Lessons from the live room: today’s trades

Due to time zone differences, a number of attendees in the live room were unable to stay to witness morning prep (wanting to get long up to 0.7407) come to fruition. So here is a recap of how the day played out if you missed it. The chart below shows all of the trades taken during the Asian session.

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You’ll notice it took three attempts before we finally got set.
You’ll also notice how the long trade was broken into two portions. This was based on “fuel consumption” plus auction participants unwilling to take prices higher, at that specific moment in time, hence the initial profit take.
When conditions changed the re-entry was taken, to make the most of the “long liquid lunch” phenomenon as discussed in prep.

Lessons from the live room: why traders attempt to pick tops and bottoms

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Take any chart and ask yourself “where were the best areas to enter long and/or short?” and inevitably you’ll identify the turning points in the market because after all, they were the areas that offered the most reward.

It’s human nature...


Lessons from the live room - trades based on webinar presentation

Every trade example covered in the webinar played out during the real-time live session that followed, as per the chart below.

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You’ll notice the “bread and butter” trade features heavily, as does prep, and tight risk management. All profits were as a result of urgent exiting traders...

Webinar: how directional traders earn a living providing liquidity to urgent exiting traders


A trading business is a service provider

Each morning in the live trading room, we highlight areas where participants are unlikely to agree on price based on the auction results of previous days, weeks and months.

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We do this because if price moves into these areas, traders wanting to exit their positions will find it difficult to do so at the price they want due to minimal liquidity. This leads to directional movement.
Take a look at the trade below from Friday morning…


Lessons from the live room: viewing data events as interruptions

The intent of the live trading room is to maximise trader profitability in a focused environment.

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Just prior to a data release I took partial profits only (see chart above) whereas I should have taken all profits with a view to sit on the sidelines until the reaction to data had passed. this is because: