Warrior Trading Blog

Patience Pays in Emini SP +$1,162 | Steve’s Futures Pulse 198


Hey, what’s up fellow traders?

Happy Wednesday to you. All done trading in the room and just two trades in the futures trading chat room today. A scratch trade in the Euro currency futures, no harm, no foul, and then a short position in the evening SNP that ended up scoring me 1162, but it took some patience and tell me, I know the value of patience as a parent, three young kids, they know how to really push my buttons.

This market required a lot of patience as well. I held this trade for hours longer than my typical day trader scalp, but it paid off. I trusted my stop above the recent technical highs, and then after a little bit of flush out in a lateral volatility market, the market broke down, and I was able to head for the exit with some green.

Now, I didn’t record the entire session cause I don’t want you to have to watch out a three-hour video, but I did start the commentary and hit that record button just as the market was starting to break down so I could give you some technical insight on the trade and a little bit of ketchup on where we were throughout the course of the morning.

All right, enjoy today’s futures pulse come on.

All right, traders. As you know, we’ve been very patient with this trade here. [inaudible 00:01:19] was the big break at 29 23 we’ve been in this trade since back here. We took some heat on the trade. Our stop at 30 and a quarter held. Market’s breaking down just as we speak here, and this is exactly what we expected here, that 29 24 a break of that level was going to be a key zone for the trade. Both the Euro trade that we’re in, as well as our E-mini S and P is working in our favor.

We’ve been in this one since this morning, being very patient on this trade. I must confess to you, hanging in there with me on this one. Just like that, I’m going to cover 11 or 12 units. Closed out 1375 on the trade. My cover point on those 11 units, 20 and a half against short 12 units at 29 23.

We’ve been very patient with this trade. On my last remaining unit, I’m going to pull my stop all the way down from 30 and a quarter down here at 27 and a quarter right there so we really, really mitigate the risk on this particular particular one.

We still have a runner in play. If it wants to break, great. If not, it’s a very stress-free trade because it’s going to be in the green after being very patient on this trade, and those of you that have been hanging in there with me, of course you’re rewarded for your patience this go-round.

Giveback on the trade now just four and a quarter. So just a $200 a potential giveback risk on the final trade here. But again, we worked really hard and patient on this trade to get this to where it needed to be. This long range bar came all the way down to, I was looking at initially down here around that 17 point a but we came down to 18 a quarter before it bounced, what it looked at here before it got the bounce was this congestion zone here, look at this long string of congestion here.

We talked a little bit about this as the market, again, went here. Put some of you guys asleep, myself included, especially if he had a big sandwich, a big roast beef sandwich or something for lunch, but it doesn’t mean you should have [borked 00:03:11] the technical plan here. Again, this was one we talked about patience, trusting your stop, not bailing on the trade prematurely.

We talked at great length about how being patient in this key level up at 29 24 it was going to fuel that long range bar. I guess I missed the mark on the exact downside potential being 29 17 here. It came down to 18 and a quarter, so within a point and a quarter, still not too bad. Market still may retreat from this 24 level. You can see it came up here and it referenced that prior bar high.

Look what it did to retreat off that master point of control. And when I said it was a big difference in this trade, whether we got down to 24, down below there or not, I meant it.

Again, those of you that have hung in there watching this trade, literally for hours, from this morning into the afternoon, being patient again, you’re rewarded for your patience here today.

I’ve closed out 1375. I had 12 units on the first go covered, 11 again at 20 and a half, and essentially got a free trade on this one. My giveback on this is $212, so worst case I make a thousand bucks on this particular trade. Okay?

As you look a little bit further down below, if you’re wondering what’s possible on this trade, still a couple hours left in today’s day session, so for you day traders, which of course are going to be flattening up the trade here before the end of the day, keep an eye on this zone down here. Again, a reemergence down to the downside here.

I talk about, when looking for targets, you want to make it easy to see the exit when you look down a long hallway. Picture a hospital hallway or a school hallway. You want to be able to see that red exit sign. What that means is an easy way for you to remember that you want to look for a place, if this is the hallway, this bar, where you can see the exit, so within that 18 and a quarter, new low on this bar, you want to pick somewhere inside there.

Ticker two, if that’s 19, again, that’d be three ticks inside that. You want to be able to see it. We’re going to see this market. It’s coming right back up. Looks like I may be heading for the exit here on this one, on that final unit, but again, with a giveback of only $212.50, t’s going to keep me above 1000 bucks on the short side trade today. Boy oh boy, a real test of patience, let me tell you.

Then we’ll migrate over into the Euro, which is at break-even a here so far. I’m going to zoom in on the chart, if you take a peek here, look what we see again. That long range bar that’s fueled by something we know all too well in market profile. One of the big benefits of market profile, if you don’t have market profile, you’re not using TAS market profile, you don’t see that this is really the congestion zone of volume activity. You don’t see the master point of control right there. It literally is invisible to you. I say it’s invisible in plain sight. The information’s there, but you need to be obviously subscribed to a utility that allows you to see it right there on your screen.

It’s interesting how this market is getting rejected here right on that master point of control. That’s that yellow line, and we’re just hanging in there. I get my stops at 27 and a quarter on that last unit and I’m just being patient here.

There we go. Out of that last unit, there we go. 27 and a quarter. Right on my stop. 27 seven a quarter, so net on this one, 1162 and 50 cents on the short side and this evening S and P were flat. The market now, no, really? I don’t care where it goes. I’m flat to market. It took, again, this was a great example of patience.

Two of the biggest things that you as a trader bring to the table that I can’t control, that TAS market profile can’t control, that Warrior Trading can’t control and your fellow Warrior Trading mates can’t control is your ability to be patient, your ability to be disciplined. Okay? I could tell you the rules. I could tell you what we’re looking for. I can tell you about key levels.

I can say hang in there, this is natural or normal. You’ve got to stick to the plan and you’ve got to be patient to know that the markets don’t move necessarily on the time horizons we want to. They move at the pace they want to. It’s your job to be patient, set up the construct for the entry, as we did on that a short side trade, and then we turned our focus exclusively into a risk management process. Okay.

And we were rewarded here today. Again, 1162 and 50 cents on that one. And let’s go over to the Euro here. As I do, I would like to get the get away from the screen here today. I’ve spent a little bit longer than I typically do in front of the screen here. We’re short. Remember from this one 1116 zone over here, right about where we are right now, hover in there. Again, this one had, in similar fashion, had that break to the downside as well. After testing these levels up here, our stop on this one was one 1131 which is up here. Again, weathering the volatility factor, even break above the technical value area, but the technical highs held, so again, get some of that volatility here around one o’clock obviously. Got to love the old fed when they get up talking, when you get up speaking.

Talking, everyone likes to read between the fine print, don’t they? We saw it from a technical standpoint here.

This is the Euro currency, or as he watched this one in short from the one 1116 zone, which is right about here, actually just a smidge lower right about there, so you can visually see it. Stop up here. 31, this one only carried a one 87, a contract risk on the trade, and we’re basically right back to even. The big wildcard for me is I talk about something called both time stops as well as life stop.

What’s kicking in for me is a life stop. What that means, you won’t find that in any trading related book, that’s a trader Steve exclusive. It means when life is preparing to pull you away from the screen because you got things to do, you got places to be, things to meet and you just want to enjoy the rest of your day. All right? One of the many perks of being a trader.

A life stop allows you to say, “Hey, enough’s enough. I’ve made enough or I’ve managed my risk enough that I’m going to head away from the screen.” Even though, maybe from a technical standpoint, you could spend another 24 hours in front of the screen.

Remember that the goal is not … the winner is not who trades the most and spends the most amount of time in front of the screen. The winner is who is meeting their personalized objectives for income, whether it’s side income, side hustle, save some money up for a vacation or buy a new computer, or a new car. I don’t know. Whatever it is that your goals have you, that’s how I gauge know who’s the winner when it comes to trading, that’s for sure.

It’s going to be different for each and every one of us, but for me, kids start school tomorrow, so I’m pretty excited about taking care of a few final odds and ends that are left to be done before kids go off to school. When that’s done, I get some normalcy in my life. Yes.

I like back to school time. One of my favorite times of the year, that’s for sure. Because one of my favorite periods of trading is between now, September, October, in about the first half of November, that’s a nice little stretch of about two and a half months we have ahead of us where I really enjoy the markets.

My kids start school exorbitantly early. They go to private school, but they share the buses with the public schools, so they pick a up all the kids bright and early ahead of all the other kids in the neighborhood and they ship them off to school. But they start earlier than I ever started when I was a kid. They’re hitting the books at seven o’clock in the morning. 7:00 AM. Talking sub kindergarten through fourth grade. They don’t mess around. But they’re done early too, which is kind of nice. It means I to spend some time with the kids early in the afternoon while they’re still daylight, which is cool.

I’m scratching this Euro. My life stop has kicked in and I’ll be on this break to the downside here, which of course was fed fueled, but still at a decent technical trade that we had on our hands and be on the short side. We’re going on to scratch this Euro. Call it a day. And now with little patience, we snuck in the S end into the green here on the evening S and P but it took putting that stop above that technical high, weathering some volatility, patience and many hours in front of the screen here.

But I’m glad it did. We’ll be back at it tomorrow. It’s hump day, so we’ve got two days left. We’re going to see how we finish the rest of the week. Look for a strong finish this week, and look forward to meeting you back in the markets again soon.

Until then, of course, trade well and be well everyone. Bye bye.

Well, as you can see, there’s valuable lessons inside these videos and that’s why now’s the time to subscribe, like, and share this video, so you can keep getting alerts every time I post a new video, as well as the other Warrior Trading mentors. Until the next video, happy learning.