(Free) Educational Webinars

The dates and times are outlined below… (All times are listed in EST)

Intraday Trading Strategies for the ES & 6E

May 3, 2012 (Thursday) 1:00 – 2:00 PM EST sponsored by Infinity Futures

Webinar Slides: Click to Download

Creating a Trading Plan – Step by Step

May 22. 2012 (Tuesday) 12:00 – 1:00 PM EST sponsored by TradersLog

Join the Webinar: Click to Register

The Top Trading Mistakes (And How to Avoid Them)

May 24. 2012 (Thursday) 1:00 – 2:00 PM EST sponsored by Infinity Futures

Join the Webinar: Click to Register

Creating a Trading Plan

May 29. 2012 (Tuesday) 4:30 – 5:30 PM EST sponsored by WindoTrader

Join the Webinar: Click to Register

Note: The webinars on Creating a Trading Plan will be similar in content. The varied presentation times allows for more folks to attend live.

I am not certain these webinars will be recorded, but as always I will make the presentation slides available after the webinar.

Thanks to Infinity Futures, TradersLog, and WindoTrader for inviting me to present these webinars. I’m told there are a limited # of spots so pre-register at your earliest convenience.

EminiMind Instructional Webinars

If you’re interested in more great trading webinars feel free to checkout the Instructional Webinar Archive. Get access to 10+ hours of recorded webinars as well as a new webinar each week that, as a member, you can attend live and chime in with questions.

May 14. 2012 (Monday) Swing Trading Stocks 8:00 – 9:30 pm

I’ve had a few requests to put together a swing trading webinar. As someone who both day trades and a swing trades I feel there’s a lot that can be learned from a longer term view such as swing trading. I will outline the thought process I use for selecting stocks, show you how I setup my watch lists, and go through some specific setups I use for swing trading. A little different than the usual, but I think most traders will find it valuable.

May 21. 2012 (Monday) Adapting to Market Volatility 8:00 – 9:30 pm

Given the cyclical ‘summer slowdown’ that we usually see in the markets I thought it’d be beneficial to talk about market volatility and some ways to compensate for higher versus lower volatile conditions. Topics of discussion will be the Volatility Index (VIX), and tips for gauging market sentiment at the start of each day.

May 28, 2012 (Monday) – Memorial Day Holiday – No Webinar

Thanks for reading and for your continued support of the EminiMind blog!

Thanks for reading!

Below are the presentation slides from my Infinity Futures webinar 05/03/12 titled:  Intraday Trading Strategies for the ES & 6E .

Webinar Slides PDF: Click to Download

If interested, you can find more webinars including a new webinar each week in the Webinar Archive.

Thanks for reading!

While most traders are accustomed to looking at time based charts, there is another option, the tick chart. If you’ve never looked at data-based charts before allow me to shed some light on the subject. In this post you will learn how tick charts can lead to better intraday trading.

Tick Chart Overview

So let’s start with the basics, what is a tick chart?

A tick chart is based off a number of market transactions regardless of time.

Most charting packages will default to the standard time based chart where each bar forms after a specified amount of time has passed (1-min, 5-min, 15-min etc.). The tick chart allows us to break down the bar into number of transactions (144, 233, 512, etc.).

These numbers are a little more ambiguous than your typical time based charts, but tick charts have some distinct advantages, the most relevant is the ability to view price charts in a variable other than time. But time does play an important role.

Interpreting Volume

Since tick charts form after X # of transactions the amount of time it takes for each bar to close (or series of bars to form) tells us a lot about the volume of the markets. Periods when bars are forming faster indicates more volume moving the markets. When bars are slower to form this is indication of lower volume. See the chart below as an example.

While the size of each individual transaction is for all intents and purposes unknown, larger positions are commonly broken up into smaller orders, thus a larger order of 10,000 contracts might be filled over the course of 5-10 smaller orders. In order for the market to absorb this order many smaller orders will be filled to match the other side of this trade.

Data-Based Intraday Chart Types

In addition to the tick chart there are two other types of data-based chart types, range, and volume charts. Range charts print bars at the end of a specified data interval and volume charts identify when a certain number of contracts have been traded.

Of all the bar chart types out there I prefer the combination of the tick chart with the Heikin Ashi Candlestick.

Trading Setups on the 512 Tick Chart

When you combine the tick chart with the Heikin Ashi candle stick study you get a nice clear picture of the market condition. Trending markets are easy to identify with clean bars of the same color forming one after another. Conversely range bound markets will appear choppy, with bars changing color more frequently.

For a detailed look at my trading setups for the ES & 6E you can checkout my Trading Rules, a comprehensive guide I put together that acts as the framework for my trading.

Thanks for reading!

Note: These are all free as of the writing of this post.

FinViz – A great place to create watch lists and sort through different stocks.

EconTalk – This is a weekly Economics podcast with host Russ Roberts. Russ does a great job of asking the right questions to prompt a high quality informative dialogue with interesting perspectives.

Academic Earth – For those interested in learning about aspects like the brain and human behavioral psychology, Academic Earth allows you to watch recordings of classroom lectures from top notch universities such as Stanford, Harvard, and Yale.

iTunesU – Similar to Academic Earth, the iTunesU library offers university level material archived for easy viewing right from your computer.

Think and Grow Rich – Now in public domain, this classic book is available via PDF, although I still prefer the audio version.

Jing – A quick and easy way to take screenshots of trades and short videos. Makes for a great addition to your trading journal.

StockTickr (Free for 7 days) – This is a fantastic trading journal. This one does cost a monthly fee, but they do offer a free trial period so I thought I’d add it to the list. Well worth it if you ask me. It’s helped me make a lot of great discoveries about my trading.

Strava – For the athletes out there I use Strava to track my rides. You can also use it to track runs and see what teammates or friends are doing. It’s pretty cool.

Pandora – Free Music! Pandora is a great tool to pass the time throughout the day listing to new tracks and discovering new artists.

Market Psychology Tests – A variety of tests designed for traders and those interested in becoming traders. They have many different uses, some better than others.

And finally, if you would like more great free content you can subscribe to my FREE newsletter below and receive a copy of my Trading Plan Guide.

Thanks for reading!

If not, something may need to change.

Where we are headed is always an unknown, so let’s take a look at where we’ve been with this two part exercise…

• First, let’s take a look at the markets thus far in 2012.
• Second, take an individual look at your trading, your results, and more importantly, what you’ve learned.

For more useful insights from my own trading experience I invite you to subscribe below, it’s free. I promise to not bombard you with emails, receive high quality content a few times per month.

Enter Your Name and Email Below and Click

ES Chart Analysis

Taking a look at a simple Heikin Ashi daily chart of the E-mini S&P500, 2012 has begun with steep grind higher, however sandwiched between the uptrend were periods of short pullbacks and consolidation.

These little 3-5 day consolidation periods are always difficult to identify in the moment so it’s critical to adhere to your rules and trade your setups the same way each and every time. This ensures that whatever methodology you’re using you will have a consistent data set to analyze and create new hypothesis from.

There’s nothing worse than coming to a conclusion off inaccurate trade data. In this case, more is better than less so take meticulous notes.

The ES Going Forward

The summer months typically see a slowdown in trading. In most recent years this begins around Memorial Day Weekend and lasts through Labor Day. That being said the setups seem to be even more technical and clean, what the ES lacks is the volatility.

Given that we have moved so far so fast on the ES in Q1 any pullback should not be cause for alarm. I will be looking at a halfway back short on the daily chart to confirm any move lower.

6E Chart Analysis

Moving to the Euro, a daily chart lends its hand to chaos. The nice thing about the Euro is that the ranges are much larger, meaning the ability to ride trends, trade ranges, and capture profits is high even when the daily time frames is choppy or range bound.

I’ve found the Euro offers one of the greatest risk/reward opportunities given that it is so liquid. Slippage is rare, this could be in part to my order execution platform Infinity Futures and also my internet connection Comcast Business Class, nonetheless it can become easy to get caught up in the tiny nuances and micro time frames getting chopped around.

Leaving my stop at -4 or break even giving the trade room to work has been one of the best paths to those big winners, but can be one of the most challenging mental hurtles to overcome.

The 6E Going Forward

Summertime for the Euro is not as much of a factor because the market is so much bigger than the index futures. I’m not one to make predictions, I simply interpret the market data to the best of ability with the knowledge I have at the time.

We’ve seen a solid base at the $1.3000 level and a major lower high in the past few weeks. If we continue in this tightening or wedge formation with the Euro forming lower highs, but higher lows we would most likely see a large and violent move result.

The Euro is a fantastic market, so be patient and stay disciplined.

Thanks for reading!

We all know it takes focus and a clear, objective state of mind to trade well. Balance is the name of the game. I trade my best when I’m well rested, well fed, and well organized.

As the saying goes “clean desk, clean mind.” Keeping a well organized and clean workspace can lead to increased productivity and better trading. Here’s how you can get organized and make the transition to full or part-time trading.

A Quick Exercise to Help Get Organized

Take a minute to list all the things that are important to you. List them one by one and pick out your top 3. I will tell you right now trading is NOT my #1 (good health aside) family and friends are.

Balance time in front of screen with enjoying the company of your family and friends. It will make you a better trader and more importantly a happier human being.

How I Got Started in Trading

I first began my trading career back in college at Arizona State. My time was occupied with classes (full-time) and work (part-time) along with simply being a college kid.

I found a swing trading approach to best fit my lifestyle at the time. I would spend a few hours each night doing my research and market analysis, picking the stocks I planned on trading the next day and set my orders.

I would watch the market open and make sure any orders that got filled were appropriately managed with stops etc. then I would monitor the markets during the last hour. That’s it.

This hands-off approach allowed me to be quite successful during this period. Soon after, I developed my day trading methodology and began to incorporate day trading into my already busy work, and life schedule.

(My in-depth day trading setups can be found under the ‘Trading Rules’ tab at the top).

Creating a Structure for Trading AND Working

Swing trading can be a great, low stress, low time commitment method for those confined to a 9-5 day job. If however, you’re looking to cut back your hours in the office and make the transition to trading full-time or day trading part-time I would first recommend reading The Four Hour Work Week by Tim Ferris (I prefer the audio version).

This book helped me streamline many areas of my life and get rid of the time wasters. Once the distractions, miscellaneous to do’s, and other non-productive tasks were out of the way I was able to solely focus on day trading in a clear and objective manor.

The book helped me cut out a lot of the “clutter” in my life and will dramatically improve your productivity at work leaving you more time to trade and enjoy life.

The Most Productive Time to Trade

For those on the West Coast (U.S.) you have the luxury of an early market open (6:30 AM) making it easier to get a few solid hours of trading in before any 9-5 job commitments roll around. I’ve found time around the NYSE open which overlaps the European session to be the most productive and profitable time to trade.

If you don’t live on the west coast and the NYSE open falls during your work hours try cutting back your office hours by 30-40%. “What, how can I do that?”

Simple. Take an inventory of your daily tasks for 5 days then stop doing 80% of the things that are non-productive time wasters. (Things such as constantly checking email, micromanaging small projects, and attending long drawn out meetings with no clear purpose and set plan of action).

This allows you the time to trade. Let’s face it, trading at work doesn’t work. Unless you have an office with a door and can disconnect the phone I do NOT recommend day trading from work.

Making the Switch to Full-Time Trading

Making the switch slowly from working 9-5 to trading full-time is a great way to prove to yourself that you are capable of supporting yourself solely off trading income. Having another source of income at first can be very helpful in alleviating the stress and psychological pressure of trading. This pressure leads to forcing trades and making bad decisions.

Whatever your situation, I’ve found that making the transition to trading as a career is one that should not be rushed. The markets will always be there. Take the time to organize the things that are important to you in your life and incorporate trading into your life in a way that provides the least stress with the most reward. This is when you will be at your best.

Thanks for reading!

The Segments of My Trading Day

Market Prep (6:30 to 7:00 AM) All times are in CST

Market preparation is everything. Over-prepare is the name of the game. Having a plan for every situation makes the process of execution much easier.

• Review the overnight session
• Check for news announcements
• Execute the gap fill trade

Each morning I ask myself the following questions…

What is the daily trend?
Where are we in the daily trend?
What is the 15-min trend?
What is the next setup?

From here I know exactly when and where I want to place my trade. This thought process also helps me visualize the different scenarios that could arise.

Trading (7:00 AM to Varies…10:30 AM, 12:00 PM, 2:00 PM)

I break the trading day down into 4 basic sessions (five if you include the Euro open):

• Pre-Market (7:00 to 8:30 AM)
• Morning (8:30 to 10:30 AM)
• Lunch (10:30 AM to 12:00 PM)
• Afternoon (12:00 to 2:00 PM)

During the pre-market I’m looking for setups on the Euro continued from the overnight and I look to place a gap fill trade if one sets up. (If interested, I put together a webinar outlining the criteria I use to enter, exit and manage the gap fill trade).

Your Signal to STOP Trading

My rule is I will continue to trade when the market is showing me good setups. When my trades are working, I’m getting targets hit, and taking profits.

I will assess my trading at 10:30 AM and if I am having a good day I will continue to trade. If the markets are slow, choppy, and going nowhere I will typically stop trading at this time, as the lunch session only sees more of a slowdown.

These day’s don’t happen that often, but frequently enough to where calling it quits for the day is of value to your bottom line versus sitting and forcing trades that don’t really meet your criteria.

Why I Don’t Set a Daily Profit Goal

If we are trading in a nice series of moves and I’m seeing profits on the day I will continue to trade. I’ve found that there are a handful of fantastic days each month and those are the days that I want to take advantage of and collect the most out of the markets.

If I were to stop trading once I reached a daily profit objective I would essentially be leaving money on the table on these great days and forcing trades on bad days, a recipe for disaster. Instead, I continue to trade on good days, and stop trading on slow days.

Exercise and Fun (Afternoons)

As you’ve probably heard me talk about before, I race mountain bikes. This is a huge part of my life and a delivers a healthy balance away from trading. The freedom and flexibility trading provides is fantastic, but keep in mind WHY it is that we trade. Life isn’t ALL about working hard and making money. Get out and have some fun, explore, try something new.

Biking provides me with adventure and a huge adrenaline rush. It takes me to amazing new places both physically and mentally (like trading). I am truly grateful to have the opportunity to do both (trade and ride my bike).

There are so many benefits of exercise and I talk about some of them in my post titled 6 Tips to Feel More Alert and Focused During the Trading Day.

Reviewing My Trades (Evening)

Once I’ve had my fun outside on the bike I’ll usually make dinner or grab a bite with friends. I set aside an hour each evening to go through the trading day and review all of my trades. I like to do this after the market has closed to gain a fresh perspective on things I may have missed or overlooked during the day (after all we are all human, even I miss things).

I do a full market recap, looking over the indices, currencies, and some specific sectors. I also go through my individual trades and review the ones I took, setups that I may have missed, and notes that I made throughout the day.

I keep a big legal pad by my side all day and this is what I use to make all my notes. I then enter them into StockTickr or Trading Journal Spreadsheets.

I compile a nightly watch list using FinViz and sift through a basket of stocks that I use to swing trade. I’ve got this down to about a 20-min process where I can scan, pick out, and asses tickers that I will trade the following day. Even if you don’t swing trade I find looking at 200-500 individual stocks each night helps me get a better reading on where we are in the markets.

But What if I Work a 9-5 Job?

Trading provides (among other things) a desirable lifestyle. In my next post I will talk about how I made the switch from working a “normal” job to trading full-time.

You may want to work part-time and trade part-time and that’s great. I will share some ideas for doing both, incorporating trading into your schedule to live a balanced and fulfilling life.

Thanks for reading!

Most gaps fill within the current week or the following week so it’s important to keep track of unfilled gaps. I jot down each day’s gap for the E-mini S&P on a post it note and cross them off as they are filled. Rarely is a gap left unfilled for a period of weeks or months and most of the time (on the ES) price fills the gap that day.

I have a few specific criteria that I use to tell me whether or not to place a gap fill trade and  I go through this process each morning before the market opens. Fading the gap is a great way to begin each day and using the following methodology and entry criteria it can be a very simple and effective method of trading.

Why Do Gaps Fill?

The gap fill play is commonly used among pit traders (especially the locals) who use this setup to fade the gap in essence placing a trade towards the prior day’s close. The simplicity of the setup and the defined stop and profit targets makes it easy to manage your risk on the trade.

Quick Reference Guide:

I keep this webinar clear cut and to the point. I’ve outlined the key sections below for your quick reference. Feel free to watch, rewind, and ask questions below.

Gap Fill Theory (4:15)

Which Markets to Trade (7:35)

Criteria for Entry (8:30)

When to Place the Trade (10:00)

The Setup (12:10)

Stop Placement (14:55)

Profit Targets (15:50)

Trade Management (16:45)

35-min Webinar on How to Enter and Trade the Gap Fill

Thanks for reading!

Over the years after testing out various methods and indicators I have taken away more and more from my screen. I thought I would challenge myself and consolidate my trading screen once again.

This was my most drastic change yet…

My Old Trading Screen

My New Trading Screen

The Purpose of the Experiment

One of my rules has always been if a trade is visible on a 15m chart then it’s a valid trade. The purpose of the experiment is to limit my exposure to inhibiting factors (thing that simply get in the way of me making decisions while trading).

I’ve already cut out all media sources like CNBC, Jim Cramer, and all news programs. The real challenge was the trading screen itself. I’ve had my screen setup across 3 monitors for about 2.5 years now and my eyes became accustomed to the layout. I decided it was time for a change.

From Old to New: Trading Screen Changes

Two Main Charts:

I consolidated my 4 main charts down to two, a 15-min ES and a 15-min 6E. Now when I want to switch between the different time frames like Daily, 15-min, and 512t I just click the Style > Aggregation Type > Tick or Time.

Ditched the 5-min Heikin Ashi:

While I like to confirm my entries on the 6E with a color change on the 5-min Heikin Ashi chart, I found this to be unnecessary in certain instances. As long as I was entering close to the 15-min entry the trade was valid. Thus, she gone!

Shifted the NYSE Tick Chart Over

The one chart that has changed the least is the NYSE Tick chart. I slid it to the bottom right and kept the main settings. I left my market internals on the chart as well. The NYSE Breadth and NYSE Advance/Decline Line Ratios come in handy during the day to see how strong or weak the market really is “under the hood” so to speak.

Here’s my post with the NYSE Tick and Breadth Code.

Additions: Indices and Futures Quotes

Since my goal was to consolidate my charts to one screen I left my top line figures (the S&P500, Dow Jones Industrial Average, NASDAQ, and Russell 2000) quotes on the screen. I also display the VIX (volatility index). Right below that I have the corresponding futures quotes (ES, YM, NQ, and TF).

The Benefits of My New Trading Screen

So far I really like the new trading screen setup. It allows me to focus on the ES and 6E and keeps all my drawings on one chart so I don’t have to redraw them multiple times. This is a benefit when zooming to the smaller time frames especially.

So that’s it. I’m down to two monitors. I upgraded this spring to the HP S2031 20” monitor. They’re fantastic!

Uploading My Workspace

If you’re using Thinkorswim and you’d like to try out my trading screen layout you can simply upload my settings via the following.

Instructions:

Download and unzip the file below and place it in the thinkorswim directory folder C:\Program Files\thinkorswim

workspace.Tims-Simple-Chart-Layout

On the Thinkorswim login menu select ‘Tim’s-Simple-Chart-Layout’ from the drop down menu.

If you like this post please retweet or share it using the buttons below. Thanks in advance.

Thanks for reading!

EminiMind’s Instructional Webinar Membership is designed to help improve your trading skills through a series of weekly ‘how to’ webinars, detailed Q+A with Tim, and other bonus content available to members. The webinars are held Monday’s at 8:00 PM EST and last 45-90 minutes.

The Membership Includes:

• Weekly Instructional Webinars w/ Q+A
• Full Access to the Webinar Archive
• Custom Thinkorswim Indicator Code
• Premium Blog Content/Posts
• Additional Weekly Bonuses

Thanks for reading!