Stay out of the revolving door

Problem: How can I reduce my initial loss (drawdown) that I experience before my trade becomes profitable?

Try analyzing the spread between NQ and ES. Analyzing Spreads can be an invaluable tool for finding areas of compression, expansion and divergence, that sometimes aren't as visible on either chart alone. Also analyzing the trade offers insight into how the market is posturing (risk on or risk off). I very frequently take a long in the NQ and short the ES to express a Risk On opinion rather than taking an outright position in the NQ. It's a much less volatile trade than an NQ by itself but there is still enough movement to make good money.

Problem: How Do You Know Which Direction to Trade?

The best day trades are the ones line up with whatever the broad theme is at the time. 90% of the time, "broad theme" means having an understanding of whatever group of stocks has most weight in the indexes we trade and whether those those stocks are levering down or up relative to the broad market. Right now (2026) semiconductors are the engine of the market. In 2008 it was banks. In 2016 it was the FANG index.

Take a look at these chart examples and their notations for more ---->

Problem: I want to trade the same predictable strategy every day

Once again, trading spreads is the best strategy for this because they have strong mean reversion tendencies.

Problem: Getting stopped out on the ES too often.

Take a look at the Sectors that make up the S&P.

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