General Trading Methodology

In my opinion, all trading is reduced down to what you do at support or resistance. You either buy at support and sell at resistance or buy above resistance and sell below support.  I am perfectly happy to get 1 or 2 points especially on days when the range is small.  In my opinion, the longer you're in a trade, the greater the risk. I tend to buy support and sell resistance.  If someone was going to buy a breakout in the future, why not buy it now?

My trades last anywhere from 30 seconds to all day (very rare).  I determine support and resistance via Murrey Math, Mohan indicators, candlesticks, pivots, etc.  I generally do not make one discrete entry.  

I generally make two-three entries because it allows me to be correct on price direction but not precisely correct on timing.  This is contrary to prevailing market wisdom.  Of course, using the prevailing market wisdom has wiped out 90% of new traders.  On trend days with a strong $TRIN, I look for retracements for entry and exit at predetermined targets, i.e., 1 to 2 points, occasionally 4 to 5 points depending on price momentum.  I also trade specific times and situations.  Traders who avoid the market open and market moving news are missing out huge. They can be traded easily once you know how and what to look for.  It is my goal as a FuturesTalk moderator to help traders learn to appreciate and apply my methods.

Background 

Morris has worked full time as a professional trader for the past four years.  He resides in Gilbert, AZ near Phoenix.  Morris has tried most trading systems sold and chat rooms offered promising great results and found them all to be disappointing in various measures.  Unfortunately, good education costs money.  Once you discover what works, grab on to it.  For Morris, that means internalizing a feel for the market and behavior of price movement for the S&P.

He watches many things such as candlestick patterns, Murrey Math charts, Mohan indicators, currencies, and some DTI thrown in.  His S&P style is oriented to short, quick 1-2 point gains in high volatile situations.  Generally, that means taking retracement plays at tops and bottoms or taking a small retracement in a trend to get onboard.  None of this is easily taught but can be learned over time with repetition.  

Morris believes that mechanical approaches to trading rarely work because of the constantly changing nature of the market combined with the self-destructive tendencies of traders.  For example, you can’t always take breakout trades or always take the retracement trade... else you will quickly blow out your account.  

Survival occurs when your odds are increased by picking the right trades.

Morris announces his trades in real time…  entries, targets and stops.  It his opinion, that If any supposed guru does not provide such data, where all viewers may actually trade the commentator’s picks AND make money, then those commentators are a fraud! 

Besides, Morris finds that helping others enter and exit improves his trading. 

Participating in Futures Talk is important for the support, social contact, learning new ideas and viewpoints.  Contrary to popular opinion, trading is very hard work and a lonely occupation if left entirely to one’s own sheltered environment.

Now that Morris has mastered the rhythm of the S&P, he is a student of the DAX.  See his commentary under the Training tab of FuturesTalk and frequently revisit this for new content.