I’m excited to announce that I’m officially launching a trade room – code-named: Trade Room Alpha.
Table of Contents
- What Can You Expect from Trade Room Alpha?
- How will your trades be shared?
- What Will You Be Trading?
- Trade Room Active Hours
- Futures Pre-market Snap Back Trade
- Limitations I’m Placing on Myself
- Why Not Trade the ES?
- How many trades do I typically do?
- How do I enter trades?
- What About Stop Losses?
- How I take profits
- I Might Reverse
- Guidelines and My Expectations of You
- What Trading Room Alpha Isn’t
- Why Trade Room Now?
- A Change in Philosophy Going Forward
- What is My Goal Here?
- I’m Not a Member. How Will This Benefit Me?
I have a dry sense of humor. Sometimes I say things or write things to simply entertain myself. It might rub you the wrong way but look I’m like a one-man army here. I must do things from time to time to keep myself engaged, energized, and entertained.
A good example of this comes from writing my trading book and diving deep into trading mindset and psychology for the next section of my training.
One term I’ve come to define is Positive Mental State or for short PMS. It’s critical when trading that you are always in your PMS.
I know it’s childish, but I still can’t write and create content for this section of my book and training without a slight chuckle.
Also, if you’ve followed my videos or me on Discord you know I don’t swear that often. Well in real life I do. I might do more and in this section, I do a bit. I’ll refrain from that most of the time because while I know our society is changing and it’s not as big of a deal as it used to be I just think we should all be the change we want to see in the world.
Don’t let what I shared above detract from the information and value I provide. I have the best intention in all knowledge I share.
What Can You Expect from Trade Room Alpha?
A trade room where I will share my trades, perspective on the market, and if time allows insight into becoming an Elite Trader.
I also welcome participation from Den members and members of my Discord community.
Let’s now dive into the details.
How will your trades be shared?
I’ll share my trades, setups, market analysis, etc via:
- Member discord Channel #trade-room-alpha
- Member voice channel #active-trading
- From time to time like I did today, I’ll open it up to all Discord members to listen along.
- Public Discord channel #futures-trading & #btc-and-crypto
What Will You Be Trading?
At first, I’ll be trading:
- NQ (NASDAQ 100) futures (I’m limiting my trading to this one instrument as we launch the trade room).
- Crypto futures on Kucoin and Binance
- I’ll trade during NY standard market hours
- Sometimes I’ll be around in the CST evening hours. Depends on what is happening in my life and household.
Specifics on Markets I’ll Be Trading
I’ll be trading the NQ.
I would guess most of you will be trading the MNQ but if you are well-capitalized trading the NQ makes the most sense.
I’ll also be trading high probability crypto futures trades.
I generally choose 3-4 ALT crypto tickers for each trading session because the crypto market moves in sync a good majority of the time.
There will be times when something is an outlier and if the setups exist, I’ll trade that.
Trade Room Active Hours
Here’s what you can expect (with health and life caveats down below)
- I get up around 7:15 US CST. I do my pre-market and mental mindset between 7:30 and 8AM CST.
- Expect my first updates around this time.
- By this time or during this time you should have already done your pre-session routine.
- I don’t take any trades (except in rare occasions) within the first 5-7 minutes of the market open
- I generally very active until 11AM CST (the afternoon session)
- I like to trade around the Opening Range (OR)
- At the afternoon break I analyze potential range trades or fake out trade opportunities (so I’m prepared).
- Around 12:50 I start to pay attention for the afternoon session
- 13:15 is a pivot time. I look for the start or clues of any afternoon or closing session move
- I go flat typically by 15:07 in the futures market
- Sometimes I end my trading day at 14:30. If it’s obvious the market isn’t going to do much, or I’m just spent for the day.
- For crypto if I’m in good positions I keep them on with stops.
- Generally, I do go flat at before I go to sleep. It depends, but I don’t trust these crypto platforms.
Note: much of this is dependent on my health and treatment. If I’m trading the market, then I’m running the room. That’s my commitment.
Sometimes on the NQ I do what I call a snap back trade during this pre-market before the open.
That is if the futures market is trading a decent distance from the previous days close and momentum shifts (especially on tick charts) I’ll take that trade usually in direction of the previous close and maybe hold into the open.
I don’t typically take a trade within the first 5 minutes of the market open.
Often, It’s up to the first 10 minutes. I need to understand which momentum is in control.
Limitations I’m Placing on Myself
In my normal trading session, I trade during NY market hours, and I trade NQ, CL (Oil), GC (Gold), and Crypto Futures. I also mix in Russell and sometimes a few other things from time to time.
For the foreseeable future I’m going to just limit my trading to NQ and Crypto futures.
While this limits my trading opportunities, I believe it’s the right thing to do to ensure I get into the rhythm of properly running a trade room.
Once I get up and running, I will add one market at a time.
I might switch up and trade the ES (S&P) from time to time.
I should take a quick second to talk about why I trade the NQ compared to the ES. Now we could have a deep philosophical discussion but let’s bottom line it.
I’m an always in trader. That means if the market is moving with momentum up or down, I want to be part of that move.
The ES because of the makeup of the underlying doesn’t move as fast or as quick as the NQ.
I’ve found in my own trading there are 20-30% less trades in the ES compared to NQ.
How many trades do I typically do?
This differs. Typically, there are anywhere from 7-25 trades a day. I’ve slowed down quite a bit.
- 7 – 25 trades on NQ
- 5-15 crypto trades (generally I find the 3-4 that are moving and trade those)
- The crypto market typically moves in tandem. For instance, the chart on KNC and XMR look identical. I’ve chosen KNC to trade with momentum and have had a great trading session.
- It makes no sense if things are moving in tandem to trade more than 3-5 crypto tickers. I allocate my capital to what is moving and what has the highest probability of a great trade.
On a heavy momentum day where it’s clear the market is moving in one direction and all indicators point that fading should not be an option there might be only 3-4 good trades.
On those type of trading sessions all of those trade will be with momentum and some might be held for hours.
Typically, my trades are held for 7-44 minutes.
How do I enter trades?
If you’re able to participate in the Trade Room Alpha you’ll start to see my process for entries.
I cover this in the training but seeing it unfold live will help quit a few traders. Here’s some general guidelines:
- I typically scale into all my entries but like all trading it’s depends on the chart and trade setup
- I rely on tick charts for precision entries
- I look for structure
- Sometimes I expect structure to be tested and enter there
- I trade in lots of 3.
- My typical first position is NQ 6 or 9. Then I scale in by 3, 6, 9, 12, 18, 36.
- I have protective stops on all my trades (see stops below)
What About Stop Losses?
I trade with stops but how I think about stops and how I use them are probably different than you are accustomed to.
- My default stop loss is to reverse direction (ya’ll will learn and see this time and time again, more than what you see in my live trading videos)
- I use protective stops.
- A protective stop is a stop you don’t expect to get hit but if it does it’s painful but in theory protects you for a large loss.
- If you trade long enough, you’re going to have the market rip through any order or stop you have in the market. Worst case (you can find quite a few stories) you are liquidated. Well that’s not true, the worst case is you’re liquidated and you end up owing your broker. Best case you have enough powder in your account to trade yourself to a tolerable loss. To overcome both circumstances requires tremendous grit and skill.
- I’m generally profitable in a trade rather quickly.
- As the trade continues to go green I use 2 stops:
- Trailing stop loss at set at key momentum levels
- Fixed stop above entry
- I often move my fixed stops up as the market moves
- Typically this is when the market is in an obvious momentum move in one direction. There I’m typically adding to the position on momentum checks and move my stop up above my basis.
How I take profits
Trading is a grind. It’s so easy to be in a trade and in profit and start to rely upon those unrealized gains.
My mantra is taking profits is a habit.
I don’t like the phrase “no one ever went broke taking profits”. While that’s true you also don’t exponentially grow your account by not going broke.
The system I’ve found the most reliable is:
- Take profits in thirds (1/3).
Here’s a high-level overview
- 1st 1/3 profit is typically at first minor momentum check
- 2nd 1/3 profit is at high probable target or stall area
- From there I typically put in stop losses or trailing stop losses on final 3rd.
- This 3rd position is your account builder. Sometimes this position will just keep running and running.
None of this should be foreign to anybody in my training.
I don’t trade the set and forget model of trading. I’ve never been able to reliably (except on daily FOREX and equity swing trades) create an intraday strategy that has hard stop losses or take profit targets.
I’m sure I could create this strategy and maybe I might if I ever change my style. For now, the best use of my skills and capital allocation is intraday momentum trading.
I Might Reverse
You’ll hear me say this from time to time.
What this means is I’m I a trade. Sometimes it’s in profit sometimes I’m a bit out of profit.
I use the “reverse” feature most real trade platforms have. That does exactly what you think it does. It reverses the position.
Here are the 2 cases I do this, I’ll explain a long scenario for both:
- I went long at a lower level. I’ve taken profit along the way. The market has hit a area of high probable reversal and reaction. I’ll reverse there and sometimes add to the position or scale in higher (remember I’m going from long to short).
- 2nd scenario is an aggressive strategy where I usually am fading. For instance, I’m in a fade long but it’s apparent that I’m wrong or about to be wrong. I see the move I’m looking for on the tick charts and in the midst of this move I reverse. Usually for a small loss and then typically I catch the impulse move in the other direction.
You Must Learn My Shorthand and Acronyms
Congratulations you’ve been drafted. If you’ve been in any military branch or government agency then you know how persuasive these shorthands can be.
I use shorthands
NOTHING I share in TRADE ROOM ALPHA or in this document should be a surprise to anybody who is a member and gone thru my full training. If you haven’t gone through my full training and you trade, you’re putting the cart before the donkey… and no one wants to be that jackass.
- You are responsible for your own trades.
- I’ll never suggest you take a trade.
- I’ll never recommend a trade.
- I’ll simply be sharing my entries, my target areas and updating trades as they unfold.
- You must get adept at my shorthand (overview below)
- I will have protective stops on all my trades.
Trade Room Alpha is not a place where I will I will focus teaching or even providing guidance. That’s for the rest of the channels in Discord.
I’m sure I’ll do that from time to time but it won’t be the focus.
I trade at size, and I cannot be distracted by offshoot conversations.
I do welcome participation and us having a general good time.
But I’ll be direct. If it’s obvious you haven’t grasped concepts of trading or the RD Trading System I’ll gently suggest areas of the training you need to visit.
I will not respond to question such as:
- “What do I do?”
- “Do I get out?”
- “Where do I put my stops?”
- “Where do I take profits?”
- What does fade, momentum, MS, ML… mean?
- “Will you take my sister out?”
I will not answer the above questions or derivatives of the above questions (unless you send me a picture of your sister).
I’ve always resisted a trade room. Here’s why:
- I thought it would slow the growth because then people would just trade along with me. Not actually make the system their own and become their own trader.
- I couldn’t see how I would do it reliably in a way people could depend upon. I’ve now setup my 2 trading areas in my home. Where I can trade (work) and spend time while the family, friends, dogs, etc are doing other things. I share why below but I have (we all have) limited time on this planet and being stuck for hours in my home office away from those I care about would cause regret I couldn’t deal with.
- I wasn’t sure I could dial back my trading and insight, so it wasn’t like drinking from a fire hose. I’ve checked that and humbled myself that the best way forward is to always have in my mid the perspective of someone who has just got finished with my training and starting to trade the markets.
- I spent an hour a few weeks ago building what marketing types call an archetype. It’s an exercise I learned from my time when I ran a marketing/business development company. You create a persona of a person, you write about them. You outline their life, their typical day. It helped me get the perspective of the typical person who is my membership.
It’s all been building to this but one event in the last 2 weeks was when a DEN member sent me a DM:
As you’ll see below, they have been toiling away working for the man…
“my business has just folded so all my efforts will now be going into trading and I need to trade for income…
Well in about 3 weeks’ time once my company is completely gone I will be 100% on trading. il still need to walk the dogs for about an hour and have some family time here and there but other than that I will be at my desk. Financially speaking I need to produce around xxxx a month from my trading!”
Full disclosure, the first thing I did was bring them to reality and was adamant how difficult trading for income is. Not to mention the added pressure of it being your sole income…
But we are grown adults here (well some of us) and I’m all about personal responsibility.
My response was along the lines of:
“Well the positive I can say is you’ll be somewhat trading alongside my if you can trade on my timezone. I’ve started sharing more of my trades and setups.”
That evening I thought about it more. I also did some analysis and I came to this conclusion. Within 3 months based on my numbers there should be 2-3 (at least) Elite Traders. That’s the benchmark. That’s the end state. I now know the end state. Okay… how do I get there?
That’s when it hit me.
I show up every day and participate in the market.
I am active in my Discord and to be upfront I show day in and day out that my “always in style” and trade system works.
For those that can participate in Trade Room Alpha you’ll start to see even more firsthand why for me it’s not about having a red or green day it’s about how much of a green day do I have.
I know that goes against everything you’ve read or heard in trading books, deranged crypto and Twitter traders, YouTube chart masters, etc.. what’s that saying– if you can do it’s not…
My goal here has evolved over time but right now and going forward it is to create elite traders.
Before we go further and get into details I hesitate sharing what I’m about to here but after I finished this document I realized there is a big missing context that to be fair I should share.
I’m not vain enough to think anybody cares– in the end we all really care about the most important person in the world—ourselves (yes, you’re good enough, you’re smart enough, and doggonit people like you).
Well with that pre-amble here is some context to what drives me and what dictates my decisions.
This is a good place to share my philosophy going forward and my attitude towards Trade Room Alpha.
Back in my Army days I was stationed for 6 weeks in Sardina, Italy and deployed to Tuzla, Bosina for about 5 months.
My role was to support kind of inter-service training/missions around the military airport (ADACG, is what it was called and strange I can remember the acronym, but I can’t remember what it stands for).
It might sound strange, but this was some of the best times I had in the military. It sucked quite a bit but was some of the best and worst of times.
One of the many units attached to this effort was one of the NAVY Seal Teams and some US Special Forces. I was lucky enough to hang out with some of these guys. Usually, these guys ignore those not in their units (that’s a bit extreme) but it’s how they operate. My role had me interface with them quite a bit and at times I was just around. Generally, with these guys if you’re just a normal guy they treat you the same.
Also, when President Clinton came to visit the troops in Tuzla I got to spend a good 3 or 4 days with the advanced secret service team.
As a side note I also have family who are in the services at some elite levels, Marine Raiders, etc. and one I can’t share but one who was part of the interrogation of a name all would recognize.
I share this because I really have been fortunate to see and experience excellence up close. At least in the military.
Looking back, I realize I learned quite a bit being around these units and individuals.
They are impressive. They can switch to a mode of action and violence in a split second. They are highly efficient and at times utterly calm, serious, and deadly.
They also take what they do very seriously.
But they also some of the most off the wall mess around people I’ve ever met. Sometimes during times of utter chaos.
They know how to have a good time. They know how and when to joke around.
They don’t always take themselves seriously all the time. They also are very introspective and often question common thinking and doctrine.
I’d never compare trading to what they have sacrificed or what they go thru.
The mindset, mental toughness and the attitude are something that can be adopted.
It’s this type of attitude and sense of purpose I will bring to the Trade Room Alpha.
An example (this is general self-improvement) you’ll often hear an elite operator talk about end state. This is defined as the specified situation at the successful completion of the final phase of a military operation. But it is also used as the result of a goal. For instance, let’s say you weigh 400lbs and you want to really weigh 150lbs. 150lbs is your end state. You then work everything backwards from there on outline step by step and day by day how you get to your end state.
My goal has always been to create elite traders.
Your goal should be to be one.
Your goal is to become an elite trader in mind, body, and execution.
I didn’t start with this definition. I started with something like this…
My goal is to create traders who could reliably and consistently pull capital from the markets.
I’ve come to realize the Elite Trader goal is the right end state.
I recently shared this with the public group and someone responded:
“I don’t even want to be an elite trader per se, just to be comfortable and sure in my positions with regular wins”
My response was simple.
“You just described an Elite Trader.”
Somewhere in this document I cover why it’s a fallacy to try to be comfortable as a trader.
Have you heard the number bandied about on how many retail traders are successful? What I’ve heard most is 90% of them lose money.
You can look up stats on some broker sites and they’ll tell you how many accounts are profitable. It’s rarely more than 50%.
So, do you want to be mediocre or average? Or do you want to be profitable and elite?
I’ve also learned a simple definition to what trading really is:
Trading is a constant journey of never-ending habit control.
If I ran a prop firm the way I would go about creating Elite Traders would be different than how I must do it here.
The last few months I’ve had to look in the mirror and really question my methods and thinking. I had to be upfront with myself to grow as a mentor.
I think you’ll notice a slight shift here of me being more serious and terse, it’s not because I’m being an ass it’s because I have high expectations from you.
But I also will keep things lighthearted and sprinkle in my dry humor.
Now I want to speak directly to the people who aren’t in my membership or can’t afford it.
How can you benefit from Trade Room Alpha?
As usual, I’ll be sharing some of my trade ideas and market analysis in the following channels on Discord:
I’ll also answer questions and help as much as I can.
From time to time I’ll open the audio or stream. I’ll also find ways to share some of this on YouTube.