Free Trading Strategies: January Effect

One of DayTradeToWin.com’s most popular free trading strategies is the January Effect. Just look at the winning possibilities within the last few months:

  • March 2017: +18 to +40 points
  • May 2017: +18 to +30 points
  • June 2017: +17 to +24 points

Will July 2017 produce similar big winning trades? John Paul provides his prediction in the video below.

What is the January Effect? Firstly, remember there’s no such thing as an accurate trading prediction. The market activity is anyone’s guess, so trade at your own risk. Consult with a licensed broker and financial professional before considering trading, especially when holding high-risk trades for multiple days (as described in the video). John Paul believes the direction of the market for the overall year can be predicted based the market’s behavior during January of the same year. For example, because January 2017 closed higher than it opened, he believes December 2017 will also close higher. From there, it’s a matter of finding additional entry opportunities throughout the year.

How to Find Retracement Opportunities

To find those additional trades throughout the year, John Paul looks for periods of downward movement. When price retraces upward, climbing 50% back up to the previous high, that’s the January Effect entry point. How do you know where the 50% point is? Sure, you can eyeball it. John Paul prefers using NinjaTrader’s Fibonacci tool. However, he’s not using it in a typical way. For the January Effect, only values of 0%, 50%, and 100% are visible. In a previous video, we recovered configuring the tool. Free trading strategies and tools are a primary focus of DayTradeToWin.

To discover more ways to trade the E-mini and other futures and currencies, participate in the next eight-week live trading school, Group Mentorship. John Paul reserves his most powerful strategies for this all-inclusive program. Yes, all courses and software are provided plus eight weeks of live training with a pro. All lessons are recorded, so you can play them back in the future.

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