The purpose of these next three trades is not to make money. Rather, it is to establish how much money can be won or lost per change in price trading U.S. indices via Nadex Knock-outs. (To be continued tomorrow morning...)
First of all, the total distance covered by each level of the S&P 500 is just $50. The difference between the very bottom to the very top I'm calculating to be $80. Here are the spreads, which look to be about 30ยข: The total distance covered by each level of the Nasdaq is $150. The difference between the very bottom to the very top I'm calculating to be $240. Here are the spreads, which look to be about $1.00: And the total distance covered by each level of the Dow is $500. The difference between the very bottom to the very top I'm calculating to be $800. Here are the spreads, which look to be about $2.00
The Nasdaq is presently neutral, so I'll skip it for now. The S&P and the Dow are both bearish, so let me enter short positions... An S&P 500 knock-out will require me to risk anywhere between $0 to $500. It looks like I make or lose $10 for every dollar's worth of change in the S&P. The Dow will cost be anywhere between $0 to $500 as well... Here too, I make or lose $10 for every dollar's worth of change. And finally, it appears that, once again, I can risk up to $500 per Nasdaq knock-out. But as I'm calculating it, I make or lose only $4 for every dollar's worth of change... So in conclusion, if I get the direction right, it looks like I can make several hundred dollars in just one hour's worth of trading Nadex U.S. Index Knock-outs...
my goodness!! this is your 30+ journals !!! and you have multiple chart templates, multiple charts backgrounds, multiple indicators, multiple tracking systems, multiple journals, multiple trading platforms, millions and millions of words about trading .... When is it going to end? When are you going to seriously focus on making tons and tons and tons of money from trading? You joined ET 5 years ago. So it is time for you to decide whether you want to be a professional trading writer or professional trader.
Monday | June 13, 2022 | 2:35 PM PST Because you can lose hundreds of dollars as easily as you can make them, you should only use the first knock-out, the one that minimizes risk the most. It's like using extremely tight stops, and it appears the best way to do this is to execute trades when price pulls back to the 1.75-hours temporal support/resistance level, AND the upper or lower limit of the 20-minute price range at 0.60% deviation, AND the upper or lower band of the 70-minute price range envelope, AND an outer band of the adaptive/dynamic 60-minute price range envelope (see the circled areas below)... Other possible entry levels that are not as safe are where the inner band of the adaptive envelope and the temporal support/resistance levels converge (see the rectangle), or simply the inner band of the adaptive/dynamic envelope all by itself (see the triangles). If you wanted to play it safe, you would probably want to pocket your gains as soon as possible after candlesticks cross to the other side of the inner band of the one-hour adaptive/dynamic price range envelope(s).
My numbers suggest the Nasdaq might have hit bottom. But, that was also true about 20 weeks ago. So, I'm going to have to wait a few more weeks for confirmation.
If the Nasdaq pops above this level and remains there for two or three weeks, it will become a tentative buy for me. Still, it will need to clear two more confirmation hurdles before I go "all in."
The Nasdaq is failing to clear even the first confirmation hurdle. So at this point, I won't be going in at all...
Today is one of any number of days that might serve as examples at to why I'm likely to never return to daytrading the U.S. indices, preferring instead the foreign currency pairs... The amount of monetary fluctuation represented by many of the candlesticks on this chart is simply to rich for my bones.