There was an FOMC meeting today. These news events can have a real impact on trading. For instance, in anticipation of today’s FOMC interest rate news, markets may behave differently. And right when the announcement/news is released, the expectation is the market will react, causing a sudden spike in volatility. We recommend avoiding volatile periods. Our free news calendar will tell you when these scheduled occur so you can prepare ahead of time.
[embedyt] https://www.youtube.com/watch?v=CiV7P66lKQc[/embedyt]>> Get the Trade Scalper Signals <<
So, what did today’s trading look like? Prior to the afternoon FOMC meeting, we saw many opportunities with the Trade Scalper, Atlas Line, Blueprint, etc. John Paul circles a number of great Trade Scalper signals. You also join him with a Trade Scalper trade in progress based on one of those short signals.
Are we going to use a profit target and stop loss that we determined earlier in the morning, yesterday, or some time in the past? No; we don’t use fixed values. We use a dynamic approach. We use the ATR (Average True Range) to decide what the profit target and stop loss should be. We believe this keeps trading more reasonable than using stops that are too tight/conservative and too large/overly risky. Yes, we teach trailing stops as well.
This is all price action trading. That means we use price movement and timing as the primary means of taking action. Here we saw back-to-back short signals based on price action. In this instance, four to five candles is the maximum to hold the position. This trade was a +2.5 point winner, +10 ticks, or $125 using 1 contract. If using 5 contracts, that’s $625. Keep in mind, these dollar amounts do not include any deduction for broker fees and other such things.
John Paul likes to use three to five contracts per trade, follow the rules for the trading method(s) in use, get in, get out, and stop for the day if satisfied. If this sounds like the way you want to trade, check out the Accelerated Mentorship Program.
