RicoX

Somebody To watch Over Me when I trade Imagine a world class trader sitting over your shoulder. Are you doing what you’re suppose to be doing or something stupid?

Not denying that done correctly, last hour or half hour can't be very profitable but in my book it's not worth the trouble. Yes, there are no absolutes in trading and since we're all different there are no simple answers as well. Therefore, all we can do here is voice our opinions based on hopefully personal experience. My goal was just to put these rules out in the open so anyone not aware of them could go and research them further. We all had/have to do our own homework. Personal experience is everything in trading.

Heh,heh,heh... saying something should be avoided, not used, etc, never fails to rattle the cages. If you do need that kind of volatility last hour or last half hour might be your playing field. No arguments there. Thing is these rules were meant for thread starter not you. He still needs to learn how to earn and even more importantly keep the money. Trader that is not completely confident in his/hers abilities will give money back in the last hour. More often than not and that is a fact. Last hour (or half hour) represents institutional playing field and because of size traded volatility expands. Doubt anyone here moves the size that would matter in these conditions, so we all fall in to the retail traders category. What we retailers count on to make trading decisions is technical analysis. We usually don't have more to go on. Technical analysis is a study of the past that tries to predict the future. What happens in the last hour is that technicals start to break down because of the sudden added volatility and size traded. Stops need to be widened, support/resistances do not hold anymore, price starts to move erratically with programs running amok... If you're looking for directional trades in these conditions you're in a world of hurt. Since the thread starter is looking to make Al Brooks methods work, this was a good practical advice for him. Or anyone else for that matter. Why would any day trader willingly walk in to the last hour algo ran shit storm,risking hard earned money, is beyond me. If you're a day trader and not done before noon reexamine your trading methods. All day trail trades are exempt from this rule but you will want to be out before algos take over just as well.. Unless you like your stops tested. But as always.. just my

DO NOT TRADE THE LAST HOUR OF THE DAY IN THE S&P 500 FUTURES MARKET. The probabilities of a successful trade diminish in this timeframe due to the impulsive and reckless buying and selling by institutions just because they didn’t get their trading done earlier. IF YOU DON’T LIKE THE TRADE YOU’RE HOLDING, GET OUT. AFTER TWO HOURS OF TRADING, ASK YOURSELF: DO I FEEL GOOD ABOUT MY TRADING TODAY? Once two hours have passed, a day trader should have made at least two, or perhaps more, trades, but enough to reviewuate what you have done. If the trader feels good about the day’s trading, continue. If not, stop trading that day. ALL CYLINDERS OF THE ENGINE MUST BE RUNNING EFFICIENTLY. Day-trading is a job, and your paycheck is determined by your ability. You can only maximize your ability if you have all the information you need to make trading decisions. If a piece of equipment that one uses for trading is not working, stop trading. HAVE COMPLETE FAITH IN YOUR INDICATORS. Many times your indicators give you a buy or sell signal, and you don’t follow it because you don’t have the confidence the signal is right this time. Successful day traders believe in their indicators, but also are aware that nothing is 100% foolproof. TO ANYONE WHO ASPIRES TO BECOME A DAY TRADER, OBSERVE THOSE WHO ARE SUCCESSFUL. Any information you can procure on the trading philosophies, mechanics and techniques is well worth your while. DAY-TRADING IS A LONG-TERM COMMITMENT. It takes several years to become a true professional. M.Cook

Phoenix01, There are things you're still missing so don't beat yourself up too much just yet. Just a few things to consider : 1. If you don't get a personal mentor (forget internet salesmen) to point out your mistakes and help you correct them, you will spend 5-10 yrs doing that on your own. Mentor can get you going in about a year. Do you have enough mental strength to see this through on your own? 2. Trading can be infinite complex or inherently simple. It all depends on you. You have to explore to find your style. Try different techniques and time frames. Try what ever comes along. 3. You do well one day and lose on the other because market condition (volatility) changes all the time. Until you'll be able to spot that change you will get caught. Do you know which conditions you prefer when trading? Are you trying to trade all day using the same method? 4. Start logging your trades. ALL successful traders do that. When you'll review your logs you'll quickly see why some days you're hot and some days you're not. It'll be a pattern. You won't progress without a detailed log. How can you repair mistakes if you don't even know what they are. 5. If you're already a break even trader you're on your way. Don't give up. Just isolate mistakes and correct them. It will take time to be a complete trader. But until then you can still make some money. First thing you do is to set daily goal. When you reach it that's it. Shut down your computer and go do something else. You can of course switch to demo account and practice but no real trading. If you keep trading through the day you will usually give money back. Yes, I know.. daily goals... that's for suckers, right? Well, I'd rather be a sucker with money in my account then a trading hero with a hole in his pocket. Think about this. 6. Al Brooks methods are fine but will take time to master. If you need more confirmation use indicators. No shame in using indicators. Only losers bash indicators in general. If using an indicator or two helps you make money it's all that matters. I could go on ... but it's enough for now. Rico