It’s 9:30 a.m. US/Eastern time. Prime time for price action trading. Anything can happen. Your strategies are locked and loaded. It’s just you and the market. Price action, and you have an exact plan regardless of what happens. You know what to look for – what candle patterns will trigger the entry, what your stop loss should be, and how to manage every aspect of the trade. Volatility is good – the ATR (Average True Range) is between two and four points. Will the market trend? Will it chop? Only time will tell, and of course, price.
If the market decides to trend, what can go wrong? Price continues to climb. You become increasingly confident. You place multiple trades. In fact, on the third market buy, you decide to increase the contract quantity. Technically, it’s higher risk, but who cares – who could blame you when conditions are this favorable? This is an example of emotional trading. Price decides it’s streak of reaching higher highs is over. A reversal happens, but you’re in long. Expecting a reversal back to the original long direction, you follow the rules and stay in. Sadly, price does what it sometimes will – it goes against you. The stop is hit. It’s a considerable loss. Were you too emotional? What could you do better? You see, even trending markets can beat the best of us.
John Paul Handles Trick Price Action Trading
The E-mini S&P is a decisive battleground. Each day at battle, there will only be one victor, you or the market. Watch the video to see how John Paul battles the E-mini.
It’s another new day. Another chance at big market wins on the E-mini S&P. As before, you’re systems are at your command. Each is a refined instrument of technical precision, analysis, and price action. The market’s volatility is tradeable. A signal appears – all systems go. You enter short. Price drops the first minute, continues for the next four. Excellent – after the first five-minute candle, you’re within three ticks of reaching the profit target. Just a little further. Suddenly, the market reverses. You have to stick to the rules. Wait it out – maybe it will turn back. No such luck. Price stops you out.
At this point, you’re skeptical of the market and want to wait for a bit. Over the next hour, you see price trade within a range/channel. Price never escapes three points in either direction. How can anyone trade this? It’s about winning the war, not the battle. Look at your performance across weeks, a months, multiple months. Be objective.