Saturday, December 19, 2015

New target met in just a week: US$ 40,000

That was fast!

This week was great for traders who were ready for volatility, so many opportunities including the FOMC on Wednesday, one of the trades we took in our trading room was to buy ES at 2041.75 after 2 PM EST, see the post from our trading room below:

[Dec 16, 2015 2:22:47 PM EST]    RenaTrader    GTS 2041.75
[Dec 16, 2015 2:22:54 PM EST]    RenaTrader    STOP below 2038

GTS in our lingo means: Buy 2041.75, that's one of our Diamond Setups.

On Monday we start trading the last stage of the challenge with main target at US$ 50,000.00

We'll start a new challenge in January, so make sure you join us if you want to follow our trades live in our trading room, all trades are called BEFORE they happen, we always have enough time to enter our limit orders and then manage the trade after we get filled.

If you want to learn our trading methodology, here's the link: (still at a discount price)

Click here ==>   Diamond Setups - The only edge you need

Sunday, December 13, 2015

Another target met on the challenge: US$ 30,000

After almost 3 months from the start, the 4th target has been reached at US$ 30,000.

For those who do not follow this blog, I started trading an account live in our trading room from US$ 10,000 on September the 14th, and on Friday we reached our new target.

Now, from Monday, we start trading towards our next target: US$ 40,000. We'll trade ES (S&P 500 e-minis) with 10 lots, in case we lose and go back to US$ 20,000 we'll decrease the size we trade back to 6 lots and start all over again.

This is the 4th time I make this kind of challenge and so far we never had to go back to a previous stage and start over, but we know, in trading anything is possible, past performance does not guarantee future success, but since we started using the Diamond Setups methodology 6 years ago, we know that if we follow the rules we will be consistently profitable, we know rules profit.

I think the most difficult phase for any trader who starts trading is the very beginning, any losing trade will take him/her into negative territory and most traders find it difficult to follow the rules when they see themselves in that type of situation, many traders after just 1 or 2 losses, stop following the rules and start trading recklessly and end up blowing up their accounts, but those who regardless just follow the system looking up to the long run, will soon go into profitable territory, I have seen that happening so many times in our trading room in the 5+ years that I've been teaching my trading methodology.

Then the most difficult phase for a trader to overcome is the initial phase, his/her first US$ 2,000 to US$ 5,000 profits, those who manage to break those initial levels of profit usually go on to bigger targets smoothly because they are not afraid to take the next trade; losers tend to skip good trades and take the bad ones, while winners know their edge will grab more big winners than losers.

Learn a system that is easy to use and follow the rules religiously, profits will quickly add up.

Our system works like clockwork, if you want to learn something simple and effective, join us now.

Click here ==>   Diamond Setups - The only edge you need.

Sunday, November 15, 2015

Traders using our system were alerted on Monday on the pullback on ES

This week on Monday in our trading room I warned traders about the possible pullback on ES:

[Nov 9, 2015 9:21:50 AM EST]RenaTraderpossible target this week: 2010-05
[Nov 9, 2015 9:22:03 AM EST]RenaTrader100 points off highs 

We had several trades on both sides on Monday and Tuesday, and then in the afternoon on Tuesday I said they might retest that 2085 area on the following day:

[Nov 10, 2015 1:09:15 PM EST]RenaTraderSWING trailing above 2085 now, they might try to run those STOPs from swing traders

And then on Wednesday I called:

[Nov 11, 2015 8:02:57 AM EST]RenaTrader...RES 2086.50-88.50

Nov 11, 2015 9:20:08 AM EST]RenaTraderthis RES is *IMPORTANT*

Those who took it and held: $$$$$

Every single day there are opportunities to make money in the markets, learn how to spot them and pull the trigger with confidence every time, *IF* wrong the max risk we take is 3.75 ES points, usually less than that.

We take all trades because we have the confidence on the statistics our setups produce, we know that 70%+ of the time we are right and grab money from the markets. 

Discipline and risk management are the keys to being successful, to learn what levels to take is the easy part.

Looking forward to Monday! Join us at:

Disclaimer: Trading futures and forex involves significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results.

Sunday, November 1, 2015

Challenge update: Stage 3 complete, next target: US$ 30k

After 5 long weeks Stage 3 has been completed, we have reached the target of US$ 20,000.00, now we're ready to move on to the 4th Stage at US$ 30,000 trading 6 lots on ES (S&P500 e-minis) from Monday.

We have started the Challenge on September the 14th, it has taken less than 2 months to double the account size by taking just small little bites from the market, during these 7 weeks the biggest win was not bigger than 8 points on full size, if we can do it, anyone can, as long as you have an edge and a good risk management system, rules profit, a trading system is nothing more than a set of rules that if used correctly will make a trader consistently profitable.

Persistence and  patience are really important in our business, those who have been trading long enough know that the market has different phases along the year, sometimes it's more generous allowing us to make huge profits while during other times we have to be more defensive, protecting our capital more than trying to make it grow, one of our jobs is to know when to trade more often, more aggressively or just stay sidelines and watch and be patient to wait until our setups get triggered and then managing risk effectively, key to successful trading.

We deal with uncertainty on a daily basis, we don't know whether a trade will be profitable or not when we take it, our STOP LOSS order is there to prove us wrong, if it is not hit we let the trade run and take profits at our targets, discipline is always a must.

See you at the 4th Stage.

Join us at: Diamond Setups -

Sunday, September 27, 2015

Challenge update: 2nd Stage done in less than 2 weeks

Another amazing trading week, crazy volatility!

That volatility and wider intraday ranges have made it possible for us to take as many as 22 trades on ES (S&P 500 e-minis), an average of 4+ trades a day, having 17 of them been winners, making us reach our 2nd target at US$ 15,000 by Wednesday, we finished the week close to reaching the 3rd target at US$ 20,000 already, we might reach it this coming week, less than 10 ES points left to complete.

I certainly never expected targets to have been met so soon, but when Mr. Market is willing to give us $ we take it, when it doesn't, we respect it and move slower, more defending than attacking.

So now we're heading to Stage 3 - from US$ 15,000 to US$ 20,000, trading 4 lots.

We follow the rules religiously, if we lost and went back down to US$ 12,000 then would go back in size to 3 lots, but losing streaks are something really rare to happen to those who use our system properly, we always wait for the good setups (those that have good odds of working) and never over trade, we know patience is a must if we want to be successful in our business.

If you still don't have a trading system that works consistently, join us, usually it takes one or two weeks for new traders to learn to trade using our system, it's really easy to learn and simple to use.

The signals to buy/short always come AHEAD of prices having reached entry levels, leaving no room for ambiguity.

Best of luck!

Diamond Setups -

Sunday, September 20, 2015

Challenge update: 1st target met at US$ 12k - On to 2nd Stage

And once again we made it to our first target, this time in just one week, this is the best result since we started with the challenges, the first week had always been one of the most difficult, not the case this week due to volatility, although we never took any trade to make more than 6 points.

Now we head on to the 2nd Stage's target at US$ 15,000, we now increase the size we trade to 3 contracts and in case we lose and go back to US$ 10,000, we would go back to the previous size of only 2 contracts so that we'd keep a strict risk control.

We are really excited to be trading a consistently profitable system, one that is easy to learn and use, after having been teaching it for nearly 5 years, I have no doubt anyone can do it, if you want to join us this week just click the link below and sign up.

Diamond Setups -

Have a great trading week, all the best.

Monday, September 7, 2015

New challenge: from US$ 10k to 50k trading the ES - Starts on Monday, the 14th

The challenge started in February is finished, we have met the target from US$ 10k to 100k in just a little over than 7 months, the whole challenge has taken us 29 weeks to complete, it's interesting to note that the stage that took longest was from US$ 30k to 50k, it took 9 weeks to complete and the shortest from US$ 60k to 100k, which was done in just 4 weeks, but that was due the power of compounding profits + high volatility in the markets that allowed us to fetch bigger profits.

See break down of time elapsed to reach targets below:

1st Stage: 5 weeks (trading 2 lots)
2nd Stage: 2 weeks (trading 3 lots)
 3rd Stage: 5 weeks (trading 4 lots)
4th Stage:  4 weeks (trading 6 lots)
5th Stage: 9 weeks (trading 10 lots)
6th Stage: 2 weeks (trading 15 lots)
7th Stage: 2 weeks (trading 20 lots)

Now we have set a date to start a new challenge: September, the 14th, Monday.

This time we will try to take a US$ 10,000.00 account in real time, live in our trading room to US$ 50,000.00

See below the rules we use in the new challenge and the targets for each stage.

Every time we accomplish a new target we increase the size we trade, in case we go back in size to the previous level then we decrease the size back to previous size as well so that we do not break the risk management rules.

Instrument we trade: ES (S&P 500 e-minis, US$ 50.00 per point/lot)

Stage 1 starts with: US$ 10,000 (done)
Trade size: 2 lots
Target in US$: 12,000 – In ES points: 20
Max expected Time to reach target: 1-2 months Target met in just 1 week on 09/18/15

Stage 2 starts with: US$ 12,000 (done)
Trade size: 3 lots
Target in US$: 15,000 – In ES points: 20
Max expected Time to reach target: 1-2 months Target met on 09/23/15

Stage 3 starts with: US$ 15,000 <== Stage in play now
Trade size: 4 lots
Target in US$: 20,000 – In ES points: 25
Max expected Time to reach target: 1-2 months Target met on 10/30/15

Stage 4 starts with: US$ 20,000
Trade size: 6 lots
Target in US$: 30,000 – In ES points: 35
Max expected Time to reach target: 2-3 months

Stage 5 starts with: US$ 30,000
Trade size: 10 lots
Target in US$: 40,000 – In ES points: 20
Max expected Time to reach target: 1-2 months

Stage 6 starts with: US$ 40,000
Trade size: 12 lots
Target in US$: 50,000 – In ES points: 17
Max expected Time to reach target: 1-2 months

Sunday, August 30, 2015

Challenge update: 6th target met this week at US$ 75,000

Ready to reach our main target at US$ 100,000 in probably 7 months (we've started the challenge in February), we just reached US$ 89,000 this week in our best week of the year so far, with that crazy volatility we were able to bag almost 40 points on ES, reaching the 6th Stage of our challenge, now we are just 11 points away from our main target at US$ 100k as we start trading 20 lots on Monday, giving us the chance of making (or losing, risk management is key) US$ 1,000 per point (20 lots X US$ 50.00), so it's possible that we reach that goal this coming week.

As soon as we do, we will start it all over again with a US$ 10,000 account, trading 2 lots aiming US$ 100,000 as the main target, so, if you were not able to join us in this challenge, try the next one, I'll warn about the day we intend to start one week in advance.

All trades that we take are posted in our trading room at our website in real time, the Diamond Setups.

Wish you a great trading week! Tomorrow's the last day of August, time flies!

Best of luck!

Sunday, August 9, 2015

Challenge update: Stage 5 done from US$ 10K to 50k

Finally done with Stage 5, I have reached half way on the Challenge account taking it from US$ 10,000 to US$ 50k in just 7 months, this last stage has been the longest, it has taken me 9 weeks to go from US$ 30k to 50k trading 10 lots on ES (S&P500 e-minis).

Now, we'll start the 6th Stage and our next target is at US$ 75,000 trading 15 lots, that's US$ 750.00/point, so, I will have to make at least 35 points on full size to reach that level, the time I expect it to be reached is from 2 to max 3 months.

If things go wrong and I lose 20 points or more then I'd go back to Stage 5, now, if everything goes as expected then our next target is Stage 7, the last one to reach our final milestone at US$ 100k, let's see if we can make it until the end of this year, I'd like to have it done by Thanksgiving though, we'll see, seeing is believing.

"A goal is a dream with a deadline." - Napoleon Hill

Sunday, July 19, 2015

Back to business... - Next Target: Stage 6

I'm excited to be back in the game after 3 weeks off on vacation, it feels good to know the market will continuously give us opportunities to make money, repeating the same type of behavior over and over again, only the figures change.

I really feel like trading now after having recharged batteries, this business really drains lots of energy from us traders, as day traders we have to be concentrated, 100% focused throughout the day, for up to eight hours daily from 8 AM until 4 PM EST, not easy!

That's the reason why in order to be a trader you really have to love this thing, passion for the work itself is a MUST in our industry, I really love it.

Back to business, as usual...

For those who are following us on the trading challenge from US$ 10k to 100K that we started on February the 2nd, we are now at: US$ 39,929.92 this is the 5th Stage of the challenge, soon heading to the 6th as we reach US$ 50,000, half way from our final target at US$ 100,000.

One of the most important thing to be successful in trading is to have a clear, positive state of mind, to control our emotions, making sure they don't get in the way as it is very common to see most traders doing, acting on emotions rather the concentrating on the process, emotions are, without any doubt, the number 1 account killer of any trader.

Once we have learned to identify the "key trading levels", our job is to wait until they show up and once we see a pattern that meets our criteria we confidently pull the trigger and let the trade run and according to our plan, a strategy to take profits as the market make them available or leave at a small loss and quickly get ready for the next possible trade setup, that's all we have to do, day in, day out, watch the market until a setup shows up and when it does we pull the trigger without hesitation...

We DO NOT KNOW whether the trade will work or not, we just take ALL setups that meet our criteria and only leave if stopped out or at our target, period.

Once you have a proven edge, one that has a good win ratio, take ALL trades and profits will take care of themselves automatically. Always use physical STOPs and follow the rules, rules profit.

If you don't have an edge, then you have at least 2 options:

1 - Create your own system and back test it to make sure it works. (Have in mind creating a system will take years of work)

2 - Buy a system that works. One of them is ours: the Diamond Setups.

With a win ratio of over 70% of the trades, it's definitely a good bet.

Looking forward for the best semester ever!

Happy trading.

Renato Santos

Thursday, May 28, 2015

What trading is really all about...

I found this on the internet, really nice reading, enjoy:

The Kirk Report
Trading is not about control. It is about going with the flow. Trading is not about knowing the future. It is about allowing the future to take place. Trading is observation, pure and experiential. Thinking isn’t necessary and just gets in the way. Trading is the glass half empty and the glass half full, alternating without rhyme or reason by the minute. Trading is total ruin and absolute reward; dual demons that lurk around ever corner. Trading is an alluring distraction from life or a life raft on the stormy search for self. Trading is strangers offering up their most precious ideas. Trading is the clueless trying to offer ideas to their friends. Trading is your best friend who steals your spouse and your house. Trading can send us to hell or to paradise, but it always takes us somewhere we have never been. Trading is a blessing whose rules, if ignored, become a curse. Trading is taking a knife to a gunfight. Knives and guns leave traces of blood, but the logic of the market is the weapon that manages to destroy without leaving clues. The mountain of trading is in the mind as the lake is level. Trading is more about knowing when not to trade than it is about trading. Trading seeks equilibrium. Trading is learning a never ending balancing act on a tight wire above a movable abyss. Trading is timing. Waiting is painful. Pain brings wisdom. Wisdom brings balance. Trading can be excruciatingly exciting when done wrong and tauntingly tedious when done right. – 
Jeff Cooper

Sunday, May 17, 2015

Challenge update: Stage 4 complete

Stage 4 has been completed on Friday and now we're moving on to Stage 5 from Monday.

In just 3 and a half months I've taken a US$ 10,000 account to US$ 30,000 - next target: US$ 50,000.00, now trading 10 ES lots now (S&P500 e-minis).

- Have I made any 20 points trade?  - No!

- Have I made any 10 points trade?  - No!

My best trade was a +5 points on this run since the beginning, the great majority of my trades were +2 and +3 points only.

Our system yields a 70%+ winning ratio, all I have to do is to take all setups that fit my own trading style, when wrong, out, if right I'll try +2 or +3 points and wait for the next setup, that's all I do, day in, day out.

Have a great trading week everyone!

Monday, April 20, 2015

Challenge update: Stage 3 done, next target US$ 30,000

Hi again folks!

We've finally achieved the target on Stage 3 at US$ 20,000, now we're moving on to the next target at US$ 30,000.

The deadline was on May, the 20th but we made it in a little more than a month, 32 calendar days, to be exact...

Stage 4 begins at US$ 20,426.90 and the deadline will be in 3 months, we will trade 6 lots.

As usual, I expect to reach that target way before the deadline, we're very confident our system will continue to work as it has done in the last 5 years or so...

One of the main secrets to success is, besides having a system that works, that is, an edge, it's to have a "free state of mind", you don't HAVE TO do anything, you will just trade whatever setup you see, *IF* it works you take profits, if you get stopped out, then you'll wait for the next setup and when it shows up, you will take it without hesitation.

In case you haven't read the post on the beginning of the Challenge, click on the link below:

Challenge: From US$ 10k to US$ 100k

Best of luck!

"Either I'll find a way or I'll make one." - Philip Sidney

Saturday, March 21, 2015

Challenge update: target 2 accomplished, next target: US$ 20,000

After 27 trading days we completed Stage 2, moving on to Stage 3 now with the objective of US$ 20,000, increasing trading size to 4 lots now.

The more we achieve, the better we feel, feeling good means easier trades, letting it run to targets or getting stopped out does not affect psychological capital, putting me totally in the "zone".

The Stage 2 target means US$ 15,000, that is a 50% profit from the initial capital of US$ 10,000, if I was able to take this account to US$ 15,000 in a little more than just a month, no doubt I can take it to US$ 100,000 in the future ahead.

I'll keep you updated on the progress.

Best of luck.

Learn s simple system that works day in, day out. Click here ==> Diamond Setups.

Sunday, March 15, 2015

Consistent little bites will take you high, rules profit

Many beginning traders ask me:

- "How much can I make a month trading ES (S&P500 e-minis) with US$ 10,000?"

I like to answer that question with a couple of other questions:

Do you have a tested system that has a good win ratio?

Do you have a sound risk management strategy?

Does the system allow you to pull the trigger every time BEFORE the entry price gets tested?

How often does the system signal entries?

If the answer is yes to all or most of the questions above, then you must be grabbing money from the markets frequently, as long as you accept the randomness of the outcome and only leave at your target price (take profits) or if stopped out (small loss), profits will take care of themselves in the execution of 10, 20, 30 and more trades.,, not a single trade or two.

We have been trading over 5 years now using our Diamond Setups system, it gives us a consistent win ratio from 70% to 90%+.

The system generates an average of 25 trades a week on ES, below I show a typical week, let's use a possible outcome for 20 trades on the example below:

The STOP we use is always 2 points (8 ticks), winners make an average of 2.50 points, sometimes it makes much more than that, mainly when we have trend days, but we will use only 2.50 here just to give us an idea on the possible $ returns.

If we get the minimum return of 70% win ratio, out of 20 trades we'd get: 14 winners and 6 losers, what would that mean in US$?

14 winners ==> 14 x 2.50 = 35 points

6 losers ==> 6 x 2.00 = -12.00

Total in profits ==> 23 points = US$ 50.00/point = Total = US$ 1,150.00 per contract.

With US$ 10,000 you could trade 2 contracts, at least until you reach US$ 12,000, the result above would bring 20%+ in one week.

I think anyone who knows how to use a trading platform would be able to achieve that as the system we use is totally visual, you see it, you trade it, ahead of price getting tested.

Patterns repeat themselves over and over again, so when we see a pattern we like we act on it without reservation or hesitation, day in, day out, making our accounts consistently grow.

See below what you could expect when trading using the Diamond Setups:

- We watch the market waiting for a pattern to show up

- When a pattern we like shows up we calmly insert our buy/short orders including our predefined STOP and target.

- We sit back and watch the price either test our target and give us a profit, or hit our STOP LOSS (in 10 to 30% of the trades)

- No matter whether stopped out or with a profit, we just wait for the next setup.

Some traders like to stop trading after they reach 2 winners in a day and just start fresh the next day.

2 winners a day would give you 5 points a day, 25 points a week!

Just as an entertaining exercise, let's consider we took profits at only +2 every time and we ended up making just 15 points a week, let's see how big we could grow our account in just 3 months (12 weeks) increasing the size we trade every week:

Week1: US$ 10,000 - 2 lots - +15 pts = US$ 11,500

Week2: US$ 11,500 - 3 lots - +15 pts = US$ 13,750

Week3: US$ 13,750 - 5 lots - +15 pts = US$ 17,500

Week4: US$ 17,500 - 8 lots - +15 pts = US$ 23,500

Week5: US$ 23,500 - 10 lots - +15 pts = US$ 31,000

Week6: US$ 31,000 - 15 lots - +15 pts = US$ 42,250

Week7: US$ 42,250 - 20 lots - +15 pts = US$ 57,250

Week8: US$ 57,250 - 25 lots - +15 pts = US$ 76,000

Week9: US$ 76,000 - 30 lots - +15 pts = US$ 98,500

Week10: US$ 98,500 - 40 lots - +15 pts = US$ 128,500

Week11: US$ 128,500 - 50 lots - +15 pts = US$ 166,000

Week12: US$ 166,000 - 60 lots - +15 pts = US$ 211,000

That looks impossible, doesn't it?

But that's what you'd get if you could make just 3 points a day on ES, starting with a measly US$ 10,000, 2 lots on ES, even making just 2 points a day it's already really good, think about that.

Only the strong minds who commit to do what has to be done will be able to make it happen.

"Impossible only means that you haven't found the solution yet" - Anonymous

Sunday, March 8, 2015

Challenge update: Stage 1 complete - next: US$ 15k

I like to tell the traders who trade with me in our trading room: - "if we were able to meet the first target (it was a difficult environment on ES when it was close to its ATH (all time highs)) then we will be able to meet the next target, the last and beyond..."

Stage 2 target is at US$ 15,000, trading with 3 lots now, we need another 20 points on ES to reach the new target, which I estimate to be achieved from one week (if we get lucky) to max 2 months, I'll keep you updated on how we progress as usual, we already start with a small advantage of US$ 500, so this journey will actually be from US$ 12,500 to 15k.

We have been using a scalping system risking only 2 points per trade that has been yielding an average of 25 points a week, we'll be trading this system this week so we might meet that target real faster.

Discipline and a sound risk management are key to success in trading, we do not know what the market will do, so take all good setups, if wrong, get out, but if it works, let the profits run.

Bear in mind: The only rule that MUST NEVER be broken is to take a BIG LOSS, do not let that ever happen to you.

"Set your target and keep trying until you reach it." - Napoleon Hill

Trade well, best of luck! ;-)

Sunday, March 1, 2015

Challenge update: First month done: +14%

Hi traders!

The first month of the new challenge to take a US$ 10,000 account to US$ 100,000 has come to and end.

It was not easy to start trading a "small account" again, we need to win right off the bat or we go under water and that's exactly what happened on our first week, we lost, but we made losses up on the 2nd week and have closed the month with a decent +14.29% profit, not bad!

Although I did expect to reach our first target at +20% on the first month, it was not possible, it's always difficult to have a flawless execution, we end up taking profits too early on some trades, mainly after a loss, when it's a must to shrug it off and continue trading, taking the good opportunities that the market gives us without skipping any of them.

That's the reason why I always put a lot of emphasis on the state of mind of the trader, a trader needs to be really cold blooded mainly after a couple of losses, most tend to skip trades and by doing that they let the winners go, if you need to make money for your expenses from a small account, oh boy! I wish you luck, that's really, really difficult to make as emotion gets in the way.

Well, now we are ready to start our second month heading to the first target, besides the current day trading system we use, we also follow a scalping system for traders who like to take several trades a day with very small risk and modest targets, we have been following the results for such system this past month and it has been making an amazing average of 25 points a week on full size!

The system is really simple to use indeed, it's hard to believe it works so well, by risking just 2 points on ES, targets range from 2 points and up depending on the volatility of the market, and, as a real Diamond Setup it has a win ratio of 70%+,  I'll let you know how we do in March.

Make sure you have a plan for trading during the month of March and act on it, there will be great opportunities in the markets as usual, trade well.

Best of luck.

Sunday, January 25, 2015

New Challenge: from US$ 10k to 100k

Hi folks!

I'm approaching the challenge target at US$ 100,000 on the account we started trading last August, 2014, with just US$ 10,000, a great achievement indeed, all done in real time in our trading room.

To be very honest I did not expect to fulfill this target so fast but we got a great window of volatility in the last couple of months that has allowed us to meet that target in such a record short length of time of only a little over 6 months.

It was a great learning experience indeed for myself as I was able to put myself in beginning traders' shoes who are usually trading with a relatively small account, it made me remember how difficult it is in the very beginning to break the first barriers on Stages 1 and 2 (see trading plan below), which I do think are the most difficult ones, after breaking those first two we know it's just a matter of time (and discipline) to break through the next ones.

I did enjoy that 6 month journey so much that I decided to start it all over again, our initial plan was to grow that account up to 1 million Dollars, but as many traders have missed the beginning of the first challenge and have asked me to start again that I decided to listen to them and start it all over again, we'll start a brand new challenge on the first Monday of February, 2015.

If you want to participate you need to be a member of the Diamond Setups website where I call our trades and show exactly what I'm looking at on the charts to take a decision, members earn while they learn how I do to be consistently profitable by following a simple set of rules that I created and improved in over 25,000 hours of screen/trading time.

So we'll start trading a US$ 10,000 account with 2 contracts on ES (S&P500 e-minis) using strict risk control and by increasing the size we trade (or decreasing, if we lose and go back to a previous stage)  at the targets as shown below.

We'll go through each Stage, trading daily in our trading room until we complete the challenge's target at US$ 100,000 on the 7th Stage.

Stage 1 starts with: US$ 10,000 
Trade size: 2 lots
Target in US$: 12,000 – In ES points: 20
Time to reach target: 1-2 months

Stage 2 starts with: US$ 12,000
Trade size: 3 lots
Target in US$: 15,000 – In ES points: 20
Time to reach target: 1-2 months

Stage 3 starts with: US$ 15,000
Trade size: 4 lots
Target in US$: 20,000 – In ES points: 25
Time to reach target: 1-2 months

Stage 4 starts with: US$ 20,000
Trade size: 6 lots
Target in US$: 30,000 – In ES points: 35
Time to reach target: 2-3 months

Stage 5 starts with: US$ 30,000
Trade size: 10 lots
Target in US$: 50,000 – In ES points: 40
Time to reach target: 2-3 months

Stage 6 starts with: US$ 50,000
Trade size: 15 lots
Target in US$: 75,000 – In ES points: 35
Time to reach target: 2-3 months

Stage 7 starts with: US$ 75,000
Trade size: 20 lots
Target in US$: 100,000 – In ES points: 25
Time to reach target: 1-2 months

Join us at Diamond Setups, click here.

Tuesday, January 13, 2015

Challenge Update: Phase 6 Complete

We finally met our target at the 6th stage of our challenge at US$ 75,000, next target now at US$ 100,000, expecting to get there before 04/13/2015.

As usual we will increase the size we trade a bit more, now at 20 contracts on ES, if we lose and go back to US$ 50,000 we will decrease the size back to 15 contracts,

I'll keep you informed on our progress.

Best of luck in your trading.

Sunday, January 4, 2015

Stopped out... Next!

Do you want to be successful in trading in 2015?

If you have an edge then all you have to do is to follow the rules strictly pull the trigger every time you see that edge, if stopped out, just wait for the next setup and make sure you take it when it shows up.

If your STOP LOSS is not hit then stay in the trade and trail it until the market takes you out of the trade or your target is tested, it's as simple as that.

The problem is what most traders do instead is to skip the next trade when they get stopped out once, or they either try to outsmart the market by trying to buy it "cheaper" then what their edge is telling them and end up missing the trade by a couple of ticks or they just skip the trade due to the fear of getting stopped out again...

When they use their edge and take the trade another decision theys need to make is about whether they will scale out or not. Usually the best decision is to always use the SAME strategy as they did on the previous trade. If the trader feels better by scaling out, then they should scale out on all trades, but in my experience I see that most of the time "all in, all out traders" or "full size traders" do better than those who like to scale out. Of course these traders who hold FULL SIZE get stopped out more often but when they're right they make up for all the losses and much more, putting them ahead of those who prefer to scale out.

Let me give you an example on ES (S&P500 e-minis), the instrument I day trade on a daily basis:

Suppose you bought 4 contracts at 2050, if you like to scale out, your strategy might be to take half off at +2 points and then another contract off (25%) at +3 points holding the last contract until market takes you out. For this example we will suppose market gave you 10 points, so, you'd have made a total of: 4.25 points on FULL SIZE (half at +2, 1/4 at +3 and the last 1/4 at +10).

While those who bought and held full size have made a FULL 10 points, or more than double what you have made. If the average STOP size they use is 2 points then they'd have to be stopped out 5 times in a row to give all the profits they made back while the one who scaled out will give it all back in only 2 trades that they lose...

If you know that your edge gives you a win ratio of 60~70% then there is no reason to scale out. We DO NOT KNOW which trades will work before we trade them, some will work and some will fail, as traders we need to accept and live with that, that's the name of the game, there is no system that has 100% of winners.

Trading is not about one or two good trades but about a good SEQUENCE of well executed trades, our job as traders is to take all setups our edge tells us to take and manage the risk accordingly, that is all there is to it.

You will know if your edge is good after you've taken: 10, 20, 30, 100 trades, and not 2 or 3 trades.

So, in 2015 do the right thing and take ALL TRADES on your favorite instrument, unless you don't have an edge.

If you don't have an edge I can teach you a good methodology that you can expect to work on 70-90% of the trades, if you day trade ES or swing trade currencies (EURUSD, USDCAD, USDJPY).

It's a really simple learn and use, all visual. When you sign up you will join us in our trading room where I make the calls on the instruments I mentioned above and I show you exactly what I'm looking at on the charts to take that trade, you will learn when to pull the trigger exactly the same way I do to be consistently profitable.

Check our website to know more about the system and feel free to send me email with questions in case you have any doubts/questions on what we do. Click here: Diamond Setups

Let's make it happen in 2015, you can do it!

Happy New Year!