Dec 19th Master Trader Recap: Ice Man Strikes Again: 3 Pts

Editors note: Ice Man continues to dominate even with his professional hockey season. Look forward to sharing his thoughts on trading when we got together in Puerto Rico earlier this year. Also, join us next week as we are going to host some live trading here in our temporary control center in Colombia. We are still getting our penthouse renovated to house the very first day trading center here in Colombia. We also have our master trader Nikolai, aka the Hit Man, present and also one of our up and coming traders from Brazil to help us open our day trading center there.  Here is Ice Man in his own words:

Hey everyone, just thought I would check in and make sure I let everyone know I’m alive and well in Norway! I am planning on doing more recaps and may even include some videos to better illustrate my points. I feel I owe this to my fellow traders, as I will not be able to attend the master trader seminar in February. To make a long story short, Olympic years are extremely busy because the schedule is crammed into a shorter period of time 🙁

I vividly remember something Marcello said to me the first time I met him when we met in Puerto Rico this past summer. “Aggressive if you are trading with the overall momentum, and conservative if you are trading against it.” If I remember correctly, it was fellow master trader Manny who coined the phrase. Marcello was excited because it was so simple, but brilliant at the same time.

I think about the phrase all the time as you can see from today’s chart.

iceman1220

I didn’t label the trades because 4 out of the 5 trades are pro trades and in reality the labels don’t matter. I was simply following the overall momentum that we had in the pre market. I will admit the first trade was a little too aggressive because there was no retracement in the BB’s, a sign that we may go a little higher before reversing.
The next trade is a trade I wanted to highlight because although its a pro trade that doesn’t fit the rules, it’s a very high probability trade. The overall momentum is still to the downside in my opinion and we have a trend line forming as you can see on the chart. When the market sits around the midband and does not launch to the upside around 940 eastern time, there is a very high probability that the market will continue in the direction of the overall momentum. We see the same pattern happen 5 minutes later. Overall momentum still down (albeit weakening), and the market still respecting the trendline. With a continued failure to take off to the upside, we can expect with a high probability, the market will continue down. In hindsight, my entry was probably a little too aggressive here too but it worked out.
Picture perfect trade to the downside adds 2 more points and I call it a day. 5 trades, 3 winners, 2 losers, +3 points. With 10 contracts thats $1300+ including commissions. Not bad for 40 minutes of work 🙂
Any questions fire away!
James Sixsmith aka Ice Man
Peruse more recaps on the blog or via the main market recaps page