Price action day trading, simply stated, is the use of a market’s current (real-time) price in relation to time to determine when and how to make trades. Price action traders are individuals who primarily use such techniques in order to earn profits quickly and easily. John Paul from DayTradeToWin.com defines price action trading as “a method of day trading in which the primary indicator is price in the absence of all other indicators.”
Price-based trading can be a very powerful tool if used correctly. There are many online courses, ebooks, workshops and other educational products for those looking to learn and capitalize on price action trading. Quite often, these products are nothing more than gimmicks, ineffective in real-world trading. Consider for a moment a day trader who makes his living in the pits of the CME (Chicago Mercantile Exchange) or the NYSE (New York Stock Exchange) on the trading floor. This day trader has only two references for deciding whether to buy or sell:
1. The current price of the currency, commodity or stock
2. The current time
On the chaotic trading floor, traders are huddled in groups while shouting orders based on principles of price and time. These traders, who make a daily living from the markets, are price action traders.
Day traders today no longer have to journey to a financial hub in order to place such orders. Trading software, such as NinjaTrader and TradeStation, combined with real-time market data and electronic brokering, allow online day traders to make the same profits from home. Combined with real-time charts and analytical software, one may assume that the online home trader may even have an advantage over the floor trader. However, this is a common misconception. Online day traders often use too many tools, strategies and indicators like moving averages, stochastics and multiple time periods. Conflicting data from these methods or the incorrect analysis of this data can prevent trades from occurring due to apprehension. Also, online day trading software is designed to serve orders on a first-come, first-served basis.
This is the beauty of pure price action trading – it is inherently simple, relying on price and time alone. Very few instructional day trading websites cater solely to price action trading methods. Even fewer are services that teach price action trading methods correctly. Furthermore, these websites offer multiple products that are not based on price action (so money is wasted, as the methods or indicators cannot be used in conjunction with one another).
DayTradeToWin.com differs from other vendors by offering products based purely on price action; what works on the trading room floor. DayTradeToWin offers two price action courses which complement each other: the ATO (At the Open Method) and the E-Mini S&P Price Action Scalping Course. The At the Open course uses simple logic, removing all the guesswork in order to earn two to four points in the E-Mini S&P on a daily basis despite market volatility. The E-Mini Scalping Course focuses on getting in and out of the market at key moments for quick profits with minimal risk.
In day trading, nothing is 100% guaranteed. Deciding which trading system, method or product can be a difficult task. Performing one’s own research is essential. The methods taught by John Paul are tried and tested methods of price action trading that are taught correctly. With a proven success rate and excellent customer reviews, the price action day trading courses at DayTradeToWin provide vital knowledge for real-world day trading. For more information, please see the DayTradeToWin YouTube channel for ATO and scalping videos.