Live Market Class Recap: July 10th 2012 (2+ pts to 10+ pts)

Just finished up a great live class today and realized just how hard it is to try and day trade and teach at the same time.  Its a very careful balance and one of the ways that I devised my currently risk management structure when I day trade eminis on my own.

One of the themes from today was identifying momentum and learning when to be aggressive.  It is that whole idea of using a Congressive day trading system where you adapt to the momentum of the market; day trading indicators don’t matter, rules don’t matter, and trade signals don’t matter.

The most important thing in the market is Momentum

When you have strong momentum we should be aggressive because the market is moving well and will provide us with more winners.  When the market isn’t moving well we should be conservative in order to preserve capital and risk management since the market isn’t so well.

Finding the balance between the two isn’t easy as most people do not understand how the market works or why it moves the way it does. It’s one of the infamous day trading scams that the most important thing that you have to pay attention to our indicators that have been changed 1 million times to look unique and proprietary.

If there’s one thing I want you to learn from reading this site is that indicators are not important, if someone tries to sell you a day trading system that has fancy colors and signals for trades then walked in the other direction. We don’t trade indicators, we trade the market.

One of the ideals that was important in today’s live class was being able to identify the shifts in momentum. The day started with very strong momentum to the upside and then shifted to very strong momentum to the downside. The most important thing to a trader is being able to maximize reward when we have that strong momentum environment and at the same time learn to identify the shift in momentum in order to minimize risk.

A trend is never going to last forever so it is important to identify the weakness in those trends and maximize your reward by minimizing risk you before you even get in the trade.  Sounds complicated doesn’t it? The results are the range of results that someone could have obtained today with the beginner results that I often talk about and what a pro trader could have achieved.

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2 Comments

  1. Hey Marcello,

    Hope you’re well!

    Steadily been going through the material on your site and various market recaps that you posted. The “day trading retreat” is a particularly intresting idea.

    Anything on the horizon?

    1. Bruno… actually just confirmed the day trading retreat in London during thanksgiving week.. thinking nov 23rd & nov 24th for the dates. Im also redoing the curriculum to make the strategy and system even more effective. Im going to be taking on a handful of students here in abit just haven’t made the announcement official yet.. shoot us an email via the contact page and we will give you the details

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