insider secrets of day trading the u.s. stock index...

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Insider Secrets Of Day Trading The U.S. Stock Index Futures

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Insider Secrets Of Day Trading The U.S. Stock Index FuturesInsider Secrets Of Day Trading

The U.S. Stock Index FuturesBy Mohan Wolfe, Day Traders Action

There are 8 main points of discussion in this eBook:

• The Six Essential Ingredients Of Professional Futures Day Trading

•No Guts-No Glory

• Enter The Ninja Trader Warrior

• The “Blue Collar Working Futures Trader”

• Structure Of The Intraday Market

•Winning Tools For Trading The Stock Index Futures Market

• Key Roadmaps On The Way To 80% Winning Day Trades

•How To Achieve Maximum Success As A Stock Index Futures Trader

The Six Essential Ingredients Of Professional Futures Trading

Do you want to become a professional futures trader and make a steady daily living at trading? Do you desire to work at home and make a $100,000-200,000 a year income without having to leave your home every day?

Deartraders.ThankyouforreadingmyarticletodayandIhopeyoufindtheresearchIhavedonehere valuable.

This is a very thorough and detailed report with many well researched resource links from my vast library. I hope you will spend some time digging into all the information I have compiled. It will save you many years of trying to discover these elements of success on your own through trial and error.

My name is Mohan and I have been trading the U.S. stock index futures for 25 years. I have been offering trading services in our futures industry for over 15 years and throughmypublications,

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seminars and trading tools have trained easily over 50,000 traders during that period. I have been fortunate to be able to maintain a very good reputation and success in assisting traders to become the best they can be at this business.

Today in this article I am going to cover what I feel are the most important aspects of trading the US stock indexes. My goal is that ideally you can duplicate these ideas in your trading and achieve the excellent success that so many of the traders I’ve worked with have.

It is a high risk business like all trading and will require your full application of skill in the areas of research, practice and live “in the trenches” trading to gain good success. The rewards can be tremendous if you apply yourself fully to learning the key ingredients described in this article.

I am also the developer of the well known “Boomerang Day Trader” software for use on NinjaTrader andeSignal.BoomerangDayTraderisthefirstsoftwareinthehistoryofthefuturesmarketstooffera“90%winningtradesGuarantee”onthesoftware’ssignals(USstockindexfuturesprimarilyand other markets as well).

Thatistheveryfirststepinsuccessfulfuturesdaytrading…tofindaverysolidandreliablemethodof trading. Boomerang Day Trader is valuable in this way as it does the majority of work for you whileprovidingextremelyaccuratetradeentries,stopsandprofittargets.

IwillbeusingBoomerangDayTrader(BDT)chartswithourwellresearcheduseofthedefault450tick time frame to show the chart examples in this article.

I have included a bonus link for an extensive webinar on achieving a very high degree of trading accuracy.

The 6 essential ingredients to successful futures day trading are:

1. A tested and proven method for day trading on a short term time frame basis.

2. The “High 5” or what is sometimes referred to as “the tape” or “the big board”. These indices are used for reading the surface bias of the market.

3. The Higher Time Frames of the market. To get a“helicopter” view of the market bias above the “High 5” readings.

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4. Simple Candle Stick reading. I use very simple candle stick reading methods to get instant additional information as to the direction of the prices.

5. Basic Elliot Wave chart pattern understanding. These patterns occur regularly in day trading and you should learn them following the simple approach I use.

6. Fibonacci Retrace map. The Fibonacci readings are very accurate if used correctly and they should be part of your day trading arsenal to use as a road map primarily for intraday swing trades.

These are the 6 key ingredients for successful day trading. This is really all you need to know to be successful but you will need to gain skill in learning how to work with these elements and synthesize them into your trading. This comes with time in front of the screen and practice.

Just like a surgeon masters all the surgical tools in front of him during an operation or an airline traffic controller is completely adept at reading all the gauges in front of them.You too shouldmaster the simple methods for the 6 key ingredients for successful day trading. CLICK HERE to see a webinar that covers this topic in more detail.

No Guts-No Glory

Before we get into some of the harder nuts and bolts technical trading information it is important to understand and start your professional trading career path on the right track.

Just likeyouwouldnotdecidetobecomeapoliceofficerworkingthedowntownbeatofDetroit,Michigan(oneoftherougherlargecitiesintheUS)withouthavingaverytoughskinsimilarlythereis an important “Traders Mind Set” attitude to be acquired.

Onceyoubegintradingyouaregoingtobeconfrontedwithoneofthemostdifficultchallengestofaceinyourlife….howyoudealwithlossofmoney.

That’sright!FUTURESTRADERSLOSEMONEYASANESSENTIALPARTOFTHEBUSINESS.Anyonewhotellsyouotherwiseisaliaranddefinitelynotarealfuturestrader.

http://www.tradingpub.com/trading-futures-markets-with-extreme-precision/

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Youare going to have to becomeaccustomed to very high risk situations bothmonetarily andemotionally. Those of you who have been trading for a while without a proven system know exactly whatImean.Youaremostlikelycaughtina“breakevensyndrome”whereyouhavehadmanyprofitabletradesbuta largeramountof losingtrades.Thisarticle ishowtobreakfreefromthatcycle as we have assisted many traders in doing.

IhaveasignonmytradingdeskwhichsaysinBigLetters….”NoGuts-NoGlory”.ItisaformofatradingaffirmationandIamstilltellingmyselfthisbeforeeachtradeafter25yearsoftradingandthousands of trades.

If you don’t get in the trade when you see the correct, proven setup there is no way to make money and feel the success of the winning trade. The fear ofhavingalosingtrade(mostlikelyduetoyournothavingareliable,testedsystem) will hold you back from entering the trade. Or the hesitation may cause you emotionally to delay entry at the correct, proven point and end up chasing the trade after it starts working out. Most of those trades become losers.

Please take a good look at this here. To develop the most important ingredient of trading, a strong trader mindset, you will have to become the transformation you see in this picture.

Listen, don’t try andblowoff thework involved in developing the correct andpositive “TradersMind Set”. Beyond all the technical indicators and methods you will learn about in this article I can promise you that becoming a true lasting winning trader will require all the resources within you can muster to become what I call A NINJA WARRIOR TRADER.

Enter the NinjaTrader Warrior

As you become more and more committed to becoming a winning US stock index futures trader you findthatthedailytoughnessneededtosucceedisveryobvious.Youstartbecomingaccustomedthe high risk nature of this business, how quickly winning trades can turn into losing trades and how easy it can be to lose money.

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YouwillhavetotransformyourselfintowhatIcallaNINJATRADERWARRIOR.

TherearegreatlegendsoftheNinjawarriorsandtheSamuraifighterswholived only to become completely fearless and even to “die a clean death” if necessary in dedication to their immortal purpose. It is astounding to read about such courage.

If you want to learn more about the Ninja Warrior mindset just watch the excellentfilm,“TheLastSamurai”starringTomCruise.Watchingthisfilmisprobably the most entertaining way to understand the mindset I am talking about here in relation to trading.

Take a good look at this picture here. Notice the warriors stance, the body structure, the position of the sword. He is absolutely ready to kill and destroy any element that tries to attack him. No fear, noworriesaboutthefutureandwellawareofthefactthathemaydie.NOGUTS–NOGLORYishiscreedbecausehehastrainedhimselfasapurefightingmachine.

Now compare this posture to your posture, breathing pattern, attitude and mind set when you are getting ready to put on a trade. This type of strength is important for us to constantly cultivate if we are going to make trading our career.

Here is another important thing to think about as well in terms of a trading career and your relation to each trade you make.

If you decide to become a long term professional stock index futures trader like I have then take a look at these numbers.

ConsideringthattheUSstockmarketisopenanaverageof19daysamonth(withholidays,etc.)if you are planning on trading for the next 20 years following the proven methods I will show you THATMEANSYOUHAVEABOUT4,600TRADINGDAYSLEFTTOGO.Thatisalot.

Ifyoumake3-10tradesaday(andsometimesmore)thissuggeststhatyouwillhaveanaverageof about 27,000 trades or so that you will make over that period. It sure puts having a loss trade or even an overall rough day in the markets in perspective doesn’t it.

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The Blue Collar Working Futures Trader

Ok, time to get into the more technical side of trading and the important things to know in order to develop a winning trading approach and trading lifestyle.

First, a quick but very important story.

Backin2004Ihadbecomeverywellknowninthetradingindustryformy“DailyDirectionalForecast”newsletter and my ability to call the exact direction of the next day’s market in advance of the opening bell. I was new in the trading industry and we had thousands of subscribers to my service and the methods for trading.

In fact what I was teaching become so popular that the demand for doing live seminars became important.

Wesetoneseminarinparticularwhichhadover320tradersflyinfromaroundtheglobe.IncludedinthatgroupwereoveradozenfloortradersfromChicagoandnearly20brokersalsofromtheChicagoandNewYorkareas.

Here are a couple of pictures from that live seminar:

Thefloor traders inparticularwere there I figured to try to learn thesuccessfulmethods Iwasteaching with the idea of “fading” or trading against the entry spots after all thousands of subscribers jumpedonboardthetradesetup.IntalkingtoseveraloftheguysfromthefloorIfoundthattobethe case but I also had some really great conversations with them and insights about their trading plans.

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Several of them told me the following:

1. Theysetveryspecifictargetgoalsforprofitsorlosseseachday

2. Once they hit their target goals, they made a paycheck, and stopped trading to leave the floorandgohome(oroutfordrinkswiththeirotherfloortraderbuddies)

From this idea I developed the idea of what I call THE BLUE COLLAR WORKING FUTURES TRADER.

That’s right! Go into the market with a proven, exact, and fully tested system. Make your trades with theNinjaWarriortrader’smindsetandsetagoalforapaycheckyouwouldliketoreceive…THENSTOPTRADINGONCETHATISACHIEVED.

Manytradersbecometrade-a-holicsandburnoutafterafewyears.Mydiscussionswiththefloortradersconfirmedthisastheytoldmethatthosewhowereseriousandrealizedtheriskoftradingtriedtominimizetheirexposuretothemarketseachday….notincreaseit.

So when you consider the markets and how high risk they are instead of thinking about “making a killing” like the Wall Street promoters in the media always talk about just consider “making a nice, steadyliving”overyournext4600tradingdays.

On a side note: During that 2 day seminar I had the honor and privilege of having Mark Douglas join measapresenter.Heisinmyviewthefirstandbestofthe“TradingMindset”educators.Thelargecrowd loved him and when he came to me later he told me that in his decades in the industry he had never seen over 300 traders show up to see just one speaker. That was valuable information to me and certainly a “feather in my cap”. It has propelled me to continue on in this industry and to havedevelopedBoomerangDayTrader….thefirstsoftwareinthetradingindustrythatGuarantees90%winningtrades.

Be sure to read and study Mark Douglas books especially “Trading in the Zone” and “The Disciplined Trader” which are available on amazon.com for a good price.

I’m a bit sad to report that Mark passed away recently last September and his legacy is carried on by his wife Paula.

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Structure of the Intraday Market

We are now going to start to determine what the underlying bias of the market may be in order to get a general feel of which side of the market prices may lean on.

I like to start the day 20 minutes or so before the market opens by checking on the various new sites bothmainstreamandfinancial.Itakeaquicklookatwww.yahoo.com(thelargestmainstreamsite on the internet) and then www.cnbc.com and usually www.bloomberg.com. I don’t usually read the articles but just scan the headlines to see if there are any major events unfolding that may affecttheUSstockmarket.Also,onCNBCtherewillusuallybeareportaboutwhatthefuturesaredoing overnight on Globex and some news about why they may be up or down.

Then a quick look at www.mam.econoday.com to see what if any government reports may be comingoutthatareKey.TheseareshownonEconodaywithasolidRedStar.Youdon’thavetobecomeanexpertinthesegovernmentreportsbutjusttoseewheretheymayaffecttheunderlyingbias of the days market.

ThenextthingtodorightastheUSstockindexfuturesbegintoopenat9:30estistowatchthevolumeonwhatIcall“TheVolumeMeter”

As a professional trader you must know what the volume is showing for the futures contract that youaretrading.Volumeisthelifebloodofthemarketsandyourcontractsvolumecantellyoualotof important information. Become familiar with the opening range of the volume and whether it is particularly stronger or weaker than normal. Watch the intraday levels for weakness or excessive strength.

http://www.yahoo.com

http://www.cnbc.com

http://www.bloomberg.com

http://www.mam.econoday.com

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HereiswhatmyVolumeMeterlookslike:

IhavewrittenanarticlethatshowsyouexactlyhowtomakeaVolumeMeterasshownabove.Itisvery simple to do on your charting program by opening a chart with the contract you watch along with the other elements shown above. Click here is the detailed article on how to build the Volume Meter.

NextwewanttomeasuretheOpeningRangeofthefirst5minutesoftheUSstockindexfuturescontract you are trading. I tend to favor the emini Nasdaq Futures contract which is symbol NQ. This is one of the best day trading contracts for the US stock index futures and provides daily action almost every day for you to go in and carve out a paycheck.

WesimplymarktheHighandtheLowpriceofthefirst5minutesoftradingandIusuallywillplacea Red line in the Center of the Opening range.

Icannottellyouhowvaluableyouwillfindtheselevelstobeonceyoustarttradingwiththem.Inthe old days before computers the Floor Traders only had the Opening ranges along with the highs andlowsofspecifictimeperiodsinordertocalculatetheir tradeentries.Someofcoursewouldrun Fibonacci levels by hand on still charts from the previous day but for trading live in the pit the openingrange,firsthourhighandlowalongwithpreviousday’shighandlowwereusedforpickingtrade entries.

http://boomerangtrader.com/2014/01/12/how-to-set-up-the-volume-meter/

http://boomerangtrader.com/2014/01/12/how-to-set-up-the-volume-meter/

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The basic rule on the Opening Range is: prices holding above the Opening Range lean on the bullish side and below the bearish side. Pulling back into the opening range after being below then watch the Center of the opening range for resistance. It’s the Opposite for a bullish move that stalls and pulls back into the opening range.

HereisaBoomerangDayTraderchartontheminiNasdaq(NQ)showingtheOpeningrangeofthefirst5minutesoftradingona450tickchart.NoticehowtheOpeningRangemarkedwiththe2whitelinesandtheCenteroftheOpeningRangewiththeredlinetendtokeyoffofeachother.Thiscanbe valuable information in gauging whether to go long or short trade. This is a west coast chart with the opening showing at 6:30 PST.

Once prices had jumped above the opening range and then pulled back towards the red center lineBoomerangfiredoffashortsignalontheYellowdotwherethewhitearrowdrawnshows.Thisturned into a very fast 6 point move to the downside for a scalp.

The 2nd arrow on the right shows the opposite move. Prices dipped below the opening range and thenjumpedbackintotherangeuptowardsthecenterattheredline.Boomerangfiredoffalongtrade signal and prices screamed higher for nearly +12.00 for a huge gain.

YoucanSee Other Examples of me trading the Opening ranges as well as intraday scalps and largerswingtradesonmyDayTradersActionYouTubechannel.

https://www.youtube.com/channel/UCdWToGRHMTbjmj7B6Q5mHow

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Winning Tools For Trading The Stock Index Futures

The intraday futures markets on the US stock indexes functions with several basic moves of the market.

These are:

1. Momentum blasts: A one way directional move with all the bias readings, price and momentum force on that side of the trade.

2. Exhaustion reversals: When the market pushes in one direction for some time after a momentum blast occurs

3. Continuation Directional Moves: These occur after an initial momentum blast and the higher time frame charts kick in on the same directional side. I consider the higher time frames intraday to be the 5 minute chart, 13, 30, 60 and 135. The 135 minute chart is the highest I will use for intraday trading. Once the 5 and 13 kick in the same bias direction you will often get this continuation. When the 135 eventually joins the parade you can often get whopper directional moves which can sometimes be astounding.

4. Choppy and/or Whipsaw market conditions: where the bulls and bears are having what Icalla“biasarmwrestlingmatch”andtheresultscreateaflurryofcounterdirectionalmoves on the prices and charts.

Sincethe late1990’sI, likemanyother traders,hadreadnumerousbooksontrading,attendedseminars(theydidn’thavetheultraconvenientwebinarsbackthen),purchasedchartingservicesand so much more. After 2001 when the internet really kicked in, I began a long time search to discover“whatreally, reallyworks” in the futures trading. Imade itahobby….noamission….tofindastrategythatIfeltwouldbethebestwaytotradethesemarketswithasmuchaccuracyaspossible.

Icansaythatduringthenext8yearsandresearchinghundredsofmethodsIhonestlydidnotfindone single approach that I was comfortable with. I always felt there was a way to do it better, make it easier and reduce risk more.

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During that period I began extensive research into building my own system that I felt would have alltheingredientsthatIjustcouldn’tfindwithwhatIwasseeingoutthereontheworldwideweboftraders and methods.

After 5 years of research, testing of time frames, tweaking, live trading, re tweaking, more research, andliterallyyearsoflivetradingexperimentationIfinallydiscoveredwhatIcall“BoomerangDayTrader”.

In2009IreleasedmyfirstversionofBoomerangDayTradertoagreatresponsefromtraders.Ithen upgraded it in 2011 using NinjaTrader technology to improve the software and Boomerang became one of the top selling day trading software on NinjaTrader with over 1200 users. I was floodedwithresponsefeedbackfromBoomerangusersabouthowwelltheyweredoingwiththeirtrading using the software.

Inlate2014IdidanotherupgradewhichIcall“UltraBoomerangDayTrader”whichissoaccuratethat I didwhathasneverbeendone in thehistoryof the tradingmarkets…..I guaranteed90%winning trade signals to come from the software following the simple method/rules I had developed.

I am telling you this bit of history because what is essential to successful day trading is automatically programmedintoBoomerangDayTraderwhichdoesalltheworkoffiguringoutthemarketsforyou.Youjusttradeatthecorrectsignalsandyouwilldoverywellifyouhavetheeasydisciplinetolearn the method/rules.

Boomerang Day Trader focuses on the ideal Momentum Blast setups and gives you a crystal clear signal for entry into that Trade Channel.

When the market is getting ready to potentially set up a Momentum Blast move Boomerang will create a new Trade Channel which is alarmed and marked on the chart. We watch for a bias agreement with what are called the Dynamic Trend Bands and then we enter a pullback to the Trade Signal Line within the Trade Channel.

Below are some examples of these Momentum blasts setting up in the Trade Channel as described above.

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NoticetheSellChannelarrowabove.ThisisthenewSellChannelopeningandtheYellowDotsshowentriesontheTradeSignalline.TheentryisconfirmedwhentheDynamicTrendBands(thinMagenta dash/dot line and thicker solid Magenta line).

Theentryisaround4235onNQ,a5pointautomaticstopisused,andthetargetgainis3-5pointsand sometimes more depending on market conditions.

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This chart above is our eSignal version of Boomerang on a white chart showing 3 winning trades inarowscalping3pointseachallwithinaboutanhourandahalf.Resultson4NQcontractsareshown at +$725. Not a bad paycheck for just over an hour of work.

YoucanfindhundredsofsimilarchartexamplesandrecordingsofmyLiveBoomerangTrainingwebinars by going to www.boomerangtrader.com

Boomerang Day Trader is all you need to catch theses momentum blasts. There are very simple andeasytolearnrulesforgetting90%winningtrades.Thisisanopportunityforyoutoendthelosing or break even trading cycle and move into being a steady and consistent winning trader.

Key Roadmaps On The Way To 80%+ Winning Day Trades

There are other elements in reading a day trading chart that are important to learn for getting a “big picture” view of the chart.

These elements are not necessary to learn if you are using Boomerang Day Trader as a primary tool. ThereasonisthatBoomerangoffersoveradozenwaystoreadthechartwithextremeprecision.

Howeverforthosefanatictraders(likemyself)ifyouwanttotakeyourUSstockindexeducationallthewayyouwillfindthatthesekeyelementscombinedwiththeBoomerangDayTradermethodsof reading the charts will be all you need to learn in your career.

These are proven approaches and are well established methods of reading intraday charts.

They are:

1. Simplecandlestickreading(onlytheverybasics)

2. Fibonacci retracements

3. Simple Elliot Wave pattern reading

Simple Candlestick reading is just knowing basically that a bullish candle is hollow and a bearish candleissolid.YoucanseethisbelowonthisBoomerangchart.Thisisimportantinformationinputto know when you are sitting in a trade and you have a bullish run up of hollow candles and the next candle turns solid or vice versa.

http://www.boomerangtrader.com/

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Notice on this chart above how on the left side the hollow bullish candles run up in a fast spike move.Whenthecandlesturnintobearishsolidcandles,starttopullback,someflathollowcandlesappear and then the bearish solid candles continue lower. With Boomerang Day Trader you also have the additional valuable information of seeing the candle colored according to the bias reading of the Trade Signal line. Combined with the Simple Candlestick reading you get a lot of valuable information when you are in a trade.

Fibonacci Retracements are powerful tools which can be used to lay out a Road Map of the intraday chart to see where important support or resistance may come in.

Below I show a classic Fibonacci Retracement lay over on a chart. To learn more please attend one of my Boomerang Training classes and during the Q&A session you can ask more and I can show you many intraday examples. To attend just go to www.boomerangtrader.com and sign up to receive notices of the next training.

http://www.boomerangtrader.com

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Notice how on the Fibonacci retrace levels the prices tend to go right to the blue and white line areas forming support and resistance. These are not buy or sell points in my methods but a Road Map of where to watch for potential Boomerang Momentum Blasts on either buy or sell side.

Elliot Wave Patterns are easy to see once you learn what to look for and gather time and experience watching for them. Below is a classic intraday Elliot Wave pattern 1-5 and shows the A-B-C counter move. These are the only patterns for Elliot Wave you need to learn.

Again these patterns are a valuable Road Map in looking for Boomerang Day Trader setups on both sides of the market. Using these 3 tools described above will add that extra dimension to your analysis of the intraday market analysis.

How To Achieve Maximum Success As A Stock Index Futures Trader

Thank you very much for reading my “Insider Secrets of day trading the US stock indexes” book and getting to this point.

This tells me that you are serious about becoming a winning day trader and are willing to put in the maximumefforttoseeyourdreamscometrueasafuturestrader.

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If you studied the material carefully you now have all of the tools you will ever need to be successful beyond your wildest dreams in stock index futures trading.

However,thisisjustthebeginning.Youwillnowneedtoreallyapplythetools,researchpersonallyintotheeffectivenessofthetoolsIhaveprovided,gothroughsometrialanderror,andthenstartbecoming a steady winning futures trader.

YourcommitmenttobecomeaNinjaWarriorTraderanddevelopingyourselfinternallyandexternallyasanexpertBoomerangtraderISALLUPTOYOU.Icannotgivethattoyoubutyouhavetoworkhard for it and strive to achieve your goals.

With that in mind I would like to show you some extra resources that I have which you can study to become completely convinced that you can win at the futures trading game.

First, as mentioned earlier, be sure to sign up to receive notices for my ongoing Free Boomerang trainingclasses.Youcandothisat:www.boomerangtrader.com

While you are there on the site be sure to cruise around and see all the valuable resources we have for you.

THE MOVIES

WatchmyYouTubechannels toseeBoomerangTrainingClassesandLiveTradingof theMiniNasdaq(NQ).DayTradersActionlivetradingroom-HERE

SEE SOME Boomerang Day Trader training classes and videos:

THE SPECIAL OFFER

JOIN me now and see me each day in my “Day Traders Action Live” trading room where I do ongoing precision market analysis and real trades in the market. I use various methods to enter trades throughout all of the market conditions described in Chapter 6 including Boomerang trades.

Learn more about the Day Traders Action live trading room HERE and become a “Blue Collar

http://www.boomerangtrader.com/

http://www.daytradersaction.com/trading-live-with-mohan/

https://www.youtube.com/user/Boomerang1080



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Working Trader”

Thank you again and if you have any questions on any of the material presented here in my “Insider Secrets of trading the US stock index futures” you can email me at:

[email protected]

All the best of success!

ABOUT THE AUTHOR

Mohanisa25yeartradingveteranandtradingcoachforover14yearsintheindustry. He is also the developer of Boomerang Day Trader, which is one of the top selling day trading software on NinjaTrader. Boomerang is also the firstdaytradingsoftwaretooffera“90%guaranteedwinningtradesignals,”creating an historical precedent in the industry.

mailto:[email protected]

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