Najam from New Jersey was a struggling trader who traded on and off for about a year. During his struggle, he was following moving averages, cycles, momentum, etc. He was not sure when to enter the trade and when to exit. He then found Day Trade to Win and signed up for the eight-week Mentorship Program. By learning the many price action methods John Paul teaches, Najam has all the answers he needs. Najam’s favorite trading methods he learned is the Roadmap, Atlas Line and X-5 trade.
“John Paul is an amazing teacher. You can ask him any question and he will explain it over and over until you get it. His method of trading is price action.”
He recommends this course to anyone who wants to improve their trading results. He commends John Paul and the Day Trade to Win staff for reliable help and service.
Included with the eight week Mentorship Program:
• Eight weeks in duration taught live by John Paul.
• Focuses on the E-mini and other popular futures and currencies
• Includes all software and courses (Atlas Line, ATO, Roadmap Trade, Blueprint Trade (Power Price Action method), X-5 Trade, Price Action Scalping, the Trade Scalper, Filtering Trades, Trading the News and much more).
• All classes are recorded and any class after the eight weeks is free. You can play back your videos at any time in the future and watch the lessons.
• Via email, John is also able to answer your trading questions about the Mentorship methods whenever you have them
• We also offer remote assistance to completely set you up with everything that you need.
• Our methods are based on experience and knowledge used by floor traders. Our focus is consistent profitability using only price action.
On March 18, 2013 the market gapped down overnight due to news in the country of Cypress. Take a look at the E-mini S&P at around midnight, US/Eastern and you’ll see the gap. The news was that the Cypress government is assuming control of its citizens’ financial assets. As one might expect, this created a large, downward move. The bias created was to sell the market. Even though your bias may be to sell the market, it’s still important to take a look at what the price action is saying to us. From midnight onward, price instead made a steady climb to around 1539 at 9:30 a.m. US/Eastern in the E-mini S&P.
The Dbl Bar Long signal was generated at the close of the red candle (1542.75) at 9:55 a.m. US/Eastern. The rest of the day until around 2:30 p.m. This goes to show you that listening to news to get a direction is not always a good strategy. When price intersected the Atlas Line and had two closes below it, a Dbl Bar Short signal was generated at 1545.5. The ATR allowed for a profit of 1.5 to 1.75 with this second trade. At about four minutes into the video, John Paul shows the Euro which had a very strong rally right after the Atlas Line’s long signal. Price action is best tool for helping you decide where the market is headed; especially in conjunction with the Atlas Line.
For all the traders out there this Valentine’s day, we present to you a gift of love! The Get Started Day Trading Guide is entirely free. In just a few pages, you’ll be up and running with the NinjaTrader 7 platform, see live candles plot on your chart, and understand the basics of trading. We highly recommend that you read this, as it covers the most common questions about day trading that we’re asked at Day Trade To Win.
Here’s what’s included:
• NinjaTrader download link and demo license key
• How to set up a paper trading account with NinjaTrader
• Requirements for day trading (computer speed, broker account size, fees, etc.)
• Setting up your charts the way we recommend
• Navigating charts, scrolling through history and the axis
• Understanding price bars and tick increments
• Saving your trading setup
• The best way to begin trading for profit
1. Have an entry and exit plan Knowing when to get in, when to get out, and what to do if the trade fails is extremely important. In other words, have an entry strategy, profit target and stop loss.
2. Avoid the first 15 minutes when a market opens This period of time is usually highly volatile – automated systems, premarket trades and unfounded trades produce choppy price action. You are better off waiting until it levels out and using the ATO (At the Open) Strategy taught in the Mentorship Program.
3. Understand market orders vs. limit orders Market orders tell your broker to buy or sell at the best available price. Limit orders let you control the maximum and minimum prices at which you will buy and sell. Limit orders are better because you have more control and can be used more easily with strategies.
4. Avoid margin risk The whole point of trading using a margin is to increase the amount of potential returns on each trade. Leveraging more money puts you at risk so keep your margins in check. Trade with a 4:1 intraday margin, if possible.
5. Don’t guess or follow instincts Always have a strategy. You need to know objectively what conditions will trigger your entry. And these conditions have to be consistently successful.
6. Keep a log of your trading activity Your trading software can keep track of your profit and loss performance. You should keep track of your personal development as a trader – improve upon your mistakes. The paper remembers better than the mind.
7. Paper / sim trade first Practice makes perfect. Paper trading with a live data feed will simulate the experience of live trading as closely as possible without spending real money. Paper trade for as long as you need to before going live.
8. Be wary of where your trading advice comes from The markets are inherently unpredictable for the most part. In the business of trading, there are many who are a little too confident. Do your research before putting anyone’s advice to the test.
9. Control your losses When trading with real funds, only trade with money you can afford to lose. If trading ever gets you into financial trouble, take a break and refine your strategy by paper trading with live data.
10. Allow yourself enough time to learn A baby needs to crawl before being able to walk. Don’t panic at the first hint of loss and throw your strategies out the window. Trading is emotional. Know that you will have losing trades. Being consistent requires discipline with the right, objective trading methods. See our courses to find out more.
I look forward to summer every year. June, July and August bring sun, fun, bikinis, and oh, that’s right – let’s not forget slow moving markets! Every year, the same thing occurs. From January through May, the markets move normally as expected. The following three months of summer bring the slow inactivity every trader complains about. This uneventful market action is to be expected. This lack of movement is indicative of a method that I use on a daily basis – the ABC Pattern. If you haven’t yet watched the video on how to trade the ABC Pattern, now is a good time: Learn the ABC Pattern.
Nearly every trading day, the market starts off normal, slows down, and then speeds up towards the close. This same behavior applies to the trading year. The three parts of the year are historically predictable. With that said, now is the time to rev up your trading engines and prepare yourself for the action that will close out the year!
Starting in September, the trading volume is expected to pick up as the 4th quarter earnings come into play. This year is especially important because of the November presidential election. This coupled with the January Effect (my bullish prediction for 2012) will make the upcoming months worthy of watching.
Let’s look at the specifics…
Election year – markets usually rally.
January Effect – markets expected to close higher for the year
End of the year quarterly reports and holidays – markets again expected to rally
These three conditions point to the market moving higher, but timing is everything. Wait for the pullback. This is key, and just after making new highs in the past week, expect a little retracement. Be ready to buy the equities when they move back up to break the current highs. September could very well be a down month, and that is a good thing because when the buying does resume, the entries will be that much sweeter.
I always have expectations. Pay attention to the ATR (Average True Range). In any time frame and any market, this will be the leading indicator to guide your profits, stops and epxectations. Watch for the “Yo-Yo Bars” on both the log and short sides for hints that the market is having a difficult time following through. These are some key basics I teach my Mentorship students as well as students of the Power Price Action DVD Course.
The chart below shows the price action of the weekly candles yo-yoing just prior to the drop. The term “Yo-Yo Bars” is one I’ve used for years to describe the repeated attempts and failures of a price bar to fully form on its way towards a goal. When multiple instances of this action occur, play close attention. The chart below depicts this exact scenario playing out. Now that the market is at new highs, or at least testing the current highs, a good sign to watch for would be these Yo-Yo Bars once again proving that price is trying and failing to move higher. Whether or not this will happen again I cannot say. However, once three, four or five candles begin to demonstrate the Yo-Yo Effect, you can expect a pullback to occur. These are visiual signs that I like to use as proof to show me where price may be headed. Regardless of the type of chart used (one minute, weekly, etc.), this action works the same way. If the pullback occurs (let’s wait for it to happen), the buying opportunity will present itself to close out the year. Stay tuned!
We stand by our products. If we see a setup occurring (and know there’s a good chance to make money), we take the trade! This occurs during live training sessions, as seen in today’s webinar for first-time Atlas Line customers.
This trade occurred as a result of the Atlas Line Dbl Bar Short signal 1213.75, reaching our profit target at 1211.75. In case you don’t know what this means, the Atlas Line tells you to go either Short or Long at a specific price. Advanced warning lets you place your order in time to make profit. The types of stops and where to place profit targets are covered in the included live training.
You might not be aware that when you purchase a Day Trade to Win trading course, a free live lesson is included. Day trading coach John Paul teaches each session personally, to make sure you fully understand how to use the software and/or understand the course, whether you’re trading the E-mini, currencies or other markets.
Here you can see John Paul trading 10 contracts live in the Emini S&P. This is a quick, to the point video, so John doesn’t mention right away that he’s using the Power Price Action strategy as taught in the four DVD course. The trade he takes shortly after 11:00 a.m. today is worth 1.5 points, or six ticks of profit, equivalent to $750 when trading ten contracts. Not all traders have 10 contracts (or prefer to trade with this amount), but this profit scales up/down accordingly. In fact, John recommends starting off with simulated trading, then moving upwards in the contract count once comfortable with the method. Needless to say, the trade quickly turns in his favor as indicated by NinjaTrader’s “order filled” chime. John’s busy mentorship schedule doesn’t always allow time to trade the morning session like he prefers, but he saw this setup while teaching and decided to record the trade. The four DVDs, color training workbook and eight weeks of training will confirm your understanding of this proprietary method, including the three stop types and a boatload of other tips for trading futures, currencies and (dare we say) forex.
What happened today? the market was asleep then BOOM! E-mini Trading is back or will it be short lived? No one knows, but one thing is for sure if a trader learns day trading correctly then regardless of which Futures Market traded, profits can be consistently made. The tools needed, well not much here when trading price action, but a good coach and trading mentor is key to cut down on costly mistakes that do and will occur. Today I’ve attached the Atlas Line to demonstrate how early in the day a price action tool caught the entire day’s move. Don’t expect every day to be like this, but they do happen and you should be there to catch them!
If you’re from the United States (like us), you’re probably aware that Monday is Memorial Day, a federal holiday. Considered the unofficial start of the spring / summer vacation season (while commemorating fallen military service personnel), Memorial Day is always the last Monday of May. Every year, millions of Americans look forward to this three-day weekend. The lucky ones are also able to take off Friday before (today). As traders, we are somewhat dependent upon these lucky individuals who are normally trading with big money, creating volatility in the markets.
Whenever you encounter a trading day before a major U.S. holiday (like today), you can expect to see relatively low volatility for Emini trading. For example, today’s price action trading was bound within a range. Traders collectively decided on the highs and lows of the day, making the same mistakes and assumptions. Days with better price action / volatility are not range-bound. Instead, they show more of a gradual slope in the rise and fall of price instead of the zig-zag choppiness and periods of flat price action. This same behavior occurs on all U.S. based markets, having a great affect on all of futures trading.
Using the Atlas Line®, it’s still possible to make money on days like today (ES – May 27, 2011)
In the chart above, we purposely removed all of the text pointing out the profitable Atlas Line trades so you can see the price action. You can see how the Atlas Line was right on the money calling out the Long Trades and the Short Trades despite the relatively “flat” trading that was offered. If you’re not using a trading tool like the Atlas Line or one of our day trading courses other price action trading systems, then it’s best not to trade on days like today.
If you’re still going to attempt to trade anyway, at least try to stick with the morning session. The morning has traditionally offered the most consistent movement. Some days are really cut out do be traded ONLY the morning session. We refer to these days has “half-day trading.” A day like today offers some good morning trades and no reason to stay in to subject yourself to losses later in the day. Take advantage of the markets and give yourself an early start to the holiday weekend!
How to set up your charts for optimal price action results
Common price patterns and how to use them
Why it’s never a good idea to use indicators
How to enter trades and fill orders more consistently
How to take advantage of mistakes other traders make (and their common trading behavior)
…And much more
While this webinar doesn’t show the unique methods taught in the full Power Price Action day trading course, there’s still a ton of valuable information. To learn day trading properly using the Power Price Action method, you can visit the Mentorship Program page (it’s included) or the Power Price Action website.
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.
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