Saturday, April 22, 2017

A traders' #1 enemy: FEAR


Have you ever wondered why it's so much easier to paper trade than trading a live account?

It seems that our brain connects through a different wire when we're trading real money and we end up doing a totally different thing than we would if money wasn't on the line.

In our trading room I can see clearly the difference between fearless and scared traders, the first group just do whatever has to be done in every single setup that is presented to them during a trading day, no matter whether the previous trade was a winner or a loser, something that fearful traders have great difficulty in dealing with, no matter what happened on the previous trade, if the trade was a winner they end up skipping the next setup, afraid that they'd be stopped out and give part of their sought after profits, and when the previous trade was a loser they skip the next trade fearing getting stopped out a second time in a row...

If I would list all the different traps that scared traders fall into, I could write a book on that subject only.

Have you ever had the experience of just watching 1, 2, 3 setups without taking a trade just to see them working perfectly and then when you decide to take the next one it fails? Yes, it's really frustrating.

When we enter a trade we never know in advance whether that particular trade will work or not, we do not need to know what market will do next to make money, we just have to trust the statistics we know gets repeated over and over in that specific type of pattern, all we need to do is to take the "key levels" where market might turn, and expect to see a small rotation or a possible reversal, depending on entry location and when it does not work as expected... out.

Traders have to bear in mind that they need to take 10, 20, 30 trades, according to his own style, and be sure that the outcome from that sequence of trades will certainly be positive, 70% or more of the trades will work and at the end of the day they will be in the black, provided they're using a proven methodology like ours for instance, the Diamond Setups.

But, unfortunately, what I see is that most traders DO NOT want to lose a single dollar, afterall the reason why we trade is to make money, but we know that not all  trades will be profitable, we either accept that or we shouldn't be trading. The right mindset + risk management are key.

We have at least 2 different practical approaches on taking profits in our trading system:

1 - MTs - that group of traders will quickly scale out on half or 1/4 at +2 points or so to protect their profits and then continue in the trade trailing without any risk or just a very small risk.

2 - TTs - in that group they will only take profits at the initial target or they will trail until stopped out on FULL size, trying to let the trade develop to its fullest possible potential, although taking +4 points on each trade quickly adds up, mainly on volatile days when we may have several chances to trade along the day, 10+ points days are not that rare when that happens.

The Diamond Setups system triggers several different setups along a day or week, depending on each trader's own trading style, there are calls for day or swing traders, scalpers, and many times a call near the last hour that needs to be held for the next trading day or overnight, all of them are clearly explained in the member area in our website allowing traders to decide which style they will follow depending on how they feel more "comfortable" to trade.

For instance, if he/she likes to take only 1 or 2 trades a week for bigger targets then he will just check the swing trade levels page and wait until any of those levels are tested, if he/she likes to be more active along the dy then he can take the the day/scalping calls for quick profits with a smaller risk.

There is something for every taste, just make sure you learn what to expect and how much you want to risk and take the setups accordingly, 70%+ of the time those setups will work as expected, conquer fear by following a plan that you know will work on the majority of tries.

And last but not least: you DO NOT need to be perfect to consistently make money trading futures.

Join us now, click here: Diamond Setups

Or, if you have any questions, send email to: renatrader@diamondsetups.com

Best of luck!


Saturday, April 8, 2017

The Market and its Cycles


Hi traders!

I've been day trading ES for the last 10 years now, and coaching traders, both seasoned players or newbies for the last 7 years, I've seen many newbies start trading only to quit after a month or so, they are not aware on how market works, about its different cycles, they expect to have a linear winning curve and that's not always the case when they begin, as traders we also have more difficult periods and losing streaks, so it all depends on when a new trader joins the market, luck is also a (small) part of our business.

Cycles in the markets tend to last from weeks to months, during some of those cycles it allows to make truckloads of money while during others we will focus on just protecting our capital, being happy with small profits while we "wait" for a more generous market, we've been trading long enough to know that "the good times" are right around the corner.

All day traders need is some volatility to be able to take more trades make more money, we trade ES (S&P 500 e-minis) only and we know when the range is tight it is more difficult to get good chances to trade, one entry missed and boom, we could miss a whole trading day, but when volatility is in play with wider ranges like 15+ points, that's all we could ask for and more opportunities are given for us who live from trading.

In our trading room we have at least 4 types of calls that are made 24 hours a day from Sunday night to Friday afternoon (live Mon through Fri from 9 AM to 4 PM EST), they go from: swing trading to scalping, it all depends on each trader's style to choose their "level of comfort", let me give you some examples:

Day traders may expect to see 1 or 2 trades a day with targets from 4 to 10 points depending on context, STOPs from 1 to 3 points.

Scalpers may have from 2 to 6 trades a day with a minimum target of 4 points, STOPs also from 1 to 3 points

Overnight traders: for those who like to trade during the Asia and London sessions, with targets from 4 to 10 points and STOP of 4 points. Trading levels are posted daily at around 9 PM EST.

From one of the traders in our trading room on Friday:

[Apr 7, 2017 9:13:17 AM EDT]    b    Thanks for the ON levels
[Apr 7, 2017 9:13:19 AM EDT]    b    worked well
[Apr 7, 2017 9:13:30 AM EDT]    RenaTrader    good job, b!
[Apr 7, 2017 9:13:43 AM EDT]    b    +15 for the day

And last, but not least, swing players who usually have 1 or 2 trades a week with targets of 20 points or more with STOP from 10 to 12 points.

This week for instance swing traders who took the swing levels have made 50+ points, once a trader get a trade like that he will have no fear at all to risk 10-12 points in a single trade, he would have to be wrong 4 times in a row to give all profits back which is really rare to happen in our trading system, the Diamond Setups.

All those styles above with 70% win ratio, except for the overnight traders that get a higher win ratio of 90%

If you want to join us, the risk is very small, with just US$ 99.00 you'll have access to all those calls, our trading room is open Monday through Friday from 9 AM to 4 PM EST (NY time)

Click here to go to our website: www.diamondsetups.com

Or, if you have any questions, send email to: renatrader@diamondsetups.com

Best of luck!

"Setting goals is the first step in turning the invisible into the visible.
If you do what you've always done, you'll get what you've always gotten." - Tony Robbins








Friday, January 6, 2017

The power of just 2 points a day trading ES


It's really interesting to see how just 2 points a day on ES with just one lot in the beginning can do wonders to those who have a good trading plan, see the table below:

From US$ 5,000 to US$ 1 M trading ES (S&P 500 e-mini futures)
Stage #    US$SizePts for target  Target in US$












1$5,000.001    40               $7,000.00



2$7,000.002    30  $10,000.00



3$10,000.003           20  $13,000.00



4$13,000.004    35  $20,000.00



5$20,000.006    35  $30,000.00



6$30,000.008    25  $50,000.00



7$50,000.0010    30  $65,000.00



8$65,000.0012    25  $80,000.00



9$80,000.0020    15 $100,000.00



10$100,000.0030    35 $150,000.00



11$150,000.0040    70 $300,000.00



12$300,000.0060    35 $400,000.00



13$400,000.0080    25 $500,000.00



14$500,000.00100   100 $1,000,000.00

That makes a total of 520 ES points, 2 points a day, 10 points a week, trading size grows as targets are met.

In order to be able to make that happen you need a proven trading methodology with a sound risk management and the discipline to execute it.

If you don't have a system join us, try the Diamond Setups: www.diamondsetups.com 



Trading in futures is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.

Sunday, October 23, 2016

Final target achieved on Challenge #9


...and a new Challenge has come to an end, once again we were able to double the account from US$ 10,000, this time it has taken us 3 months and 10 days to achieve our target, it was not easy, as usual, but we made it once more.

There were tough times to day trade during Summer, we had real tight range days, it was difficult for us to catch good setups any missed opportunity could have been the only one of the day, during several days we were able to take just a single trade while on others even no trade at all, a really tough test checking our discipline and patience to wait for a good setup, traders tend to trade carelessly when good setups take long or even don't show up at all.

But, even though, we were able to make it happen because we KNOW determination to succeed is what makes the difference between losers and winners, if we wait and only take the good setups, we know that from every 20 or 30 trades we will be winners on the great majority of them, 70%+ of all trades work in our favor, statistics don't lie, they repeat over and over again, staying the same in the long run.

Ready to start a new challenge with us day trading ES (S&P 500 e-minis)?

Our Challenge #10 starts on November the 1st, once again we will try to take an account from US$ 10,000 to 20,000 in 3 stages:

On the 1st stage we start trading 2 lots until we reach US$ 12,000,

2nd: 3 lots from US$ 12,000 to 15,000

3rd: from US$ 15,000 to 20,000 trading 4 lots.

Join us by clicking here: Diamond Setups

If you want to send me email: renatrader@diamondsetups.com

Best of luck!



Saturday, October 8, 2016

Spot the patterns, follow the rules


This month we complete the 6th year teaching our trading methodology on futures (ES) and Forex, it's been a long road up to where we are today, really happy to have been able to reach such level.

It all started on Twitter, back in 2009 I used to post some of my trades and one of the traders that followed me asked me how I did to be right on my calls so consistently and I jokingly said: - "Send US$ 1,000 to my PayPal account and I'll teach you how I do". And to my surprise on the following day he sent that money to my account and I had no other thing to do but to start teaching him how I did through chat on Skype, every time I spotted a new trade I told him whether to go long or short and showed on the charts why I was taking that trade...

At the same time that I was teaching him I was writing all the documentation on each of the setups I used then which later on was all published on my website for all the new members that came after that first one.

Today, after having taught my trading system to over 600 traders since 2010, I learned that most who signed up were looking for "a get rich quick scheme", but unfortunately that does not exist in trading, anyone looking to be successful in this business will have to put in the long hours of dedication and hard work required until they can become successful and able to live off of it, those who don't give up and have the discipline to follow the rules that are taught will be rewarded if they're patient enough to go through all ups and downs of a trading career, as it is the case in any other profession.

Markets change their behavior completely now and then, making totally different cycles along a trading year, we might have something from 3 to 5 different phases that we need to adapt our trading system or die, our job is to spot those changes and tweak the system here and there, it is dynamic, there is no comfort zone where we can sit and stay indefinitely, change is the normal core of our business.

Of course experience does help a lot spotting those changes in a timely manner, that is of fundamental importance if we want to survive and make money consistently.

Our over 20,000 hours of screen time does help showing our members the changes of mood in the markets, all we know is that patterns repeat themselves over and over again, our job is to find those patterns in play and take action by pulling the trigger and managing our risk on each trade.

If you want to be consistently profitable in this game, the only way is to have clear rules and follow them with discipline and patience, to name a few of those rules I'd stand out:

- having the patience to wait until the market shows a pattern that meets a certain criteria and when they do,  not to hesitate pulling the trigger

- taking profits at the predefined targets only

- having a strategy to scale out of a trade or go full size and stick to it

- never, ever taking a big loss

- respecting STOPs and so on...

Patience and discipline are key to success.

It's relatively easy to learn a trading methodology, where to buy/short and why, it will take you 1 or 2, maybe 3 weeks, the difficult part is to have the right mindset to follow the rules.


Our Challenge #9 is coming to an end, we must meet the final target either this week or the next one, we should be able to meet our target once again from SU$ 10,000 to US$ 20,000 in a little more than 3 months this time, so next challenge will begin by the end of this month: Challenge #10.

Join us by clicking here: Diamond Setups

If you want to send me email: renatrader@diamondsetups.com

"We all have dreams. But in order to make dreams come into reality, it takes an awful lot of determination, dedication, self-discipline and effort." - Jesse Owens

Best of luck!


Saturday, September 3, 2016

Challenge #9 update: 2nd target reached, +50% in less than 2 months


Yes! We made it once again. Trading ES (S&P 500 futures e-minis) very conservatively due to the tight market we experienced during August summer trading when we had several days of 10 points or less ranges in regular trading hours.

From US$ 10,000 on July, 11th to US$ 15,000+ on September the 1st, next target: US$ 20,000, now we will be trading with 4 lots.

It was a trading period when we had to be really patient, on many days we had only 1 single trade, and even days of no trade at all, just watching, it was really difficult, mainly for those who think they need to pull the trigger everyday to be profitable, they want to to be in on every point the market moves, no need for that, we only trade when we see a good probability of making money, we don't want to just trade, we want to take trades that will yield a minimum of 4 full points or more.

We know that if we follow our system rules and only take the qualified setups, we have no doubt that 70-80% of the trades will work, allowing us to slowly increase the size we trade, pushing us higher and higher on each week/month.

And now that summer trading is done, let the volatility explode making it possible for us to take more trades and make more $$$$ on a daily basis.

If you want to learn a simple but yet effective system to trade, join us:

Diamond Setups, click here to learn more ==> www.diamondsetups.com

Sunday, August 7, 2016

Trading successfully - It's all about statistics


Challenge #9 update: approaching the 20% profit target, after 4 weeks, challenge started on July, 11.

We expect to reach that target early this week, all we know is that if we take all the setups our system triggers, profits will take care of themselves giving us 70%+ of winning trades, all we have to do is to watch the market waiting for those patterns that fit our criteria and when they show up, we pull the trigger without hesitating, a trading system is nothing more than a group of specific rules that determine entry and exit spots for a given instrument.

As our main instrument for day trading is the ES (E-mini S&P 500 futures), our minimum target for each trade is 4 points while our average STOP loss is 2 points, giving us a risk reward of 2:1.

So, do the math: if we're profitable in 70%+ of the trades (7 out of 10 trades are winners) then in a 50 trade sequence we would have a possible outcome like below:

50 trades ==> 35 winning trades = 35 X 4 points = 140 points
                       15 losing trades     = 15 X 2 points = -30 points

Total in points after 50 trades: +110 points X US$ 50.00 = US$ 5,500.00 per contract

This is the average outcome you can expect if you follow the rules of our trading methodology, but it also depends on the volatility at the time, when we have more volatility we may be able to take more trades and besides that we can increase the quantity of winning trades, taking the winning ratio from 70% to 80 or even 90%+, but, on the other hand, we will also see short periods of lower win ratio, from 60 to 65%, so let's illustrate that with a pessimist example of an outcome of only 50% win ratio, it would be something like this:

50 trades ==> 25 winning trades =  25 X 4 points = 100 points
                       25 losing trades     = 25 X 2 points = -50 points

Total points after 50 trades: +50 points X US$ 50.00 = US$ 2,500.00 per contract!

Discipline & rules profit, even with a 40% win ratio you'd still be profitable, you'd need to lose on over 65% of the trades to be in a losing position after that sequence of 50 trades.

Have in mind that when we have a higher volatility the number of trades we take increase, then that sequence would take less than 2 weeks to be done.

The Diamond Setups members know that in the last 5 years or so we've never experienced a losing ratio below 50-60%, we are certain that in that sequence of trades we will see profits, the only thing we don't know is how the sequence of winners & losers we will come up, it might be something like this: win, win, win, lose, lose, win, lose, win, win, win... and so on.

Just do the right thing and follow the rules, profits will be automatic, it feels really good when we're sure about that, if we do the work we'll be rewarded and be in the exclusive club of consistent winners.

Join us: Diamond Setups: www.diamondsetups.com

Have a great trading week, best of luck!