Jigsaw’s Inflation Busting Sale! Up to $350 off!
Like a lot of you – I am currently enjoying a flood of self-pitying emails from companies, telling me how hard their life is right now because of inflation. We’ve all had them – “Inflation is hitting us hard, so we have no choice but to hit you hard”.
Because what company could possibly take a little hit on profits when everyone is suffering?
Well – this one. Inflation is hitting us too. But to us – it’s like some random guy punching you in the face because some other random guy punched him in the face. What do they call it? “Pay it forward”? Or did that go out of fashion?
Anyway – welcome to Jigsaw’s “anti-inflation sale”.
We are kicking off with 100 coupons. The rules are simple – Only 1 discount per customer (yes, we do check) to the first 100 customers, but ends 5th May 2022.
Not only are you getting amazing discounts – but you also get our all new “2022 Order Flow Foundation Course” click here for details.
For new customers, you can get:
- daytradr Independent
$579– Sale Price $479 ($100 discount – use code INF-100 or click here) - daytradr Professional
$879– Sale Price $729 ($150 discount – use code INF-150 or click here) - daytradr Institutional
$2299– Sale Price $1949 ($350 discount – use code INF-350 or click here)
For existing customers, you can get:
- Add on Institutional & Advanced Training
$1847– Sale Price $1597 ($250 discount – use code INF-250) - Add on Advanced Training
$349– Sale Price $249 ($100 discount – use code INF-100) - Annual Live Trade & Journalytix (with live news)
$500– Sale Price $400 ($100 discount – first year only use code INF-100)
For existing/new customers, you can get:
- Journalytix Annual
$399– Sale Price $299 (first year only – use code INF-100 or click here) - Institutional Education (For non Platform Users)
$1547– Sale Price $1297 ($250 discount – use code INF-250 or click here)
The discounts are valid until 5th May 2022 – or until Gasoline is below $2 a gallon in Los Angeles. Only the first 100 people that apply will get the discount. After that, it’s back to full prices and pushing your car to work.
If you’ve been sitting on the fence about buying the tools, adding a training package or signing up for Live Trading – jump on board this great discount before 100 others get in before you. For new customers – use the links above, for existing members, go to https://members.jigsawtrading.com/member/ and click “Add/Renew Products”
FREE BONUS: Take a look into the decision-making process of professional traders with this video training series that helps you make smarter trading decisions. (Article continues below)
Order Flow itself is simply information. Just like charts, it can be used in a number of ways, some good and some bad. But let's first break down order flow into it's components so we all agree what we are talking about:
Order Executions/Tape Reading - This aspect is the real flow of orders. It's the information we see in Time & Sales, Footprint Charts, Cumulative Delta. It is looking at market orders, either as they execute or historically. I guess this is the "true order flow". Every trade is a buy and a sell. We look at market orders because we consider them to be more aggressive. When someone trades with a market orders, they are giving up a price to get an instant fill. Limit orders on the other hand just lazily sit there waiting for a market order to hit them. Often these are market makers with no directional conviction. So we see market orders as being more significant.
But we don't use these in isolation.
Volume Profile/Positions - The tape reading part helps us assess various things like momentum, traders getting stuck, balance of trade BUT the volume profile helps us understand where people are positioned and likely to get stopped out. I sometimes call this "Order Flew". It's important to know when trades will be "washed out" - for example - if we have a volume cluster on the S&P500 Futures and the market moves up 100 points and back down to it, it's unlikely short term traders on either side that were positioned there will still be there. But recent, nearby volume helps us assess areas of positions.
Market Depth - The bids and offers, the lazy passive orders waiting to be hit. This is part of the story but in terms of overall importance, I'd put it at around 20% at most. For example - if you return to the high of the day on any market, the offers will be quite large directly above the high. It means nothing at all. It's just a quirk of the market. It does not help you tell if a price will hold. On the other hand, if you see large depth and as we approach it, we see more added to the depth in front of that price, it means others are front running that depth and that is a useful bit of information.
This is the key - it is all just information. Just like price charts are information. When people look at Order Flow, they consider it to be a technique more than a set of information. They look for things like iceberg orders and decide to make a one rule trading system to fade every iceberg, For these people - yes, order flow trading is overrated because they are trying to ignore everything else going on in the markets and construct a trading system a chimp could execute.
For those looking to improve a decent trading approach, the best thing to focus on in Order Flow is momentum. Once you can read momentum you can:
- Avoid getting into positions when momentum is against you.
- Confirm trades are working after entry when momentum goes your way.
- Exit trades in profit when momentum fades.
That's perhaps the easiest way to use order flow because momentum is easier to read. It's about the market continuing to do what it's already doing. On the other hand, reading a turn in the market with order flow takes a higher level of skill and a little longer to learn.
Order flow can't put lipstick on a pig. It won't help you 'improve' something that doesn't work anyway, which is why whenever someone calls me, the first thing I ask is what they are currently doing and we discuss whether they need a reset or whether it will actually help.
When Jigsaw started back in 2011 - we were one of the first in the space and certainly had the best education. It was always going to attract the underbelly of the trading education/tools world and now we see stuff out there that is so complex but so impressive and futuristic that new traders are drawn to it like moths to a flame.
So here's my advice when looking at Order Flow
- Order Flow can't improve something that doesn't work.
- Order Flow can be used on it's own, without charts to enter and exit the market but you also have to be able to recognize different market states that need different/altered setups. There is nothing magical about this.
- Don't start jumping at shadows and take 50 trades an hour in your first week looking at Order Flow, be selective. It can be exciting to see cause and effect play out in front of you for the first time but don't overtrade.
- Do drills to learn how to read it before you trade it.
- Markets can only go up and down. Don't overcomplicate it. If you have too many Order Flow tools on your screen - you will not be able to make consistent decisions. Less is more.
- Take time to choose a market with a pace you like. Interest rates might send you to sleep, the DAX might give you a heart attack.
It is hard to see how a set of information could be overrated. It is true that some methods of presenting this information are better than others. It is also true that some people simply get on better with different tools (e.g. Footprint vs DOM).
There's a middle ground between complexity and simplicity that will leave you making consistent decisions where you improve over time. For those people, Order Flow will be way underrated because they will be the one's getting the most out of it.
Those that jump in with both feet on day one and those that have 100 different tools up, for those, it's a painful experience.
Keep it simple and manageable. Start with momentum reading and build from there. You will never look back.
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