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Historical Simulator Plug-in

Day Twenty Three

Video Transcript

Okay, we're looking at April 1st, it's April Fools Day. Let's find out how we do, see if we can close out a couple of these contracts and pocket some money. That Ford pickup truck is waiting for and my motorcycle is getting warmed up.

Let's see, step.. YES! Sell (1) market if touched. Got me out on the Gold contract. Buy, that was a, that was a tough one there. You know why? Because we went and got in this market going the wrong direction on a bad 123 formation. We re-analyze what we were doing. We notice that we were looking at a little triangle formation that had the opportunity of either breaking out the top or breaking down the bottom.

If it broke out the bottom, we were still okay because we were in there on the 123. But if it broke above that triangle and broke out the top, we had the opportunity of reversing our market position and capturing that profit by setting some market if touched orders and jumping out of the market.

We were able to turn that market around from a loser of about $1,000.00 into a winner of about $680.00. Now, I would sure much rather turn a loser into a winner than a winner into a loser. I'll tell you, I've sure done that enough times in my life, too. I've turned winners into losers.

But you have to be careful and watch it. That's why that stop loss is so important. That stop loss is the key to being able to being to turn losers into winners and winners into losers. You have to play with that thing, practice, practice, practice, practice, practice. You make sure that you know what that thing is doing, the very best you can.

Watch that key, remember, look at that initial margin. Look at that maintenance margin. See what they, see what the exchanges are saying the movement in the market is the volatility of the market is. Try to keep your stopper in there.

Remember use the Fibonacci Ruler, you know, stay back around the 38% level, not the 50% level. Markets have a tendency to retrace 50%, so if you have your stop loss at 50%, you're probably going to get stopped out. Markets retrace 50% and then turn around and go the other way. Keep your stop loss back behind the 50% level. Don't let it get too far back there, though, because you don't want to risk all your money. You know, you don't want to give it all up in stop loss.

That's why I use market if touched, because I like to pull some of that profit out and put it in my pocket when it's down there.

We're done with the Gold contract. Let's dump that one. Delete chart. Do we have anything left open on it. Hold on, let's come over here, see that little- we need to delete that baby. We don't want that thing filling on us when we're not ready for it. We don't want that old broker calling us on the phone and saying, "Hey, you just got into the market." You're thinking, wait a second, I was out, I didn't want to have anything to do with that market.

Make sure you clean up your messes. I call it cleaning up your messes. Going back and cleaning out all the orders that you don't need. Delete chart. Okay, let's get rid of that one. Are you sure? Yes.

Alright, the only thing that we have left is our Live Cattle contract. We're loving this little Live Cattle contract. Except it's starting to come back on me. I'm getting a little nervous. Maybe I should have had my stop loss down here closer, and I would have been out right now, but it's taking chunks out of me. It's biting me bad.

Let's advance this market- step.. oh, my goodness! Look at that! It came right up and almost touched me; matched that other top. It took a big chunk out of my account. Open profit is now only at $622.00 and it was up to almost $1,500.00.

See, that's the problem with following with a stop. Is if that thing comes back up, hits me, and knocks me out, I lost all that potential profit. That's why I like these little market if touched. That's why I feel really good about- see these little buy (1) market if touched down here? That gave me that profit. If I would have left 3 open, and waited for that to come all the way back, $370.00. When I had an open profit, clear down here into the $1,500.00. That's why I like to sell a little bit more at the front, then buy them back really quick with market if touched. Put some of that profit into my pocket.

That's it, that's the day! See you tomorrow. One more tic, one more day!


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