Time Duration Secrets to Profitable Day Trading

According to our extensive hands-on futures market research, most successful day-trades last about 7-minutes. That assumes the trader is using a reasonable profit objective and exiting the trade as his profit target is hit.

Most losing day trades last approximately 45-minutes on average, when the trader finally exits out of the losing trade. That’s because the trader relies on hope once he sees the trade losing money. The trader hangs-on to the losing trade position relying on hope the market will change trend and turn in his favor. However, eventually the equity loss becomes too large which finally forces the trader to exit the trade and take a big loss rather than possibly lose even more money by hanging on even longer.

Are you wondering how this little known information can help you trade the markets profitably? The short answer is at the end of 7-minutes in the trade you might consider getting out regardless of the fact your profit target was not hit or you have a loss at that time, keeping in mind the more past 7-minutes it goes the less likely the trade will be a winner.

Insights For Search Predicts Real Estate Collapse

In the past we have posted several times about how financial market traders can use relatively simple chart patterns involving higher-swing-lows and lower-swing-highs to successfully trade the stocks & commodities markets, options market and with other investing.

I was doing research on this powerful trading concept this morning and was thinking the incredible real estate market decline could be a good example of how well it can work. Therefore, I went to Google’s “Insights For Search” and searched for “MLS Listing” which is a widely used real estate term by home buyers and sellers.

This is the explanation of how Insights For Search works from Google: “Google Insights for Search analyzes a portion of world-wide Google web-searches from all Google domains to compute how many searches have been done for the terms you’ve entered, relative to the total number of searches done on Google over time. You can choose to see data for select Google properties, including Web search, Images, Product search, and News search.”

The Google Chart displays the most perfect long-term examples I have ever seen visually depicting the great power of swing highs and swing lows. Starting in 2004 the chart shows a series of 8 important swing highs and 6 major swing-lows. Of particular importance is the Dec 06 swing low which broke the old support level established Dec 05 by that major 2005 swing low. Once that old support level was broken in Dec 06 it conformed a major real estate bear market. The market is believed to be the most severely depressed real estate market of all-time, especially in areas of the U.S. such as Arizona, Nevada, California and Florida.

If you were buying/selling real estate the chart clearly shows starting in the year 2005 you should have been selling (not buying) real estate based on the important July 2005 swing-low (which you knew about at the end of August 05, and was confirmed Nov of 2005 which was the month the previous major swing-low was confirmed. The next series of 4 major lower-swing-highs which were in mid-2006, mid-2007, and early-2008 and 2009 confirmed the bear market was ongoing and getting even stronger.

The strong nationwide real estate decline started in late summer of 2005 in several Sunbelt states at the end of Aug 05 (at least according to my knowledge and statistics). However, it got underway a little later in other areas of the nation and the media often reports the bear market started during the year 2006. In my opinion this chart is one of the most picture book perfect and accurate examples of how powerful swing-highs an swing-lows can be. It is something you should always look at and take into strong consideration while trading the markets or investing.

Trading Method for Trading Stocks & Commodities

If there is one single trading technique which can best lead to profitable trading of stocks and commodities it would probably be the concept of using swing highs and swing lows, which is based on relatively simple chart patterns.

The swing high and swing low trading method is based on the observation if you look at a chart of any market you can easily see a down-market consists more of a series of lower swing highs and an up-market is mostly a series of higher swing lows (which swings are also known by the trading term pivot-points).

A swing-high is a high day (or price bar) with lower bars both in front and behind the high bar, thus forming a swing-high. This swing-high must also be under the prior swing-high which results in a lower swing high.

A swing-low is low day (or price bar) with higher bars both in front and behind the low bar), thus forming a swing-low. This swing-low must also be above the previous swing-low, which becomes a higher swing-low.

Buying or selling swing-lows and swing highs are used by many successful traders. This concept has been used by them for a very long time. Simply buying higher lows and selling lower highs by themselves can improve your overall trading results, especially when combined with other sound trading principles, including use of powerful drawdown minimizer logic stop-loss techniques.

Time Duration Trading Secrets & Statistical Validity

Secrets of time durations of profitable & losing day-trades

Most successful daytrades last approximately 7-minutes. That typial trade duration assumes the trader is using a reasonable profit objective and exiting the trade as his profit objectivegets hit.

Most losing day trades last about 45-minutes. That’s because the trader relies on hope once he sees the trade looking like a failure. So he hangs on to the losing trade hoping it will turn, finally the loss becomes too big forcing him to exit the trade after being in the trade for a much longer time than originally anticipated, mostly due to relying on hope.

How many trades are needed for good statistical validity?

Lots of stocks and commodities traders ask how reliable their track-record may be as far as statistical validity goes. They may see some statistics on seasonal trades showing a market was mostly uptrending from April to June during 12 of the last 14 years, for example. The same traders may have experience with their own trading system showing 8 of 9 winners following say a 5-unit moving average crossing over a 9-unit moving average.

None of those scenarios are valid from a statistical validity standpoint. That’s because according to mathematical experts and statisticians a minimum of 30 occurrences are needed for good statistical validity. Please keep this in mind when evaluating a trading system or trader metholodology. Anything less than 30 samples will not be statistically accurate.

Predicting Monday Prices Based on Friday Price

Does Friday’s Stock, Options or Futures Price Action Predict Monday’s Price Movement?

Is it possible a market trading methodology or trading system can be profitable based on a simple trading method involving Friday’s prices to successfuly predict the opening price on the following Monday?

This trading pattern does not appear every single week but it’s often reflected in the financial markets. And when it does appear, the following Monday’s prices tend to perform in a predictable manner, possibly leading to trading profits got you.

The trade setup uses the opening and closing prices on Friday to trend in the same direction. Interim price movements and trend directions are not relevant for this trading method.

Stocks and commodity price openings don’t need to go too far past the first several ticks, as a price-gap which quickly reverses is sufficient for the purposes of this trade method, but that’s the direction the closing price needs to trend.

Monday’s opening price is likely to first start trending in the same direction at the opening of tradding vs the pattern of the two prices Friday moving in the same direction as each other, then Monday’s open is likely to start trending in the same direction imediately after the opening occurs.

Do your own technical narket analysis of old market price action based in one-minute bar-charts or real-time tick-charts to view the price action and weekly market trading patterns. You will see it sometimes does not work all weeks but does appear to be better than 50% reliable.

This simple but interesting trading method may work particularly well involving commodity futures trading in addition to stock market and foreign exchange market trading of the Forex Futures markets. Iy has not been tested in the futures optiosn maret but there is a good chance it will work there too.

Simple but Excellent Commodity Trading Method

It involves buying so called higher swing-lows and selling so-named lower swing-highs. Also known as pivot-points. A definition of these swing-highs and swing-lows is appropriate here: A swing-high is a high bar with lower bars on both sides the bar. Whereas, a swing-low is a low bar with higher bars on both sides.

The more lower bars to the left of a swing-high the better. The more higher bars to the left of the swing-low the better. That makes them more significant and presumably more powerful swing points. However, only one bar on either side is still acceptable (but two or more to the left are usually stronger trade signals).

My trading methodology requires two (or more) consecutive swings, with the second one being a higher swing-low vs the preceding one for a buy. Alternately, the second swing-high needs to be to be a lower swing-high than the preceding swing for a sell signal.

The actual going long trade entry takes place on a buy-stop 2 ticks above the high price of the last bar (the bar following the swing-low pivot bar), for a buy. The short trade signal takes place on a sell-stop at 2-ticks under the lowest price of the last bar (the bar following the swing-high pivot bar), with a sell.

Your stop-loss order is placed 6-ticks under the lowest price of the last swing-low bar on a long trade. The short trade stop goes 6-ticks above the highest price of the last swing-high bar.

It’s possible for you to make excellent commodity futures profits from using this simple, but very effective trading methodology. Authored and Copyrights by David Green. All Rights Reserved.