BBT NEW STUDENT JUMPSTART CHECKLIST Become A Better Trader, Inc. July 2015 BBT Staff Assistance Checklist Schedule Guided Tour Get a recommended broker account Setup Hoffman Indicators Check that your charts look like Rob s Charts Diagram Congrats on taking the first steps in investing in your education and learning from Rob Hoffman. Please feel free to contact the BBT team with any questions that you may have at (847) 235-6131 or email us at support@becomeabettertrader.com On BBT Site in Member Tools Section Watch Pro Trader video series Watch Overcoming Fear of Pulling the Trigger in Trading Room Resources Watch How to Record Your Trades video in Special Webinar Events Create your Trading Plan in Download Library Create your Trading Journal in Download Library Create Disaster Recovery Plan in Download Library Copyright 2015 Become A Better Trader, Inc. Our App! Make sure to download the BBT app so that you can receive instant notifications that include trade alerts and event notifications! If you have an android or an iphone go to the Apple Store or Google Play to download the app called BBT Pro Trader
Trader Due Diligence Practice 1 month SIM trading on actual trading platform before going live Get Camtasia Software, set up a Dropbox Folders for recorded trades, and add in trades for critique (live or simulated) Watch Last 3 months of Day Trading videos Learn BBT Student Glossary Live Trading Room Facts Q: Why does the screen freeze sometimes in the LTR? A: When Rob is drawing on the charts the Camtasia software freezes the screen for the drawing. Q: Why are there pauses or moments of silence in the LTR broadcast? A: The GoToWebinar software and/or internet traffic sometimes hits hiccups. It usually only effects 1 or 2 students from time to time and remedies itself in a matter of seconds. Q: Why does Rob trade the instruments that he trades? A: TF has better range and volatility than the ES by far. TF is a $10 per tick instrument where NQ and YM are $5 per tick instruments. Margin, commissions, and slippage will negate profits over time. TF, CL, 6E, and GC are known for good volatility and range. Market conditions are always changing, but these are some of the standard trading instruments in the LTR. Q: Why does Rob use 24 hour chart date for all instruments? A: The support and resistance levels, the trend, and thus the charts all flow and appear much smoother especially on the 60M Chart. The world trades most of the 24 hours in a day.
Q: Why doesn t Rob pay any attention to Pit Squawk boxes or information? A: The Pits are dead and virtually all trading is electronic now. http://www.businessinsider.com/cme-closes-most-trading-pits-2015-7 The one caveat is that there is still some residual reaction to established Pit Opens and Closes to notice. If you have further questions, enter them in the Day Trading and Swing Trading sections in the Access to Rob area on the BBT site, or during member Q&A sessions as well. GLOSSARY 3 Musketeers Concept A signal that shows the higher probability end of a trend. You will see the 2M Fast Trigger and Core Trigger with locked in color changes together as well as the 5M Fast Trigger 3 to the 1 Rule An Index correlation works the opposite of common assumptions. If the ES, NQ, TF, and YM are moving in the same direction that direction can be used for trading. If one of the Indexes is out of sync with the others, the 3 usually come to join the direction of the 1 and not the other way round. 80/20 Round Number Rule When price passes a round number, the next point of resistance is 20 (e.g. 50.20) going up and 80 (e.g. 49.80) going down. This rule applies heavily to the currencies and crude oil, but it is also used by Rob in many markets. Break, Bounce, and Takeoff A term that refers to the way we look to find a higher probability and sustainable break of support or resistance. We don t want to be the first, into new territory. We are looking for the price to break thru the support/resistance level, come back to and bounce off of it, and then takeoff in the direction that we anticipated. Channel Blocking A concept where the Instrument usually has a Reversal Move and then gets ricocheted around in the 35MA High-Low-Close Channel before it can get to its real move. Chasing Ghosts Watching a slow, low energy market or instrument while intensely focused on just taking a trade, you start to see trades that are not there as high probability trades. Become A Better Trader, Inc. 2015
Christmas Treeing / Magenta Blue Magenta These terms refer to the ways that the Trigger indicators look in a market the either has a waning trend or sideways and meandering price action. Concrete Wall Area defined by the Closes and Tails of Accumulation and Distribution bars that create an area of solid Support or Resistance that is to be avoided until a clean break is made. Divergence When the market is moving in one direction but the Fast Trigger and/or Core Trigger is moving in the opposite direction. Normally, the market will turn in the direction of the indicators. If this doesn t happen, then that s a failed divergence and the market should continue strongly in the same direction it had been moving. For example, if the market is moving down but the indicators are moving up, then the market should turn up soon. However, if the divergence rolls over and starts down then the market should continue strongly down. EKG A violent up and down price action that creates sideways moving averages and a no trading condition. Gobbledygook A cross section of moving averages, support, and or resistance that all combines to create a no trade zone. IRB Inventory Retracement Bars are bars where the price has retrace at least 45 percent of its move intra bar to close off of its high or low. This indicates strong and immediate accumulation/buying or distribution/selling. IRBs are signals of a trend pausing or reversing and can be used for entries and exit. Kill Zone An area that is created when the price is trapped between rising Support and falling Resistance. Long Bar / Siren Bar / Sucker Bar These are all names for a last gasp over-extended bar that looks as if the instrument is finally making its breakout move that typically reverses and stop out the breakout and chasing traders. Mini A small stochastic version of the Fish Hook used in very strongly trending price action. Usually the stochastic is above 80 or below 20 and the Mini also remain above or below the 80/20 at the close of the signal bar. My Way or the Highway Either the price action performs as I am expecting it to perform for me to execute my setup, or I do not take the trade. News Driven Market A market that is very susceptible to the news flow of the day and is closely watching for pending announcements and/or world events. News Driven Markets ignore the technical rules of price action and create an anything goes order flow. Normal Maximum Daily Range The R2 and S2 pivots are usually the maximum distance that price will travel on most trading days. Traders should keep this in mind as the market approaches R2
Normal Maximum Daily Range The R2 and S2 pivots are usually the maximum distance that price will travel on most trading days. Traders should keep this in mind as the market approaches R2 or S2. CL and GC can and do continue beyond R2 and S2, but they usually have a pause at this area most of the time. Price Action Clusters An area that becomes an important point of Support or Resistance because of a cluster of price opens, highs, lows, and closes, usually on the Daily Chart. Razor Burn Where the Trigger Indicator comes up or down to the neutral line and rolls back with the prevailing trend. RTM Reversion to the Mean (a.k.a. Retail Trader Massacre). Watch for RTM when the Channels are still sideways, but price action breaks rapidly in one direction or another. This price action without the corresponding trend is usually a false move and price will return to the sideways mean. Scalping Using a very low timeframe or tick chart to target only 1 to 4 ticks per trade. Skipping Rock Theory As price keeps touching moving averages and/or support and resistance, the multiple touches make them weaker and less reliable and price will eventually break through it. Slow Bleed of Death This is a bleeding, dripping, or creeping price action movement where the directional move of price appears too slow or hesitant to be believed. The retail trader is usually in a position of the opposite direction to the slow bleed and hopes that price will return to their direction. The slow bleed is usually a sign of institutional buying or selling and must be not be traded against. Small Lot / Large Lot Traders A small lot trader, trades 1 to 5 contracts with a, one shot, one kill type of mentality and takes trades with an equal number of contracts at entry and exit. Large lot traders have the ability and account size to scale into and out trades with multiple contracts lots. Snaking When moving averages are snaking up and down, back and forth through the channels with no real trend direction. Speed Lines Fast Speed Line is 3 period moving average (H+L+C/3) and the Slow Speed Line is the 5 period moving average (H+L+C/3). The Speed Lines are seen together as an area and range of support and resistance. Transitioning Trading during a trend transition from up to down or from down to up is very risky. It s best to wait for the market to roll over first and then trade the trend. VIX The VIX is a measure of the market s anxiety level. The VIX normally moves in the opposite direction of the market. If it s moving up the market is moving down and vice versa. We use the VIX to indicate whether there is enough volatility in the markets to play with or is it better to focus on long side trending trades. Copyright 2015 Become A Better Trader, Inc.