I wanted to write this blog to share the importance of Key Setups for Trading Futures.
This helped me this past week have 5 for 5 profitable days for almost $20k in total profits and this blog will focus on Thursday which gave me some trouble before lunch time.
I had a situation this past Thursday when I was trading TF_F Futures ( Russell Futures ) and made a quick profit past the open ( +$2,400) only to give it back ++ on 3 key stop outs but spoiler alert — I got back in the green on the day.
Did I get lucky to recover back the losses ? you decide from reading the blog and checking the charts and detailed notes below.
Here is the first chart read and trade below. I had great timing & targets with some excellent cover points:
Here is the actual short trade past the open with levels:
After this trade I was feeling GREAT : Leading up to Thursday I was up almost $9k ( Mon-Wed ) so I had pushed over $11k on that one trade and thought that Thursday would be a great day since my chart read and planning started so well.
In the meantime I started a short on NQ_F ( Nasdaq Futures) and then decided to start a small scale in short on TF_F into the VWAP only to be stopped out on both :
Trades and charts below :
NQ short and stop out into 10:30amEST
So past 11:00amEST and after these 3 stop outs I had gone from being up +$2.4k to being down approx $4k on NQ_F and TF_F and I was not feeling as GREAT as the initial profitable trade..lol
After the stop outs into 11:30amEST I posted this message on Twitter: https://twitter.com/stockguy22/status/918498650501853184 and a trader asked what are Key Setups ?
I responded that Key Setups to me are: https://twitter.com/stockguy22/status/918515019003949056
1) Key time of day
2) Key Candle Patterns
3) Key Levels ( vwap /pivots/Fibonacci)
The Blog post actually begins here but I wanted to give you some background on why I was doing it since many traders also may not have known what I was talking about as far as Key Setups.
To this point I was down on the day but by using what I teach my 1on1 mentoring students and what I share in chat each day helped me recover back an get back into the green.
I didn’t force any trades but instead focused on a possible new setup and what the charts were telling me.
I sat back and waited to see if there was a clear Key Setup and got one ( chart below) which was:
1) Key time of day ( into Euro Close 11:30amEST )
2 ) Key candle Patterns ( you can see the resistance we hit and upsideDown V-shape turn around). I have many patterns I love and we could have easily had tweezer tops or a shooting star that also would have triggered a trade for me.
and 3) Key levels – I was targeting my short down to VWAP & below again
Notice the detailed notes I put on my charts. These are the exact charts I shared with chatroom and mentoring students as the trades were playing out.
Many traders before I start to mentor them can’t tell me why they got into a trade, what their plan was or what their targets etc. were.
I can go back to any day and detail why I did that trade and what my plan was.
I find this extremely helpful for a few reasons:
1) it lets me know when I am in a good trading zone.
2) it lets me recap trades that didn’t work out so I can learn from them.
Regardless if you are trading futures, stocks, options, FOREX or commodities you must understand that its very important to save your charts and notes and its something I force my mentoring students to do as well has have them review my charts each day.
I got a few Key Setups: Notice on a few charts I even have Fibonacci targets along with key support/resistance levels as well as targets and strategy.
After the tweezers above at that key resistance area I felt we were due for a nice drop into 3:30pm on TF_F and that’s what I posted on the chart.
I was watching YM ES and NQ as well and they all had dipped – TF had not dropped and I felt it could play catch up to the downside ( which it did and I had my cover points in place in case we hit those levels quickly to 1505-1506 zones)
After all these trades I am glad to say I got back into the green on the day and was 4 for 4 ( Mon-Thurs). Unfortunately after I went flat past 4:30pmEST we had a quick 1+ point drop which I missed out on but overall I was happy with the executions and entry/exit points.
What was even better was that Friday turned out to be an amazing day for Key Setups and I discussed the 3 Key Trades at our most recent Saturday webinar.
On Friday I made +$10k+ on the day just trading TF Futures action & was done trading by lunch time https://twitter.com/stockguy22/status/918989372296499200 which put me at almost $20k profit for the week.
Although I had an incredible Friday, I was more proud of the Thursday recovery and successful traders understand that you learn the most from your days when you struggle or lose most than from the days where everything works out great ( like Friday).
If you aren’t doing this type of analysis or being mentored by someone better than you or surrounding yourself with other like minded traders then you are likely missing out on Key Setups like I shared in this blog.
Hope you learn from this blog.. feel free to comment.
I am working on completing an intensive Futures Workshop where I plan to share my:
- Skills &