I'm basically a micro-term stock trader, and make a living at it. I've done a little bit of directional futures trading when I felt strongly about fundamentals (like short silver), or as a hedge, but I know I don't have an edge. It seems that recently, the daily range of the SPX is greatly expanded, with nice long multi-point moves, and might provide a good opportunity for me to learn some directional trading, using the ES futures. Any suggestions on a strategy that I might use effectively in this type of market? I understand fully that it may cease to work if volatility decreases, but I thought I might be able to get my feet wet while it lasts.
tough to find a consistent egde on futs...i know i havent got it...that's why i trade 'em when i feel somewhat confident they are trendin' and buy retracements..if u have balls u can take care of tops/bottoms or buy/sell when price moves at the extremes of da ladder...u can also buy those thick red candles; more often that not they leave a shadow behind and that's where u get u profits, but u got to get rid of u trade quick or use brackets. sometimes price action is very tellin' but very fast and i think it is worth it jumpin' in with substantial size 50-100lots; of course am not even close to move that size yet. still if u mix it up like this all day long and be confident and at ease with pullin' the trigger am sure it cud work out.
I am not a scalper, my system which is a combination of nuts and bolts and grommets is more of a longer term/scalp when ripe machine! I must say, trading the NQ was like shooting fish in a barrel today!
You need a method, teaching and support: http://www.tactrade.com/index.html If you want to know how to trade price action, this guy is who you are looking for, RTS
(1) Expect today's market to "test" the closer daily extreme from yesterday. (2) If the market is making daily highs or lows during lunchtime, expect some type of tradable reversal. (3) Expect daytraders to get "flat" from ~2pm-2:30pm(CST). There can be a tradable "wiggle" at that time.