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