Tag Archives: Market Entry

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 Thursday June 27

Posted on by Conor Browne

Strategic Discussion on Market Volatility and Trading Adjustments

• Market Volatility Concerns: Discussed the challenges of trading in a market experiencing low volatility, affecting the width and profitability of trades like the ‘Batman’ strategy.

• Trade Adjustments and Decisions: Explored personal trade adjustments due to market conditions, including the choice of narrower trade widths to save costs, resulting in mixed outcomes for participants.

• Debate Impact on Markets: Anticipated the potential impact of a political debate on market behavior, with special attention to logistical disruptions in Atlanta due to the debate.

• Low Volatility Trading Strategies: Highlighted the importance of making quick, small-profit trades in a low volatility environment, emphasizing risk reduction and fast decision-making.

• Volume Profile Importance: Stressed the critical role of volume profile analysis in trading, especially for understanding market structures and levels respected by the market.

• Open Forum Feedback: Conducted an open forum for participants to share their experiences and adjustments in strategy based on recent market behaviors and Ernie’s teachings.

Summary

The daily meeting led by Ernie focused on the nuances of navigating a low volatility market, which has been challenging for traditional trading strategies. Participants shared their experiences with adjusting trade sizes and strategies, such as the ‘Batman’ setup, to adapt to the sluggish market movements. Ernie emphasized the importance of recognizing small profit opportunities quickly as a viable strategy during these periods. The discussion also touched on the broader impacts of external events like political debates on market conditions. A significant part of the meeting delved into the importance of volume profile analysis in trading, illustrating how this tool helps in identifying key market levels and structures. Feedback from participants revealed a growing understanding and appreciation of this analysis technique, which many acknowledged had improved their trading outcomes. The session was also a platform for traders to voice their observations and learn from each other, fostering a collaborative environment for strategy refinement and personal trading growth.

Archive, Zoom Daily

Daily Meeting for Wednesday June 26

Posted on by Conor Browne

Daily Strategy Discussion on Market Entry Timing and Volatility Adaptation

• Revisited Market Entry Methods: Discussion on improved precision in market entry methods, resulting in consistent small profits over the past four days.

• Volatility and Market Entry Timing: Addressed the role of market volatility in trading strategies, with emphasis on optimal entry times (between market open and 10:30-11:00) for best opportunities due to volatility.

• Use of LVL/LVN and Structural Market Elements: Introduction of Low Volume Levels (LVL) or High Volume Nodes (LVN) as critical elements for timing market entries, providing support and bounce-off points for trades.

• Live Trading View Analysis: Real-time analysis and demonstration of recent successful trades, emphasizing the role of structural support in decision-making.

• Discussion on Gamma Risk and Trade Management: Insights into managing gamma risk in a low-volatility environment, including strategies for quicker decision-making to lock in early profits.

• Feedback and Strategy Adaptation: Open forum for participant feedback on recent trading strategies and discussion on personal adaptations, highlighting the importance of continuous learning and strategy refinement.

Summary

This daily meeting, focused on discussing refinements to market entry methods that have shown profitability in recent days. Ernie emphasized the importance of understanding and utilizing market volatility to determine optimal entry points, specifically advocating for entries during the most volatile market periods. The discussion also covered the strategic use of LVLs or LVNs, which serve as indicators for potential bounce points, enhancing the timing of market entries. Ernie used real-time trading data to demonstrate these concepts, reinforcing the discussion with visual evidence from recent trades. Additionally, there was a robust dialogue about managing gamma risk in different volatility scenarios, stressing the need for fast responses to market movements to secure profits. The meeting concluded with an interactive feedback session, allowing participants to share their experiences and adapt strategies based on the discussed principles, underscoring the dynamic nature of trading and the need for constant adaptation and learning.

Archive, Zoom Daily

Daily Meeting for Thursday June 20

Posted on by Conor Browne

Trading Mistakes and Optimizations

• Ernie’s Trading Experience: Ernie shared a recent trading experience where he encountered an unexpected double pullback, underscoring the unpredictable nature of market movements.

• Lesson on Market Timing: Discussed the importance of not breaking trading discipline, emphasizing the consequences of premature market entry.

• Trading Mistakes and Corrections: Highlighted a specific instance of a trading error related to the misalignment of strikes and the importance of having a checklist to avoid such mistakes.

• Observations on Market Movements: Analysis of the S&P 500’s movements within specific price channels and the implications for future market directions.

• Utilizing Volume Profiles: Detailed discussion on the application of volume profiles in trading, particularly for setting up trades based on market structure and liquidity zones.

• Future Trading Plans: Ernie outlined plans to further explore and integrate volume profile techniques into trading strategies, aiming to improve entry and exit decision-making.

Summary

This meeting was a comprehensive overview of recent market behaviors and personal trading insights from Ernie. He discussed his experience with a surprising market double pullback, emphasizing the lessons learned about maintaining discipline in trading practices. Ernie also recounted a specific trading error, highlighting the importance of double-checking trade setups to ensure all parameters align correctly before execution. The session included a detailed examination of the S&P 500’s behavior within established price channels, providing forecasts about potential market movements and the importance of breaking session highs for further upward momentum. Moreover, Ernie elaborated on the strategic use of volume profiles in trading, noting its utility in better understanding market structure and planning trades. Looking ahead, he expressed an intent to deepen the application of volume profiles in his trading strategy, aiming to enhance both entry setups and profit-taking techniques.

Archive, Zoom Daily

Daily Meeting for Wednesday January 17

Posted on by Conor Browne

Dynamic Trading Strategies and Risk Management

• Discussion on Entry Strategies: The meeting included a detailed talk about various entry strategies for zero DTE (Days to Expiration) trades, including placing trades prior to market opening based on the previous day’s closing prices.

• Risk Management Techniques: The conversation shifted to managing risks in trading, with a focus on adjusting trade sizes and choosing appropriate risk-to-reward ratios, especially during periods of low volatility.

• Use of ‘Big Ass Fly’ Strategy: Ernie shared his experiences with the ‘big ass fly’ strategy, a trading approach involving wide flies, and discussed its selective use based on unusual pricing opportunities.

• Exploration of Time-Based Trading: The group discussed the idea of time-based trading, where trades are set every 30 minutes, and the challenges associated with its practical implementation.

• Technical Insights on Trading Platforms: There was a technical tutorial on setting price slices and understanding the probability area in Thinkorswim’s risk profile, enhancing analytical capabilities for traders.

• Philosophy of ‘Roundabout’ Strategy: The meeting touched on the ’roundabout’ strategy, emphasizing the importance of staying in the market to catch significant moves, and the unpredictability of retracements.

Summary

Ernie delved into sophisticated trading strategies and risk management tactics. The discussion started with an examination of different entry strategies for zero DTE trades, emphasizing the importance of aligning entry points with the previous day’s market close. The conversation then transitioned to risk management, highlighting the significance of trade size adjustment and the utilization of risk-to-reward ratios, especially during low volatility periods.

Ernie shared insights into his use of the ‘big ass fly’ strategy, noting its effectiveness but cautioning about its selective application based on pricing anomalies. The group also explored the concept of time-based trading, acknowledging the practical challenges in its execution. Technical aspects of trading platforms were discussed, with a focus on setting price slices in Thinkorswim for better trade analysis.

Finally, the philosophy of the ’roundabout’ strategy was discussed. This concept emphasizes the importance of continuous market involvement to capitalize on significant market moves, while acknowledging the unpredictable nature of market retracements. The meeting offered valuable insights and practical tips, fostering a deeper understanding of dynamic trading strategies and effective risk management among participants.

Archive, Zoom Daily

Daily Meeting for Monday December 18

Posted on by Conor Browne

Adapting Trading Strategies in Low Volatility and Diet Discussions

• Diet and Nutrition Focus: Discussion about Ernie’s red meat-centric diet, including his avoidance of chicken and pork, and preference for red ruminant meats like beef, bison, venison, and lamb.
• Dietary Health Benefits: Ernie explains the positive effects of his diet on his energy levels and health, mentioning his reduced cravings for sweets and carbs.
• Trading Strategy in Low Volatility: Ernie delves into his trading approach during periods of low market volatility, emphasizing the importance of quick profit-taking and the challenges posed by low liquidity.
• Technical Analysis and Trading Tools: Discussion on the use of various trading platforms like Thinkorswim and TradeStation, focusing on their analytical capabilities and suitability for different operating systems.
• Market Behavior and Entry Strategies: Insights into adapting trade entry times and strategies based on market volatility, with an emphasis on risk management and reward optimization.

Summary

In this daily meeting, Coach Ernie addresses a variety of topics, beginning with personal anecdotes about coping with a storm and power outage. He then shifts focus to his diet, discussing his preference for red meat and the benefits he has experienced, such as consistent energy levels and diminished cravings for sweets and carbs. The conversation moves to trading strategies, particularly in the context of low market volatility. Ernie emphasizes the importance of swift profit-taking due to the increased risk and lower liquidity in such conditions. He also discusses various trading platforms and their functionalities, underscoring their importance in effective technical analysis. The meeting wraps up with Ernie providing insights into market behavior, the timing of trade entries, and the importance of managing risk and maximizing rewards in trading strategies.

Archive, Zoom Daily

Daily Meeting Friday November 10

Posted on by Conor Browne

Navigating Trades and Market Movements

• Early Trade Execution: Discussion on the benefits and outcomes of entering trades before the market opens, with personal trade examples provided.

• Profit Management: Strategies for securing profits, including setting trailing stops based on high watermarks and the importance of not letting winners turn into losers.

• Use of Box Trades: Explanation of how to set up box trades in Thinkorswim for SPX options, and clarification on the assignment process for SPX and ES options.

• Adapting to Market Signals: The importance of adjusting to market trends and conditions, with a focus on low volatility strategies and the use of the Hull moving average for trend direction.

• Monitoring Trades: Introducing a potential app for monitoring trade profits and discussing the functionality of the Thinkorswim mobile app for setting trailing stops.

• Diversifying Income Streams: Encouragement for traders to explore multiple streams of income, with suggestions ranging from consulting to online marketplaces.

Summary

The daily meeting focused on the nuances of executing early trades, particularly before market open, and the rationale behind such timing. The speaker shared personal trade experiences, emphasizing the significance of risk management through profit-taking strategies and the use of box trades. There was a technical walkthrough on setting up and understanding box trades within the Thinkorswim platform, specifically for SPX options, and a discussion on the non-impact of assignments for cash-settled indices.

Further, the conversation shifted to market behavior, with insights on adapting to market trends and leveraging tools like the Hull moving average to determine directional bias. The potential for a new app that monitors trade profits was discussed, as well as the capabilities of mobile trading apps like Thinkorswim for setting dynamic trailing stops.

Lastly, the topic of diversifying income was addressed, with the speaker urging traders to consider multiple income streams. This included options like consulting based on personal skills, online work, and even real estate ventures. The meeting concluded with an acknowledgment of the trading challenges faced, such as exiting trades early due to other commitments, and a reminder of the importance of consistency in trading strategies.

Archive, Zoom Daily

Daily Meeting for Friday October 27

Posted on by ernie

Trading with Zen: Embracing Process Over Prediction in Market Trends

• Ernie underscores the benefit of following a directional trend for easier trading success.
• He challenges the traditional emphasis on precise market entry timing.
• Discussion on the influence of volatility on option pricing relative to the underlying market index.
• The importance of a risk-to-reward focus and controlled trade width in strategy execution.
• Analysis of trade management challenges, particularly with asymmetrical spreads like broken wing butterflies.
• Advocacy for a Zen Buddhism-inspired process-oriented approach to trading and continuous improvement.

Summary:

In this session, Ernie offers members of the 0-DTE service a nuanced perspective on trading strategies, particularly in directional markets. He confronts the common belief that precise timing of market entry is essential, proposing instead that a disciplined approach to risk management and trade structuring is more impactful. Ernie delves into the complexities of option pricing, especially under volatile conditions, and explains how this affects trade decisions. He also takes members through a practical trade analysis, pointing out potential pitfalls and emphasizing the need for symmetrical spreads to manage risk effectively. Throughout the discussion, Ernie encourages traders to adopt a process-driven mindset, drawing from Zen Buddhist principles, to navigate the trading landscape marked by impermanence and constant change.