Hello traders! Today, let’s dive into an exciting session using the Sonic Trading System by Day Trade to Win. This system is designed to give you everything you need for successful trading: entry points, targets, and stops. But while the system offers great guidance, managing your trades according to the rules is just as crucial.
Let’s break down some key takeaways from today’s trades.
Missing Trades in Day Trading
In today’s fast-paced markets, missing a trade can be frustrating. For example, I was trying to enter at 5788 quarter but couldn’t get filled. At this point, the market had already hit my target. Should you hold on and hope to still enter? Absolutely not.
If you miss a trade because the market moves too fast, it’s better to cancel the order and look for the next opportunity. Remember, the market offers plenty of opportunities, especially with a robust system like Sonic.
Adjusting Targets and Stops Correctly
In a perfect setup, I entered long at 5790, got the best price, and immediately adjusted my target and stop. Sonic provides clear guidelines, but you need to stay on top of adjustments. For instance, if the market hits your target or stop, don’t take the same trade again.
Re-entering is a common mistake among traders. Follow the rules, take your profit, and wait for the next opportunity.
Dealing with Market Delays
In today’s session, I was waiting for my target of 5791 to be hit. When trading volatile markets like the mini S&P or Nasdaq, timing is critical.
You don’t want to be in a trade for too long. In this case, patience paid off, but it’s essential to avoid holding on to trades for an hour or more unless the market conditions justify it.
The Power of Price Action and ATR
Sonic’s system uses the Average True Range (ATR) to define targets. In today’s example, I aimed for a target of less than one times the ATR to secure a quick profit. Holding out for 3-4 times the ATR can be risky, as market conditions may change.
The key is to take advantage of favorable price action and exit quickly.
Common Trader Questions – Avoiding Mistakes
One question that comes up often in our live trading room is whether to take the same trade twice. The answer is a firm no. Once a trade hits the target or stop, it’s finished. Re-entering increases your risk and is generally not advisable.
If you missed a target due to a delayed adjustment, it’s better to exit the trade with minimal loss or break-even, rather than holding on and hoping for the market to turn around.
Get Started with Day Trade to Win
If you’re new to trading or want to enhance your skills, you can get a free member account at Day Trade to Win. It includes access to our live trading room, the ABC method, and software for Ninja Trader or TradingView.
The free membership is a great way to learn how to trade using price action and avoid the pitfalls of relying on conventional indicators.
Conclusion
Day trading requires discipline and the right tools. The Sonic Trading System provides clear signals, but it’s up to you to manage each trade with precision. Whether it’s adjusting your stop or target, or avoiding re-entering the same trade, staying on top of these elements will set you up for success. Happy trading!
