Monthly Archives: July 2024

Archive, Retrospective

Sunday Retrospective for Sunday July 7

Posted on by Conor Browne

Evaluating Market Structures and Volume Profile Mastery

• Volume Profile Techniques: Emphasized the importance of marking up volume profile lines and understanding their implications for support and resistance levels in market trading.

• Trade Execution Strategies: Discussed the procedures for using TradingView for analysis and Thinkorswim for trade execution, ensuring efficient workflow and minimizing unnecessary work.

• Market Timing and Volatility: Highlighted the significance of timing in market entry, especially between 9:30 AM and 11:00 AM when market volatility is typically higher.

• Use of Indicators: Detailed the use of horizontal and vertical lines in volume profile analysis to mark high volume nodes and low volume wells, helping traders identify key market structures.

• Routine and Habit Formation: Stressed the need for developing a daily routine for market analysis, including pre-market checks, economic report reviews, and continuous practice of volume profile analysis.

• Tool Utilization and Improvements: Discussed using TradingView’s real-time data feed for accurate analysis and the potential integration of new tools to enhance trading efficiency.

Summary

In the Sunday retrospective meeting, Ernie focused on the critical role of volume profile analysis in trading, demonstrating how to mark up volume profile lines to identify key support and resistance levels. He emphasized the importance of using TradingView for analysis and Thinkorswim for executing trades, ensuring an efficient workflow without duplicating efforts.

Ernie discussed the significance of timing in market entry, particularly between 9:30 AM and 11:00 AM when market volatility is typically higher. He provided detailed guidance on using horizontal and vertical lines in volume profile analysis to mark high volume nodes and low volume wells, which are crucial for understanding market structure.

The meeting also covered the necessity of developing a daily routine for market analysis, including pre-market checks, reviewing economic reports, and continuous practice of volume profile analysis. Ernie highlighted the importance of consistency and habit formation in achieving long-term trading success.

Additionally, participants discussed the potential for new tools and enhancements to improve trading efficiency, with Ernie stressing the importance of staying updated with real-time data feeds and integrating useful tools like TradingView for comprehensive market analysis. The session concluded with a reminder to log and journal all trading activities to evaluate performance and make informed adjustments.

Archive, Zoom Daily

Daily Meeting for Friday July 5

Posted on by Conor Browne

Post-Holiday Trading Insights and Strategy Adjustments

• Market Reflection: Discussed the mixed signals from economic reports and the implications of government versus non-government data, highlighting the challenges in interpreting market movements.

• Volume Profile and Volatility: Reemphasized the importance of volume profile and volatility in trading strategies, including techniques for measuring changes in the VIX and adjusting trading plans accordingly.

• Trade Management and Rolling: Addressed questions about rolling options contracts, clarifying that rolling essentially involves closing one trade and opening a new one, and discussed when it might be appropriate or not.

• Trading Fundamentals and Mental Toughness: Stressed the importance of mastering fundamental trading skills and developing mental toughness to make consistent, informed decisions.

• Future Trading Education: Planned future sessions to cover basics of futures trading, addressing participants’ fears and providing comprehensive understanding of different futures products and their applications.

• Consistency and Habit Formation: Highlighted the need for consistency in trading practices and the development of effective habits to achieve long-term success.

Summary

In today’s meeting, Ernie and the participants reflected on the post-holiday market conditions, emphasizing the challenges posed by conflicting economic reports from government and non-government sources. Ernie underscored the importance of using volume profile and volatility measures to inform trading strategies, explaining how to assess changes in the VIX and adjust accordingly.

The session included a detailed discussion on rolling options contracts, with Ernie clarifying that rolling involves closing an existing position and opening a new one. He advised against using rolling as a crutch to avoid taking losses, advocating instead for evaluating each new trade on its own merits.

Ernie also stressed the importance of mastering fundamental trading skills and developing the mental toughness necessary to stick to a consistent trading plan. He emphasized that success in trading requires a deep understanding of the basics and the ability to make tough decisions based on sound analysis.

Participants expressed interest in learning more about futures trading, leading to a plan for future sessions to cover the fundamentals of trading different futures products. Ernie concluded the meeting by highlighting the importance of consistency and the development of effective habits, drawing parallels to high-performance sports and other disciplines where mastery of the basics is key to long-term success.

Archive, Zoom Daily

Daily Meeting for Wednesday July 3

Posted on by Conor Browne

Pre-Holiday Trading Strategies and Market Reflections

• Pre-Holiday Market Closing: Discussion on the early market closure at 1 PM Eastern due to the July 4th holiday, impacting trading decisions and strategies.

• Trading Performance: Ernie shared his recent trading successes, including daily profits and overall growth of a $10,000 account from $7,000 over the past month.

• Trade Execution and Adjustments: Talked about taking profits early, managing trades in low volatility, and considerations for entering additional trades during significant market moves.

• Economic Report Impacts: Reviewed the effects of recent economic reports, such as PMI, ISM, and ADP employment data, on market performance and trading strategies.

• Volume Profile Utilization: Emphasized the importance of using LVNs (Low Volume Nodes) and other structural elements in trading decisions, particularly in low volatility environments.

• Broader Economic and Political Context: Discussed the potential impacts of political and economic conditions on the market, including AI advancements and Supreme Court decisions.

Summary

In the daily meeting held on July 3rd, Ernie and the participants discussed the implications of the early market closure at 1 PM Eastern due to the upcoming July 4th holiday. Ernie shared his recent trading successes, noting a consistent increase in his $10,000 account, which had grown from $7,000 over the past month. He discussed his strategy of taking profits early in the day, especially in low volatility environments, and highlighted the importance of using LVNs and other structural elements for making trading decisions.

The meeting also reviewed the impacts of recent economic reports, including PMI, ISM, and ADP employment data, on market performance. Ernie and the participants discussed their trading strategies in response to these reports and the overall market conditions. Additionally, there was a broader discussion on the potential impacts of political and economic conditions on the market, including AI advancements and recent Supreme Court decisions.

Ernie emphasized the need for careful trade management, especially when entering additional trades during significant market moves. The session concluded with participants sharing their plans for the holiday and reflecting on the importance of understanding broader economic and political contexts in trading.

Archive, Zoom Daily

Daily Meeting for Monday July 1

Posted on by Conor Browne

Navigating Market Dynamics and Contract Transitions

• Market Uncertainty: Discussed the current market indecision between bullish and bearish trends, highlighting the potential double top pattern that needs confirmation.

• Economic Impact Analysis: Explored the effects of recent economic reports, particularly PMI and ISM manufacturing data, on market movements and how bad news might be perceived as good news due to potential rate cuts.

• Volume Profile and Contract Transition: Addressed the challenges of analyzing volume profile data during futures contract rollovers and strategies for handling gaps in data.

• Technical Difficulties and Trade Execution: Provided guidance on executing complex trades, such as the box trade, particularly when using mobile platforms.

• New Trading Tools and Indicators: Introduced and evaluated new indicators on TradingView, including the volume footprint and time price opportunity charts, discussing their potential utility.

• Volume Profile Mastery: Emphasized the importance of continuous study and application of volume profile analysis to predict market behavior and improve trading strategies.

Summary

Ernie led a discussion on the prevailing market uncertainty, particularly the indecision between bullish and bearish trends and the potential double top pattern awaiting confirmation. Participants examined the impacts of recent economic reports, noting that worse-than-expected PMI and ISM manufacturing data might paradoxically lead to market optimism due to anticipated rate cuts.

The meeting also covered technical challenges related to analyzing volume profile data during futures contract rollovers, with strategies provided to handle gaps in data. Ernie offered detailed guidance on executing complex trades like the box trade, especially when using mobile devices, addressing common difficulties.

Additionally, new TradingView indicators such as volume footprint and time price opportunity charts were introduced and evaluated. While these tools offer detailed information, their practical utility remains uncertain. Ernie reinforced the value of mastering volume profile analysis, encouraging continuous study and application to enhance predictive accuracy and trading efficiency. The session concluded with an open forum for questions, ensuring participants were well-prepared for the shortened trading week ahead.