The movement is finally back! Great overall momentum to the downside today really showed how we are able to adapt when the market is moving well and when it is moving sideways. The Congressive Trading System really allows us to understand market structure and be aggressive in situations like these.
Having strong momentum is like putting a cake in front of a fat kid.
Fat kids love cake and traders love strong momentum. Our snap crackle pop movement allows us to maximize profits in these scenarios as well. The basic premise is once we have strong momentum it is going to continue.
I also received word from several new traders that have gone live and are doing very well. I was so impressed with one of these traders that recently went live over the holiday season I had to ask him to share his story.
A hockey player that plays in Europe and couldn’t attend many of the live classes. He went live through the holiday period (typically lowest volume and worst movement of the year) and was still able to achieve 10 out 11 winning days. Just amazing.
The story for today was really the strong momentum to the downside. Even the beginner traders that just took valid trades today were able to do very well. By 10.53 am EST I was able to call it quits with 7 points.
Understanding that the market had strong momentum I pushed it just a little bit further. Didn’t get filled on a trade that would have added at least a point to the bottom line and called it a day after getting filled on one last trade.
If we pay attention to the behavior of the market from 10am EST to 10.30am EST we will find that the momentum was dying. The expectation was that the market would still continue to the downside.
It was less likely that it would continue moving down without a significant retracement or a change in the trend (which occurred).
Student Trader #1
Took most of the valid trades and was finished trading at roughly 10.30am EST with 3 points. One of things that is very important to understand is that there are different styles when it comes to trading. There are different personalities and risk tolerances, its important to abide my your own plan.
There is only one right decision when it comes to day trading which is making sure we are following strong momentum.
If someone is more conservative like the trader below they will take less trades that may look “safer” in the eyes of many. In the end however, it is still about taking trades that are high probability and in favor of strong momentum.
Student Trader #2
A member of the LTD Project, a great trading day with an emergency to boot. Was specifically profitable because of a an advanced trade that he took that we would consider a pro trade. Just recently sat with this member of the LTD Project in order to let him “trade freely”.
He was only with us for roughly a month until he started trading the market live and practicing with a real live account. He stated it was important to trade in a live environment because you don’t make the same decisions in a sim (fake money) environment.
That ladies and gents, is the kind of trader I want on my team.
Student Trader #3
Took every valid trade and an advanced pro trade as well. Love to see when so many students do so well in the market with only 1 hour of trading.
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