Day trading overview strategy bull and bear traps

Day trading overview strategy bull and bear trapsDay Trading Overview Strategy: Bull and Bear Traps

There are many different strategies to consider when looking for ways to trading the gap. Now that you know the basics of the Gap and Crap, take a look at the two different types of traps that exist and how they present trading opportunities. A Bull Trap occurs when a downward trending stock has gapped up and traps traders before filling the gap and continuing its downtrend. A Bear Traps is the inverse; an upward trending stock gaps down and traps traders before filling the gap and continuing its uptrend. Each trap presents opportunities for day traders to exploit.

For Bull Traps, traders should look for the current bar being very bullish. The open should be in the bottom 20% of the days range, and the close should be in the top 20% of the days range. This proves that the stock is consistently on the rise. The tactic to exploit bull traps is to short the stock below the low of the prior day. Traders should put a stop above the current days high or previous days high, whichever is higher.

For Bear Traps, traders should look for the opposite scenario. The current bar must be very bearish, with the open in the top 20% of the days range and the close in the bottom 20%. The day trading strategy here is to long the stock above the high of the prior day. Traders should put a stop below the current days low or the previous days low, whichever is lower.

Each of these traps present consistent opportunities for day traders to lock in profits. To learn more, check out some of our other articles outlining the strategies for the Fade and Fill and the Gap and Crap. For more in depth, hands-on training that will teach you to trade like the pros, look into taking one of Wall Street Trading day trading courses or our mentorship and coaching programs.

Trading and strategy games

Trading and strategy gamesMouse Trap Attack

You will need:

4 spring loaded mouse traps per team

An endless supply of rolled up paper balls

We will suppose that there are four teams or patrols of six boys. They are spaced at equal distances down the length of the hall. Each team or patrol has it's mouse traps cocked at one side of the hall on the floor. At the other side of the hall opposite each group of mouse traps are three attacking boys from each of the other patrols. These attacking boys are armed with rolled up balls of paper. Each patrol is allowed up to three defenders for their mouse traps. These defenders must sit on the floor half way between their mouse traps and the defenders. The attackers must lob the paper balls over the heads of the defenders and set off the mouse traps. The winning patrol is the one that has the last loaded mouse trap.

Mouse Trap Fishing Game

1 spring loaded mouse trap

3 bamboo canes

3 lengths of string

Some objects such as plastic bottles to be picked up, for each team.

Submarines And Minefields

You will need:

Blindfolds for each member of the minefield

You split into two teams, one forms a line across the playing field. They are blindfolded and standing close enough together to touch hands. Each hand is a mine that will 'destroy' a ship (a member of the other team.) that team quietly tries to sneak along the line weaving in and out of the mines, (i. e. between their feet, or between two scouts). we once had someone go fetch a utility ladder and climb over the minefield. After a minefield team member uses one hand and hits a ship, that hand is out of play for the round. Thus later ships may go through an unprotected area. Smaller scouts usually win this one. When the whole team has gone through or not as the case may be, change over. At the end of the game, the winning team is the one that managed to get the most ships through the minefield.

When the game starts the boys are given a set time 5 to 10 minutes in which they are allowed to trade. They trade in the following manner. A boy approaches another boy with a counter in his left fist. he does not show the other boy what color he is holding. If they agree to trade then they give each other a counter taking care that they do not show the color they are swapping. Any boys who do not wish to trade simply cross their arms, this indicates that they are not open for trading. After the trading period is ended you show the lads the stock market chart shown below and get the lads to add up their scores.

The Trader Game - Altered Slightly

Forex trading scams

Forex trading scamsForex scams

Where there is money involved, there is often a way to catch those who are not careful with them.

Forex is a perfect place for scammers to test their skills and imagination in setting traps for traders of all ages and nations.

Forex trading itself is not a simple adventure and requires a lot of studying, research and practice. Not many are able to carry out the educational part of becoming a Forex trader from start to finish, many fail in an attempt to make a shortcut to easy profits.

Those traders become clients of such scam systems once they realize that cant profit in Forex relying only on own knowledge.

What then to say about complete Forex beginners? Scammers must be calling them VIP clients :)

Lets bring the topic of Forex scams to the surface:

How thousands of “Forex gurus” capitalize on Forex newbies today. Don’t fall into their traps

If you want to accumulate large profits on your trading account before withdrawing them, think about few facts Ill give you and make reasonable withdrawal claims.

Traders friend

Traders friendTRADERS FRIEND

THE FOREX TRAP GAME

Every day big forex players set traps for little less experienced traders, and as they predict most of the less experienced and sometimes the more experienced traders fall in and lose their monies. Why. Because trading forex the right way takes the extreme level of discipline that the big players know most people don't possess. The inexperienced trader often possesses the same knowledge as the pro, but the difference between the two is in the execution. The pro will trade a good plan with a very very high level of consistency while the less disciplined trader will try to wait out traps that he has fallen into with the hope that the market will eventually turn and come back in his favor sometimes losing days of sleep waiting for this miraculous turn about. This is the trader that big banks and institutions love because it is this poor undisciplined soul that the banks count on to make their nice lavish livings. It is the truly disciplined profitable traders that the banks lose paper on.

Everyday the banks and institutions use their financial advantages to move price in an artificial direction for a short period of time often creating what looks like a legitimate profitable trade set-up. The traders who see this advantage quickly follow the price move only to find themselves trapped soon after the move has begun. Now this is where the banks find their feeding ground as they know that only a handful of traders have the discipline to cut this small loss and wait for a better trade set-up. They know that most traders are going to cry, pray and beg GOD to do what they had the power to do all along; the next thing You know most of those guys have gotten a margin call and a large amount of funds are transferred from many many small traders who often can't afford it into a few large fat accounts.

This happens day after day after day and the sad thing is most traders don't get it and end up in a debt hell that creates their worst nightmare on earth; while the victors are laughing about their score all the way down to the bar where they will spend a few thousand dollars before they retire for the evening waiting to play the same set-up on unsuspecting traders the next day. It is the sweetest money making deal on earth, and it never changes.

DON'T LET THIS HAPPEN TO YOU.

BE SMART AND FREE YOURSELF FROM TRAPS IMMEDIATELY.

DO NOT MOVE YOUR STOPS, IF YOUR STOP IS HIT, IT IS PROTECTING YOU FROM GREATER LOSS.

IF YOUR STOP IS HIT IT MEANS THAT YOU DON'T HAVE THE ADVANTAGE THAT YOU THOUGHT YOU DID AND YOU WILL JUST HAVE TO TRY AGAIN.

TRADING WITH DISCIPLINE IS THE ONLY WAY TO ENJOY ANY REAL SUCCESS IN FOREX. When the market traps you in a disadvantage, it will devour you without mercy.

SO FREE YOURSELF FROM EVERY TRAP.

Wait for a proper trade set-up and when You see an advantage, go where the money is going.

Don't allow the money to move too far against You, otherwise Your goose will be cooked.

It happens everyday, don't allow them to keep tricking you the same way, and unless you trade with superior discipline, STAY OUT OF TIGHT CONSOLIDATION, it is too much of a gamble.

Building winning trading systems with tradestation(ebook pdf)

Building winning trading systems with tradestation(ebook pdf)Building Winning Trading Systems with TradeStation(ebook pdf)

Building Winning Trading Systems with TradeStation(ebook pdf)

Before System Writer (the grandfather of today’s current TradeStation), system

developers and traders did not have a commercialized software platform to

develop their trading ideas. We are not talking about charting packages; we are

talking about programs that could understand a trading strategy based on technical

analysis. Sure, there were other sophisticated programs in the 1980s that

could be used, but they required a thorough understanding of programming,

additional software, and extreme patience with the software developer. Most of

these programs were not open platform; you had to program within their limited

scripting language and could not share your programs with others. The

programs that were potentially open platform usually required a separate editor

and compiler and a very sophisticated user. In fact, we developed and still

Building winning trading systems,website,2nd edition

Building winning trading systems,website,2nd editionBuilding Winning Trading Systems, + Website, 2nd Edition

Description

The updated edition of the guide to building trading systems that can keep pace with the market

The stock market is constantly evolving, and coupled with the new global economic landscape, traders need to radically rethink the way they do business at home and abroad. Enter Building Winning Trading Systems, Second Edition . the all-new incarnation of the established text on getting the most out of the trading world. With technology now a pervasive element of every aspect of trading, the issue has become how to create a new system that meets the demands of the altered financial climate, and how to make it work.

Giving voice to the question on every trader and investor's lips, the book asks, "How can we build a trading system that will be paramount for our increasingly stressed markets?" The answer? Establish mechanical trading systems that remove human emotion from the equation and form the cornerstone of a complete trading plan and with greater agility, characteristics that are more important than ever given the kinetic pace of the markets.

Presents an all-new strategy for trading systems that will show traders how to create systems that will work in the twenty first century

Expert advice from highly respected trading authority, George Pruitt

Includes a new website featuring updated TradeStation code and shows how to use the world's best investment software platform to develop and utilize trading systems that really work

Once again paving the way for traders who want to adapt to their environment, Building Winning Trading Systems, Second Edition combines expertise in indicator design and system building in one indispensable volume.

Setting profit traps with butterfly spreads

Setting profit traps with butterfly spreadsSetting Profit Traps With Butterfly Spreads

Individuals trade options for a variety of reasons. Some people trade them in order to speculate on the expectation of a given price moment, while others use options to hedge an existing position. Others use more advanced strategies in hopes of generating extra income on a regular basis. All of these are valid objectives and can be successful if done correctly. Still, there is a whole range of unique strategies along the option trading strategy spectrum that offer outstanding reward-to-risk potential for those willing to consider the possibilities. One such strategy is the out-of-the-money butterfly spread (heretofore referred to as the OTM butterfly). (To learn more about why people trade options, check out our Options Basics Tutorial .)

Definition of a Butterfly Spread

The net effect of this action is to create a "profit range," a range of prices within which the trade will experience a profit over time. A butterfly spread is most typically used as a "neutral " strategy. In Figure 1 you see the risk curves for a neutral at-the-money butterfly spread using options on First Solar (Nasdaq:FSLR ).

20Butterfly1.gif" /%

Figure 1 - FSLR 110-130-150 Call Butterfly

The trade displayed in Figure 1 involves buying one 110 call, selling two 130 calls and buying one 150 call. As you can see, this trade has limited risk on both the upside and the downside. The risk is limited to the net amount paid to enter the trade (in this example: $580).

The trade also has limited profit potential, with a maximum profit of $1,420. This would only occur if FSLR closed exactly at $130 on the day of option expiration. While this is unlikely, the more important point is that this trade will show some profit as long as FSLR remains between roughly 115 and 145 through the time of option expiration. (Be sure to check out the Buying Options section of our Simulator How-To Guide to learn how to buy options like these.)

The critical difference is that with the OTM butterfly, the option that is sold is not the at-the-money option but rather an out-of-the-money option. To put it another way, an OTM butterfly is a "directional" trade. This simply means that the underlying stock must move in the anticipated direction in order for the trade to ultimately show a profit. If an OTM butterfly is entered using an out-of-the-money call, then the underlying stock must move higher in order for the trade to show a profit. Conversely, if an OTM butterfly is entered using an out-of-the-money put option then the underlying stock must move lower in order for the trade to show a profit.

Figure 2 displays the risk curves for an OTM call butterfly.

20Butterfly2.gif" /%

Figure 2 - FSLR 135-160-185 OTM Call Butterfly

With FSLR trading at about $130, the trade displayed in Figure 2 involves buying one 135 call, selling two 160 calls and buying one 185 call. This trade has a maximum risk of $493 and a maximum profit potential of $2,007. At expiration, the stock must be above the breakeven price of $140 a share in order for this trade to show a profit. Nevertheless, a look at the risk curves indicates that an early profit of 100% or more may be available for the taking if the stock moves higher prior to expiration. In other words, the idea is not necessarily to hold on until expiration and hope that something near the maximum potential is reached, but rather to find a good profit-taking opportunity along the way.

When to Use an OTM Butterfly Spread

Nevertheless, the OTM butterfly spread offers option traders at least three unique advantages. First off, an OTM butterfly spread can almost always be entered at a cost that is far less than would be required to buy 100 shares of the underlying stock. Secondly, if the trader pays close attention to what he or she pays to enter the trade, he or she can obtain an extremely favorable reward-to-risk ratio. Finally, with a well-positioned OTM butterfly spread, a trader can enjoy a high probability of profit by virtue of having a relatively wide profit range between the upper and lower breakeven prices. In the wide spectrum of trading strategies, not many offer all three of these advantages. (For information on advanced trading strategies, read the Conversion Arbitrage Tutorial .)

Beware of the market makers’trading traps

Beware of the market makers’trading trapsBeware of the Market Makers’ Trading Traps

Trading may be the ultimate “survival of the fittest” profession. No matter how good a trader you are – or how experienced you may be – there are always traders better than you. And, they’re looking to exploit you at any chance they get.

I’m most reminded of this harsh reality of trading life when I watch the action on my Level II screens. Day after day, uninitiated traders get deceived – and have their money taken away – by savvy, highly experienced market makers. Most of these new traders naively think just having access to Level II data is all they need to succeed – until they lose thousands upon thousands of dollars or just quit trading out of exasperation.

So, with that in mind, let’s look at some of the common tricks market makers unleash on unsuspecting souls – and see if you can save yourself some money the next time you trade.

To begin, in case you’re not familiar with Level II, it’s an electronic system that reveals a complex picture of what’s taking place under the surface of the market. It contains a list of potential buyers and sellers of stocks, including the bid and ask prices and the number of shares in each order.

Having this wealth and clarity of information at your fingertips can lead you to believe you have a firm grasp of what’s happening at the moment with a stock. And, this false sense of awareness is precisely what market makers thrive on.

They want you to buy or sell a stock at just the wrong moment – and they do it by making it appear you’re doing the “smart” thing.

When market makers seek to buy shares in a stock, they obviously want to get the cheapest price possible, to benefit either their clients or their own trading accounts. So, they create the illusion the stock is ready to drop by placing offers very close to the last selling price – and showing bids well beneath current levels.

This apparent lack of buying support leads the unwary to believe the price of the stock is about to go down – perhaps sharply – and that now would be an opportune time to sell. And, it also gives newbies the misguided idea that this would be a great chance to “front-end” the action and go short.

As both groups will find out later, this temporary downward pressure was just a “head fake” or trap used by market makers to spring shares at favorable prices from the uneducated. Once the market makers have fulfilled their orders, the alleged selling pressure will yield, the price of the stock will ease back up, and both the sellers and shorters will be grumbling at their screens.

When market makers want the price to go up so they can unload shares at the best prices possible, they’ll do just the opposite: They’ll create a false sense of underlying demand and an illusion of anxious buyers who just can’t wait to get in, which causes the price to rise. After the market makers have finished their selling, the price will drop to its “natural” levels.

Mind you, these aren’t huge movements in prices. But, they’re enough to allow market makers who execute such trades hundreds of times a day to generate significant amounts of profits. And, yes, market makers have the kind of clout necessary to make this happen – some of them work for the biggest financial firms in the world, like Goldman Sachs (GS) or Bear Sterns.

This sleight-of-hand by market makers occurs in practically all NASDAQ stocks, but is easier to detect in stocks trading under $30, and smaller-cap stocks.

Keep in mind that while you may think these sorts of activities are unfair, they are legal and they’re an everyday part of the financial markets.

While you can’t stop these tactics, you can learn more about how to avoid them – and even make money off them – by taking advantage of one of my free classes for new traders.

DISCLOSURE . The views and opinions expressed in this article are those of the authors, and do not represent the views of equities. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: equities/disclaimer

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Futures trading course-online trading academy xlt

Futures trading course-online trading academy xltFUTURES TRADING COURSE - ONLINE TRADING ACADEMY XLT

The XLT – Futures Trading course blends two types of sessions in a very structured environment. Lesson sessions make up approximately 40% of the course curriculum. Each lesson focuses on teaching a specific concept that continues your trading education. Trading and Analysis sessions make up the remaining 60% of the course curriculum and apply the knowledge you have gained in live market conditions. Trading and Analysis sessions are conducted during active market hours with the purpose of identifying real trading opportunities using a very objective rule-based strategy.

Forty-two sessions are delivered over a 12-week period, with each session lasting approximately 2 hours in length. Lesson sessions repeat every 12-weeks, providing solid learning reinforcement. Each Trading and Analysis session is unique as the instructor and students, together, proactively and dynamically respond to live-market conditions.

Understanding Who is on the Other Side of Your Trade

Psychology

Week 2: Odds Enhancers: Identifying High Probability Turning Points

Strength of a Level

Stock / Bond Relationship

Supply and Demand Curve Extremes

The “Trigger”

System Building Traps

Week 10: Indicators and Oscillators and Candlestick Patterns

Identifying Turning Points with Oscillators

Adapting Oscillators for Trends

Use of Oscillators to Confirm Supply and Demand Entry Points

Use of Indicators to Confirm Supply and Demand

Moving Averages as Demand and Supply

Trading the Trend with Moving Averages

Building apc for discretionary

Building apc for discretionaryBuilding a PC for Discretionary/Automated Trading and Strategy Development

CHARITY DRIVE - NOW THROUGH NOVEMBER 15

ELITE MEMBERSHIP FEES WILL BE DONATED TO CHARITY:

FREEDOM SERVICE DOGS OF AMERICA

Freedom Service Dogs is a nonprofit organization that enhances the lives of people with disabilities

by rescuing dogs and custom training them for individual client needs. Clients include children,

veterans and active duty military, and other adults. Their disabilities include Autism, Traumatic Brain Injury,

Cerebral Palsy, Spinal Cord Injuries, Muscular Dystrophy, Multiple Sclerosis, and Post Traumatic Stress Disorder (PTSD).

Details about-futures trading course-online trading academy xlt

Details about-futures trading course-online trading academy xltItem specifics

The XLT – Futures Trading course blends two types of sessions in a very structured environment. Lesson sessions make up approximately 40% of the course curriculum. Each lesson focuses on teaching a specific concept that continues your trading education. Trading and Analysis sessions make up the remaining 60% of the course curriculum and apply the knowledge you have gained in live market conditions. Trading and Analysis sessions are conducted during active market hours with the purpose of identifying real trading opportunities using a very objective rule-based strategy.

Forty-two sessions are delivered over a 12-week period, with each session lasting approximately 2 hours in length. Lesson sessions repeat every 12-weeks, providing solid learning reinforcement. Each Trading and Analysis session is unique as the instructor and students, together, proactively and dynamically respond to live-market conditions.

Understanding Who is on the Other Side of Your Trade

Psychology

Week 2: Odds Enhancers: Identifying High Probability Turning Points

Strength of a Level

Stock / Bond Relationship

Supply and Demand Curve Extremes

The “Trigger”

System Building Traps

Week 10: Indicators and Oscillators and Candlestick Patterns

Identifying Turning Points with Oscillators

Adapting Oscillators for Trends

Use of Oscillators to Confirm Supply and Demand Entry Points

Use of Indicators to Confirm Supply and Demand

Moving Averages as Demand and Supply

Trading the Trend with Moving Averages

Building self-confidence

Building self-confidenceBuilding Self-Confidence

Preparing Yourself for Success!

Learn how to become more self-confident, with James Manktelow and Amy Carlson.

From the quietly confident doctor whose advice we rely on, to the charismatic confidence of an inspiring speaker, self-confident people have qualities that everyone admires.

Self-confidence is extremely important in almost every aspect of our lives, yet so many people struggle to find it. Sadly, this can be a vicious circle: people who lack self-confidence can find it difficult to become successful.

After all, most people are reluctant to back a project that's being pitched by someone who was nervous, fumbling, and overly apologetic.

On the other hand, you might be persuaded by someone who speaks clearly, who holds his or her head high, who answers questions assuredly, and who readily admits when he or she does not know something.

Confident people inspire confidence in others: their audience, their peers, their bosses, their customers, and their friends. And gaining the confidence of others is one of the key ways in which a self-confident person finds success.

The good news is that self-confidence really can be learned and built on. And, whether youre working on your own confidence or building the confidence of people around you, its well-worth the effort!

How Confident do you Seem to Others?

Your level of self-confidence can show in many ways: your behavior, your body language, how you speak, what you say, and so on. Look at the following comparisons of common confident behavior with behavior associated with low self-confidence. Which thoughts or actions do you recognize in yourself and people around you?

Building atrading strategy with market profile-robin mesch

Building atrading strategy with market profile-robin meschBuilding a Trading Strategy with Market Profile - Robin Mesch

CHARITY DRIVE - NOW THROUGH NOVEMBER 15

ELITE MEMBERSHIP FEES WILL BE DONATED TO CHARITY:

FREEDOM SERVICE DOGS OF AMERICA

Freedom Service Dogs is a nonprofit organization that enhances the lives of people with disabilities

by rescuing dogs and custom training them for individual client needs. Clients include children,

veterans and active duty military, and other adults. Their disabilities include Autism, Traumatic Brain Injury,

Cerebral Palsy, Spinal Cord Injuries, Muscular Dystrophy, Multiple Sclerosis, and Post Traumatic Stress Disorder (PTSD).

Welcome to the insead blue ocean strategy institute

Welcome to the insead blue ocean strategy instituteWelcome to the INSEAD Blue Ocean Strategy Institute

INSEAD Professors W. Chan Kim and Renee Mauborgne

Creators of Blue Ocean Strategy

Co-directors of the INSEAD Blue Ocean Strategy Institute

The INSEAD Blue Ocean Strategy Institute (IBOSI) was launched in 2007 as a result of the strong interest around the globe in the theory of blue ocean strategy created by INSEAD Professors W. Chan Kim Renee Mauborgne.

Today the Institute thrives as an intellectual hub with its Institute Executive Fellows coming from the best schools across the globe.

The Updated and Expanded Edition is out

Red Ocean Traps

6e trap trading example

6e trap trading example6E Trap Trading Example

This is an example of a 6E trade, using the methodology of Trap Trading. This trade is one of the most reliable: a double trap at the top.

Price made a strong move to the upside and big money started trapping buyers, before showing his hand and sending price down, running buyers stops.

After some minutes, trapped traders started bailing and I got out at the next key level for a quick win. I decided to make a video of this trade, to show how I spotted this trap and how following order flow and block trades insured this trade was going to be a winner. The video can be accessed at the course content members page.

Also, I explain in the video some ideas on how to trade Spot Forex using forex futures order flow traps.