X factor - unambiguity, perfect timing, and risk management.


Did you see the industry rotation snap I shared on twitter today morning soon after the market open showing the Materials sector was weak? If not, it is a good idea to stop here and follow me on twitter. No jokes there. No videos. No politics. Only trade ideas. Live.

Now back to the X factors.

Did you remember my earlier tip that if I share something on twitter, you might care to look under the hood? Who knows, you might find some trading opportunity there?

Here is a trade I took with confidence and at the best possible time using the 5-minute chart (Fine Tune template). I did not (could not) prepare for it before the market open. I traded it in real-time using the CUE 360 analysis. 

1) I saw that Steel was one of the weakest industries in the Materials sector using a full-real-time CUE Edge industry-rotation analysis tool. How long did I take to recognize that? Less than 1 second.

2) It took another few seconds to find out from CUE Sonar (radar on Tardestation) that US Steel ($X) has a Breakout setup and Bearish Flow candle. The left side columns showed it had a Gap Down open and then went down further (C+-: The % change relative to the previous day's close was bigger than Gap Open %).

3) The next step was to use the go-to At A Glance template. A single template where I can (and you too!) decide on all the CUE trade setups. It indeed broke below Memory support with a gap-down move. Add a few more seconds for this step.

4) It also had a Bear Release indicator in the band, telling it was overbought and now the bears are starting to push the price down. If so, why not I also look for a short? And as it was pretty early in the morning, I was going to switch to the precision Fine Tune 5-min chart. Nothing beats Fine Tune that for precision entry as it mostly relies on pivot/trendlines and some very fast indicators, making it almost zero-lag. Good to have a low-lag technique for precision entry. Let me correct that. Essential to have a low-lag (or near zero-lag) technique for precision entry. Fine Tune allows that to me. Really? Really.

5) Switching to Fine Tune chart - less than a second using hot-keys on Tradestation. I waited for the price to go up to the Early Range High (btw, the gap-down open was evident from the pivot levels). And when I had the long tail candle with yellow color (switching from the previous green color), I took the short trade. I waited for the price to go up to the Early Range High. Patient. And when the yellow candle appeared, I shorted. Without second-guessing. My initial stop was right above the day's high. Narrow stop. I was ok with that. I decided on my size using CUE Diary. 

6) After that, to my expectations, the stock moved down. It hit the Lower Boundary and I was disciplined enough to book partial profit. What to do with the remaining position?

7) Use hot-keys to switch to Stop-Level template on a 5-min chart to decide trailing stop and place an order on the brokerage for that.

What was I doing while waiting for the price to go up and hit the Early Range High, you might ask.

8 to 16) I used CUE Vital to check if the stock was fundamentally weak enough for me (disciplined CUE trader, well, disciplined for the most part, also human!). And it was. So, when the price came up to the Early Range High and tilted down with a yellow color candle, by then I was ready with my mouse on the "Short" button on my brokerage system (I love Schwab, btw - I use it only to place the orders. What I like about Schwab? Their people and support. And no, I have no financial arrangement with them for which I need to promote them).

17-21) My Schwab orders snapshot showing the exact shorting/covering price and time. 

I could use the unambiguous CUE systems to perfectly timed the trade (you be the judge!) and managed risk beautifully (you are the judge again).

Don't you wish you could trade like me? And you can. Trust me in that. If I can, you can too. Provided you are disciplined and are willing to spend a bit of time learning. I hope these posts help you with that.

Note that though I do try to help people with swing trading sometimes, I try to avoid guiding people into day-trading. This trade was initiated using the Fine Tune real-time chart. It could be considered as a day-trade. Or a precision entry of a Breakout swing trade that relied on the Gap-Down move and a break below Memory trendline of a fundamentally weak stock in a weak industry. I try to avoid helping people into day-trading. That is above my fun-grade.

CUE can trade it all, though, should you choose to do it.

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Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

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