New video testimonial – Tony is a Private Mentorship student who attributes his success to the methods taught during his eight weeks of training with us. By using eight of the 11 of the unique price action methods taught in the coaching program, Tony has a chronological plan to deal with any situation price presents. Tony can handle price when it’s trending, ranging and whipsawing while being able to determine a market’s tradability and the best approach to take at the current moment. Tony says, “I know exactly what I am looking for as a price target. I know when to stay out of market – when it’s too wide and too thin. What he (John Paul) does teach, you can go through and start taking ticks out of the market instead of giving them back.”
Throughout the last year, we’ve concentrated on writing content that directly helps you as a trader. We want to show you the difference our style of trading (price action) can make. Here’s a recap of 2011’s most informative posts. Expect these methods and instructions to be applicable through 2012 and beyond.
What happens when a news event occurs? Do you try to avoid them or try to capitalize on the sudden volatility? In this video, John Paul delivers an exact trading method for making the most out of these unpredictable movements.
Firstly, make sure you visit Bloomberg’s site to access the economic calendar. Take note of events marked with a red star. These are market pushers. Most of the time, you’ll see large price movement as a result of the announcement. There is no correlation between the type of news “good vs. bad” and how price will behave (if it was only that simple!). Instead, we wait until the large movement is over with then take a trade based on specific rules in the opposite direction (short / long) of the candle. Watch the video for details. You can use this trading method with any trading software. Just remember the entry rules and how to use the proof as provided by price.
Here’s a full listing of January 2012 Red Star events. Red Star events are those that move markets and should be cautiously regarded as indicated by the Bloomberg Economic Calendar. Learn more about how to trade the news with the upcoming video, detailing the proper way to read price action when news events occur. Stay tuned for an upcoming blog post for a complete strategy.
All times are provided in US/Eastern.
Tuesday, Jan. 3
ISM Mfg Index – 10:00 a.m.
FOMC Minutes – 2:00 p.m.
New Group Mentorship Lessons Start January 5, 2012
Take Advantage of 2011 Prices!
• 8 weeks of live training with Day Trade To Win founder John Paul
• All Day Trade to Win courses and software (with lifetime licenses) are taught, included, recorded live and receive full support
• Classes will be held twice a week: Tuesdays and Thursdays from 4:00 p.m. to 5:30 p.m. US/Eastern
• Each student receives a private login to access recorded training sessions for reference.
• 8 weeks of live, personal training taught and recorded by John Paul
• The Roadmap Trade
• Power Price Action (Blueprint) Method
• Atlas Line Trading Software (2 lifetime licenses)
• At the Open (ATO) Course
• ATO Trading Software (two lifetime licenses)
• Trade Scalper Course w/ entry software
• Price Action Scalping Course w/ Scalp Level software
• Floor Traders Secrets Method (X-5 Trade)
• Filtering Trades, Trading the News, ABC Pattern and much more
• Continued support and video recording access after program completion
Individual, one-on-one lessons are also available. For more information, please call 888-607-0008 or email [email protected]
10% off the Atlas Line 6-Month or Lifetime License = ATLAS10NEWS Redeem this coupon code upon checkout at the Atlas Line page.
Here is the webinar from earlier this week. John Paul’s Atlas Line and other price action methods perform live on the ES and 6E futures instruments.
Discussed in the video:
• Three stop types for each trade – time-based, catastrophic and prove-it
• Why blindly following indicators will lead to eventual failure
• Atlas Line results (live) and past few days
• How to best utilize the automatic entry signals produced by the Atlas Line
• The ABC Pattern – how to recognize trends and predict price movement
• Pre-market trading using the Atlas Line and using different chart time frames
• Tips for handling news events
• Contract rollover and expiration
This is a strategy you can use day in and day out as a setup to determine where price is going to trend / channel. This is a forecast method that works for the ES (E-Mini) and other futures / currencies. As mentioned, you can use it without any software, as it’s a powerful way of looking at your charts by observing price action.
The goal of the ABC is to split the trading day into three separate parts: the opening (A), mid (B) and end (C) sections. The ES opens at 9:30 a.m. US/Eastern so this is the position of the first line. The second line, placed at 12:00 (noon) is the second line. This effectively encompasses the A part of the day (2.5 hours). What can be expected out of this period? Generally, a strong movement or direction as influenced by systems and swing traders. The second part of the day is from 12:00 p.m. until 2:30 p.m. (14:30) This period is usually slower, lacking in activity as compared to A. If and when price in B moves (breaks) out of the high and low range of A, then you have a prime opportunity to trade to the long or short side. It’s best to look for this opportunity early in part B. Part C occurs from 2:30 p.m. until market close. To trade part C, use the range of B to determine the ‘pop’ in direction. December 12 ended in a late-day sell off that could have been used for a decent profit.
Watch the video to see how today’s ABC pattern worked out today!
Day trading the E-Mini, futures and currencies at the end of the year can be tricky for a number of reasons. The follow tips will keep you on track trading the E-Mini or your favorite commodity or currency.
1. Traders who act as the underlying force behind the big moves are on vacation. Therefore, the remaining traders fight like mice pulling cheese, causing the market to move erratically. This erraticism is further influenced by press releases, quarterly earning statements and expectations.
2. Expect half days and days before holidays to also behave erratically or hardly move. Here’s a list of important dates to watch out for:
Friday, December 23 (last trading day before Christmas weekend)
Monday, December 26 (no trading – Christmas is observed)
Friday, December 30 (last trading day before New Years Eve)
Monday, January 2 (no trading – New Years Day is observed)
…Luckily, the major holidays are on the weekend. Be weary of those Fridays, however.
3. FOMC (Federal Open Market Committee) meeting days and those surrounding the meeting days, the volume becomes thin and price trades in small channels. December 13 is the last meeting in 2011.
4. Use your trading platform’s ATR (Average True Range) software to determine your targets and stops for each trade. Trade within what the market can produce at the given moment based on an ATR setting of calculating based on the last four bars. Consider holding back if the ATR is slow at 1 points or chaotic at 5+ points.
5. Santa and taxes don’t go hand-in-hand, so many traders will get out or get in large positions in anticipation of tax regulation. This creates uneven spikes in the market.
6. Seasonally, expect markets to rise this time of year. Take this into consideration, especially with long term positions. However, expect daily profits to be less as compared to other months, so prepare yourself for a lower monthly profit target.
7. Remember to prepare yourself for the upcoming year and take much needed time with your family! If the trading day just isn’t working in your favor, spend it with those whose company you enjoy.
Power Price Action is a complete day trading course on four DVDs that contain multiple, highly accurate price action strategies for effectively trading futures, currencies, forex and beyond. The package includes over 13 hours of footage, a 45+ page color workbook and bonus Floor Traders Secrets manual. The exclusive Blueprint Trade, Stair Step Setup, Yo-Yo Setup, chart configuration, and ABC pattern are taught. The only other places you can find these techniques is in the full Mentorship Program (a separate eight week trading program that includes/covers all of our courses and software).
In the chart above, you can see how the chart is absent of all indicators. Using an understanding of price patterns, the ES (E-Mini) ‘proved’ its desire to go long. Since the Power Price Action’s Blueprint Trade uses exact entry and exit rules, we knew to enter at 1251.00 with a profit target at 1252.25. Where some traders may have panicked with the red candle, we had confidence that the market’s direction would change course to our favor, resulting in profit. Multiple setups for the Blueprint Trade occur intraday on the E-Mini and other ‘moving’ currencies. Stay tuned for our next webinar where John Paul will demonstrate such trades live.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
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