We are on the Mini Dow Jones on Friday 3 May 2019 and what you see in the screen is one of the two most profitable trades of my trading session.
It is an operation to the appearance simple, and sure it was once understood what was happening. However, the concepts on which the decision to enter Long at that point were based were anything but simple. So much so that in order to support the decision I have used also of the Time and Sales, other instrument much important one in the analysis of the Order Flow.
Who was my student in the Masterclass Order Flow & Volume Profile
it will understand perfectly the motives of this trade, even if it is a type of entries that I advise to make once acquired already a certain experience with the reading of certain dynamics.
Why was this trade so "insidious"? Simply because it was how much more CONTRAINTUITIVE there could be. Many pointers, many signals, many tipologie of "analysis of levels" would have indicated in that point to go Short, and instead... paraphrasing the scene of a famous film of our comedy:
"Grandma, they made me a voucher, what do you mean?" "Che te la piji 'nder ....ehm"
Obviously this does NOT mean that every time that you see a signal short then you must go long; what I want to say is that in order to understand sure dynamics of market it is necessary to exit from the schemes that have been inculcated to us from much formation to cheap that in these years it has raged for the net and that it has carried to us to give for OBVIOUS of the things that obvious they are not absolutely. In fact, they are often quite wrong.
On the other hand, we are not used to asking ourselves questions; right from school we are offered a model with all the answers. Why waste time and energy finding new ones?
And even in trading, how many times have you read in forums or various blogs, or in some facinorous comment on Facebook one of these statements:
- It is impossible to make a living from trading
- It is impossible to earn money constantly
- It is impossible to make significant percentages when hedge funds make a meagre 6% a year.
- 99.99% of traders lose and will always lose, until death separates them from the Broker.
I could dismantle these statements one by one, but I will be more pragmatic, what opens your mind more, approaching the goal of becoming a profitable trader, to believe in these statements or to ask yourself "HOW can I live trading? "HOW can I make money consistently?" etc. etc.
An affirmation closes the mind, precisely because of its nature as an affirmation, which therefore comes at the END of an argument that is often not even your own but that of others. A question, on the other hand, turns it on, it stimulates even unusual and counter-intuitive paths of thought, precisely because we are not normally used to asking ourselves questions.
The only obvious thing in markets is that only CERTAIN TYPES OF INTERACTION BETWEEN BUYERS AND SELLERS MAKE PRICES MOVE. It is obvious because it is part of the "technicality" of any kind of market and is its foundation. But it is not enough to have an advantage over the market, other questions must follow, the right ones.
In this regard I would like to point out the revised MASTERCLASS ORDER FLOW AND VOLUME PROFILE.
we will talk at length about these types of interaction and when and how to use them to profit from them, you can find all the information at the link of the masterclass above.
You can see by clicking this link instead a video of me explaining what the Footprint is and what it is used for.
From, in conclusion I make to see you also the first operation of the day, sure more "linear" of the other, a lot is that it has happened while I was just explaining the entry during a lesson to one my student and I have opened it "in live", and finally the list of the trades of the day, some other scalping trades, two closed to break even and one with a small profit.
