When most people think about trading, the first thing that comes to mind is the stock market. After all, stocks are exciting. Every day, the moves of stocks are covered in the newspapers and the evening news. Everyone seems to be talking about making big money by trading and investing in the stock market.
Bonds, on the other hand, just don’t seem to have the same sex appeal. But, as Hawkeye Traders, we know we can leverage the principles of volume-based trading to make money with any trading instrument.
So, in today’s article, let’s take a look at how to make great money trading bonds based on Hawkeye volume-based trading principles. And in particular, let’s consider the case where we might miss the initial entry and are forced to enter a little later.
Let’s start by considering what bonds were doing on Friday.
First off, by using my Gearbox indicator, I determined that the best tick speed to trade bonds was 1144 ticks.
Now, let’s say you happen to miss the first entry, and you’re wondering when the best time would be to get in to this trade.
Notice the arrows I have placed on this chart show you where you can enter the trend if you missed the original entry.
As you can see, the original entry was the first cyan arrow on the left hand side.
The other arrows I have placed are after the volume has gone from red to green or red to white to green.
So, this gave you four opportunities to get into this trend if you had missed the original entry.
If you missed the first entry, all you need to do is to wait for a pull back on the volume. It’s as simple as that!
So, in this summer period, look at the bonds, because I think we are going to get some great trading out of them.
I really was turned onto the bonds by my trading partner Hubert Senters, and it’s been great to discover this market which for me I had never touched, but I love it now.
Now, all of this (and much more) is demonstrated in our Wednesday room by my colleague Randy Lindsey.
So, I cannot encourage you enough to come along to the Wednesday room.
Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!
[The cyan arrows are included for illustration only and do not form part of the software]