Warrior Trading Blog

Friday Frenzy -$88 | Steve’s Futures Pulse 186


Hey, what’s up, fellow traders, trader Steve here. Happy Friday. You’re probably gearing up for an exciting weekend ahead, I know I am. And you’re probably wondering how I fared today in another volatile session. Well, as you know yesterday, no trades. I stayed on the sideline and I avoided the temptation to chase some trades yesterday and get angry about my silver that I just missed hitting out of the ballpark. Guess what? Today was busy. It was a frenzy Friday and here’s how it went down. I lost $88 but it didn’t start that way. Those that were in the futures trading chat room saw me go 0 for two on two long entry opportunities in the E-mini S&P and at one point I was down 3225. Oh boy, I guess I could have left it alone right there, but I was still within my risk tolerance for the lot size of I trade.

So I found a nice $1,100 come back trade in the crude on a breakdown. We grabbed a dime on 11 units and then we found a nice redemption trait in the E-mini S&P later as the market started to bottom out and started to make its climb back. I’m going to go over the chart right here right now so you can get a better understanding of why I pulled the trigger when I did, why I cut bait. And I’m glad I did on that S&P first attempt and then where I found some opportunities in the crude. Come on and look over my shoulder here.

All right, first chart we’re going to focus on is that E-mini S&P. That’s where a whole bunch of action came in here today. I want to talk to you about my first entry into the trade. First is when we were getting started here this morning, I saw that the market paved the path higher. This is what I call it. We call it’s the slip and slide bar where the market has a long range bar and then it retreats back. It oftentimes, many times in fact, we’ll it pave the path for a market being able to more easily break back through that. So we entered in here early. It’s our first trade, 2946 where you see, I put that yellow line right there on the chart and then the market pulled back a little bit and we added at 2944. We did three and three so we put our cost average at 2945. All was well and then they rang the bell out in New York on the stock exchange and then instantly we saw the volatility.

Now we ended up cutting bait on this trade at a 2937 and a half, which is right here. And I think this is really important for those of you that are following along and if you’re not in our futures trading chat room, you don’t have the benefit of course seeing this live. But look at why we cut bait right there. We started to move in the opposite direction down below what we call the demand zone right here. That’s that green line. Time and time again, when we break out of balance down below that green line, we know the bears are taking this thing over and they’re pushing it out of balance in their favor. So our long positions, there was no reason to give that market anything more than that breakdown below that key level at 38 and a half. We got out at 37 and three-quarters.

So look where the market is. Now market came down down, down. Many of you probably watched this, perhaps maybe you were buying into this thing as it was working its way down. Well, there was no need to be doing all that because the market ended up bottoming out 2913 and a half. And guess what? Guess what? We ended up finding an opportunity coming back the other way here. Our entry points for the comeback trade was actually pretty nifty. This was our last trade of the day, and I’ll get to the crude here in just a second, but 19 and a quarter is where we initiated our long position. Now, I want you to understand why at 19 and a quarter, right there, I knew it was time to at least start thinking about a comeback trade. We did that 19 and a quarter and on the way up, we covered very quickly at 22 and a half on 11 of my units, which was awesome because we got some of the equity back on the trade.

And then we ended up letting our runner go. I had to vacate from the screen. We covered at 24 and a quarter. So you’re probably saying, “Okay, that’s all fine and dandy. Basically ended up getting back a good chunk of the trade, a little over $2,000 of the 3225 but where’s the $1,100 in crude?” Let’s go look at it here. This is the afternoon here, so obviously the chart looks a little bit different than it did at the point of entry. I want to talk to you about the crude. This one was a short entry of 5536. let me go show you where this thing started, make its breakdown. There it is. 5536 and this actually was a zone we were looking at here, this open space in the background.

And I’m glad that we were actually very aggressive on the profit taking on this thing. The market broke down, we ended up covering on 11 units at 26. so this little dime right here that you see, that’s what we were able to grab out of the crude oil and then we moved our stop to break even on that final, what I like to call runner, that last lot. We moved that down to break even at 36 so we did get stopped out as you see the market penetrated back up. And then it was a battle in the balance zone the whole rest of the day. So I feel like we didn’t really miss out on much and it actually was, I guess somewhat of a blessing in disguise that we were very proactive on our exits here because the market never did follow through to the downside. So that’s where we got $1,100 back. All told again, we ended up losing $88 on the day. So it’s one of those days I told traders, said, “Look, we’ve had a all in all a great week.” Thursday session, I missed a fantastic opportunity in silver that would have been a royal home run, which could put you in the mindset to maybe go out and chase trades and be really like trade with greed. And bad things happen when you do that, especially in a volatile market.

I came back today, got down on my first two attempts in the E-mini S&P and it’s easy to kind of get into this fatalist mindset where again, you make bad decisions because you’re mad, you’re angry. Why did I make that trade? Why did I just sit on the sideline again? But we found some nice opportunities technically. We fought back and nearly got it all back but fell a little bit short. So good lesson in trading and what it takes to be patient, to take what the market’s willing to give. And some of the times that means losing but losing less than everybody else because you still have your stops in place, which is a golden rule of mine. Every single trade that we do always has a worst case scenario stop so that if the market goes against us, we’re on the sideline and we’re not given anything more emotionally to this market and financially than as necessary.

Enjoy your weekend, everybody. I look forward to doing again with you, of course, back here on Monday morning. Until then, trade well and be well and go have some fun this weekend. So long.

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