These are common sense trading
tips and advice that we think will be helpful to your trading and knowledge
of the markets.
However, if you need more help in
understanding any thing that's mentioned below...please don't hesitate to
contact us.
June 2007
Avoiding Drawdown
(consistent losses)
"Traders that have a
strong understanding of the price action they are trading will rarely
need to make adjustments to their pattern signals when the market
conditions change.
Further, one of the main
reasons why drawdown cycles occurs is that traders begin making
adjustments to their entry signals during the early stages of losses
instead of spending the same time and energy to understand the price
action prior to the appearance of a pattern signal.
Simply, understanding the
price action allows a trader to adapt his/her overall trading plan to
a change market condition without having a need to make adjustments to
the actual entry signal."
May 2007
Arena of Technical
Analysis
"Technical Analysis (TA)
is much more than technical indicators (ex. mach, cci, moving
average). It involves researching and analyzing the price action on
any type of data or chart regardless if your a price action only
trader or a trader that uses indicators."
April 2007
Emini ES futures and
Japanese Candlestick Patterns
"Day traders that are using
Japanese Candlestick patterns to trade the S&P 500 Emini ES
futures...should also be following the exchange traded fund SPY
because the best candlestick patterns will occur in the SPY instead of
ES.
This allows you to use SPY to
signal trades in ES to create additional trade opportunities in ES if
you use Japanese Candlestick patterns.
This is called sister
trading via taking trades in one market that has its actual
pattern signals occurring in a highly correlated
key market (ex. NQ/QQQQ,
ES/SPY, ER2/IWM)."
Different Trading
Styles Risk Management
"Traders that have more than
one trading style (day trade, swing trade and position trade) should
manage the differences in risk exposure via position size management
instead of changing their initial stop/loss protection."
March 2007
Long Shadows via
Japanese Candlestick Analysis
"Long Shadows via Japanese
Candlestick analysis provides a wealth of info about
support/resistance zones, changes in supply/demand along with giving
early warning signs that a pattern signal will soon
appear."
February 2007
EuroFX EC Volatility
Contraction
"CME EuroFX EC provides clues
to when the volatility will decline in the Emini Futures
(ER2, ES, NQ and YM) and this is one aspect of not getting tunnel
vision via monitoring only your trading instrument (intermarket
analysis)."
January 2007
Flight to Quality in
Treasury Futures
"Poor performance in the
Emini Futures, Oil Futures and Gold Futures at the same time will produce
a flight to quality in the Treasury Futures."
With what's said above, the trading tips and advice are applicable
to the following trading instruments:
CME
Emini Futures ES, NQ and ER2
CBOT mini-sized Dow Futures YM
Eurex Index Derivatives (futures) DAX and DJ Euro Stoxx50
Eurex Fixed Income Derivatives BUND, BOBL and Schatz
Euronext
Futures FTSE-100 and CAC-40
CME Futures
EuroFX EC
Treasury Futures T-Notes ZN, ZF and T-Bonds ZB
Forex Currencies EurUsd,
EurYen and UsdCdn
Exchange Traded Funds DIA, IWM, QQQQ,
SPY, OIH, XLE and GLD
NYMEX Energies Light Crude Oil CL, e-miNY QM and Natural Gas NG
COMEX Metals Gold GC
Hang Seng Index Futures HSI
Once again, if you need more help in
understanding any thing that's mentioned above or anywhere else at our
website...please don't hesitate to
contact us.
Sincerely,
M.A. Perry and Associates
TheStrategyLab.com
questions@thestrategylab.com