Alan Farley has a very good book called the master swing trader.

He is bringing out a new book in the near future.

I learned some great techniques as I was progressing my trading and would recommend it for intermediate to experienced traders.

I invited him over to Australia for a Super Trader Retreat I held with Chris Shea which was for traders that were successful (made $100,000+ each year).

This is an article on trading shares on a swing trading basis and the benefits of holding overnight.

http://hardrightedge.com/daily/

There is a few ideas I have formed from watching trading screens and executing thousands of trades over the last 10 years.

To me it seems that markets trend when the majority least expect it.

This creates the fuel for a directional move as traders caught in losing positions cover and momentum traders jump on the trend.

For a group of traders to be caught out a sudden directional move is required which requires a re-adjustment to the new reality.

The past 2 posts illustrate such a move with the "failed probe".

There are other patterns like the tap pattern, pump fake and inside bar failures that create this cause and effect.

It may be worthwhile with trading to think in terms of boxing.

The advantage is gained in trading by hitting with a counter punch when your opponent is off balance.

Alexander at www.tradewithpride.com has been a great help in creating a trading structure around various setups and some proprietary parameters that I have adapted to fit my style.

A Real Trader VS the pretenders

It frustrates me that many traders and investors seek out education from gurus and investment advisers that don't make profits themselves.

If you are forking out money to improve your trading I think it is important to do your research.

Although I don't regularly post my results. (I don't have the time to teach and I think Alexander does a good job) you can see my past results on my old blog at http://davinstradingreport.blogspot.com/ on the right hand side.

Since this time my results are still what most regard as excellent returns. (I think it is important to show I am a profitable trader because many in this game don't walk the talk)

I will get my last few months results once they're audited.

The SPI Today traded off key zones with the failed up move setting up a nice Tap Pattern.

The overnight consolidation at 4280 was where price bounced at support with a move that tested the opening high.

Price then broke below 4300 with a shallow bounce setting the scene for a second failed high.

Guess where the next price bounce occurred?

Bonus points for those that guessed 4280.

Notice the price acceleration when the bounce failed as long traders were forced to cover.

SPI 10-8.jpg (167.91 kb) Click to Enlarge

Just arrived back on the Sunny Coast from Melbourne where we visited friends and attended my brother in law's funeral service.

The markets have had a nice run upward with the NASDAQ up 12 days in a row until a 0.4% fall on Friday.

The plane arrived at 10:30am and I just had to check the beach out for a surf.

There was some small clean swell, so I made the most of a sunny day and tried catching a few.

I was back on screen at 2.00pm to look for potential 2:30 trend moves and managed to catch one small sequence to the upside.

The entry was a mini pump fake with the initial low at 4106 being broken on a move to 4105.

The reversal off this low signaled an entry at 4110. I made around $800 AUD off this small move up, scaling out at the higher levels.

SPI 27-7.jpg (105.35 kb)