Fast Futures Day Trade

Superior Profit investors invest in multiple markets and countries. For example, some Superior Profit investors invest only in USA market. Some only in India market or other global market.Yet some may invest in multiple countries. Myself being one of them.

Whatever be the market, they use the same Toolbox – Superior Profit CUE System.

Superior Profit investors also have common philosophy. That is to book profit if it is there – they may book full profit and close a position. Or they may book partial position and move the Stop to breakeven / trailing Stop. In all cases they make sure to take some money off the table. And they see that a winning position does not turn into losing position.

These tools and philosophy are used in Long Term Investment, Short Term Swing Trading and even for Day Trading.

Let us take one example of Day Trading that were taken recently by Superior Profit traders in India market using Stock Futures.

We tend to use Stock Future instead of Stock Options in India market as that gives leverage whereas it has enough liquidity (giving us narrow bid-ask spread) to make the investment worthwhile. On the other hand, in India market, most Stock Options have wide bid ask spread making a Day Trade using Stock Options risky and inefficient.

The Stock we used in India was Aurobindo Pharma (Thomson Reuters symbol ARBN.NS). Auro Pharma had rallied for several days. On 29th December 2015, using Daily Chart, the stock looked overextended (Stretch was Overbought and the stock was above Upper Boundary). We could see these from our Hop On and Decision Templates in a matter of seconds (these Daily templates are not shown here – you may look the stock up on your CUE System).

We would not enter a Swing trade on Auro Pharma at that time: No Long trade as the stock was already Overbought. No Short as Traffic Light was still Bullish.

However we could take Day Trades. And this is what we did on 30th Dec using Fine Tune Template.

Soon after opening, the stock fell below Early Range (ER) Low. We took a Short at that time using Stock Futures (we used the Dec expiry as it was meant to be Day Trade and we would close the trade on same day).

First thing we like to decide on a Day Trade like this is what is our Risk? That is, where is our Stop? In this case, the premise of taking Short was that Auro Pharma went below Early Low in Real Time chart while it was Overbought in Daily. So we would put our largest possible Stop to the other side of Early Range – Early Range High – marked as “2nd Stop” in the snapshot below. If someone wants very narrow Stop (which increases chance of being Stopped Out), then the Stop could be just above the Candle that pushed the stock below Early Low. This is marked as “1st Stop” in the snapshot.

Once we decide the Stop for a Day Trade, we would like to take profit when we have at least the Risk amount in profit. That is the stock has moved in our trade direction (down in this case) by an amount same or more as the Stop distance. I like to mark those levels (both Stop and Target) on the chart by Horizontal Lines. Such lines are shown in the snapshot below as “1st Target” and “2nd Target”.

Soon after we entered the trade, It hit 1st Target. At least partial (say, half) position was to be closed at that point. As we did. Eventually the stock went down further and hit the 2nd Target as well. Giving us a nice, quick. profitable Day Trade.

Like this trade illustrates, we repeatedly use the CUE Systems charts to identify an investment opportunity and then confidently execute it and book proift. The Unambiguous and Easy to Read color coded charts allow us to do that.

That was one of our last trades of 2015 in India market. We are looking forward to an equaly fun filled and profitable 2016. Whether the market goes up or down, using CUE charts we like to take a trade with the market direction to profit from the move.

Wishing you all a Very Happy New Year !

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