As you might already know, I’ve been trading from Southeast Asia for the past few weeks, and it’s been incredible! And I’m looking for someone who’s serious about their trading to come join me – click here to apply to join our Pro Trader Challenge.
Right now I’m sitting on Phi Phi Island next to the world famous Maya Bay where they filmed “The Beach” with Leonardo Dicaprio. I was actually able to dive around the island you see in the middle of the picture below. Having scuba dived all over the world, I’d have to say Asia is my favorite so far. The best part is the market opens at 8:30 PM, so I have all day to scuba dive and explore! It’s so inspiring to be able to work and trade from this amazing view:
After our trader meetup in Chiang Mai, I headed south to go scuba diving with whale sharks. Check out this video of me playing with two massive sharks:
2013 Fall Trading Update – And Yesterday’s Market Recap
You’ll notice in this daily E-mini S&P 500 chart that the market has been in an upward trending channel since April. As we were talking about in our Pro Trader Trading Room, the market is really over-extended, meaning it’s had almost two weeks of incredibly strong bullish action. Yesterday you can see a doji candle up around resistance at 1740′s. There are really two potentials for the market at this point – 1) sell off from the highs and retest prior support, or 2) go parabolic above the trendline of resistance. If the market blasts off through resistance, there’s more of a chance that the market could put a strong inverted V pattern for panic selling.
The first chart below is our MAP Trading Strategy & Trade Signal Software on the E-mini S&P 500. Notice the brown background color from 8:30 am CST (market open) all the way until 1:30 PM CST. This is showing us that the market was “choppy”. The only trade today on the ES was in the afternoon right up to market close. A lot of our MAP Trading Program members only trade the first 90 minutes of the day, so not everyone actually caught this trade signal. Many undisciplined new traders get whipsawed out of markets because they don’t have an objective way to decide which market conditions are good for trading. Unfortunately, there are many “hindsight gurus” who can justify reasons why you could’ve taken a trade after the fact, but the only thing that matters is if you have a clear way to make confident trading decisions. Our trading sofadtware helps us stop cherry-picking and know which trades show the best profit potential.
Even though the ES was choppy most of the morning, notice how the YM was actually moving quite nicely. We had 3 setups in the morning session, with two working to their profit targets. Another lesson here is to not be a “one trick pony”. In other words, it’s a TERRIBLE idea to rely on trading just one market. As traders, we have to think of ourselves as hunters looking for the markets that show the best opportunity that trading day. Sometimes oil and gold are firing off, where the indices might be slow and choppy, and visa versa.