in DayTradeToWin, Price action Trading |

See What Happened With This Student’s Real-time Scalping Trade

The support team at DayTradeToWin.com occasionally receives charts and videos from students/clients who use the ATO 2, Trade Scalper, Atlas Line, and other price action trading methods. When such media is shared, it’s easy to point out any mistakes being made by the trader. This is what happened here – a video from a student was provided. For the benefit of all, John Paul, founder of DayTradeToWin, provided commentary and described what he would have done differently.

The highlight of the video occurs around 1:43. That’s where the student places a real-time Long (buy) order based on the advisement of the Trade Scalper signal software. The historical data shows that multiple trades can occur intraday. In most cases, you won’t be holding a trade more than four or five candles. Remember, holding onto a trade longer only guarantees risk. The goal is to minimize risk and focus on signals that have the greatest chance of providing profit.

Of course, no trading method can guarantee profits. If that was the case, the trading method would have been made secret with its proprietors silenced, for they have figured out how to foresee the future, some pattern in nature, or mass scheme to make the data seem random. What a novel that would be!

Back on topic, the idea is to make the futures markets accessible to beginner traders. DayTradeToWin provides throughou details and multiple how-to tutorials/guides on almost every aspect of NinjaTrader. That’s why they’re a great resource for all experience levels. There are many veteran traders who switch over to NinjaTrader and can’t figure out the platform. After an hour-long tutorial video from DayTradeToWin, they’re up and running with a basic understand.

Is It Possible to Have a Career as a Day Trader?

There are so many day trading systems out there claiming to be the best. If you do a bit of research, you may see some of these organizations making big claims or promises have only been around for a short period of time – nowhere near the 10+ years DayTradeToWin.com has. If you take a look at all the new trading videos on YouTube, you’ve probably seen many rags to riches stories. Is it really that simple? Be careful to not subscribe to a personality; the methods have to work. Period. Do these other people have videos going back 10 years demonstrating consistency? Very few, if any do, with the exception of DaytradeToWin.

…Here’s yet another demonstration of success. Keep in mind, trading should only be done with designated risk capital; not one’s rent money, grocery money, child support money, etc. If you’re in that desperate of a situation, we sincerely wish you the best with a more conventional form of employment or other means of fortune/sustenance.

Even if you have stacks of cash serving as improvised furniture because you don’t trust the banks and physically want to see your money every day (a ridiculous and hopefully humorous picture that hopefully drives home the point), you should still practice first. NinjaTrader and other platforms have really honed in on creating a practice environment that replicates the trading experience closely. In fact, simulated trades in Ninja sometimes aren’t filled – just like the real thing!

If you were to purchase the Trade Scalper and Atlas Line, the configuration of each is relatively straightforward. You’ll have signals just like those in the video above: short, long, etc. It’s up to you to place the trade. The systems don’t go as far as trading for you. Why’s that? Because it’s better if you’re in charge rather then entrusting some code to not sabotage your trading account. If you look hard enough, you can probably find some horror stories of traders who had too many orders placed otherwise subjected themselves to too much risk because of a robot’s algorithm. DayTradeToWin.com has always preferred to put that power in your hands, the human trader, who may have some discretion though the methods/rules are objective.

Best Trading Conditions: $100+ Per Trade Possible?

Market conditions don’t always allow for $100+ per trade. The 2020 Election and whatever else impacts the markets has increased the volatility. Does that mean you should abandon rationality to make some big money? Of course not. In fact, we’ve been saying for a while now that it’s best to use a 1-Minute chart instead of a 5-Minute chart as well as continue use of the ATR (Average True Range) to determine tradeability.

The recent January Effect video shows there are many great long trades. But what about those inevitable intraday price drops? What do you do with those? As seen in this video, the Atlas Line and Trade Scalper day trading signal systems have been effective in finding winning opportunities…

The real-time trade was worth +2.25 points. That’s nine ticks at $12.50 each, thus $112.50 with one contract. That may not seem like much, but if you have multiple winning moves per day and can afford to trade multiple contracts, there may be enough profit for you with commission covered. Let that be no indication of guaranteed performance. We have to state everything is hypothetical to comply with regulations.

NinjaTrader was designed with the intention of replicating conditions as closely as possible to live trading. In fact, when sim trading, you won’t be filled every time – just like in live trading. When practicing, you may want to limit the simulator account to less than the original amount of $100,000. Maybe drop that to something more reasonable like $5,000. This way, you can use the Trade Performance tool to get a sense of how it goes with the Sim101 account over a period of time. If that works for you consistently enough, consider trading with a live account and start off slow and carefully.

How to Become a Winning Trader: A Perspective Shift

Below, you’ll find an image that may help you as a person and as a trader.

Ever heard the expression, “You are what you eat?”

Well, there is some truth in that, as one’s diet can affect one’s temperment.

Let’s go beyond that though. Upon further consideration, the following may be surprisingly simple and complex at the time: “You are what you think.”

A person who maintains a negative outlook on himself and the world will probably be negative. Inversely, a positive-thought person will likely appear as positive.

Is there more to this? Yes. The next time you go into a bookstore, walk through the sections pertaining to quantum physics, metaphysics, ancient cultures, and more. Upon research and contemplation, you may be struck with the idea, “Perhaps there is something to all this consciousness affecting reality stuff.”

…Though that may be a start for some, the truth-seeking is far from over.

There is a saying that goes something like, both before and after enlightenment, one must continue chopping wood. In other words, expect to continue you daily occupation regardless of what may well be a divine experience. Thus, unless you renounce materialism and figure out how to go live in the mountains, it is likely you would still endeavor to be a day trader.

Of course, a day trader is a human being who faces day-to-day human challenges. Sometimes, a shift in perspective helps. In that spirit, we share with you the following image. May it help you on your journey!

Winning vs. Losing Trading Self-Help Advice

Download the above self-help day trading PDF on the DayTradeToWin.com blog

Beginner Day Trading Methods: How to Place Orders

Are you 100% sure that you’re using the best types of orders for your style of day trading? For example, if you’re scalping for a few ticks, you’ll want to use an order type that has decreased slippage because every tick is important. Slippage, extra risk, timing, etc. are all factors one must consider when using a specific order type. Many day trading platforms offer multiple order types, such as stop-limit, market, and MIT. Each order type has pros and cons.

This video is a detailed 45-minute presentation. You’ll see descriptions along with examples in the SuperDOM. Yes, you can use Chart Trader for order placements, but we prefer the more robust and professional tool for the job. However, a clear distinction must be made: Chart Trader also consists of the red profit target and green stop loss lines that appear on the chart. Therefore, Chart Trader must be enabled to see these lines, although the panel for order placement is not necessary. This setting, “Chart Trader (Hidden)”, is preferred. By the way, the Dynamic SuperDOM is preferred because the Static SuperDOM involves extra costs added due to its use and patent/licensing agreements with a third-party.

Throughout, you’ll see Short and Long signals from the Trade Scalper and Atlas Line. These are price action trading methods described in more detail at DayTradeToWin.com.

One common mistake when using a SuperDOM is not selecting the Instrument (aka market) or a mismatch between the selected instrument in the SuperDOM vs. the chart. Make sure they are one and the same. The SuperDOM’s display of the instrument’s real-time price (in yellow) should match the real-time price of the chart. Yes, if you want to observe and trade multple markets, have multiple charts with DOMs for the respective markets.

Signals for Futures Traders: Price Action E-mini on NinjaTrader

Two important lessons we see traders miss time and time again:

  1. Stick to the rules you’re taught. If you’ve found a way to improve, by all means, do that, but try not to lose the foundational aspect of what’s been tried and true for years.
  2. Avoid a fixed approach to profit targets and stops. If you have “big money” in mind and only trade this way, you will expect too much when the market is too slow. Rather, it’s better to adapt based on what the market can reasonably provide at a given moment. For this, we use the ATR (Average True Range) with a Period value of 4 (last four bars).

Regarding #1 above, this video clearly demonstrates why one should avoid fear and remember training. If you closed the trade too early, that would have been a good-sized loss. If you waited and respected the rules, you would have seen success, as John Paul did here.

We should add a third main lesson, which is this:

3. If possible, use one or more trading methods to confirm the direction or types of trades you’re taking. Here, the Atlas Line shows price is below the line, so stick with short trades. When the Trade Scalper provides short signals beneath the Atlas Line (dashed line), we have confirmation that selling the market is better. The Atlas Line’s short Strength and Pullback trades, also short while under the line, were good to take as well.

To learn more about day trading and price action techniques, visit the DayTradeToWin.com website. There is a new Mentorship class that begins Nov. 2. Enroll early to download and install signal software like what you see above.

Big Buying/Long Opportunities Predicted for End of 2020

Day by day, we move closer to 2020’s conclusion. DayTradeToWin’s John Paul, for many years, has used a technique called the January Effect to determine whether or not the year will be an “up year.” Determining whether 2020 will be an up year is determined fairly easily.

In preparation, it’s best to switch to an ES (E-mini S&P 500) daily chart. After doing so, scroll back in time so January 2020 is in full view. Compare price at the beginning of the month with the end of the month. Did price close higher at the end of the month? If so, the January Effect says the year, meaning by the end of December 2020, price will be higher than in January. This was the case for 2020, so we can say the January Effect says that 2020 will be an up year.

The January Effect is a predictive technique. There are no guarantees of its accuracy. John Paul, for many years, has vouched for the January Effects accuracy, however. As with any trading method, strategy, technique, etc. use your own discretion and read disclaimers on this day trading site and any other.

Well, what’s the use of an “up hear?” Well, my friend, if you have a strong indication price will move up during the year, could you not look for buying (long) opportunities? Indeed and that’s what’s described in the video above. In fact, John Paul relays an exact method for identify these long opportunities. According to him, they occur after price has dropped and regained at least 50% of its prior high. Once the 50% value is surpassed with requisite closing bars/candles, that is the entry opportunity.

Wait a second, are you talking about holding a position through multiple days? Exactly – this is not intraday trading as you have commonly seen associated with DayTradeToWin’s other techniques. This free trading strategy focuses on much larger profits over longer periods of time. The common term is “swing trading.” Generally, brokers require a larger account size to allow overnight trading.

We hope you find this compelling, if not useful!

Free Trading System to Learn – Works With Many Platforms

Are the day trading markets your personal ATM? Far from it! Trading always involves risk, so make sure you have set aside the requisite risk capital. We now endeavor to share with you a trading method of intrigue for your testing and potential use…

See how it works? The instrument/market in use is the E-mini S&P 500. YDivide the day into three portions: A, B, and C. Part A begins at 9:30 a.m. US/Eastern and is 2.5 hours in duration, lasting until noon. No entry opportunities exist in part A. However, they exist in parts B and C. Each portion’sentry signal requires a breakout of either the high or low of the former. Thus, early in portion B, we would see an entry opportunity beyond the high or low range of portion A once two closing candles occur beyond A’s boundary in portion B. The same methodology applies to part C. Now, in Part C, be wary of fast moves towards the close of the market. We generally regard that period as unstable; not worth of trading.

By the way, this whole process of identify the opportunities is made easy with the ABC signal indicator. That indicator is included with purchase of either the ATO 2 course and software or the eight-week Mentorship Program. Both courses are listed and described on the DayTradeToWin.com website. Click each respective product for more information. Good trading to you!

Price Action Indicator Signals Demonstrated Live

When comparing trading systems, it’s easy to get mixed up and not know which one is best. Should you scalp and go for more trades with smaller profit targets? Or should you go for fewer but larger trades? Well, the DayTradeToWin.com Trade Scalper and Atlas Line day trading methods reflect both concepts. They can be used independently from one another or they can be used together to get the best of both worlds.

In the beginning of the video, you’ll see many Atlas Line Long signals. Price drops big right after the first Short trading signal. That looks to be a big winning trade, had you taken it. Hang on to your hat as the two next signals, both Long (buy), look to be winners as well. A short (sell) signal follows; another winner.

Now, every day won’t be like this. It’s about looking at the big picture. Day trading as a source of income is possible, but the market is not like a typical boss. Normally, when you get paid from a traditional job, the next day, your boss doesn’t reach his hand in your pocket and says, “You owe me 1/8 of what I paid you.” This is why with trading, we must look at time frames such as 30+ and 90+ days to gauge success. Of course, it is crucially important to start with practice trading (sim account) regardless of your level of wealth. NinjaTrader has this ability to generate a report indicating win rate, loss rate, and other factors that will help you gauge your performance. That’s covered in a different video.

Later in this video around 3:30, we see the other trading system in use, the Trade Scalper. A signal and trade are demonstrated in real-time. This is much like how one would experience trading for oneself, having the proper software and configuration established. This is no problem, though, because I hear the DayTradeToWin crew gladly help set up clients with the proper config to get the most out of the markets.

Price Action Day Trading Systems for Review

Let’s look at two day trading systems and see how they compare. The NinjaTrader platform is in use. The chart type is a 1-Minute E-mini S&P 500 (ES in NinjaTrader). Both techniques use price action. Price action means trading based on how price moves across the chart; e.g. various patterns, levels, etc. are recognized and reached, thus causing the next set of decisions to be made by the trading software and/or day trader.

First, we look at the Atlas Line. In the beginning of the video, the Atlas Line is represented by the blue dashed line and Atlas Short signal. The short signal appeared because the Atlas Line recognized two candles closed below its dashed line. It notifies you this occurred via the short signal text. Likewise, if we had two candles close above, a long signal would appear. See, you’re getting the hang of it already!

At the 52 second mark, we see an explanation of the Trade Scalper signal. Why is the full method not explained? Because it’s a valuable trading method. You have to purchase it from the DayTradeToWin.com website. Rest assured, when you’re using the indicator, you’ll see the same signals as everyone else with the same basic chart configuration. The included live training video, live training, etc. help ensure a complete understanding.

With scalping more than the other methods, it’s important that you place an order (trade) soon after the signal appears. If you wait around too long, price can easily move beyond where your profit target would have been and you probably don’t want to chase a missed opportunity. Instead, it’s recommended that you pre-configure profit targets and stop losses via NinjaTrader’s ATM Strategy feature. After configuring the most common values, you will be able to quickly select the best profit target and stop loss for current market conditions.