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Understanding the Golden Setup in NASDAQ Trading

Oct 22, 2024

Lecture Notes: Golden Setup in NASDAQ Trading

Introduction

  • Presenters: Don Kaufman and Tony Rego
  • Session is live and focuses on trading in the NASDAQ markets.
  • Key subject: The "Golden Setup" with a 90% win rate.

Market Overview

  • Current market: S&P is relatively unchanged, moving by 5 points.
  • Market is news-driven with significant attention on the Federal Reserve.
  • Discussion on whether inflation is still a hot topic.

Key Discussion Points

Market Dynamics

  • Market making is about trading neutral; reflexive bounces are common due to market makers' strategies.
  • NASDAQ trading offers a way to capitalize on the large tech stocks without individual stock analysis.

The Golden Setup

  • Focus: Trading the NASDAQ mini futures (NQ), specifically using the "Golden Setup."
  • Entry point for trades is a specific level, called the "26" (e.g., 18,426).
  • Criteria for the setup:
    • Price must approach the 26 level from above a 50 level (e.g., 18,050 down to 18,026).
    • Set limit orders to buy at the 26 level.
    • First profit target is the 33 level for initial gains.
    • Protect the remainder of the trade with stop orders.

Trade Execution

  • Importance of limit orders over market orders due to NASDAQ's fast movements.
  • Using bracket orders to automate entry, stop-loss, and take-profit levels.

Secondary Setup: The Silver Setup

  • A short trade setup that involves shorting at the 26 level when approached from a lower round number.
  • Example criteria: Price rises from 18,000 to 18,026.
  • First profit target is 18,019 (plus 7 points profit).

Tools and Resources

Micro Futures

  • Trading micro NASDAQ futures is recommended for beginners due to lower risk and smaller size.
  • Allows for experimentation with less financial exposure.

Learning and Support

  • The Golden Setup Master Class scheduled for May 18th.
  • 90-day access to a dedicated chat room and live trading sessions.
  • Monthly coaching calls to discuss trade setups and strategies.
  • Futures 101 course to cover basics for beginners.

Trading Strategy Recap

  • Focus on mastering a few consistent setups rather than diversifying strategies.
  • Ensure risk management through disciplined execution and protective order setups.
  • Emphasize learning the process and developing confidence through practice.

Additional Information

  • A full money-back guarantee is provided for the 90-day challenge.
  • Unlimited support and mentoring through emails.

These notes summarize the key points from the live session on the Golden Setup in NASDAQ trading, providing a structured approach to market engagement and strategy execution.

Full transcript