Learn Day Trading: A Guide to Success. May 1st Morning Trade Example
Good. Morning welcome to EDC, trader this is Mike and I, want to show you the trade I'm trying to get in it's in consolidation. Mode right on the baseline and, I had four opportunities. And she is I'm, not sure if she's creeping up creeping, down but I have. It on my stop, originally. On this this the first cattle so, came up almost knocked me out and it's been holding but. Yet not that I get knocked out and I'll try it again, but, there has been one two three, four. Five attempts, to break out, so. It. Might be breaking out we do have a resistance, there and I'm letting him gobble up the contracts, as long as I'm staying with them that floating zone will be okay if she, breaks through. We're. Gonna have a good runner here but, we just gotta give it time I'll. Put it back and pause and see what happens. Okay. As you can see it. Finally. Kind, of broke through we're out of time time, sell. Right now so. I might pull back one more time within, the cloud and I'll pop, it out again but at least now I'm, just break even plus a couple of points and, it. Actually literally. Almost. Where my stop was honest, on this line as you could see this. Is where was a tick just before my stop. Out and. But. As soon as they hit that bottom it took took off shot and that is what over the next two minutes but. We have a sell signal here so what I'm going to do is I'm just going to keep it on the line, I already. Out. Of a negative. A trade and hopefully I have a free trade running down you, know what I'd like to see. I. Do have a couple of points of support resistance and the. First one is the view up and the second for sure is the institution, line and. What all what I might do is if I don't get stopped out. If. I don't get stopped out here, I will. Cash out on the institution, line at 80 804, let. It come back into the cloud and, then. Go for it again as the institution. Line, if. You're looking at the slope right now. As. You could see we're really taking, solid ation still bouncing up and down as. You can see it's, a very strong, slope. But. We're starting to break out now. Now. I'll probably get oh please, don't step up because this was a lot of support and resistance here. I'll, probably get stopped out here that's. Funny, we're stopped out I'll, put it on pause and try to get a re-entry, here once again. Before. I stop about what I'll show you is this is what I'll do see. Now it did the fake outrun is pushing, down more aggressively, what. I'll do is I'll put it back again. That's a buy stock market and. I'm. Going to put one on the opposite direction, on the sell stock market. Okay. Because. Sooner or later this thing's going to break out of this cloud on a big run we. Fought through a lot of this resistance, and we needed to break through the. Sell opportunity, at 8:50 is activating. Which, is okay. And. What time is this supposed to sell to, let's. Take a look here. So. For an hour so, it might drop down back to this previous low here. Whoo. Okay, so we're, back into it and, then. What I'll do I'll, put, in where's. My stop myself we'll be somewhere right around here. And. That's. Where the line is right there right there, for now. Didn't. Expect that weapon so soon. Now. Hopefully that was just a just to touch that area so. You could see we hit three lines in the sound there and, hopefully it breaks through through, through the vo up again, because. We gotta give it a little bit of a time. Too. Because. We had like, how many circles here we've had 1 2 3 4, 5 6 7 8 9 10, so. This is that's you know where your where, your battle is. And. I. Don't like having I like having two circles at once you know and then take off but you know what this is trading so, take.
It With a grain of salt and let's see if she takes off like crazy one, more time I. Think. They were just looking for. Some. Some, cheap orders once again. And. She breaks out of here for sure I'm going to be putting it back up on the line. Actually. We have another shorter one here. Now. She'll pop up. So. What you can do is wear this second, breakout, line once you, can put it here. So. Now we're only. Let. Me see here. Because. We know we broke. Through to this point, dunh dunh of deep retracement, once again like we have one two three four, here, and. So. Now. Yeah. It's only a forty dollar risk. Versus. Well. It says 22 but I think it's a little bit more than that it's. A hundred and some dollars so, we're, keeping we're keeping ourselves. For. Risk management. Because. They did the zigzag pattern as you can see a breakout, breakout pullback. Kill, the contracts, take. Off. Now. We'll see, if we can break this 850. Line that's our key. And. Then. Let's, we get a little bit higher again I'll put it back to break even plus one. And. We'll try it one more time I. Just. Want to see what these next cattle does if it pushes up a little bit higher I'll put an automatically. The break-even. There. We go now. I feel comfortable enough, whoops. Take. This to. Break even plus one. And. See how it's tapping again that we have to fight one more time but. At least we're not in a bad trade. We. Are in profit, and. We just have to let the Train work its way through. So. This is how the bassline works it's. Actually. This is a perfect example today, how the bassline, strategy. Works, we. Had one opportunity takes. Off put. It the break-even second. Opportunity, was to quit took a loss third one took. A loss for, this. Fourth. One was forever and. The. Cameraman price put it to break him and thought I was going to take off here and then no, this one could have been a loss I think I was in this one here just this one right here and. That was the. Longest one forever just, waiting waiting waiting waiting and then, off. To the races we go. We're. Still haven't we haven't broke our, the. Big area yet so they're still playing these big big gap games and that's, fine, III really don't care we, know, we're. Okay at this point in time. So. They're, moving from. 86. To $8,100, swings right now. And. As long as she starts creeping up and just getting tighter and tighter as. Long as we if we get knocked out again we'll try it again until. She takes off. Already. Well I'm gonna put it back on pause if. I get knocked out if not if we can see what happens just before market, open or if, I, get to the. 8800. Level. Okay. I got stopped out it's, it. Was still fighting trying to get into that zone and, now what I'll do is I'll reenter, reenter. My quarters. So. I'm gonna put one on the 101 pick higher here buy stock market. That's, it right down the line there right, there and then. What I'm gonna do is put one on the bottom here once again, it's. Been a very, frustrating day, right now just to break through this this. Volume zone. And. Once. I get filled I'll put, it back with a record. Already. I got, not. I got that I got. In the trade once again and see. How she dipped down to the foundation line, she's taken off once again so what we can do since, we're back into the trade I'll put it to the bottom of the bar here.
And. Hopefully. We can get this thing running again. She's. Playing too many games this morning she's, very very whippy. She. Did a sell-off, right back to the the volume point of control, where. All these circles are. And. I was just trying to do another push here they're playing games. Let's. See it has to break this zone once it breaks this zone where off -. There's. Our stop our, stop is right there. Hopefully. You don't get knocked up this time. Got. Stopped out again, frustrating. And. Then. What we got to do. I'll. Put a buy stop market once again. Let. Me see here yeah she's playing she's, playing so I'll, let it play its game at least now we know we're, in the buy opportunity, here and that we still have our sell stop down here and we're just waiting. Because. As you can see the, baseline cloud is moving, up it's. Just taking a while for it to take off here and. How is the baseline close it is creeping, up so it's just it's a little. Lagging for us to get into the trade usually most of the trees usually take off right away but. This one you know it's this is that I'm actually quite happy that we have this example because this is where where the mind games are in so we had since. 8. O'clock here, we have 1 2 3 4, 5 6 7 8 9 10, times. Fighting. In this zone for us to break out and. So, what. We're doing is we, might break even a few bucks lose a few bucks gain. A few bucks his, was what they're trying to do is they're playing the stupid game so once. We break, out. Like. Here this one's really tight, well. Wait till they stop fighting, this that means we're basically all right on the line here. And. We've been waiting what time is there right now it's nine nine oh seven okay so there you go now they're trying to do that punch out once again they've. Been playing everybody's, games here. So. We're at eighty four contracts, two hundred and seventy-five all of a sudden so. What they're trying to do is they were trying to. Fish. Everybody, in and. The. Way this one's pushing hard I'll put it back to break even plus one. So, now I'm okay, I'm okay. In the trade right now but. I what, when we started seeing it, take. Off here see they try to hit the top here if she pops out of here we're off to the races and. Then I'm gonna go for this this zone here at 80 803. And. Actually. This is probably one of them the, best exits, we've had this whole time, this. One wasn't bad here as you could see it was quite strong, this one was extremely, strong but. See as you could see there playing that top again. And. They. Try to punch it through. What. Else was there if you look at all them this one wasn't bad. See. He got a half candle for I mean these were just playing around that one wasn't bad. This. One was was, trying to push out, yeah. This one right here was pushing out this one see they're all not bad it's. Just it just hasn't had that opportunity to break out. And. They're. Still playing these games, it's. Almost ready to fire so. We'll, just let, them do. Those opportunities, and. We'll. Go from there I'll put it back applause if I get stopped out we'll try it again. This. Is what I want to show you here, I'm. Going to. I'm. Gonna stand drama mode but I'm gonna draw more ellipses, here. One. Opportunity to. Opportunities. Three. Opportunities. For. Opportunities. Five.
Opportunities, As. You can see this is the area they need to break okay. She. Is pointing upward, which is a good thing. And. They've been playing with our area. With our cloud. And. We, have to give it room as long as you see keep saying going creeping, up slowly but surely once, this thing pop. We're. Gonna be really, good and it's, getting closer and closer you might even come down knock us out one more time try it again as. You can see this is our the, trend line right now so. Actually. Our trend line would be. Yeah. Something, like that, I'll, put it to the, this. One no, to this one not. All summer somewhere between the two there and. And. So here, we're under six the tenth now. Can we break it. She's. Trying. There. We're finally, breaking through. Could. Be just a sniffer but that's okay we'll let her run. There. We go. So. After. Since. 8 o'clock in the morning which, I started. For. A whole hour I had to wait before I could start getting. To a trade I like. Right. Now I'm going to keep it up break even cuz I really wanted to work the trade. You. Know even though I'm up $200, I don't care I need it to work it's through and I'm going for the, 8800, to level this. Can be a serious support. And resistance, area so I'll watch it as well. But. I'm going to give it time to work its way through, because. It's getting close to let's. See what this logo and, the slope of the vu app is quite flat so it's, it's not. Angled. As much as the, institution, line so. What. I'll do is this is the area that I'm looking for. And. What else I'm gonna do. So, we're 335. 345. 355 keep, them going. You. Can close this one off. Now, what's the price point on that one 8802. So. What I'll do I'm, going to put a cell stop here just. Before. The institution, line. Let's. See a, street. To the left trade the right. The support, and resistance right. Up there actually it's at, 1810, looks like, with. It where, all these circles, are that's the area or 88 14. That's. Okay, I played the institution, line first I'll. Let it get back into the cloud take myself the second opportunity. Come. On we're almost breaking a 8,800. Hopefully. It doesn't do a psychological, thing at 800. And. What I'm gonna do because she, has moved so aggressively, that I want to keep my money I still. Wait for the base line as. My stair step but I'm gonna be using this one right now, the, trench wrecker right now for. My stop so I least, I put some money in the bank if, I don't hit my line. Because. I'm at 80 802 50, right now. So, we're at 460. Now. I'm. Just. Trying to break. If. I break, if. I go below. 94. I'll, shut her down. Used, to do one more punch. Yeah. Well do one more punch come on.
There. We go. There, we go, so, our, order has been filled. So, we made post the $500. There on that first run now. The reason, why I don't. The, institution, line is very very very. How. Do I say it it's very, very a. Very. Reactive area. So. What I'm gonna look for us I really, wanted to get in the cloud but. We've moved such aggressive about $500, move. What. We want to do is we want to retrace, it back if it, breaks this trendline, or, if it touches this trendline, I'll buy in again if not. I'm gonna wait until I get back to the cloud. But. This should react, to I'll say we're 7075. Yeah. Hopefully we can get back down to here again. Already. And that's the video I want to show you today of how. I trade, the baseline and. This. Was a perfect. Example today, it was very frustrating, today but it, was a perfect example to show you how to get out of this trade here because. Our get, into a trade because. We've. Had, many. Opportunities, of waiting, and this. Was our consolidation. Zone. And. We tried and we tried and, we tried and, we tried and, then what we did is we take we finally got a breakout been. Patient, waiting, rounding. It up, institution. Line is what's, the angle of it it. Is starting to flatten out but we want to make sure, it. It. Holds or it breaks, down for. A little while and then, we go again. Already. Other. Than that I'm signing off and you guys have a great day. Oh.