How To Trade Chop

On Tuesday, we saw a huge move higher in the indices because of trade chop.  This sector followed through higher in the overnight session, but eventually opened lower.  After Wall Street opened, it was an absolute chop fest as illustrated in the chart of the $NQ below.


This is the way I trade chop:  I use my mathematical support and resistance levels.  I bought the first break and did not get greedy taking a small profit.  Then I sold the next rally again taking a small profit.  I made money on two trades and walked away from the computer.


“Chop” will destroy the best traders ever.  In “chop” traders tend to get topped and tailed.  Make your money quickly.  Shut the computer off and go enjoy your life.  The market will open the same time tomorrow, next week and next month.


Get more of Tony LaPorta’s trades, analysis and commentary, at Simpler Futures.
Tony LaPorta

Tony LaPorta Futures Maven

Tony LaPorta has been active in the futures industry for over 36 years including membership at the Chicago Mercantile Exchange (CME) and the London International Financial Futures Exchange (LIFFE). Tony is an ex pit-trader turned screen-trader.

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