
• Gold recap and a price action trend reversal that captured the huge end of day rally.
• To finish, a potential Dragon pattern forming in the ES that may be in play for Monday.

Don’t miss this video update!

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November 21: Oil dips below 50, did you profit from it?

Hi guys, we have some good stuff for you in the video update today; A couple of really nice Eurostoxx 50 3X setups and a 1-2-3, there’s a great example of a bullish wedge and how to profit from it correctly, there’s a 5 minute AB=CD on the ES that hit target, and oil dropped below 50 as suggested in our video update from a few days ago.  Lower prices to come? Don’t miss today’s update as Trader Rick talks you through Friday’s video. Not a member yet? Take our 14 day trial and watch it now!

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November 20: New ES lows for the year… What next?

The ES blew through the 816 support level on strong selling yesterday, as bonds rocketed higher. In today’s video you’ll see Trader Rick discussing a keltner band pattern in the bonds that will keep you on the right side of the market – Also covered are the three characteristics of a trend day and how to identify a trend day early on. There’s an advanced 3X technique in the form of a ’sling shot’ learned from Jimmer in the good old days of eFutureVision – another high probability setup for you lucky people! Last but not least, left and right translation, and how it relates to market cycles and market trends. There’s a lot crammed into today’s update – don’t miss it!

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November 19: Fib Extensions, ES, T-Bonds, Crude and more…

In today’s video update you’ll see how using fib extensions can often be great tools to help determine trend termination. Did you see yesterday’s end of day rally in the ES coming? If not then you need to watch this update showing how fib extensions could have helped you profit from the late rally. Trader Rick provides commentary on potential support for tomorrow in the ES, the possibility of a lower high and how you might trade it with a potential AB=CD pattern. The T-Bonds are rising which is not good news for stock markets, and don’t forget that Crude Oil rolls over to the January 2009 front month!

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November 18: Are we in wave 5 territory?

Today’s video update includes ES 5 wave analysis, and the possibility that we are entering wave 5. We see a very good example of support becoming resistance, and how to plan your trades around this vital price action concept. Is crude oil heading lower? Multiple time frame analysis gives you the heads-up and shows why 50/51 could prove an important price level. There’s also outlooks for the Euro and gold, not to mention a few 3X trade examples! Oh, and there’s even a sneak preview of the upcoming advanced 3X techniques. Don’t miss it!

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November 17: Monday Outlook

Today’s video outlook for Monday covers big picture analysis of the ES. Starting with the monthly chart, and progressively moving in closer with the weekly & daily charts respectively, all the way down to an intraday time frame. This type of analysis can be crucial in providing you with an understanding of what’s going on in the bigger scheme of things. As intraday traders it’s easy to lose your context and develop tunnel vision for the very small time frames. Make it part of your routine to regularly check what’s happening on the bigger time frames for an added edge!

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3X Ensign Template

Here you can download Trader Rick’s 3X template which he uses with Ensign Software. Please be aware this template only works with Ensign and not other charting software. By using this template your charts will look exactly the same as Trader Rick’s. Simply download and drop the file into your Ensign Template folder, typically found at C:\Ensign\Template

There are a few more things you need to change within Ensign to make everything work together harmoniously, please fellow the instructions below…

3x Template for Ensign

On your chart you need to go in to chart properties and make some changes;

November 14: Volatility is back!

What a day! New lows in the ES only for buyers to step in and drive us back up higher over 900 with a savage rally. Join Trader Rick in today’s video update as he shows you how to capitalize on big volatility and trend reversals like we saw in the equity indices. See how the 3X method presented a great opportunity in the Eurostoxx 50, how measured moves can give you an additional edge in the ES, and an example of getting on board with strong directional momentum in the Euro. Traders Club members simply login and watch it now.

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