LBR TRADING ROOM PHILOSOPHY!!

Welcome to our real-time futures analysis and trading via the internet.  We comment on the analysis and trade setups that we take for our own accounts as well as various exits and trade management strategies.

Our trading consists of a mixture of the S&P daytrading and short-term swing trading (1-2 days) in the futures markets.  As we post our dialogue and commentary throughout the day, please keep in mind that these are trades that we take for our own account and are not intended as trade recommendations.  We hope you find it informative and educational!!!

We login at 8 AM EDT and start pre-market commentary at 9:15 EDT.

The membership fee for our room is only $350.00 (US Dollars) per month.  The room is open to all the first trading day of each month for trials.

Please contact Laura for questions concerning joining or billing at: 888-LIMITDN (888-546-4836), or email lbondurant@worldnet.att.net .  You can also sign up on our secure site.

Hope you enjoy!!

Happy Trading...

Sincerely,

Linda and the LBRGroup Team  

Chris, John, James, Laura

Our Philosophy: Starts by using market orders for entries when initiating trades in a trending market, if you are doing larger size put the trade on in two units, scale out in two units, if you do a single contract, exit on our first exit. Don’t over-trade, all that is needed is one trade a day in the SP's, you must have patience to wait for the higher probability trade.

Must trade only when there is liquidity. What defines liquidity? A ten-lot market order in the SP should not have slippage of more than ½ point. We have to see potential for 3 points in a trade, We assume there will be a minimum of ½ point slippage in and ½ point slippage out. For short skirt scalps, risk should be three points. The longer you are in a market, the more risk you have. If you have a quick profit, lock it in by tightening your stop loss.

Even if you don’t trade every day, it is never a waste because you learn the patterns and are constantly training your eye. If you don’t see the trade don’t take it. We are trying to teach you to see these things for yourself. If you don’t know what to do with a position you shouldn’t be in it. When in doubt get out. Execution skills count for half the profits, but this is an area that can only improve with experience and practice.

A SHORT SKIRT trade is a very quick scalp off the 1-minute chart in the SPs. A setup will occur after the SP has made a sharp "impulse" move. The setup pattern most often looks like a continuation flag, following this sharp initial thrust. It is called a "Short Skirt" because the trade usually lasts between 3 – 10 minutes. The concept is quick in and out without getting caught.

We can point out ahead of time when a Short Skirt setup will occur. However, you will be most profitable if you can start to train your eye to see these patterns as they occur. You will then do best if you decide to enter them on your own instead of waiting for us to say we are taking the trade. Sometimes the window of entry can be quite small, and if you wait until we say we have entered the position, the entry window might have passed. Know how much of a delay there is in your own data feed. Some feeds can get a bit backed up in the first half-hour.

We try to look for Short Skirt setups that have the potential for a minimum of three points in the trade.

We always assume that we will have at LEAST a minimum of ½ point slippage in and ½ point slippage out. We put a resting STOP order 3 points from our entry price. We look to exit as the market makes a retest in the direction of the trend. The majority of the time the market will go on to make a new high or low. When it does so, we say that the Short Skirt has reached it’s objective.

We watch for a price retracement of 1 ½ to 3 points from the most recently formed swing high or low. For an untrained eye, it may be useful to watch the 20-period exponential moving average on a 1-minute chart, though the price does not always retrace that far. Sometimes the reactions that go sideways instead of back to the EMA can be the best trades. The initial price retracement lasts about 5 minutes. When the reaction back starts to stall, we enter our order "at the market". It is ideal to enter

The trade BEFORE the price starts moving back in the direction of the original trend. You are never going to get the high or the low of the price retracement. The idea is to enter within a general range where the initial 3-point stop will not get hit.