08/16/07 S&P 500 gave us a swing trade opportunity at 1396, and the end of the day had a beautiful hammer candle formation signaling that the entry was potentially the right one. The technical target was hit on 09/18/07 (one month later with a gain of 108 S&P points. Most other indexes and many different stocks move right along side of the S&P 500. Therefore, you can choose your instrument to trade. When the S&P moves, the others move too. Trading this move on ES (emini futures) would have netted 111 points or $5,550 on a $5,000 investment. Trading this move on the ER2 (Russell 2000 emini futures) would have netted approx. 50 ER2 points or $5,000 profit on a $5,000 investment or 100% profit in one month.
One of the most powerful things about our swing trading method is that once a trade launches in your favor and direction, a protective stop is set in place which protects your account and puts you into a free trade. If the trade is right, it moves up to completion of the technical target. If it's wrong, you get out of the trade with a small gain. Your capital is only at risk for a short period of time in most instances, and we always try to limit risk to 3/1 reward/risk ratio or better.
You too can learn how to take low risk trades in the markets -through technical trading analysis. Click HERE for more information.
Risk Disclosure: The risk of loss in trading commodity futures, options or other margined financial instruments can be substantial. Before trading, you should carefully consider your financial position to determine if futures trading is appropriate for you. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. All information contained herein is considered as “educational only” in nature, and is in no way determined to be an offer to buy or sell, nor is it an attempt to solicit any type of trading, trading instruments, trading styles or trading systems. Dr. Daniel Daves and Basics For Success are not licensed brokers or financial advisors. Also, trades shown in these examples may or may not have been personally entered by Dr. Daves. As a mentor, he points out multiple trades for multiple instruments, and does benefit from many of them. However, posting these trades is not a statement that Dr. Daves or Basics For Success is currently, or were previously in these positions. The system that Dr. Daves educates students in, will point out trades such as these - over and over again in all markets and all time frames, whether or not you actually take the trade or not. If you access and use this educational information, you accept and agree to this full Disclaimer before using this educational information. Changes may be made to the Disclaimer at any time without notice. The information contained herein is not to be construed as an offer to sell or the solicitation of an offer to buy any commodities described herein. Persons acting on any information contained in this educational project are responsible for their own actions.