Trading With an Edge Against All Odds

Nov. 13, 2019 Trading Coach Comment

Have you been keeping up with all of our new trading videos? Here’s another day showing Atlas Line and ATO 2 signals on the E-mini S&P 500 (ES). Also, you’ll see the Trade Scalper operating on a “2 range” chart. Jumping right into the video, you’ll see John Paul is in a trade/position worth three points.

The earlier trade was a losing short trade. You can see how that unfolded in real-time where the future is unknown. We often consider later winning trades a form of recovery, though there is no guarantee they will occur. When you use the ATO 2 and the Trade Scalper, you will get more signals are more chances for recovery. That said, bad days can and will occur, so if you experience losses early, again, don’t assume you will always make up the difference later via “revenge trading.” Trading is about consistency over time and that’s the goal. To us, two losses often signal a time to analyze the current day and reconsider further trading.

At around 3:00, take a look at the Trade Scalper. John Paul was waiting for the next signal to occur across multiple systems. Compare our various trading systems to see what works best for you. If you want it all, consider our eight-week Group Mentorship Program that begins tomorrow, November 14, 2019. Reserve your seat while there’s still time!

What If You Traded Like This? Atlas Line + ATO 2

Nov. 12, 2019 Trading Coach Comment

Here’s a look at the Atlas Line and ATO 2 in a live trading environment. The first signal for the E-mini S&P 500 (ES) that appears is an Atlas Line Long signal at the close of the 9:55 a.m. candle when the price was at 3094.5. This is a long entry because it is the second close above the Atlas Line (the dashed diagonal line below the price candles).

You can see how the price is plotting in real-time, or “live” as we call it. We’re hoping the following candle or candles will exceed the profit target. The profit target is based on the ATR (Average True Range) using a Period value of 4. At the time this trade was placed, the ATR value was around 2 points, so that’s the profit target we used. In other words, we let current market conditions dictate the amount of profit we seek. A less volatile market equals lower profit potential, so we inversely account for this as well.

See the news indicator in the upper-left of the chart? That’s a free trading download we have on this website. It’s a good way to keep track of upcoming news events. Generally, you want to avoid big news events as they can create sudden volatility. By the way, if you enroll in our eight-week Mentorship Program, you can get the version that excludes the advertisement.

Keep watching the video because at 2:20, John Paul shares ATO 2 performance with a confirming Long signal.

Atlas Line & ATO 2 Recent Trades: Signal Software

Nov. 8, 2019 Trading Coach Comment

In the video below, take a look at the recent Atlas Line and ATO 2 performance. John Paul applies the two price action indicators to a 5-min E-mini S&P 500 chart. He sees the signals for the first day for the day along with all of the other people attending the live webinar.

Right away, you can see the Atlas Line signal appears to be a winner. Price moved up after the Atlas Line’s Long signal was produced. We also had additional Strength trades confirming the anticipated market direction. Do you see the small “S” signals symbolizing the Strength trades? We use the ATR (Average True Range) to determine the profit target. In this case, the ATR was a little above two points (using a Period setting of 4). We round down the ATR, so the profit target there was 2 points. Did you know you can set the Atlas Line to produce trades based on various market open sessions? Yes, you can cause the signals to be based on the European open, for example. This is also possible for the ATO 2.

If you’re more interested in the ATO 2, jump to the 5:00 mark and review. Like the Atlas Line, the ATO 2 will produce signals soon after the market opens. However, the signals are based on entirely different principles. If you’ve watched some of our videos, you can see how both systems occasionally “agree” on the anticipated market direction. We believe using multiple systems to confirm trades is a great technique. Are you using just one trading system? See what we have to offer. The best way to get and learn everything we have is our eight-week Mentorship Program that begins Nov. 14, 2019. Register soon because we have students inquiring daily!

Webinar Recording: Learn the ABC Price Action Method

Nov. 7, 2019 Trading Coach 2 Comments

Whatever market you’re looking at: E-mini, NASDAQ, currencies, etc., each exhibits general patterns of activity throughout the day. You will notice there are periods of fast and slow activity that occur around similar times every day. In some cases, you can divide the day into three segments: A, B, and C. In the following video, you’ll learn how to recognize the ABC Method or ABC Pattern. When there’s a breakout after a segment, you can place a trade.

With the E-mini, you can divide the day into three segments beginning at 9:30 a.m. US/Eastern. We start at 9:30 a.m. because that is the traditional time the market is considered to open. From 9:30 a.m. to noon, that is segment A. From noon to 2:30 p.m., that is segment B. From 2:30 p.m. to 4 p.m., that is segment C. Note segment C is shorter in duration than the others. Look for two consecutive candles closing above or below each segment. That is the entry point.

In the video, you will see the ABC Software in use for NinjaTrader. The software plots the entry points easily. Currently, you can get the software by purchasing the ATO 2 course and software or enrolling in our eight-week Mentorship Program.

Video: Trade Scalper Live Signals & Order Types

Oct. 15, 2019 Trading Coach Comment

Click here to purchase access to the Trade Scalper course and software

Here’s a look at recent and real-time Trade Scalper signals. Note that the full version of the Trade Scalper software that you receive as a customer draws a number of lines on your chart. These lines help guide your trading. What are you are seeing in the video is the simplified version for demonstration purposes, although the signals are the same for all versions.

In the video, John Paul covers using the Trade Scalper as signals appear, trade management, entry, and exit. Different order types can be used: stop orders, limit orders, stop with limit orders, and market orders. Do you know the differences between them? Don’t worry because John Paul breaks down each order type. For the Trade Scalper method, you will need to use specific order types because of the goal: many small winning trades.

Did you know that a training video is included with purchase? Yes, you’ll learn how to trade the method exactly as intended.

Also, you will get a copy of the Trade Scalper during the eight-week Mentorship Program. Mentorship is the best and most cost-effective way to learn all of our techniques. We have set aside some of them especially for Mentorship students. The next class begins Oct. 22, 2019, so enroll today to save your seat!

Two Nice Long Signals Start Off This Live Webinar

Oct. 11, 2019 Trading Coach Comment

Get the Atlas Line, ATO 2, or Trade Scalper today!

Right away, we can see the ATO 2 and Atlas Line software are in agreement the expected price direction will be long. This is why the long (or buy) signal is generated. When we see two or more systems confirming the same, we see this as a very positive sign. Did both trades work out? Keep watching. He shows what happened at about the 18:00 mark.

From there, John Paul recaps some market activity that occurred earlier in the year. This is to determine whether 2019 will be a “January Effect” year. The rule for this is as follows. If price closed higher than it opened for the month of January, 2019, one may expect the end of the year to close higher than January’s close. According to John Paul, this activity is worth paying attention to because of a decent degree of historical accuracy.

John Paul Recaps Atlas Line Short & Long Trades

Oct. 9, 2019 Trading Coach Comment

Click here for the Atlas Line page where you can purchase.

Here’s a review of the Atlas Line signals that occurred Oct. 8, 2019. If you were using the Atlas Line with the same settings, you would see the same signals. Note the nice Short trade that occurred early on and another that occurred around 11:30 a.m. ET. When there are two closing bars above or below, you’ll get a Long or Short signal, respectively. There was a Long signal later in the day that John Paul covers around 3:40 in the video.

We try to take an objective approach. We use the ATR (Average True Range) to determine the profit target and stop loss. It’s important to have stops in place to protect yourself. We teach you what to use in the training video. The Atlas Line uses multiple stop loss strategies. The S and P signals are for Strength and Pullback trades. There are specific rules that cover those signals. You can enable or disable those signals if you don’t want to see them. The Atlas-B trades are for “bounce” trades. These are optional as well. Remember, not every trade will be a winner of course! We happily point that out in this video and elsewhere.

How to day trade using price action: Day trading for beginners episode 15: Day Trade Wyckoff Springs

Sep. 12, 2019 Trading Coach Comment

Welcome to Day Trade To Win.com

Today we’re going to continue where we left off in the last episode. I showed you how the markets are manipulated to break a support line in order to have you scared out of your position. How the market then immediately reverses and starts a new trend in the opposite direction – i.e. in the direction that you and many traders thought the market would go – but everyone got scared out out their positions when the market broke the support line. 

This is what Wyckoff traders would call a spring! The market is squeezed together like a spring, and when the tension is released the market shoots right up – just like a spring would do.

I have heard some pretty experienced price action day traders say that trading these springs is one of the best ways to trade the markets using price action only. And I definitely agree, and if you look at the chart I guess you can see why. After the market has broken through the support, it usually moves up explosively and the trader who bought down here makes a lot of money in no time.

Unfortunately, it is very difficult to trade these setups live, because it goes against everything you have learned about the markets and what’s supposed to happen when the markets break a support line – you will definitely think that the market will move down. So it also goes against your emotions, beliefs and rationale.

So my suggestion for how you can approach this instead is to let the spring and the subsequent market action play itself out – let the market break the low, let it reverse and start moving upwards. Don’t rush into things. Wait for the first pullback. That is when you should enter your position. 

If this pullback holds above the previous low, the spring  – then it will be a great time to enter your position. If the pullback is on lower volume and smaller candles than the up move then, just like we discussed previously, then that is a very good indication that the line of least resistance is UP – and you can go long!

So, let the market break the low, wait for it to move upwards, wait for the next pullback and enter your position.

You can also have the opposite situation for a short trade. Wait for the market to break the high, let it reverse and move down. Wait for the bear rally on lower volume and smaller candles and enter your trade. The bear rally should not reach as far down as the initial upthrust.

So that’s it. That a good price action day trading strategy. It is difficult to trade the spring or the upthrust, but if you wait for the first move and the pullback then it becomes much easier to trade this.

And hey! Just a few more days and the day trading mentorship program will start. If you’re serious about becoming a day trader, go to daytradetowin.com and sign up for the 8-week mentorship program where you’ll learn great day trading strategies and be coached by a pro trader. Get your free day trading simulator and live real-time data feed for practicing – at daytradetowin.com 

Until next time, good trading!

How to day trade using price action: Day trading for beginners episode 14: Fear, greed, hope – day trading emotions

Sep. 4, 2019 Trading Coach Comment

Hey, welcome to Day Trade To Win!

Last week we spoke about day trading psychology or market psychology. When the markets make a new high, many traders want to jump on the bandwagon because they are afraid of missing out on a big stock move. And there are also other day trading emotions involved, like greed and hope. Any emotion that a day trader feels will most likely be detrimental to his or her trading. 

Day traders are greedy people, no doubt about that. And when the market makes new highs, day traders will be hoping that the market will continue upwards and they will make a lot of money day trading that move.

But if we dwell a little bit further into trading psychology and emotions in trading we can continue where we left off in the last episode when we discussed the day trading emotion of FEAR. There are two ways that the emotion of fear will affect your day trading. The first one, the fear of missing out on big profits, was discussed in the last episode. Another way that fear will affect your day trading is the fear of losing money. I think all of us have experienced this quite often.

This is something that the market makers and big players will use to their advantage. They will take advantage of you by instilling fear. Let me explain this with an example:

Let’s say that you and a bunch of other traders and investors own a stock that the big player, “Mr. Market”, wants to own. Mr. Market, by the way, is the term I like to use for the combined big players in the market; hedge funds, trading firms, mutual funds, etc.

So Mr. Market has already accumulated a very big holding of stock, and he is expecting the markets to move up – and he still wants to buy more shares. But there is not an endless supply available for him, and You and the rest of the traders who own the stock that Mr. Market wants to buy, you don’t want to sell. Because, you also expect, or hope, that the stock price will increase and that you will make a lot of money on it. 

But, as usual in trading, you can never be certain that the stock price is going to increase. 

So what Mr. Market, the composite big player in the market, will do is to manipulate the market in order to fake a down move or a crash, which will scare a lot of traders, like yourself, into selling.

The way this is done is as follows; the market is in a sideways channel – I actually already explained this in more detail in an earlier episode, but how the big players accumulate their holdings, is they decide a price level where the stock is cheap in their eyes, they start buying everything they can get their hands on at that price level. The market starts moving upwards because of all the demand, and the lack of available supply, that this buying is causing. 

By buying everything there is to be bought at that price level when the prices are getting too high, then Mr. Market starts selling a small part of all the shares or contracts he bought. This will cause the price to move back down to more affordable levels again – because there is not as much demand when Mr. Market is not accumulating, and there is actually supply coming into the market.

When there is no more available shares or contracts at that price level, at the levels of accumulation, and Mr. Market still wants to buy more before he is satisfied – Mr. Market would then do a kind of market manipulation – completely legal – he would start selling a considerable part of his holdings. And this is done to “shake out” some day traders, forcing them to sell. Some day traders would call this “stop hunting” as a lot of this selling is going to happen because of day traders’ stops getting hit.

While many other day traders will think that the prices are starting to look cheap, and want to buy more – a whole lot more traders that already own the stock will start getting scared – they fear that their opinion on the stock or commodity was actually wrong and that the market is going to crash instead.

It’s easy to see, all of this is easy to understand this if we look at a chart – the stock is in a trading range, a sideways consolidation. The big players accumulate their holdings buying on the up moves, selling part of their holding on the down moves – but on average they are accumulating as much as possible. Everybody expects the market to move up and break out of the trading range to the upside, but then the big players sell a big chunk of stock and the market actually breaks the support because of all the supply, caused by the artificial selling by the big players.

A lot of traders would have stop-loss orders placed below support, so they would sell as these levels get hit. And a lot of traders think the market is crashing so they would sell out of fear. Fear of losing money.

And what happens then when all these day traders are getting scared and sell their stocks? Well, Mr. Market buys everything that these scared traders are selling. And Mr. Market actually gets to buy all those shares at a discount, at lower prices than the original level where they started accumulating their holdings.

And then the market moves right back inside the trading range, and breaks through the resistance and continues upwards. Mr. Market cashes in, and you are left wondering what the heck just happened.

But it is very difficult to day trade without any emotions at all. The best option to reduce emotional trading is to use automated day trading signals, or use a completely automated trading strategy with trading algorithms. At daytradetowin.com we offer software that produces automatic trading signals, so if you need a day trading strategy make sure you check it out. If you’re serious about becoming a professional day trader we recommend that you get a day trading coach or mentor. In our day trading mentorship program we teach 10 different day trading strategies so there is something for everyone. The next mentorship class starts soon, so go to https://daytradetowin.com/day-trading-mentorship-coach and register now while there are seats left.

Thanks for watching, if you like this series of videos – please give us the thumbs up and subscribe to our Youtube channel and please share the videos in your social networks and channels.

Until next time, good trading!

How to day trade using price action: Day trading for beginners episode 13: New Highs – how to trade

Aug. 20, 2019 Trading Coach Comment

Hey, welcome to daytradetowin.com

Today we’re going to take a look at an important thing in trading, and we’ll also touch the topic of day trading psychology. There will be episodes covering day trading psychology in detail later on, but I wanted to cover a topic that really emcompasses both trading psychology and price action. If you want to learn more about trading psychology make sure you subscribe to our channel as we will cover that in coming videos.

But today we’re going to take a look at “new highs”, and the market psychology or trading psychology that goes together with a new high in the market.

First of all “new highs”, or “new lows” for that matter, are always significant. Whenever the market makes a new high Everybody is talking about it. If you tune in to CNBC, Bloomberg or any tv channel covering the markets you will hear about it. If you read day trading blogs you will hear about it. If you participate in trading forums or discussion boards you will hear about it. 

The S&P 500 just made a new high, the NASDAQ or the Dow just made a new high. Apple or Facebook made a new high. Or Google made a new high….

The same applies when the market is in bearish mode and makes new lows, or some popular stock is crashing and makes a new low. You will hear about it.

And when we hear about these things, when everyone’s talking about it – for sure there will be a lot of interest in trading that, and a lot of trading going to happen at these levels.

So, what are new highs really. Sometimes, during very bullish periods the market makes new highs almost every single day – and although that is something that leads to a lot of interest and a lot of demand – hearing about the market making new highs every day, and does not seem to stop. It is going to the moon.  

But the most important new high is when the market has been in an uptrend, then pulled back and then breaks out of the previous high. That’s also the easiest time to be trading these situations.

Same thing in a down trend, the market rallies and then reverses and starts moving downward again breaking down through the previous low.

Now, all of this is usually more significant if you’re swing trading. Because swing traders are looking at the same time frame as the talking heads on TV and the general public. We have a lot of traders who both swing trade and day trade and I do recommend that because you get a whole new way to diversify and spread out your risk. But for day traders, any time period when there is a lot of interest in the market will bring more volatility, more liquidity and that’s good for day trading.

But you can and should be looking for New Highs in day trading as well, and new highs are usually found when the stock breaks out through resistance or support. The stronger support or resistance the more important will the New High or New Low be. 

We covered this in an earlier episode. So what you will see is the market breaking through, and volume picks up – more and more traders notice the break out – the new high – and together push the security upwards, through, and away from the resistance because of all the demand that enters the market. 

Everybody wants a piece of the action – that’s where the trading psychology comes into play. When you see a stock, currency or commodity make a new high – you see all the trading, all the volatility – then more and more traders get interested in trading that particular instrument. 

Traders don’t want to miss out. Traders fear missing out on a big move. That’s what happens, that’s how the market psychology works in this case. More and more traders will start trading emotionally, they feel they have to get in, they have to trade, although the market already made a big move. 

Then, once everybody who wants to buy have done so, there will be a pullback on lower volume. Why? Because there is not as much demand anymore. More and more traders or scalpers who bought at the top after the breakout, these guys will start selling because the market seems to head downwards and they’re not making any profit on their trades, and the reaction causes short sellers to enter the market. So less traders are buying and more traders are selling or selling short.

This is something we also covered before. This is a good time for you to enter your position: There was a break out and a big rally, then the market pulls back and again continues its move upwards. When that happens again, more and more traders will join in on the up move. If you buy when the market reacts and pulls back, then you will have no trouble getting in at a good price – you are not competing with a bunch of other traders for the best price.

We’ve had a lot of interest in our day trading mentorship program this month, so we have a new mentorship group starting soon. There are a few seats left, so go to DayTradeToWin.com to find the dates and reserve your seat. We have 10 different day trading strategies that we teach in the program. 

We also have individual training courses, strategies and software available for you so you can get a head start in day trading.

More videos are coming, so make sure you subscribe you our day trading YouTube channel and please share with your network. Until next time, good trading.

All trades should be considered hypothetical. No guarantees or claims of performance are offered. Past performance is not indicative of future results. Day trading is risky and may cause substantial financial loss. Individual performance may vary, as trading subjects your finances to new, unexpected market conditions. You are responsible for executing trades. Before trading, consult with a licensed broker and a financial expert see if day trading is suitable for you.