There were several trades today, including Chicage PMI and GDP, but we are going to focus on the last trade of the morning.  So, UMich CC is the only news item we don’t get instantly on our server.  It’s normally delayed about 15 seconds, but we can still get in and make money.

Dawn-Renée's UMich Consumer Confidence Trade 4-30-10

Dawn-Renée's UMich Consumer Confidence Trade 4-30-10

Consumer Confidence was down; under expectations.  So, since the market was reacting negatively to this news, using Market Mover Trading strategies, I sold one contract short at 1202.5.  At first, it looked like a good move, but then the market started moving up (bad for my trade).  We were smack dab between two of Market Mover Trading’s proprietary Prediction Points.  The rest of the UMich CC numbers had come out (in addition to the main number, there are numbers for Current Conditions, Expectations Index and 6 month Outlook) over the previous few minutes, and all the numbers were lower than expected.  So I drug my profit target down (remember, this is a sell short, so moving my profit target down means I was trying to *increase* my profit!) to the next lowest prediction point, as I felt the market should turn around and the positive movement was not reaching or breaking through the next highest Prediction Point.  One minute of patience paid off, as the market moved down to the lower prediction point and filled my profit target and I made 1.5 points, or 15%/$75.  At that point, I had to pack up and leave to make a meeting and MMT class, or I might have pulled my profit target down again, as the market was plummeting.  The ride down in response to UMich CC ended up being 6 points, or 60%.  On one contract, that would have translated to $300.  But as long as I am on the upside, I am a happy camper!  The higher profits will come with experience; the point of MMT for me is to trade without emotion or greed.  Remember, until a few months ago, ALL of this stuff was Greek to me, and via Market Mover Trading’s fabulous educational tools, I have easily learned these tools and strategies.

Jody's UMich Consumer Confidence Trade 4-30-10

Jody's UMich Consumer Confidence Trade 4-30-10

So, here’s Jody’s UMich Consumer Confidence Trade.  He went short with 3 contracts at 1202.50.  Then, on the same upward (bad for a short trade) movement that I decided to hold fast on, he panicked a bit and flattened (bought all three contracts) out for a profit of .25 points, or $37.50.  This is okay, as it’s a learning experience.  That’s why it’s a good idea to simulate trading for at least 100 or so trades before you trade live.

It gives you confidence, as you know what you trade well and what you need to work on.  Journaling is a MUST!  In this case, Jody had successfully traded the Chicago PMI earlier in the morning and had a profit of $275 for the day!

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