day trading the nasdaq futures - traders...
TRANSCRIPT
DAY TRADING THE NASDAQ FUTURES
Matt HowardJune 4th, 2019
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Disclaimer
MY HOME SCREEN SET-UP
<ask your question to the audience here>
Slide Page Title
DEFINING THE TOOLS
VWAP: Volume Weighted Average Price
UVOL-DVOL: The Breadth Ratio
ADVN-DECN: Advancing Stocks vs Declining Stocks
TICK INDEX
EXPECTED MOVE
POC: Point of Control
10 PERIOD EMA: Exponential Moving Average (on daily chart)
CANDLESTICK CHARTS:15 minute, 5 minute, 2 minute, trading off the 5 minute
TICK CHART:A tick (no relation to TICK Index) shows a pre-selected number of ticks per bar.
ATR: Average True Range
PIVOTS: Pivot Points = previous days high+low+close divided by 3. *There are additional variances sometimes used.
FIBONACCIS & KEY REPEATING NUMBERS
FIBONACCI: Each number is the sum of the two repeating ones starting from 0 and 1.
I.e. 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc…
KEY NUMBERS: This is another group of numbers I’ve specifically found useful in the Nasdaq.
6, 12, 18, 22, 25, 33, 42, 46, 52, 56, 62, 66, 72, 77, 82, 88, 92, 96
MY TRADING DAY PROCESS
Be at computer by 5:45am.
Look at overseas markets and overnight futures prices.
Check economic calendar for events and announcements (usually want to avoid trading around them).
Note all key levels: Edges of Expected Move. 10 day Moving Average. Pivot Points. Yesterday’s Close. Overnight High/Low. Yesterday’s High/Low. Point of Control.
I’m looking for general market sentiment and obvious areas of support/resistance.
Only with a REALLY strong bias on direction AND specific support/resistance levels will I take a trade pre-open or right at the open. I’ll usually wait 10-15 minutes for internals to solidify.
Will usually stop trading by around 11am as later day moves have less of a tendency to mean revert.
RISK/REWARD
I try to ballpark overall risk in a position, as well as the most likely to be hit target areas and my best guess as to the likelihood of the trade panning out (i.e. “Clarity”).
Some trades seem to be so obvious as to be almost automatic. Once you get more comfortable in your judgements, be sure to take bigger size in these trades.
Take ATR into account when figuring out your initial trade size.
Try to get in and out in pre-planned areas, not all at one exact price. Trying to be too specific will often caused missed trades and lost upside potential.
Give winners room to work!
Know your risk area and overall risk in a trade going in. If that amount is violated, just take the lump. One out of control loser (especially if you’re continuing to average down) can wipe out days of wins.
PSYCHOLOGYI work on staying calm and accepting discomfort as part of the game. I.e. I try to “get comfortable with being uncomfortable”.
Meditation, diet, exercise, a good night’s sleep all help, but the single biggest thing is REPETITION.
Keep your daily process and routines as close to the same as possible and just get up and do it OVER AND OVER.
Keep a trade journal, not just of your trades, but of your thought process and how were feeling, physically, psychologically and why. The deeper you dig in and the better you know yourself the better
you will trade.
