This is the first in an installment of ongoing trading videos where Day Trade to Win founder John Paul explains the basics of day trading. Since most traders come to us wanting to scrap their indicator setup and use only price action to trade, this Lesson 1 video focuses on the differences between indicators and price action trading.
Before we get too far ahead, indicators are little programs that run inside of a day trading platform. Indicators are meant to provide a trader with helpful advice in gauging market behavior, and in some cases, telling the trader exactly when and how to place a trade. Indicators are very appealing for these reasons. However, traders should be cautious because most indicators lag behind real-time price activity, meaning the advice they give can often be inaccurate.
At Day Trade to Win, we teach traders how to assess marking conditions using price as it plots in real-time. Using only price and its relation to time, we can estimate how good for trading the market is, where to enter the market, how much profit we should be taking, and where to put a stop loss in case the trade goes against us.
In the video, John Paul points out a common problem with the popular SMA (Simple Moving Average) indicator. Like most indicators, the SMA depends on a parameter (a configurable variable) to adjust its operation. If you do not know the correct value to use for real-time market conditions, the indicator becomes worthless. You end up looking at history to see what value worked best in the past and then adjusting the indicator for expectations of improved future results.
John Paul does not use the SMA, stochastics, bands, waves, or any other type of regular system. For a five-minute E-mini S&P chart, he typically uses a BarTimer and an Average True Range. You’ll have to watch the video to see why these tools are important and how to use them to your advantage. For TradeStation users, we offer a BarTimer for free as a download.
Watch John Paul make 1.25 points using the Atlas Line while teaching one of his students. The other voice you hear in the video is a one-on-one Private Mentorship student who is asking John questions. Normally, when John is training his students either in the individual or group Mentorship classes, he focuses on teaching instead of trading. When a profitable and educational trading opportunity arises during lecture, John takes the trade. Watch the video to see how the Atlas Line’s Long signal is used along with a target of 1.25 points. You’ll see a fairly large stop (Catastrophic) in place as indicated by NinjaTrader’s Chart Trader, but this is not used. If the trade started to move against him, John would have used a Prove-It stop in this case, triggering when price closes below the plotted Atlas Line. A second Time-Based stop is also kept in mind, but not used as price eventually hits the target. Each stop strategy along with the entire method for trading the Atlas Line is taught in the included live training or in Private Mentorship (if you prefer to learn everything we offer).
Remember, let price prove to you how it wants to be traded. Also, have a defined entry and exit strategies in mind before each trade. This keeps risk management in check and makes your trading objective.
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.”
• 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]
Use the coupon code ATONEWS to get $60 off the ATO for a limited time!
Here’s a video of the last few days trading the At the Open (ATO) method on the E-Mini (ES) and the Euro (6E) currency. See the profitable results for the last few days as John Paul scrolls through the NinjaTrader chart, showing the exact entries the ATO software provides. In total, there are five straight ES winners and two 6E winners. There are undoubtedly more, but time is of the essence! The ATO is a mechanical, price action method that focuses on making profit from the day’s initial move. The profit targets, order types, stops and management are covered in the digital book and included live training session. The included software can be used as an optional aid.
Remember that the ATO course and included live training covers the following:
With nearly one month left before the close of 2011, many traders are still left scratching their heads wondering what went wrong. These traders, who have now experienced considerable loss, most likely traded using managed accounts or automated systems.
Well, what has made 2011 different from other years?
Standard & Poor’s credit downgrade of the U.S. government bond
Debt ceiling crisis caused by inability to reach a compromise until the 11th hour
Uprisings in Libya, Tunisia, Egypt influenced commodity prices and market psychology
Japan’s Tsunami and Nuclear disasters
The upcoming U.S. Presidential election
Portuguese bailout, second Greek bailout, ECB bond buying, Operation Twist and the threat of a collapsing Eurozone
With a worldwide economy that is becoming increasingly interwoven along with increased paranoia of repeating another 2008 collapse, 2011 has raised the bar as being, perhaps, the most turbulent economic year humanity has ever faced. Surely, no single person (or even group of people) can come up with an answer of prosperity for each country in the world. This means, in all likelihood, such conditions will continue far into 2012, especially with the U.S. Presidential race coming into focus. The United States still has to deal with its debt management plans. The Eurozone must decide how to manage the Eurozone or decide the best course for separation.
What does this mean for day traders? For optimal trading conditions, most day traders expect a reasonable amount of return on each trade (or investment), relative to the assessed risk. When the markets have been this unpredictable, relying on any sort of one-size-fits-all algorithmic computation is a recipe for disaster. This is even truer for retail traders, who are subject to the effects of high frequency trading and price manipulation. In addition, most CTAs and financial planners who buy and hold long term have seen the tragedies produced by these trying times (and lost many clients along the way). Managed accounts, algorithmic trading, and the like are simply not suited for today’s wildly swinging markets. In August of this year, we saw the Dow tumble 512 points just because of “spooked investors,” as reported by CNN. That drop was the Dow’s ninth deepest ever.
Instead, retail traders who want to make money consistently must be able to recognize tradeable market conditions. This is an essential part of risk assessment. Secondly, once a market is decided to be tradable, a trader must know the proper technique on how to trade it. As mentioned earlier, there are plenty of reasons to abandon automated methods. The only other approach is to observe price patterns on the chart and trade based on them in real-time. This is called price action trading. Since trades are based on objective data, traders are provided with a reason to engage the market. These main concepts are the foundation of the day trading education provided by Day Trade to Win’s Private Mentorship Program. In addition to recognizing price patterns, attention is paid to time of day, how time influences the market, along with news events. Furthermore, trading coach John Paul provides multiple stop strategies for every trade, ensuring proper risk management for every entry. Finally, each price action technique taught during the eight weeks serves to provide the trader with a complete map for trading every day of the week.
Get Ready for Trading in 2012
John Paul will soon begin another Group Mentorship class – most likely in the beginning of January, 2012. We’ve been receiving inquiries already without even advertising for it. That means if you’re interested, please let us know so you can be added on the list. As soon as registration becomes available, we’ll let you know. E-mail us at [email protected] with any questions you may have about the Private Mentorship Program. It’s time to take advantage of the volatility instead of fearing it!
If you missed the live trading webinar with John Paul, there is good news and bad news. The good news is that the webinar was recorded and you can watch it below.
The bad news is that you missed the 2 trades he took using the Atlas Line live during the webinar. The room was booked to capacity and there will be a next time, we promise.
If you have questions or would like to sign up for the any of the price action courses, or need mentorship/coaching details please visit the home page www.daytradetowin.com.
For those of you who missed today’s webinar, the room was at capacity with traders eager to see how the Atlas Line performed in their favorite markets. John Paul took his time answering questions about the Atlas Line software and the Power Price Action method. Both methods are entirely based on price action yet are separate in how they are used to achieve profit. The Atlas Line focuses on trading using the angle of the plotted line and generated signals. The Power Price Action method focuses on identifying unique setups to determine entry.
The following coupon code was given away during the webinar. It’s active for a limited time and can be used with all products…
10% Off All Day Trade to Win Products = POWER10OFF
(Use this coupon code in the shopping cart after clicking the purchase on your preferred product)
Here’s video showing the Atlas Line’s performance the last two days under short trade conditions on the E-Mini S&P. With the deadline for the debt ceiling drawing near, the markets reacted with increased volatility. The video shows consistency using price action trading system despite uncertain economic conditions. This would have helped you as a trader knowing whether to go long or short the entire day.
Come see how the Atlas Line performs. Attend the webinar – August 3, 2011 @ 5:00 p.m. U.S. Eastern
Ron K. gives a short, mid-program critique of the Day Trade to Win Mentorship Program. So far, he says the program is everything it’s advertised to be. The difference between his day trading abilities before and after the start of the course are like “night and day.” So far, Ron’s instruction has focused on understanding how the E-Mini market moves, how to enter the market, capture profits and knowing when to exit using a variety of methods for every scenario.
Be sure to stick around for the end of the video, as Ron provides his profit and loss figures – something very few traders actually mention.
Day trading is a skill anyone can learn. Click here to find out more about the Private Mentorship Program.
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.
GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH TRADING FUTURES CONTRACTS CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION SINCE ALL SPECULATIVE TRADING IS INHERENTLY RISKY AND SHOULD ONLY BE UNDERTAKEN BY INDIVIDUALS WITH ADEQUATE RISK CAPITAL.
ANY ADVISORY OR SIGNAL GENERATED BY DAY TRADE TO WIN IS PROVIDED FOR EDUCATIONAL PURPOSED ONLY. ANY TRADES PLACED UPON RELIANCE ON WWW.DAYTRADETOWIN.COM SYSTEMS ARE TAKEN AT YOUR OWN RISK FOR YOUR OWN ACCOUNT. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. WHILE THERE IS GREAT POTENTIAL FOR REWARD TRADING COMMODITY FUTURES, THERE IS ALSO SUBSTANTIAL RISK OF LOSS IN ALL TRADING. YOU MUST DECIDE YOUR OWN SUITABILITY TO TRADE OR NOT. FUTURES RESULTS CAN NEVER BE GUARANTEED. THIS IS NOT AN OFFER TO BUY OR SELL FUTURES OR COMMODITY INTERESTS.
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