DayTrading Institute

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1-800-745-7444

• DayTrading Institute

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Glossary
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What is a Futures Contract?

• An instrument representing an agreement to buy or
  sell a predetermined amount of a commodity at a
  specified time in the future.

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The SP

• Traded at the CME
• 250 per point
• Emini 50 per point
• Symbol SP H3 or ES H3 (H, M, U, Z)
• Traded virtually 24 hours

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The Nasdaq

• Traded at the CME
• 100 per point
• Emini 20 per point
• Symbol ND H3 or NQ H3 (H, M, U, Z)
• Traded virtually 24 hours

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The DJ

• Traded at the CBOT
• 10 per point
• Emini 5 per point
• Symbol DJ H3 or YM H3 (H, M, U, Z)
• Traded virtually 24 hours

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The 30 Year Bond

• Traded at the CBOT
• 31.25 per tick (1000 per point)
• Emini 15.63 per tick
• Symbol US H3 or YH H3 (H, M, U, Z)
• Traded virtually 24 hours

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TICK

• The NYSE TICK
• Based off of price action
• RPM gauge of the market
• Net of all up ticks and down ticks of listed
  stocks

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Big Four

• ES H3
• NQ H3
• TTICK or TICK
• SOX or AX H3-DT

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Brackets on ED UP

• Bracket 1 Lower band of trading
• Bracket 2 Middle band of trading
• Bracket 3 Upper band of trading
• Used to gauge strength of the market

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Example
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Globex

• Electronic market operated by the CME that trades
  the SP contract at night and the E-mini contract
  at all times.
• The Big SP is traded open outcry during the day.

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Grim Reaper Period

• Between 1330 CST and 1400 CST.
• Market has a tendency to counter trend

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Key Numbers

• Support and Resistance in the market
• SP, NQ, and DJ key numbers on page 31 in manual.

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Order Types
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Slippage

• Difference between the price specified the filled
  price for the floor.
• Big SP will almost always have slippage.
• E-mini SP, slippage is uncommon.

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Toms Tick

• The market likes to trade in half point
  increments but it does not, of course. Because
  of this, placing buy and sell stops just above or
  below the .50 mark, is found to keep you in a
  trade longer.
• After finding the key number of support or
  resistance, go to the next .50 and add a tick for
  buy stops, or subtract a tick for sell stops.

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Example of Toms Tick

• Reference bar High 845.30, Low 837.20.
• If placing a buy stop to go long off the
  Reference bar, go to the next .50 above 845.30
  845.50, then add a tick (.10) 845.60. So your
  buy stop would be at 845.60.
• If placing a sell stop to go short off the
  Reference bar, go to the next .50 below 837.20
  836.50, then subtract a tick (.10) 836.40. So
  your sell stop would be at 836.40.

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Questions?
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24 hour Clock
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Market Times
All times central time zone

• 345 pm Globex Open
• 600 pm Nikkei Open
• 800 pm Hang Seng Open
• 200 am DAX CAC Open
• 230 am SWI FTSE Open
• 815 am Globex Close
• 830 am CME/NYSE/Nasdaq Open
• 300 pm NYSE/Nasdaq Close
• 315 pm CME Close

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Key Times to Trade
All Times are in Central Time

• 0400 0700am
• 0900 1030am
• 1200 1330pm
• 1415 1445pm

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DTI Marquee Trades

• 0400 Early Bird Trade
• 0900 Reference Bar 3
• 0930 Trade Zone 1
• 1230 Trade Zone 2
• 1300 Balloon Trade (/-)
• 1430 Trade Zone 3
• 1615 Equilibrium Trade
• 0230 DAX Trade

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Questions?
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Game Plan For Success
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Establish Goals for Trading

• VEHICLE
• TIME
• RISK
• L S O
• BIG PICTURE

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UNDERSTAND THE CODE

• Technical Fundamental Analysis
• Time Management
• Information Overflow
• Relationships between the markets
• Global Economy

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Record Key Numbers - A Traders Log

• Opinion of the market
• Review of yesterday
• Strategy for the day Bullish Bearish Scenario
  Pivot Number Intangibles Bracket Zones
• Relevant News and Overseas Markets
• Key numbers

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Execute the Plan

• Methods of Execution
• Plan the Trade, Trade the Plan
• B.U.S.B.Y.
• Review your day

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Methods of Execution

• Verbal Order Placement
• On-line Trading Platform

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Plan the Trade, Trade the Plan

• Every trader must have a pre-trade checklist.
  
• - T. Busby

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The BUSBY

• B Big Picture
• U Understanding Charts
• S Synchronize Time of Day
• B Bracketing the Mini Pivot
• Y Yahoo for the Roadmap

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Review Your Day
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Questions?