Working on Excitement . . .

I am working on an expanded option trading method, I need to be able to show consistency. Trading should not be a hit or miss, rather it needs to be mechanical and consistance to follow blindly. I am looking at a simpler approach of buying/selling CALLS or PUTS. Stayed tuned Fast Money traders and Slow Money option traders

My daily dose . . .

THIS IS BUSINESS, ALWAYS RESPECT THAT FACT. YOU ARE HERE TO MAKE MONEY!

Do not gamble with the market, make good calculated pre-planned entries.

KNOW THE PREVAILING TREND BEFORE YOU START TO TRADE.

FAST_MONEY

I am amazed daily that people try to beat the markets and jump from one idea to another, either from someone that they don't know from twitter, Facebook or their barber. They may have heard something on their favorite TV financial show or whatever, the fact is they listen with bated breath thinking and hoping that they have found some secret to making fabulous wealth is the seemly easy money of the stock market. I am here to tell you yes it can be done but please look at the disclosure on the CFTC, CBOE or NYSE web site. That should scare you to death and shock you into reality that the majority of people 97% DO NOT MAKE MONEY consistently. The difference between professional traders the ones who make a living trading their own capital and the wannabees are very distinct. If you could look into the minds of the pros you would be amazed at how similar their think is to a successful business man. They have a well thought out business plan, Rules to adhere to and the discipline to carry it out. Sure sounds simple doesn't it! If it was simple every franchise owner in America would not fail and become rich. There would be no car dealers going out of business, Airlines would all be profitable, there would not be such a thing of bankruptcy for business because it would be too simple. SO wake up and if your successful in business you have a good chance at being successful as a trader. You have figured it out, you know how to make a business successful and treat you trading money like employees. I wish ever one success but we both know there are few super star players in any sport, profession and trading is no different. Good luck my friend :-)

my most valuable setup

For you swing trade traders out there,

The setup is fresh in my mind because just last week my subscribers and I used the setup to take a 28-point profit in the S&P 500.

I call it the ‘box trade.’

As with many things in trading, the more simple, the better. I live by that principle both in my personal life and in my trading career as well. And I think you’ll be hard pressed to find a more simple trading setup than my ‘box trade.’ So whether you’re new to trading, or you’ve been trading for years, this setup is right for you.

To fully understand the methodology behind the setup, you first need to understand how markets work. And what I’m about to tell you is true of all markets.

Markets trend and they consolidate, they expand and contract. It’s just the nature off all markets, and it has been for as long as man began trading goods.

When a market is trending (or expanding) it is making new highs and new lows. It’s at times like this volatility is a at a premium, and traders stand to make a good deal of money on the bigger moves. However, trending markets only occur a small percentage of the time. The rest of the time, markets consolidate. And it’s during this consolidation time as traders we must be prepared to catch the next big move.

In the S&P 500, these big moves normally occur after it’s been consolidating in a range for at least two weeks – this forms the box. See below:

That movement back and forth forms the box, and we need to pay very close attention to where the market trades, and where it closes.

For this setup to be valid, the S&P 500 much touch both the top, and the bottom of the box at least twice while consolidating in the range. As you can see here, the range of this box was approximately 30 points from 1170 – 1200. And the price action ‘kissed’ both the top and the bottom of the box on more than one occasion. It was a text book box trade:

Now, after this occurs, it’s our job to watch for the break.

Usually within a few weeks the break will occur – the market will stop consolidating, and begin trending. However, there really isn’t a way to know which way the market will break, so we wait.

The direction of the break really doesn’t matter, because we can take either side and profit. So we wait for the break to occur and then take the trade.

Here’s when you take a position: after the S&P closes either above the top of the box, or below the bottom of the box, the trade is on. If we break to the upside, we go long. If we break to the downside, get short, and that’s it.

In this case the S&P 500 broke to the upside:

Once the break occurs, you can expect the market to move a distance equal to the height of the box – in this case 30-points (1200-1170 – 30 points).

Once you’re in the trade, the only other thing you need to watch is your stop loss. And I close out the trade if the market ever closes back inside the box – because that would invalidate the break.

And there you have it my ‘box trade.’ This trade works 75% of the time, and occurs about 3-4 times per year.

As I mentioned earlier I use the setup to trade the S&P 500 emini. However, the beauty of the setup is that you can use it to trade any instrument that tracks the movement of the S&P 500 – So if don’t trade futures, you can trade ETF’s like SPY, SSO, and the like… Just remember to watch the action of the emini futures contract for the signal to take the trade.

So the next time you feel the market is range bound, pull up a daily chart, and see if the emini is forming a box. If it is, there may be a profitable trade right around the corner…

Good Trading,
Brian Heyliger

Something To Think About!

What a great way to put this into words!

Imagine that you had won the following prize in a contest:
Each morning your bank would deposit $86,400.00 in your private account for your use.

However,this prize has rules, just as any game has certain rules.

The first set of rules would be:

Everything that you didn't spend during each day would be taken away from you.

You may not simply transfer money into some other account.
You may only spend it.

Each morning upon awakening, the bank opens your account with another $86,400.00 for that day.

The second set of rules:

The bank can end the game without warning; at anytime it can say, Its over,the game is over! It can close the account and you will not receive a new one.

What would you personally do?

You would buy anything and everything you wanted right?
Not only for yourself, but for all people you love, right?
Even for people you don't know, because you couldn't possibly spend it all on yourself, right? You would try to spend every cent, and use it all, right?

ACTUALLY This GAME is REALITY!

Each of us is in possession of such a magical bank. We just can't seem to see it.

The MAGICAL BANK is TIME!

Each morning we awaken to receive 86,400 seconds as a gift of life, and when we go to sleep at night, any remaining time is NOT credited to us.

What we haven't lived up that day is forever lost.

Yesterday is forever gone.

Each morning the account is refilled, but the bank can dissolve your account at any time....WITHOUT WARNING.

SO, what will YOU do with your 86,400 seconds?

Those seconds are worth so much more than the same amount in dollars.

Think about that, and always think of this:

Enjoy every second of your life, because time races by so much quicker than you think.

So take care of yourself, be Happy, Love Deeply and enjoy life!

Here's wishing ya'll a wonderfully beautiful day.

Start spending.

The Market Bulls Will Throw In The Towel At These Levels

The Stock Market Bulls Will Throw In The Towel At These Levels

This month is shaping up to be a strong negative month for the global equity markets. The S&P 500 is down a whopping 11.34% for the month and 3.9% on the year. The DOW is a little better-down only 9.58% for the month and 3.45% for the year.

Despite today’s late covering rally, the bigger picture indicates that we are down overall on the week and the month.

Here are the levels that if, and it is an if, the markets break, then the stock market bulls will throw in the towel.

Here are the key levels of support for the month of May for the major indices:

SP500 - 1044
DOW - 9,835
NASDAQ - 2,100

Let's see how the markets act for the balance of the month. It will be interesting.

Every success,

Which way is the DOW & S&P headed UP/DOWN

I think I know, NO I know
If you want to watch my FREE video go ahead
http://club.ino.com/trading/?p=1776