I have been obstinate. In my haste I realize that I haven't taken the time to explain to my readers how to understand the charts that I post to show my daily trading numbers. Mea culpa. I decided to change it up for this morning's trade to make it easier. You guys tell me if it helps or not, though, ok? Thanks!
This morning's trade was Preliminary Nonfarm Productivity. I made 1 point, showing $100 profit on 2 contracts. Not bad.
If you look closely at the information on the screenshot, in one section it appears to show that I made 2 points, yet I previously explained that I made 1 point. Why the discrepancy? Just to clarify that, this trading platform shows the total points won or lost in reference to 1 contract. In other words, it's not an accurate reflection of your real point gain if you traded more than 1 contract. No big deal.
Making money trading just a few minutes a day is kind of a big deal though!
Okay, you have to check this screenshot out for yourself or there's no way you'll believe me. Today was intense! Nonfarm Payrolls and Unemployment Rate at the 5:30 am hustle, and Nonfarm Payrolls came in WAY worse than expected, leading to an immediate, precipitous drop in the futures market. Fortunately, I capitalized on it and made a killing (paper trading).
I made over 5 points today in a total of 10 minutes. Here's the proof:
I was going to stop after I made an initial profit, but seeing that there was still a lot of momentum left, used my MMT skills and drop kicked another 4 points or so on its trash. Hi-yah baby! Pow! Splat! All I know is that in all the amazing volatility and carnage I came out on top with a substantial gain. Like Bruce Lee. Or Batman. Or Chuck Norris even. After starting my morning like this I feel like a superhero for sure. I don't know, maybe not. Maybe I'm just a regular guy putting into use some simple trading skills that I was lucky enough to learn from some other expert traders. I don't know... You be the judge.
Don't let negative news get you down! Come good news or bad, you can stay afloat (and even prosper).
Today there was more negative news that immediately drove down stock prices. Jobless claims spiked to 479,000 for the week, from 460,000 last week. Economists had predicted that initial claims would fall modestly, leading to an unease among investors that lingered throughout the day.
In better news, the immediate drop in the futures market netted me 2.5 points in less than three minutes. The market's reaction was so immediate and drastic that it dropped 5 points in under a minute. I was able to get in and make my $250 profit with 2 contracts. Remember, with this strategy we can make money regardless of whether the market goes up or down. Again--referring back to yesterday's post--if I'm a person working with $5000 (to choose a fair number that lots of people would have to invest), my profit today alone would have been $1250. And the best part? Done in three minutes and on with my day.
It's a crazy world we live in. Everyone could use a little stability, as we saw from today's spike in jobless claims. I doubt there is anyone left who doesn't have friends or family affected by the recession, and most of us have been affected ourselves. If you find yourself in survival mode right now, you're not alone. Many worry about what the future holds. Yahoo! Finance reported this today:
The high unemployment rate in the U.S. remains one of the biggest worries for investors. The surprise jump in claims last week suggests that employers are still reluctant to create jobs, which could keep a damper on economic growth the coming months.
"The trend is going exactly in the wrong direction," said Phil Orlando, chief equity market strategist at Federated Investors.
That brings me back to my original point. It's a crazy, unstable world we live in today, and everyone seems to feel it. But you don't have to let it affect you negatively, because you can prosper in this economy. Stay ahead of the curve. Use the news to your advantage. While others fret over the data that the government and economists are spewing out like an overflowing septic tank, make yourself immune.
All this talk about what's wrong with the world reminds me of this:
I admit that I haven't always kept the best records of my trades (don't worry, it's my midyear resolution to change that), but I have a special treat for everyone today. I held onto a lot of older trades and am posting them today for your viewing pleasure. You've been such wonderful guests that I couldn't resist.
Alright people, check this out. This morning I traded ADP Nonfarm Employment. In and out in less than 4 minutes, 1.75 points profit. With 2 contracts that's $175. That's $1000 invested to make $175 in less than 4 minutes. 17.5% ain't bad, right?
Keep in mind that this was a paper trade (see previous post), but the result is definitely translatable to live trades as well.
Now let's imagine I'm someone with just a little bit more money to play with than $1000. Let's not make it an astronomical number, but lots of people could spare a few grand with which to trade. Let's say we're working with $5,000. What would my profit have been today if I traded 10 contracts (the equivalent of $5k)? Pulling out our math wizardry: 175 * 5= 875. Same amount of time, same amount of work, little bit more money to work with, and a trading profit of $875. In less than 4 minutes.
Here's the screenshot:
After a needless and irresponsible sabbatical from trading, I resumed last week. It was my first trade in almost 3 months. Why the absence? Outside of the obvious "I'm an idiot" response, there's not much else to say. Somehow "I was busy" doesn't quite cut it. I could list off all the excuses, but I won't. Frankly, it was a mistake to stop trading for one day, much less 3 months. I'm back on the wagon now though, and very happy to be here. I give this as a piece of advice for prospective traders: trading is a mental game. For people like me who struggle to wake up early in the morning, one missed day can turn into 30 before you know it. It takes discipline to trade. Don't be lazy and repeat my mistakes. That's one of the biggest keys to success that I have learned from my lapse. Did you know that success or failure isn't determined by your market knowledge and analysis? In fact, that really has NOTHING to do with one's ability to continuously make hundreds or thousands of dollars in this business. It's for this reason that I recommend reading Trading In The Zone by Mark Douglas to every trader I come across. This is perhaps the most comprehensive, in-depth look at the psychology of trading. It is looked upon by many as the greatest tool to turn regular people into master traders. You'll love its simplicity and insight and immediately notice the changes it prompts in you.
So back to discussing my trades. Just as a little precursory explanation about Market Mover Trading, one of the differences with this strategy compared with day trading strategies is that we trade market announcements. These announcements occur ALL the time. Every week there are several regularly scheduled announcements that give traders tiny snapshots of the overall future health of the economy. Why is it great to have so many respective snapshots of future economic outlooks? Well, for a Market Mover Trader the answer is simple: Volatility. It is a trader's best friend (or worst enemy). See, MMT is so simple it's ridiculous. The company gives its traders everything they need to capitalize on market volatility that arises immediately following an announcement and lasts for about 5-10 minutes subsequent. It is the emotional reaction to announcements, and we make money off of it. That is why MMT trades only take a few minutes start to finish.
So my paper trade (aka practice trade, aka trade not involving real money) from last Thursday, July 29, 2010, trading Unemployment Claims, took only 8 minutes to complete. I was practicing a different strategy than the ones I normally use, and I really liked it. I plan on continuing to paper trade using that strategy until I feel comfortable enough to use it in a live trade in a few weeks. At the top of the page is a snapshot of my trade results from the trading DOM (Depth Of Market- pronounced "DOME") that I use. I will include these in every trade, good or bad, so my results are visible and transparent. That way people can see the genuine results you achieve through the education and tools MMT provides.
