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This is How You Profit on a Break Below Major Support

Posted by TopstepTrader on August 27, 2018

Breakouts above major resistance or breakdowns below major support are a trader's dream. They occur rarely, but offer opportunities for trades over multiple days. Such was the case when Euro futures ($6E) broke down in mid-August. 

For multiple months, the Euro put in a strong level of support around 1.16, bouncing between there and lower highs beginning in May. As the chart shows, this put in a technical formation of a descending triangle, which is a bearish technical pattern. That bearish pattern played out here in the Euro when prices ultimately broke below support.

Coach Dan breaks down this trade and exactly how traders can identify these moves and profit. 

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Topics: Performance Coaching, Trading Basics, Futures, Euro, Trading Setups, The Trade

Funded Trader: $2,300 in Profits Riding Nasdaq to New Highs

Posted by TopstepTrader on July 24, 2018

We say it often — trading is all about your risk-to-reward ratio. In this trade, Brad M. from Chicago nailed going long Nasdaq ($NQ) futures and riding one contract for more than 100 points and $2,296.04 in profits. That's something worth celebrating, right Brad? 

Coach Dan breaks down Brad's trade, placed on July 17, in this week's episode of The Trade.  Coach Dan goes over what Brad saw, how he executed his trading bias and what price level he targeted and where he might have gotten out of the trade if it went sideways. 

By looking at what Brad saw at the time, Dan outlines what happened in the market and what you can learn and take into your trading. 

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Topics: Performance Coaching, Trading Basics, Futures, Trading Setups, The Trade, Nasdaq

8 Days, $10K in Profits for a Funded Futures Trader

Posted by TopstepTrader on July 09, 2018

If you've been following TopstepTrader on social media, you've probably seen the name Mykhailio C., one of our funded futures traders from Ukraine. That's because in his first month trading in a Funded Account™, Mykhailio absolutely crushed it.

Trading Crude Oil ($CL) exclusively, Mykhailio averages nearly $550 in profits each day he trades — winning and losing days included. If he maintained that pace, it equates to more than $125,000 in annual trading gains. 

He is profitable on 71% of his winning days. Some of those winning days, as Coach Dan describes in this episode of The Trade, include days where just 20% of his trades were profitable. But that's what's possible with a favorable risk management setup. And that's how you can build an 8-day winning streak into $10,000 in realized profits. 

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Topics: Performance Coaching, Trading Basics, Futures, Trading Setups, The Trade, Crude Oil

$1,500+ Trade: When Overnight Trading Presents Opportunities

Posted by TopstepTrader on June 28, 2018

The best part about trading being 23 hours a day is that it can present opportunities at any point in the day. For many traders that trade futures part-time, that means that the market is there when you have the time to dedicate. 

But you still have to think through your trade. And in this episode of The Trade,  Coach Dan Hodgman breaks down a trade by funded trader Evan L. in Colorado. On June 18, as rumors of tariff and trade disputes stirred, Evan took a short position in the Nasdaq. In that trade, Evan made more than $1,500 in real profits. 

As Coach Dan outlines, everything that Evan did, he nailed spot on — from his use of market dynamics to a target that matched perfectly with major trend lines. In one of his more in-depth analysis, Coach Dan also breaks down other levels in play, as well as additional places that traders would have be "right" to take profits. 

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Topics: Performance Coaching, Trading Basics, Futures, Trading Setups, The Trade, Nasdaq

The 3 Best Resources to Improve Your Trading Now

Posted by TopstepTrader on June 16, 2018

No matter where you are this weekend, you can become a better trader. That's because progress is about deliberate practice. And it's hard to carve out time while the markets are open for deliberate practice. 

But with markets closed, now's a good time to reflect on what went right last week and what you can improve for next week. To do that, we've compiled our favorite resources of the week. Here are three resources to help you trade better — all of which can be reviewed in less than an hour.

They include a look at what separates successful traders from struggling traders, a video interview with a 35-year investing legend about how to build a career in trading, and the latest Limit Up podcast with about finding your trading stride.

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Topics: Trading Basics, Limit Up!, Yra Harris, Futures, Trading Setups, Weekend Curriculum

This is How to Trade a Trend Line Breakout

Posted by TopstepTrader on June 04, 2018

Since making new, all-time highs in January and then crashing 10% in February, the E-Mini S&P has consolidated. As the chart below indicates, it put in lower highs in March and April, but each lower high was also accompanied by a higher low. 

To anyone looking at the daily candlestick chart (shown above) the market was clearly gearing up for its next move. In this episode of The Trade, Coaches Dan Hodgman and John Hoagland revisit the breakout as prices approached that descending trend line on May 7, 8 and 9.

They talk about how they analyzed the market at the time, why it may have been more natural to take a short position as the market approached that line (with a stop above), and why the E-Mini typically doesn't confirm breakouts higher with high volume. 

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Topics: Performance Coaching, Trading Basics, Futures, Trading Setups, The Trade, E-Mini S&P

Trade Better Now: Your Weekend Curriculum

Posted by TopstepTrader on June 02, 2018

Regardless of how things turned out last week, next week is a mystery. What are you doing this weekend to get better at trading?

Luckily, TopstepTrader has you covered. Here are three resources that will make a huge impact on your trading next week, but take less than an hour to check out. 

“A peak performance trader is totally committed to being the best and doing whatever it takes to be the best." — Dr. Van K. Tharp

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Topics: Trading Basics, Forex, Futures, Trading Setups, Weekend Curriculum, John Hoagland

Your Weekend Curriculum: Profits are About Process

Posted by TopstepTrader on May 12, 2018

What are you doing in the next 48 hours to trade better next week? 

This week, we compiled three resources that you have to check out. If you do, we promise you'll be in a better place when markets reopen. 

Don't just take our word for it; listen to hedge fund manager and billionaire Paul Tudor Jones, who said"The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge."

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Topics: Trading Basics, Jesse Livermore, Futures, Trading Setups, Weekend Curriculum, Mike Bellafiore, Michael Marcus

Shorting a Market at New Contract Highs

Posted by TopstepTrader on April 30, 2018

Paul Tudor Jones has made his living picking trend reversals. He considers them low-risk opportunities. You may get cut five or 10 times, but with diligence, you can also catch huge moves. 

One of our funded traders, Trisha B., did just that — shorting Crude Oil when it hit contract highs near $70 per barrel. In this week's episode of The Trade, Coach Dan Hodgman takes a look at that trade and goes over some of the mental fortitude that Tricia had to exhibit to ride the trade for more than $1,000 in profits.

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Topics: TopstepTrader Funded Traders, Performance Coaching, Trading Basics, Futures, Trading Setups, The Trade

$5K in One Crude Oil Trade

Posted by TopstepTrader on April 16, 2018

With volatile markets, traders are able to take advantage of some big moves, without having to take on more risk. In this latest episode of The Trade, Performance Coach Dan Hodgman talks about a trade by Alexander K. (Latvia) put on. This trade is unique in a couple of ways.

First, the fact that Alexander had the patience to ride this for $5,000 in profits is unusual. That tells you something about the psychology of choosing a target and then sticking with it when the trade moves in your direction. 

Second, Alexander sold Crude Oil at the lows of the day. Oftentimes, inexperienced traders will look to buy the market at the lows, letting it make lower and lower lows and then puke out the position. Instead, Alexander did the opposite. He didn't fight the market and sold at the lows of the day, capturing a $1 move. By trading 5 contracts, that equated to $5,000 in profits.  

But the best part of Alexander's trading was that he did this all with a personal daily loss limit of $400. Think about that risk / reward ratio: he has the opportunity to make more than $5,000 in a day without worrying about losing more than $400. It will take him 12 max losing days to give back that $5,000 in profits to the market. Those are the types of risk / reward setups that enable long-term success. 

 Here's how Coach Dan breaks down Alexander's trade.

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Topics: TopstepTrader Funded Traders, Performance Coaching, Trading Basics, Futures, Trading Setups, The Trade

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