Hello everyone. Welcome to DA Investment Academy. In the previous lesson, I talked about the four basic questions that every trader needs answers to before they can engage the market. Let me recap. Number one, what do we do? These questions pertaining to whether we should be buying or selling or stay out of the markets, and this can be found from the higher time frame. And once I can find a market directional bias, I will come to question number two, which is where do I enter a trade? And there are good entries, there are bad entries, then there are absolutely horrible entries. So we need to know where to enter a market. So I will combine question one and two together to do this presentation for today. And of course, question number three is what if we are wrong? Where do we exit the market? And question number four is where do we take profit if we are right? So today I'm going to spend some time to talk about my strategy in doing swing trading.
In particularly because there are traders who wants to trade for the longer term. And we all know this slogan, which is the trend is your friend. So how do you actually practice that? So in today's lesson, I'm going to spend some time to talk about that. Now, we all know traders have different trading objectives. Some tends to want to hold positions and some do the intraday trading. So today in this particular lessons, I'm going to concentrate only on swing trading. How? I use my methodology to actually adapt to position trading.
So let's get started. Now, we always hear this slogan, which is the trend is your friend, but how do you actually use this slogan to actually implement your strategy? So I'm going to show you my version of how I actually trade with the trend. And I want to hold positions for a slightly longer period of time because I want to catch the larger trend. So in this particular example, I'm using the CME, which is the Chicago Mercantile exchange, micro e mini S&P 500 futures, which is a very, very successful product. Average trading volumes, about 1 million contracts a day. So it's very, very liquid.
And if you remember my previous lessons, I talked about finding directional bias from the higher timeframe. Now obviously I would love to trade to give you the example from the monthly timeframe. However, this particular contract, he sell this product only started months before the pandemic.So we don't have very long historical data to do the monthly timeframe. So I think the weekly timeframe should actually be more enough to let me show you how I employ my methodology to actually trade this S&P 500.
So you can see the low traded was 2174. Even that was actually the pandemic low in March of 2020.And the high traded was only three weeks ago.That is 5368.25. So we can see that this particular chart here, I only have one color box. Okay, we can see that there's a series of boxes that actually accumulated into the all time high, that 5368 and a quarter. And there's only one color. So this means I only have up ab. So the directional bias in this particular product for the weekly timeframe is very clear cut. The market is still in the that bullish phase. So if that's the directional bias, what should I do now?
Obviously, if the market wants to go higher, I would need to be buying, but can l buy at a current price? So that is where we go down to the lower timeframe to get our perspective. Watch the video to learn more.
Risk Disclosure and Disclaimer:
1. All content in this video, including but not limited to opinions, insights, and data, is provided by third-party authors and is for reference only. Direct International Financial Services Limited and its affiliates ("DA Group") do not assume any responsibility for the content of this video. Although the content in this video is obtained from information believed to be accurate, DA Group does not make any representation or endorsement as to its accuracy, completeness, quality, timeliness, or reliability, and expressly disclaims any responsibility for any information contained in this video. DA Group shall not bear any legal liability or liability for losses caused by all or part of the content. The videos reflect the personal opinions and views of the relevant authors and do not represent the position of DA Group.
2. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading futures and options can be substantial. Past results are not indicative of future results or performance.
3. All information provided in this video is for reference only and does not constitute an offer, invitation, suggestion, or solicitation for any action based on it.
4. The information is meant purely for informational purposes and should not be relied upon as financial advice.
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