Profit Target for Trending Markets

The recent video that was published shows how the Atlas Line and January Effect can be used together to find winning long trades. We did not show how easy it can be to place these types of trades with a profit target and stop loss. That’s where this video comes in. It’s the same trade as yesterday, only John Paul explains how you could have taken the trade using the DOM. He used a regular market order soon after the signal appeared. He had an ATM Strategy preconfigured, which automatically placed the profit target and stop loss at preset values. Furthermore, Chart Trader allowed for the green profit target and red stop loss line to appear on the chart. These visuals help guide your trading.

As demonstrated in the video, trading is all about catching the big moves before they occur. Many indicators focus on complex interpretations of price behavior. They are difficult to trade because you are supposed to make a quick decision of what route to take. With the Atlas Line, you are taught how to look at the ATR (Average True Range) to calculate both your profit target and stop loss. From there, it’s trade management until your profit target or stop loss is hit. Four different stop losses are taught. If your profit target is not hit, you take whatever stop loss comes first.

Profit Target – What Happens Next?

John Paul expects more bullish trending activity to occur as we near the end of 2017. Some traders cannot afford to hold positions overnight or for multiple days. This is where the Atlas Line is useful, as it can potentially identify trends intraday, where most day traders typically do their trading. If you have the Atlas Line, January Effect, and ATO 2 all signaling “go long,” wouldn’t you feel better taking the trade? The best way to get all the courses and software is through the eight-week coaching program, Mentorship. A new Mentorship class begins November 21, 2017. All courses and software are included with lifetime licenses. To sign up and get the materials early, click here for the Mentorship page.

Trading Holidays Coming Soon in 2017

Day Trading 2018With 2017 coming to a close and holidays up ahead, it’s important to be aware of upcoming trading holidays. The CME (Chicago Mercantile Exchange) website has all of the information for upcoming closures. Did you know that the market will close early on two consecutive days for the Thanksgiving holiday? Will you be able to trade on Veteran’s Day? Let’s take a look at what the CME says. The hours posted here apply to CME equity, interest rate, FX, energy, metals, and DME markets. This includes the E-mini S&P.

Firstly, the times below are provided in US/Eastern (ET) format. On Nov. 5, clocks in the U.S. will “fall back” an hour, making you feel like you had an extra hour of sleep and more daylight at the end of the day. In effect, US/Eastern time switches from GMT-4 to GMT-5 (or UTC-4 to UTC-5, if you prefer that labeling).

Also, note that on some holidays, the markets reopen in the evening the same day. Generally, market activity is much slower around big holidays. It’s probably best that you stay out and wait for normal conditions to return. Use an ATR with a period value of four.

Additional Trading Holidays

The next major holiday is Veteran’s Day, Nov. 10. The markets will be open normal hours. No closures or odd market hours.

After that, Thanksgiving Day falls on Thursday, Nov. 23. On Thanksgiving Day, the markets close early at 1:00 p.m. ET. On the following day (Nov. 23, a Friday), the markets will also close early, but at 1:15 p.m. ET.

Next, we have December. As you probably expect, the markets are closed Christmas Day (Dec. 25). The markets reopen Christmas Day at 6:00 p.m.

New Year’s Eve is a Sunday. New Year’s Day, Jan. 1, 2018, falls on a Monday and the markets will be closed. Markets reopen at 6:00 p.m. that day.

This trading calendar for 2017 should fill in the blanks for any additional days.

24-Hour Time Basics for Day Trading Charts

If you’re going to be trading, you’ll probably encounter the 24-hour time format. Many folks in the U.S. are not familiar with reading 24-hour time. Instead, we frequently use regular time, which may seem even crazier. Regular time splits the day into two 12-hour sections. In each section, we count from 12:00 to 1:00, then from 1:00 to 12:00. To someone from outer space, regular time may seem more difficult than the 24-hour format. After all, in the 24-hour format, all you are doing is counting from 00:00 (midnight) to 24:00 (midnight again) for each hour of the day.

NinjaTrader uses 24-hour time for its charts. Currently, there is no way to get around that. Until you reach a point where 24-hour time is second-nature, you’ll have to learn how to do some mental math or memorization.

24-Hour Time Tips

  • There is no need to do any conversion, as 24-hour and regular times will be the same for times between 1 a.m. and noon, e.g. 1:00 on a 24-hour clock is 1:00 a.m. on a regular clock.
  • After 1 p.m. regular time, to get the regular time from a 24-hour time, subtract 12. For example, 19:30 – 12 = 7:30 p.m. regular time.
  • Confused if 00:00 and 24:00 are the same? You should be. Many 24-hour clocks consider this the same time (midnight).
  • Time zone conversion will still work the same way. Add or subtract the time difference as you normally would.

Want to learn how to read a 24-hour clock faster? Get a wristwatch that has both formats or change your smartphone’s time display. If you have more questions, check out this helpful website and the pictures below.

24-Hour Time Chart

24-Hour Time Clock

Day Trading Strategies for Beginners & New Traders

Webinars are one of the best ways to get a feel for how well a person’s day trading strategies work in live conditions. Occasionally, DayTradeToWin holds live webinars to provide just that, as well as educate attendees on a variety of topics. Just recently, John Paul conducted a live webinar and showed his ATO 2, Trade Scalper, and Atlas Line trades to a room full of traders.

For gauging a market’s tradability, knowledge of the ATR (Average True Range) is essential. Set your trading platform’s ATR setting to 4. When the ATR is between two and four points on the chart, trading conditions are ideal. However, an ATR above 5 points or below 1 point means the market is too fast or too slow, respectively. Slow conditions are also apparent when many dojis or short candlesticks appear on minute-based charts. Keep in mind, the ATR is always looking back at the last 4 bars (using our recommended setting), so it is not an indication of future levels. Once you place a trade, you can continue to monitor the ATR and adapt your profit target and stop loss based on your ATR-based strategy.

Ever look at NinjaTrader’s SuperDOM and wonder what all those buying and selling numbers mean? In the webinar video, you can gain an understanding of this so-called Level II price data. For a historical interpretation, check out NinjaTrader’s Times & Sales window. Note that with most DayTradeToWin strategies, we avoid interpretation of buying and selling numbers. In the old days of trading, these numbers were more useful. High-frequency trading and other changes have made our price action approach different.

One of the great new features of NinjaTrader 8 is the ability to place MIT (Market If Touched) orders. Consider the literal interpretation of “Market If Touched.” One could say that if your order is touched by the current, fluctuating market price, then you enter the trade at market value. MIT orders are useful in preventing slippage, which is when a tick or more of potential profit is lost due to unfortunate market conditions. The webinar video also explains limit orders, stop orders, and other helpful order tips.

More Day Trading Strategies

John Paul also touches on the topic of front-running. If you Google that term, you’ll probably come up with an explanation of dirty tactic employed by unscrupulous brokers. That is not what John Paul refers to. Instead, his meaning refers to getting filled a tick ahead of the desired price. It’s a tick less of profit, but it can be the difference between having your stop loss hit. You probably would not want to front-run scalping trades, because you’re only going for a couple of ticks. It’s probably better to front-run in trades when you’re going for a point or more of profit.

Aside from the other day trading strategies, it’s also important that you stick around for the part where he discusses closing out trades. Of course, not every profit target will get hit. You should know how to manually close out a trade in order to reduce excessive loss. The DOM has two buttons designed for that purpose. Be sure to watch John Paul’s specific approach based on years of looking at the markets.

Summer Day Trading Defeated Using January Effect

Summer day trading is known to be difficult. People take time off. The markets traditionally lose volatility. You’ve seen what happens during a Friday holiday. In the summer, can we see the ATR (Average True Range) below one point regularly and for larger portions of each day. How do you combat this? Small-time retail traders need to think differently. John Paul from DayTradeToWin has an idea: go long-term.

If your brokerage account can substantiate the extra risk involved in holding large positions for multiple days, it may be worth taking a look at the January Effect strategy. The January Effect can best be described as a predictor for how price may behave for the rest of the year. The prediction is based on how price behaved in January of the same year. If you see that price closed higher than it opened for the month of January, then expect the end of the year to also end on a high note. Of course, there’s no such thing as a true prediction. John Paul believes in this strategy’s accuracy, but you should do your own testing and come to your own conclusions.

How do we know when the January Effect will apply? Early February, of course. From that point forward, you can follow the rules to spot bullish retracement trades. The video demonstration is better, but essentially, you’re looking for price to drop. Once the bottom is reached, wait for the 50% recovery and then look to enter a bullish trade. You can find one of these setups almost every month. There’s no guarantee of profitability. Price may turn around and continue lower. Be sure to test with a practice simulation account first. Also, check with your broker and a financial expert.

Beyond Summer Day Trading

Other than summer day trading, John Paul discusses a number of other tricks to possibly improve performance. He talks about groups of days, trending days, and how to spot cycles. He discusses why 5-min charts are superior¬†to most others, the ATR (Average True Range), and much more. To learn everything he knows about day trading, join the next eight-week trading class, Group Mentorship. All trading courses and software are included with lifetime licenses. It’s a great deal.

Price Action Trading – E-mini Battles

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.