No BS Day Trading intermediate level video

Start - Before She Goes Trade

The idea behind this trade was to get in right before all three markets cracked the step in
the market profile and then, hopefully, broke through the lows. The step in the 10-year is from
133095 (which is at 40,562 contracts on the market profile when the video starts) to 133090
(15,962) and the step in the 30-year is from 14631 (12,821 on the market profile) to 14630
(5,663). The 5-year is very close to it's lows so the idea is that if it breaks the lows, all three
markets should push down. You want to be in right before this action happens because if it goes,
that is how you will catch the sharp, quick break and be on the side of a lot of momentum. The
30-year stalled at 14623 and so I exited the short trade at 14624 with the intention of getting
back in if it broke 23. If the market continues down, I only give up one tick of profit. If it stops
right there where the large bid is holding it, I exit at the best possible price. The stopping action
just a few ticks below the lows is quite common and its the reason I rarely advise making a trade
after the break has already happened.

15:24 - Lure Trade

This is actually a variation on the Lure. I showed this trade in the Emini S&P because I
wanted to show how you can apply the setups in my book to multiple markets. The ES had been
selling off and as it approached 1333.75, you can see that more size began stepping up on the
buy side than there had been during the push down. Running next to my X-trader platform, you
will see a new platform which I highly recommend for new traders as well as experienced
traders. The platform was developed by a company called Jigsaw trading. You can go to
www.jigsawtrading.com to get more information about it. In a nutshell, it splits the orders hitting
the ask vs. the orders hitting the bid and they stay there until the market pulls away and then
retraces to those prices. I explain it in the video. You will notice that you can see a lot more
prints on the Jigsaw depth & sales than you see on X-trader because of the design. This is very
helpful and I feel that scalpers who use it have an edge over those who do not.

To continue with the trade, when the market hits 1333.00, you will see almost 4,000
contracts hit into the bid at 1333.00 and the bid will stay bid. This was my trigger to enter. When
you see that action, it means orders are refreshing at that price and the buyers are willing to buy
a lot more at this price than at the previous prices. This is what can lead to a retracement or
reversal. I buy 1333.00 and wait for the bounce. My exit would have been 1332.50 to 1332.25. If
I am right on this trade, the market should not get there. The market does bounce and I scalp a
few ticks. I could have taken another 1 or 2 ticks on this trade if I had been a little more patient
but often the market will bounce back and forth around this kind of action and you can buy the
same price two or three times and scalp a few ticks each time. I mainly wanted to demonstrate
how size stops the market.
25:36 - As She Goes Trade

Once again, we are looking at the treasuries and I was looking for a break through the
bottom of a range in the 10-year. The range had been established between 133020 and 132315.
If you look at the market profile, you will notice the step (large discrepancy in size) between
132315 and 132310 as well as the step between 133020 and 133025. I wasn't able to fire before
the market broke this step as it had been ranging well and I didn't want to get caught selling the
bottom of the range. So I was waiting to hit into the bids as it was breaking with the hope that
the pressure would continue with me.

As the market breaks through the step, I sell 132305 in the 10-year. You don't see my
mouse because there was a glitch in the recording software this day but you can see the price
light up red which means I was short. I only made one tick on this trade but I included it on this
video because I feel like it's an excellent example of how a trader must trade what he sees and
not what he imagines (in the fairy tale world of his mind which envisions a thirty tick winner).
These trades should move in your favor relatively fast. If they do not or you see a large amount
of size stepping up to stop the move, you have to take a small profit or scratch the trade. You
cannot sit in it and hope because quite often the market will break by only a tick or two and then
retrace. The key to me exiting this trade for one tick was the size I see trade at 132300. Nearly
10,000 contracts trade there and the market won't get through it. In addition, the 5-year could
not break the low. The action in the 10-year is acually Lure type action. The sellers hit everything
there was at 132300 but the buyers just kept refreshing their orders and scooping up all the
offers. This is classic Lure action. Only, in this case, I used it as a trigger to exit the trade rather
than enter. I was contempating reversing and going long but there was quite a bit of size trading
and I didn't want to get sucked into a small bounce which might then turn into a further sell off.
This did not happen. The 132300 price held and the market retraced back into it's previous
range.

36:37 - Right Read But Doesn't Work Trade

This is a trade where I made the right read in regards to buyers stepping up to buy a lot
of contracts but the sellers just kept selling and held down the market. There's not much I can do
in this scenario except keep to my risk stop and exit when the market goes through it. The first
thing to notice is that the action is ver slow on this morning. As all three markets approach their
lows, it seemed like the buyers would probably step in to buy it right below the low of the day so
I was already anticipating going long. As the 30-year breaks the low, you will see that 7,000+
contracts trade at 133170 in the 10-year and the bids seemed to be holding. I go long in the 30-
year as I start to see the buying hit into 14730. What happens next is really something I cannot
anticipate. Over 5,800 contracts trade at 14730 and it never goes bid. Once it breaks 14729, I
know I'm on the wrong side and the buyers have lost the battle (at least for the moment). I
should have taken a two tick loss and instead take a three tick loss.

Typically, when I see this kind of action, that kind of buying will get the market to pop at
least one or two ticks. If it pops and I can see that there is still a huge amount of selling pressure,
I will usually take a small profit or a scratch. In this scenario, I could have taken a scratch on a few
occasions but I really thought it would bounce at least a tick. When that much size trades and it
can't even go bid, I no longer want to be long but there will be other times when I have to hold
through a decent amount of size trading before I get the bounce I want.

Final thoughts:

These trades are examples of what I feel to be pure scalping. Most new traders and
many supposedly experienced traders do not believe that a person can watch nothing but a
depth of market paltform and consistently make accurate decisions. This video is, in my humble
opinion, proof that a depth of market platform is, in fact, the most critical platform for a trader
and really the only thing a trader should watch. Looking at a chart in the morning to refresh your
memory on the week's high or low is fine but if you are not watching the bids and offers and
the current volume trading at the current price and not paying attention to noticeable levels in
the market profile, you are flying blind. I'm not saying that every single large trader in the world
is watching every tick. However, most day traders who swing large size are watching what's
happening within a three to four tick area and are adjusting their positions accordingly. Day
traders and programs making high frequency trades during an intraday time frame are not taking
ten tick losses and twenty tick winners. They are playing for smaller moves on large size. If this is
how they trade and they are moving the market with the majority of the size that trades on any
given day, a smaller trader will most likely only succeed if he can learn how to trade in a similar
way.

Unless he buys a few put options and gets the meltdown before the premium
disappears...