Countless numbers of day traders spend their time and money searching for that magic indicator that will unlock the secret of trading profits. To be sure, I have seen aspiring traders purchase trading program after trading program in search of the new indicator that will send their trading profits soaring. Unfortunately, no such indicator exist and it is unlikely that a magical indicator will be developed that can revolutionize profits for the e-mini day trader.

On the other hand, thousands of e-mini day traders successfully trade every day without any wondrous and magical indicator. Of course, it would be much more convenient to have an indicator that unlocks the secrets of e-mini trading. To date though, we are far from developing any such trading tool. So that leaves us with the trading tools we have at hand, and there certainly is no shortage of indicators for the e-mini trader to utilize. The question remains, though, which indicators are the best ones to utilize?

While some indicators claim to be leading indicators, that is to say that they have a predictive quality in their results, the evidence suggests that this predictive quality is sketchy, at best. Most indicators are lagging indicators and indicate the status of current trends based upon recent history. As any good trader knows, recent history can be helpful, but the market contains a random element that can easily deviate from past history. We are left with indicators that give us, at best, an educated guess as to the path the market price action will take in the near term future. In short, short-term trading can be a rather inexact science, at best.

One important aspect of trading is often overlooked by traders who depend solely upon indicators and oscillators to time their trades. In my world, price action is the driving force in my trade selection. While I do employ oscillators and indicators, their purpose is primarily to confirm potential trades I spot by observing price action. I pay careful attention to support and resistance, volume, and price movement in choosing my trades. Obviously taking trades into known resistance or support it is risky business, at best. Unfortunately, strict oscillator and indicator traders do not have a handle on where or support and resistance may lie and often blindly take indicator or oscillator indicated trades into these danger zones.

Further, price movement and price analysis can give a trader a unique view in which the market functions. Specifically, I analyze each bar and note whether the bars make higher highs and higher lows. Conversely, I am also interested in the opposite price action, and that is whether the bars are making lower highs and lower lows. Each of these price formations can be indicative of potential market moves in their respective directions. From there, I can have a good look at my oscillators and indicators to determine the strength and velocity of these potential moves and decide whether or not the trade is a high probability or low probability trade.

Price action, along with support and resistance and volume, are often overlooked in trade selection. But learning to actually read price action will give any trader a much better understanding of what is actually happening in the market and provide the trader with insight into high probability trades and conversely, help him or her avoid low probability trades. Very few traders are excited about entering low probability trades and seek to avoid them at all costs. It is my contention that ignoring price action and relying strictly upon oscillators and indicators will often lead traders into low probability trades.

A second common mistake made by oscillator traders is the failure to recognize the trend in the market. Regardless of whether the oscillator or indicator being used indicates a nice trade, if it is against the trend you will often find yourself on the losing side of the trade. From a statistical standpoint, a trend is likely to resume (after a short retracement) 80% of the time. Obviously, trading with the trend is a habit all traders should cultivate. The only way to truly ascertain whether or not the market is trending is by observing the price action and subsequent retracements.

In summary, we have stressed the importance of observing price action and the benefits price action has to offer traders. Trends, retracements, and then market noise can all be identified very easily by observing price action. We have also noted that strict oscillator trading can often lead a trader into low probability trades, which should be avoided. Watch the price action and you’re trading will improve immeasurably.

- About the Author: Learn to trade from a full time trader. All active members may attend FREE daily trading room and receive nightly market recap video (a $495 value). Click here and get your free videos and FREE live trading room. Article Source

S&P 500 Composite Closing Price Fell Below 7-Week Lows by Robert W. Colby

Summary: S&P 500 Composite (SPX, 1,047.22) closing price fell below 7-week lows. Energy stock sector Relative Strength Ratio (XLE/SPY) has been bearish since peaking on 7/1/08 and fell below 8-week lows on 8/26/10. Financial stock sector Relative Strength Ratio (XLF/SPY) fell to a new 9-month…

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Stocks Broke a 4-Day Losing Streak by Robert W. Colby

Summary: Stocks broke a 4-day losing streak. But is it significant? Financial stock sector Relative Strength Ratio (XLF/SPY) fell to a new 9-month low on 8/25/10 and remains bearish. Absolute price fell to a new 12-month low on 8/25/10 and has been in a bearish trend since peaking on 4/15/10. Cru…

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It goes without saying that every e-mini day trader prefers to trade a trending market, they are the easiest to trade and have the highest probability trades for success. Unfortunately, markets tend to trend only about 30% of the time. The remainder of the trading session consists of normal backing and filling operations, sometimes referred to as “market noise.”

As a e-mini day trader, I prefer to avoid trading during periods of market noise over trending markets, which only makes sense. But there are times that the market presents some trading opportunities during periods of consolidation. From the onset, though, I’ll recommend very conservative e-mini trading techniques in consolidating markets as the price action can be very unpredictable. Specifically, I would trade fewer contracts than normal and make sure that a trade does not run away to the downside from your profit target. Of course, this is easier said than done and it takes extreme vigilance to successfully day trade periods of market noise. But it can be done.

1. The optimal e-mini consolidating market will follow a repetitive serpentine pattern rising and falling at nearly the same level in each cycle. Using strict scalping technique, a e-mini day trader can do quite well as the market tends to stay in these cycles for extended periods of time. The technique to day trade this type of market is relatively easy; you would place a support and resistance lines at the peak of each cycle and the trough of the cycle. I generally set my stops tighter than usual when employing this technique and set my profit targets to whatever length the cycles are averaging. Obviously, if the peaks are occurring 12 ticks from the average trough, it would be unwise to set your profit target at 26 ticks. Using oscillators, you can generally target the peaks and troughs and trade them accordingly, either long or short. I have made a good deal of money trading and this particular style.

2. If is the consolidation period is narrowing into a wedge shape, I will often put buy and sell orders one point above and below the range of the narrowing market. In doing this, I can take advantage of any breakout or breakdown that will occur. Consolidating markets that show a tendency to narrow are often followed by a significant breakout or breakdown. By putting a buy order above the established range, you will pick up the trade if it breaks out long. Just the opposite, by establishing a sell order just below the range of the consolidation, you will pick up a breakdown in the day trading action and potentially capitalize on it. This day trading technique can be very effective, but does carry some risks should the market widen just a bit and then return to the consolidation pattern.

3. There are some consolidating patterns that are indecipherable in terms of patterning. My recommendation is to avoid trading this sort of consolidating market, as the traders have not established any sort of discernible pattern during the period of market noise. At best, this type of consolidation pattern is treacherous. As I said, I avoid market noise that displays a high degree of randomness in the price action.

In summary, all e-mini day traders prefer to trade trending markets. But there are some non-trending markets that display enough movement and enough predictability where a trader can be effective in choosing potential trades. However, all consolidating patterns are not created equally and highly random consolidation patterns should be avoided.

- About the Author: Sign up for our free daily e-mini instructional videos and get a feel for the method and techniques the E-mini Trading Professor employs. The videos are free and there is no obligation so click here and start learning immediately. You can learn to day trade emini contracts at an affordable price using time-tested techniques that give potential traders an excellent chance for success. Article Source

Loss of Confidence Surrounding the US Fundamentals by Darrell Jobman

EUR/USD Risk appetite faltered in Asian trading on Wednesday and the Euro retreated back towards the 1.31 area against the dollar as confidence in the global economy deteriorated. The US trade deficit for June was sharply worse than expected with a 21-month high of US$49.9bn from a revised US$42…. Day Trader:..>>>   More »

Overnight Developments

• European stocks are trading mildly lower with the European Stoxx 50 down -0.28%. Sep S&Ps are down 4.80 points (-0.44%). S&Ps are on edge ahead of this morning’s Q2 GDP report (expected +2.6%). There is also some caution ahead of Sunday’s expected release of China’s purchasing managers index due to talk of a sharply weaker figure. The market consensus is for a moderate 0.7 point decline to 51.4 from 52.1 in June. The Eurozone July CPI rose to a 20-month high of +1.7% y/y from +1.4% y/y in June, which was in line with market expectations. However, the core CPI rose to only +0.9% y/y from +0.8% y/y in June. Meanwhile, the Eurozone June unmeployment rate remained at 10%, the highest level in almost 12 years. The IMF said today that US banks may need as much as $76 billion more in capital. A senior executive from Moody’s said that Spain, already on review for a possible downgrade, will probably lose its Aaa rating. Spain has already lost its triple-A ra ting from S&P and Fitch. The Moody’s executive also said that the U.S. needs a "clear plan" for tackling its deficit.
• The Asian markets today closed lower across the board: Japan -1.64%, Hong Kong -0.30%, China -0.32%, Taiwan -0.49%, Australia -0.68%, Singapore -0.33%, South Korea -0.83%, Bombay -0.69%. Asian markets were undercut by the report that Japan’s June unemployment rate rose to a 7-month high of 5.3%, which was higher than the consensus of 5.2%. In addition, Japan’s factory output fell 1.5% m/m versus the consensus for a +0.2% rise.

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Overnight Developments

• European stocks are higher with the European Stoxx 50 up 0.55% after hitting a 3-month high. Sep S&Ps are up 5.70 points (+0.52%). European stocks received support from positive earnings reports from AstraZeneca and Volkswagen and from positive confidence and employment reports. The European Commission’s business and consumer confidence index rose to a 2-1/3 year high of 101.3 from 99 in June. Meanwhile, Germany unemployment fell by 20,000 to 3.21 million, which was the lowest level in 1-1/2 years and was the 13th consecutive monthly decline. The Germany unemployment rate fell to 7.6% from 7.7%. French Finance Minister Christine Lagarde today said she expects a "serious pickup" in global growth in 2011, "if only because global trade has significantly improved." UBS upgraded European stocks to "neutral" from "underweight," cut U.S. stocks to "neutral," and cut Japanese stocks to "underweight."
• The Asian markets today closed mixed: Japan -0.59%, Hong Kong +0.01%, China +0.50%, Taiwan +0.18%, Australia -0.13%, Singapore +0.41%, South Korea -0.17%, Bombay +0.19%. Asian stocks were undercut by Wednesday’s U.S. Beige Book report, which suggested lackluster U.S. demand for Asian exports. Panasonic fell 7.7% today after news that the company would offer stock to help it purchase full control of its Sanyo Electric and Panasonic Electric Works units.

Day Trader: Click Here for the complete Morning Call.

For many years people from all walks of life have wanted to learn how to day trade. If you ever thought about learning to day trade, you should read this article on day trading and what is needed to be a successful day trader.

Most people think of big money, and a great life style when referring to successful day traders.  Becoming free of your boss, and losing the 9 to 5 job has its perks. The best feeling a day trader has is the instant gratification one gets from consistently being profitable.  All these things are true.  You can change your life for the better.  You don’t have to work long hours in a job you hate.  Day trading is by far the only way you can be independent from anywhere in the world.   But not everyone can succeed in day trading. More often than not traders without experience jump into day trading without understanding exactly what to do.  You wouldn’t fly a plane without first learning the important steps needed to fly a plane.  The result would be a crash and burn.

Professional day traders guard their trading secrets.  Remember that big money needs the little guy to take from.  Most aspiring day traders start their journey by joining a chat room, or following advice in forums posted by unsuccessful traders. Since no College degree exists to learn how to day trader, you must educate yourself on the art of day trading the right way.  Books and DVD’s offer insight and theory but fall short when it comes to real life experiences.   Only by learning side by side with a professional the actual methods the insiders use, will you have the ability compete on a level playing field.  Otherwise it’s like taking candy from a baby, and you are the baby.

If you are a beginner trader or an experienced trader, DayTradeToWin is now offering a private mentorship program designed to teach you the actual methods used by professional day trades to beat the market. This is a complete program offering you one on one with the trader and founder, John Paul as he shows you and teaches you the missing links of trading.  The Classes are held multiple times a week during the trading day. The program has been extremely successful with traders. “It’s the A-ha moment that I love to hear from traders”, says John Paul, founder of DayTradeToWin.

Most traders have the basic information on trading, but a complete package from A- Z is a necessity to success.  Most trades don’t see the entire picture when trading.  There is a road map that each trade needs to follow. These precise techniques are taught, and will change the way you look at the markets forever. The 6 week program consists of everything you need to become a self-sufficient day trader.  The Atlas Line is also included with the program which is a propriety trading tool only available at DayTradeToWin.  More information on the mentorship trading program can be found at www.daytradetowin.com.

The 6 week program includes the following:

If you would like more information about this exciting new program please contact John Paul and  daytradetowin by email at support@daytradetowin.com or toll free at 888-607-0008

Disclaimer: Day Trading in futures is extremely risky and involves substantial risk of loss. Therefore you should consider carefully whether such trading is adequate for you. Trade only with risk capital-funds you can afford to lose.

- About the Author: John Paul is founder of daytradetowin.com and has been providing educational trading techniques using price action to successfully day trade the emini sp and other financial markets. Article Source

For many years people from all walks of life have wanted to learn how to day trade. If you ever thought about learning to day trade, you should read this article on day trading and what is needed to be a successful day trader.

Most people think of big money, and a great life style when referring to successful day traders.  Becoming free of your boss, and losing the 9 to 5 job has its perks. The best feeling a day trader has is the instant gratification one gets from consistently being profitable.  All these things are true.  You can change your life for the better.  You don’t have to work long hours in a job you hate.  Day trading is by far the only way you can be independent from anywhere in the world.   But not everyone can succeed in day trading. More often than not traders without experience jump into day trading without understanding exactly what to do.  You wouldn’t fly a plane without first learning the important steps needed to fly a plane.  The result would be a crash and burn.

Professional day traders guard their trading secrets.  Remember that big money needs the little guy to take from.  Most aspiring day traders start their journey by joining a chat room, or following advice in forums posted by unsuccessful traders. Since no College degree exists to learn how to day trader, you must educate yourself on the art of day trading the right way.  Books and DVD’s offer insight and theory but fall short when it comes to real life experiences.   Only by learning side by side with a professional the actual methods the insiders use, will you have the ability compete on a level playing field.  Otherwise it’s like taking candy from a baby, and you are the baby.

If you are a beginner trader or an experienced trader, DayTradeToWin is now offering a private mentorship program designed to teach you the actual methods used by professional day trades to beat the market. This is a complete program offering you one on one with the trader and founder, John Paul as he shows you and teaches you the missing links of trading.  The Classes are held multiple times a week during the trading day. The program has been extremely successful with traders. “It’s the A-ha moment that I love to hear from traders”, says John Paul, founder of DayTradeToWin.

Most traders have the basic information on trading, but a complete package from A- Z is a necessity to success.  Most trades don’t see the entire picture when trading.  There is a road map that each trade needs to follow. These precise techniques are taught, and will change the way you look at the markets forever. The 6 week program consists of everything you need to become a self-sufficient day trader.  The Atlas Line is also included with the program which is a propriety trading tool only available at DayTradeToWin.  More information on the mentorship trading program can be found at www.daytradetowin.com.

The 6 week program includes the following:

If you would like more information about this exciting new program please contact John Paul and  daytradetowin by email at support@daytradetowin.com or toll free at 888-607-0008

Disclaimer: Day Trading in futures is extremely risky and involves substantial risk of loss. Therefore you should consider carefully whether such trading is adequate for you. Trade only with risk capital-funds you can afford to lose.

- About the Author: John Paul is founder of daytradetowin.com and has been providing educational trading techniques using price action to successfully day trade the emini sp and other financial markets. Article Source

The following SPAM e-mail is being circulated.  The Rookie Day Trader does not endorse this product.  The links have been de-activated for this posting.

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Subject: Rookie DayTrader, New Breakthrough "Magic Code" Makes Your Site Money!

Rookie DayTrader, Just Released: A New "M a g i c C o d e" that when added to any site you have causes your site (or even any site) to magically start making money. No joke. This discovery was made by a New York doctor who for the last 10 years used it secretly to do everything from offset his advertising costs, to just adding it to 1,000′s of webpages and amass a personal wealth now of nearly $100 million cash! And now he’s decided to allow you and everyone else to share in it (and since he stands nothing more to gain by keeping "you" in the dark about it). As it turns out, a number of the largest online firms such as Alexa, and even a good number of the top 100 sites ranked on the entire Web are already using this amazing, but very simple secret. Alexa, for instance, adds this code to a number of their web pages and it allows them to automatically generate an "extra" $90,000 a month in profits – and that for just a single webpage! If you had 10 such pages that each did likewise, you’d "magic ally" get $900,000 every 30 days just poured into your pocket! And most important: You should instantly recognize the fact that since a firm like Ale xa (as well as about 34% of the Web’s top 100 sites) is using this, then you too should be using it. But here’s what may SHOCK you the absolute very most … * It takes you just 45 seconds to add this code to any webpage * Once added you do NOTHING further – but money just starts pouring in! And remember … Just in case you think this isn’t for real, firms like Ale xa and others in the top 100 wouldn’t be using it (but they are; so what does that tell you?) If you are wise and want to make your web pages pay you money automatically simply by adding just a simple string of 1-line code to any webpage, then you had best go here immediately: ~~~>>  virl. ws/ goo gle w e althm agnet/To ps ecret Ma gic-code/?g regg@netw ork engi neerings er vices .com Why the need to RUSH? … Simple: The guy giving this out is letting just about another 500 to maybe 600 people at best find out about this, and then he’s deliberately going to "pull the rug out from underneath" anyone else trying to get it! I know, I know … That sounds very cruel and unfair. But that’s his doing; so rather than argue with him it would probably just be a better idea to just go there and grab it so that at least "you" don’t get left out in the rain, right? But fair warning, in case you stumble upon this too late, just don’t be shocked to see it’s no longer available. To your Success, –Ste ve Jon es — If you wish to unsubscribe, please use the link below: ~~> http: //virl .ws/goo gle we althm agnet/Tops ecretM agic-co de/?re move