Two Must-Remember Trading Tips From Rob Tonight

Okay gang welcome back lets go and hit two helpful tips that we try to remind you of every few months and now is that appropriate time again first thing is first another reminder that you hear me talk about this fairly regularly which is about this concept about walking in and getting biased by the news so walk in on this morning and we see the markets down big and the reason being given to us in the overnight session is because of China woes. Well the problem is what happens is, especially for those of us in the United States we look at this then and one of two psychological things happen. We get all upset that we missed the big move in the overnight session or we’re so caught up in the negative news that we just can’t wait to go ahead and take that short side trade. You’ve heard me talk about this many times in the past, because what happens is the market gives us exactly what we’re looking for. It will start selling off and people forego the conventional technical analysis and won’t look at the fact that we’re making higher lows and the key indicators and things of that nature. They’ll just go ahead and blindly see that the market went down here and down here, but its going down again I guess I didn’t miss it after all and then jump in and want to take a short, or we’re so captivated by the news and its so bearish in the overnight session we can’t wait to fire off that short. Either way the result is the same for the average retail trader. We jump in perfectly at the wrong time right when the market opens up and gives us that little hoorah to the downside and turns right around and reverses and undoes anybody who went ahead on the retail side and took that trade. Even this first wave to the upside can spike back over 100 ticks. The average retail trader stop in the S&P is 20 ticks in the RUSSELL, DOW, and NASDAQ so basically no matter who you were on the retail side if you shorted into that open you run the risk of getting your head handed to you. Don’t get caught up in the news and if the market’s been selling off over night, you have to look to the open for reversals.

Second thing I want to focus on tonight since we’re coming up on equity rollover for those of you who trade futures which is many of you here and about 70% of you actually trade futures here so with that being said we want to make sure that you are taken care of with this very important knowledge going into the next couple of days. So what happens with equity rollover you mostly will have your broker by Thursday force you over to the new front month contract which will be march 2015 contract for the stock index futures so here we have the s&p500 but listen gang here is how I do this, I actually force my futures back to the December contract I stay in the December contract until the actual volume goes ahead and rollover. Not just cause my broker has me do it because listen if one contract like right here let’s just take a look at the current thing we have 9000 contracts on the S&P on the last 5 minute bar on the December contract only 247 contracts on the march contract huge, huge differences in the percentages here. 10000 contracts vs. 260 contracts huge differences. Well that’s any slippages associated any poor fills you are the one who suffers for that. So from my prospective I want to stay where the credit stays okay? With that being said what I do even through even through Thursday I do not roll over to the March contract until the 5 minute volume starts rolling over as well so when I start seeing more volume on the march contract then the December contract that is when I roll over. You know consider weather letting your broker just force you into the new month and the really lite in volume is right for you. For me personally I made the choice that that is not right for me the fills that is not right for me and I made sure my broker is happy it does not necessarily make sure I am happy okay? So there is my little tip and trick on how I go ahead and do equity rollover and since we are coming to that this Thursday it is really important that you guys understand that so take look and make sure that this makes sense for you, you guys have a fantastic night I am looking forward to seeing you in the live trading room or in tomorrow night videos have a great evening every one BYE BYE.

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