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Forex Trading

Four Hour Charts DON’T Have to Take Over Your Life to be Effective with Forex

August 29, 2016 — by Troy Noonan0

Everyone can see the amazing trades that appear with CPT on the 4 hour chart (240 minute). What traders typically don't think about and wind up learning rather quickly, is ...

Everyone can see the amazing trades that appear with CPT on the 4 hour chart (240 minute).  What traders typically don’t think about and wind up learning rather quickly, is how that time frame can take over a person’s life.  Imagine having to check your charts every four hours.  Not just today, but tomorrow, the next day, the next..  etc.  Many will even sleep with their computers, afraid of missing a trade in the middle of the night.  This is no way to live, no way to trade, and most importantly, not even necessary.

You can still take advantage of the great trades that take place on the four hour chart and NOT have it take over your life.  Best of all, you can do it consistently and successfully.  How?  By using the concept we call ‘snapshot’ trading.  It’s really quite simple.  You commit to reviewing your charts for trades the same time each day (or there about), maybe looking at your charts once or twice per day.  if a trade sets up, you take it.  If a trade happened to set up earlier, and it is still near the entry, we follow our ‘get in synch’ rules and in many cases, the trade can still be taken.  Like this we can take advantage of this type of timeframe without taking over our lives.

Of course you need to have techniques to manage the trade while it is in progress but there are many tools to do that, including price ladders, doms, 3rd party trade management interfaces like MyFX.com, for example, etc.  The point is that it can be done and it can be done with minimal daily effort.  Of course it still is a business and the trader must be consistent with running his/her trading business but that’s true with all successful trading.

Here’s a look at the GBPJPY 4 hour chart using a custom CPT plan and snapshot trading.  This plan can pretty much be traded at any time, but this tradeplan gets the best results on many levels.  What’s more, this particular plan takes advantage of the Asian Session and can be traded in the evenings for those living in the US.  You look to take trades at 4 pm and 8 pm est.  If a trade is there, you take it.

This 4 hour chart of the GBPJPY is a specific tradeplan that keeps hitting record profit levels.  You can see it hitting its first target objective where a percentage of the trade can be taken off for + 93 pips.  The stop is moving higher and trailing, allowing the trade to capture larger gains if the market continues to rally.

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Check out this 5 year equity curve of the GBPJPY 4 hour chart.  CPT is easy to learn and if you’re going to swing trade this timeframe, I strongly recommend you consider ‘snapshot’ trading so that you don’t have to sacrifice you’re every breathing moment to your trading.

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The Counter Punch will be on the market again, soon.  Be on the lookout for the date for our Autumn release.

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Futures Trading

Tradeplans Hitting New Record Equity Highs Again — It’s All a Numbers Game

August 19, 2016 — by Troy Noonan0

Many of our favorite tradeplans continue to hit record equity highs for the life of the tradeplan, some of them hitting 2 year highs today.  I thought I would do a quick post to point just a few of them out.  It illustrates some of the major points that we always teach and use in the traderoom and with our trading.

  1. The importance of well researched and tested tradeplans for ongoing profitability as traders
  2. Remaining consistent and disciplined
  3. Proper money management which carries us through the ups and downs.  A rising equity curve is never a straight road up.
  4. Realistic Expectations; understanding the rhythm of 2 steps forward, 1 step back, 2 steps forward, 1 step back
  5. Surrender; we can’t control price action or the right edge of the chart.  No one can!  We can control other things though.  We can put the odds on our side with every trade, then allow the tradeplan the time it needs to let the odds work out in our favor.  It’s all a numbers game!
  6. Belief; It is critical to build the proper foundation before risking real money to put the vision in place so that a trader can believe in what that tradeplan does and will do if he/she would just stick with it.
  7. Always remember WHY we are trading in the first place.  TO MAKE MONEY!  Making money is NOT trading more.  Making money is holding onto your money when you make it and then letting the overall EDGE that your tradeplan gives you grow your account.  Then, use Einstein’s 8th wonder of the world, the power of compounding.  THAT is making money.
Crude Oil Futures hit all new record profit levels yesterday, and again today.

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Dow eMini Futures was One and Done Today, Hitting Lifetime Tradeplan Equity Highs in 12 Minutes

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DAX Futures is one of the most profitable markets to trade.  this big winner illustrates the potential as this trade broke the equity curve out to all new record profit levels this week.

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We’ll look at forex and stocks/options in upcoming posts.  This is an exciting time of year to be trading.  Up or down, I’m looking forward to some great volatility as we roll into the final part of this election year.  This is when it is so important to know what you are trading, why you are trading it, and how you will be trading it.  Traders that treat their trading like a business and follow the simple principals listed above will be in a FAR greater position for success then ALL those people out there who don’t.

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Forex TradingStock & Options Trading

Quit Positive on Most Sessions for Ongoing Consistent Profits

August 9, 2016 — by Troy Noonan0

If you could quit positive on most sessions, you can enjoy ongoing success as a trader.

In the last post, we looked at some examples of how we can achieve ongoing consistent profits with a one and done tradeplan. We talked about how you can still trade more, just trade a different tradeplan.  In fact, that’s a great way to go because you can gain additional benefit by adding the strength of diversification to your trading.  It still allows you to benefit with the less is more idea while being able to trade more too.  You can have your cake and eat it too.

A variation to yesterday’s theme of trading less for greater ongoing consistent profitability is to quit with the first winning trade and or a positive result within a certain window of time.  Quitting with a win and a positive result is what we call the Power of Quitting.  There are many ways to use this idea.

With a good forex daytrade plan for example, you can trade from 8:30 et until 11 or 12 noon.  You would quit as soon as you won and were profitable.  On the rare occasion that you were unable to get positive, you still quit with minimal trades, which controls drawdown and keeps it manageable.  Tomorrow will be another day.  As long as you can quit positive a majority of the time, you should be able to grow equity.  Using the backtesting techniques we teach, you can determine this before you ever risk real money.

A window of time like what is suggested above might allow for anywhere between one to three trades, possibly a fourth.  Forex daytrading plans can be very effective with this idea.  Moreover, we can take advantage of the flexibility that forex provides regarding position size and scale out 25% at three different targets while trailing the final part of the position for the occasional huge move.  We have to be mindful of spread so any target that is too small, we just ignore and exit that part of the trade at the next target.  Flexible thinking is important too.  I like to think of the market as an unruly dance partner.  So long as I can flow with its rhythm and let price action ‘speak to me,’ I can use my strategy to achieve my objective of ‘taking what the market wants to give me.’  It’s a different way of thinking but has proven to be a great way to enjoy steady, ongoing profits.

In the below example, the EURUSD 5 minute chart (a great chart to daytrade with the CPT) had a couple targets that were just too small to bother with.  The trade ended up profitable in context to the personality of that particular session.  Instead of exiting at T1 and T2, those parts came off at T3, + 11 pips.  The final 25% of the trade was able to pick up + 20 pips with the trailer.

EURUSD gave us a good example of quitting positive after a winning trade. It happened to be the first trade of the day for the US session start time, 8:30 et, and is a good example of taking what the market wants to give while being able to quit with positive results most of the time.

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On the Friday Session, the first trade of the day didn’t come until 11:10, triggering in at 11:30.  It would have been worth the wait as it went up to hit all three targets (larger than the prior example) for another great One and Done session.

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You can trade stock charts much the same way as forex, scaling out 25% at each target and trailing the remainder.  You can use the stock chart setups to trade options.  In this example, you could daytrade weekly options.  Look for slightly in the money options using the stock entry price to guide you.  Exit at each target, going flat when the trailing stop is hit.

Another great example of a One and Done plan that is easily testable.  This is an AAPL 377 tick chart but it could be a number of other charts and symbols.  You can trade options using the stock setups for greater leverage and risk control too.

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Notice the less is more theme working across the board on every example we look at.  Do we need to trade more?  Not if we want to consistently grow equity, position size and steadily increase wealth.  Why else trade if not for that?  It’s all about the tradeplan.  In training you can learn how to quickly assess a chart and whether you can be successful with the less is more approach.  By using techniques like the ‘Fast Test’ and powerful tools like the UTA, you can custom make the best tradeplans that fit your personal needs and style.

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Forex TradingFutures TradingStock & Options Trading

The Simple Truth About Successful Trading

August 7, 2016 — by Troy Noonan0

The Simple Truth About Successful Trading will most likely surprise you.

Here’s the simple truth about being able to trade profitably on a consistent basis.  If you can quit each session with a positive result on as few trades as possible, while also keeping drawdowns low when losing trades happen (and they will, no matter what), then a trader can consistently grow equity and enjoy ongoing success.

It requires a different mindset than most traders tend to have.  Most traders try to get out of the market what THEY need or want.  We have found it far more effective to instead, take from the market what it wants to give us.  It’s a different mindset.  Another big misnomer is that if a trader only trades more, that trader will make more money.  We have found the contrary to be true.  The fewer trades one takes will typically achieve the best results.  Inexperienced traders tend to overlook two important things about trading too much:

  1. Trade costs are very real and will eat away at your profits.  They come in several forms, commission being the least.  Spread costs, slippage, fatigue and errors due to a variety of mistakes are what kill your profits the most.  It’s like a poker table that takes too large of a rake each pot.  Most poker players don’t realize how dramatically this will affect their ability to gain ongoing positive results and the same is even more true with trading.
  2. Hanging on to one’s profits.  Taking what the market wants to give is a way to steadily grow your account while taking advantage of consistent trading opportunities.  Markets cycle back and forth between profitable moves and low range, unprofitable periods of time.  Giving your profits back to the market due to overtrading is not the way to consistent trading profits.

The best strategies put the odds on your side with each setup.  Applying good setups to well tested tradeplans will allow you to use the strategy to build an ongoing, profitable business that consistently grows.  Then, it’s all about a solid money management plan, executing the plan with discipline, and allowing the 8th wonder of the world, the power of compounding, to do its magic.

A great example is a simple plan that only takes one trade per day, win or lose.  It’s easy to test and easy to trade.  It doesn’t take over your life and is a great way to grow equity.  Over time, as one’s account grows, so does his/her position size.  Eventually the trader can hit his maximum position size while keeping the risk very small as a ratio to available trade capital.  That’s the secret to success.  It’s really quite simple.

Soybean Futures is one such example.  Taking just one trade per day, Soybean futures have been able to quit with a positive result 20 out of the last 22 sessions, often finishing in just a few minutes per session.

Being able to quit positive most of the time, with one trade per day win or lose, is a great way to grow equity and control drawdown.  It never ceases to surprise me how many traders DON’T do this.

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If you want or need to trade more, just focus on another ‘one and done’ tradeplan.  Do we really need more trades than the one shown below?

The TF was one and done on the same day, with a trade that offered plenty of profit opportunity and was finished within just 10 minutes of trading.

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You can grow your equity with a tradeplan that wins most of the time with very few trades.  Take greater advantage of the odds that your strategy gives you by keeping your profits when you make them.  Even the best strategies will have losing trades and losing sessions so ask yourself, how much better off you would be if you were able to avoid most of them.  In the next post, we’ll explore this theme further with a look at forex and stock/options trading.

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Forex TradingFutures TradingStock & Options Trading

Momentum Bars Make for Great Trading Charts

August 1, 2016 — by Troy Noonan0

Momentum Bars are Worth Your Attention as a Home Trader

Have you ever considered trading with Momentum bars?  Time based charts and tick charts are not the only charts you should be paying attention to. Range bars give us a way of looking at charts that can really give us a big edge.  Momentum bars are simply a type of range bar.  In essence, the price bar is based on the price range in a market, not how much time has passed (time based chart) or how many orders have passed through the market (tick chart).

Counter Punch Trader loves price action and Range/Momentum bars show that to us in a very clear way.  Three markets (there are plenty of others) that we really like trading with Momentum bars are Soybeans, Heating Oil and the Russell eMini.  Check out these three trades from today’s session as we head into the Dog Days of August.  Notice how clean the setups are and how tradeable the chart looks.  Each of these three markets were able to hit their tradeplan goals with the very first trade and were done very quickly.  That’s what we love.  To be able to quit positive and finish trading fast and early leaving the rest of the day to enjoy and to pursue other things.

Soybeans hits all of its targets and was one and done today using a 5 tick Momentum Range Bar.   We use this chart every single day with Soybean Futures which is a great trending commodity.  Soybean futures trade like the Es, $50 per point, $12.50 per tick.

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Heating Oil Futures also fired on all cylinders hitting each of its targets while picking up a nice trailer. We like a 20 tick Momentum bar with this market.

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This 8 tick Momentum Bar with the Russell eMini makes this market more reasonable for many home daytraders.  Profitable, too.  Each point is worth $100 per contract.  Today it too was one and done, hitting all its targets and a trailer for a sizable gain.  Notice how clean and straight forward this chart looks.  As with all range bars, each bar is the same size, in this case, 8 ticks.  As the 8 tick range is exceeded, an new bar prints.  Regardless of what market you trade, forex, futures, stocks, etc., who wouldn’t want to catch a short like this?

The Russell eMini, using this 8 tick momentum bar was One and Done today, hitting it out of the park with a nice running trailer too, all within 12 minutes.  

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Forex TradingFutures Trading

More In Depth Trading with the Counter Punch Xpress and CPT

July 11, 2016 — by Troy Noonan0

This video continues where the YM video left off, only this time I walk you through in great detail, the two last DAX Futures trades using the CPX and Trend Mode as well as the GBPUSD, both in Tradestation and MT4.

The GBPUSD has been a great forex pair to be trading, especially after the Brexit ordeal, which in my opinion is just what the markets needed for us traders. Check it out.

Brexit has caused a lot of volatility in the market and the Counter Punch Trader and Counter Punch Xpress are seeing all new equity highs and record profit levels for the life of many of our favorite long running tradeplans.  Check out what I mean in this short video of recent DAX Futures and GBPUSD Daytrades.

070816_WalkThru_CPXCPT from NetPicks on Vimeo.

Futures Trading

An In Depth Look at a Recent YM Trade with the CPX and CPT

July 9, 2016 — by Troy Noonan1

Every now and then I like to post a training video that you would normally find in the Counter Punch Member’s Private Website.  This video will show you in great detail how we go about trading the YM, using “Trend Mode’ with the Counter Punch Xpress (CPX) and then the full Counter Punch Trader (CPT).  In the next video after this, we’ll look at DAX Futures and the GBPUSD, which has been a great trading market lately, especially thanks to Brexit.

Check out how the YM was ‘one and done’ today to finish a very strong week of trading as I walk through today’s trade with the CPX and CPT in great detail.

070816_YMWalkThru from NetPicks on Vimeo.

Stock & Options Trading

Don’t Overlook Stock and ETF Charts; CPT Works GREAT for Options Trading Too

June 30, 2016 — by Troy Noonan0

The Counter Punch Trader works great with stock, ETF and options trading.

I get many questions regarding stocks, ETFs and options trading with the CPT.  The answer is YES it works great!  Stock and ETF charts are some of the most profitable charts to trade but to trade straight shares, you can’t get the great leverage you would get with futures or forex.  There is a simple solution though.  Trade with options.  You can buy slightly in the money call options for long trades and puts for short trades.  Just use the CPT setups on the stock chart to guide your trades.  It’s quite easy actually.  Only takes a little bit of practice.

Of course you want to make sure you choose good stocks and ETFs to trade.  Just stick to the names with the most volume. There are plenty of good choices.  The below image is taken from my Think or Swim platform.  We use a special trend indicator filter to help us with our trade decisions, called Trend Mode.  When the line is blue, we only take long trades.  When it is red, we only take short trades.  Check out the last several trades on AAPL.  I drew arrows to indicate the setups and lines to show you all the targets that you can take profits at.  Of course this is all taught in great detail with the training but you can see how straight forward it is.  Simple Calls and Puts typically return double and triple digit percentage gains.

Check out this simple daily chart of AAPL on TOS.  You can buy simple in the money call options for some fantastic gains.  I drew arrows to indicate the setups and lines to show you all the great targets to take profits.  All the details on how to trade a chart like this are taught in great detail with the Cpt training that comes with membership.

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Here’s an example of some recent GOOG trades using a 195 minute chart.  You an use a TOS chart or this Tradestation chart and trade with any broker you want.  It also works great on Ninja Trader.

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Forex TradingFutures TradingStock & Options Trading

Brexit a Boon for Traders

June 24, 2016 — by Troy Noonan0

Whether you are on the Brexit side of things or the Bremain side of things, now that the people have spoken (we can debate if it was more about the weather than anything else, or a number of many different arguments — but we won’t), for traders, this could be just what the doctor ordered to finally wake up what has been a pretty anemic market so far this year.  I, for one, and looking forward to greater volatility and larger gyrations in the markets which I think will prove to be a very exciting and profitable time for traders.  Markets will attempt to digest the ramifications of this historic referendum and the ensuing repercussions and reactions will provide plenty of fuel to push prices around on all our favorite charts.

Today was going to be one of the largest volume trading days of the year regardless of Brexit, due in part to the Russell Rebalancing, which tends to be a big trading day.  We can’t draw conclusions because of the great swings that occurred over the last 24 hours.  But I do think it’s safe to assume, especially in light of the fact that there are still HUGE decisions to be made in the not too distant future (I heard there’s a fairly significant election coming up in November) and that the summer tends to usher in the most volatile trading season of the year shortly after, that we can look forward to some great trading and it would behoove all would-be profitable traders to be prepared to take advantage of the opportunities that will be present in the markets for the foreseeable future.  Just my humble opinion.  🙂

DAX Futures the Day of the Brexit Vote, 6/23.  Notice the price level and then compare that to what happened the next day when the results were in.

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DAX Futures After the Vote, 6/24

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Today’s YM Session was a Big Winner

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All our favorite markets ended with strong profitable results today, whether long or short.  All of this points to the fact that regardless of the direction, when the markets move, the trade profits are there.  I view the Brexit Referendum as a signal of good times to come for traders like us, so long as we’re prepared to trade and remain centered within our professional approach and disciplined within our tradeplan rules and goals.

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Futures Trading

A Walk Through of Some of Today’s Trades

June 17, 2016 — by Troy Noonan0

It’s still not too late to take advantage of the Summertime Counter Punch Trader Promotion.  Learn how to get involved and enjoy some excellent discounts and additional perks.

Go Here to View the Webinar Presentation

It was a very successful session again with many of our favorite markets making fast work of the early part of the session, finishing with one or two trades.  This video takes a look at some of those trades.

There’s less than 48 hours left to get your hands on this amazing strategy at the special promo rates.  If you missed the webinar, here’s a replay for you with details on how to get on board.

Go Here to View the Webinar Presentation