Trading Strategies and Tactics Lecture

Key Concepts

Laddering

• Continuously finding points of entry (ladders) even on micro time frames.
• Key focus: Identify where subsequent buys should be made.
• Look for ranges where rebuys can be made (e.g., 85.70).

Marking Trends

• Essential to mark trends accurately to identify potential trade entries.
• Trends can be identified by connecting tops.
• Trend breaks are significant for identifying new trading opportunities.

Entry Points

• Identify and mark hold levels and inverse levels for potential entry points.
• For example, after hitting an inverse level, the move could break straight back down.
• Observe multiple time frames (1 min, 3 min, etc.) to find the best entries.

Trend Breaks

• Look for trend breaks to make quick trades (E.g., a 50-point gain).
• Importance of continuously setting and updating trends.
• New opportunities arise as trends break and re-establish.

The Inverse Move

• Identifying inverse moves allows exiting trades unscathed or in slight profit.
• Example: When touching a leg of the move, it indicates a potential break leading to inverse trade setups.

Timing and Strategy

• Focus on smarter spots for entries, holding trends, laddering up, and trend breaks.
• Look for optimal points to enter trades to avoid unnecessary losses.
• Essential to distinguish between pre-trend break entries and post-trend break entries.

Larger Time Frames

• Utilize larger time frames for understanding major trends and potential breaking points.
• Mark valleys and other significant support or resistance levels.
• Understand in-depth cycle movements and project larger trade moves.

Managing Risk

• Use smaller, grinding trades against larger trends for safer trading rather than aiming only for large moves.
• Take frequent small trades for steady accumulation of points.

Practical Examples

Example Trades

• Entry on trend break and gain of 100 points.
• Entry based on inverse levels and small consistent gains.
• Use of hold levels for safe entries and stopping in profit.
• Adoption of new trends as they form for continuous trading opportunities.

Key Takeaways

• Continuously find smaller level trades that accumulate into significant gains over time.
• Use of appropriate time frames to mark and identify trends correctly.
• Be disciplined in marking trends, finding entry points, and managing risk.

Advanced Techniques

• Identifying origin levels for precise entries based on historical data.
• Adjusting trading strategies dynamically as trends evolve.
• Use of magnification tools and precise measurements to reduce risk of liquidation.

Summary

• Trading successfully involves a mix of patience, accurate trend marking, smart entries, and managing liquidation risks.
• Understanding and reacting to trend breaks, laddering, and inverse moves is key.
• Small, frequent trades preferred over aiming for massive, riskier trades for consistent performance.