Trading Psychology: Is Long-term Success Possible?

In your growth as a day trader, have you used momentum, stochastics, moving averages, or Bollinger Bands? May have tried to come up with their own strategies, tested them for a period of time, went back to the drawing board or moved forward with actual trading. What tends to happen is that systems that do perform well for a period often do not continue performing well weeks or months later. It is as if the market turns on a dime and no longer exhibits the movements necessary to bring profits to those once successful systems. Why is this? Is the market conspiring against you?

One thought is that price activity is ultimately controlled or exhibits certain tendencies over a period of time. Then “those in charge,” the secret pushers and pullers of currency and electronic data, eventually change the game and pull out the rug from the rest of us. Is that truly so? Or are there cycles?

Indeed, one may ponder the deep questions about what actually works behind the scenes of global currency systems. But, in doing so, one has to take care of themselves and likely some sort of family. For reasons of practicality, then, it makes sense to find trading systems that appear to work over long periods despite any changeups. Does DayTradeToWin offer such trading systems? You may review their hundreds of videos from many years and judge.

For most, the goal is to consistently make money day trading on a regular basis. However, no system can really guarantee such a thing unless they want to attract the attention of regulators. And besides, who is to say a system that has worked well for a decade will work tomorrow? Who can actually guarantee that? Like anything in life, a certain level of probability is involved. We work with probabilities all the time when we make decisions. We think about what we want, what our overall goals are, what we want to become, how to get there, what missteps we’ve made, and so on.

At least day trading videos like the one above offer a glimpse of what it’s like to trade the method in real-time. This includes how the signal is “painted” or “plotted” in terms of timing and placing an order. We see two systems in use: the DayTradeToWin Roadmap and Trade Scalper. The Roadmap can provide an overall indication of potential reversal areas. This means that small trends can be potentially identified as well. The Roadmap provides signals as well. Coupled with the Trade Scalper, many short-term opportunities are identified.

John Paul from DayTradeToWin.com makes the case these methods work well together. He indicates the best way to go about learning to day trade is the 8-Week Mentorship Program.

Should You Trade 24-Hours Per Day?

Perhaps it would be better to name the title of this post, “Should You Consider Trading All Times of the Day?” That’s because most of us would probably agree sitting in front of a computer for nearly a day without any sleep would make sensible trading quite difficult. Some of us who have visited casinos have seen people there who are sitting in front of slot machines for many hours. In fact, it’s quite possible to see someone “on a roll” or believes the next big win is around the corner, having sat there for 12 hours or longer. That is not too healthy as our bodies need movement and rest.

That’s why it’s more sensible to trade only when the ideal market conditions tend to occur as related to the day trading systems you use. If you have day trading systems that tend to work better during more volatile times, then perhaps trading at or around market open is best. I am not so aware of systems that do well in sideways markets, but if you do use one such method, then perhaps trading in off-hours is more ideal.

This video reviews Trade Scalper signals and demonstrates a real-time signal example. This signal occurred late in the day, so one of the advices provided was to avoid trading into the close. If you just want to get in and out quickly, the Trade Scalper may be the best approach. For scalping, this is a big move worth +3 points. Not all trades will be this great. The ATR (Average True Range) determines the profit target. The maximum profit target on a 5-minute chart may be around 4 points. On average, somewhere around 2 points is expected. On a 1-minute chart, you can expect around the same profit target. The 1-minute chart is used in place of the 5-minute when the 5-minute is too fast.

And when you get the Trade Scalper, there is no need to rush into trading real money right away. You can use NinjaTrader’s real-time simulator to get a feel for how it all works. Is the method easy? Fairly so; of course this will depend on experience, comprehension, and so forth. One can easily follow the signals and place a trade according to the rules. Memorizing the method isn’t a requirement beyond knowing trade management.

DayTradeToWin Reviews ABC Method Rules for Better Trading

Why would you want to trade futures in the afternoon when the morning is said to have the best opportunities? Because still more opportunities exist in the afternoon. Perhaps you were busy in the morning or sought to recover from a couple of trades that didn’t go so well. Revenge trading or any type of emotionally driven trading is discouraged. Rather, sticking to objective rules ensures that one can more easily measure the success of an approach over a given period.

The ABC Method was designed for afternoon trading. Multiple entry opportunities can be found in the afternoon before market close. However, some days there are simply no signals. Trending days tend to trigger ABC entry opportunities. That’s because the ABC is a breakout method. If price exceeds the prior period’s high and low via two closing candles, then expect a signal in the new period. That means only periods B and C yield entry opportunities. period A merely establishes the high and low for a possible entry in period B.

It’s important to remember the first two periods are 2.5 hours in duration. The A period begins at market open, 9:30 a.m. If this sounds like too much work, you may consider the ATO 2 method which includes the ABC Indicator. Another option is the 8-Week Mentorship Program. With the latter, all courses and software are included with Lifetime licenses.

If you want to see these signals live, sign up in one of the forms on the DayTradeToWin website. Every few weeks, an invitation is sent so that new people can compare their live charts with John Paul’s to see his methods are for real.

Futures Trading: E-mini, Euro, Nasdaq, Dow, Micro

Finding a day trading course or indicator that can trade the E-mini S&P 500 ES, Euro, Nasdaq, Dow, and Micro E-mini S&P 500 is not so easy. Day trading websites are a dime a dozen and it seems that many of these websites are put to together in an amateur way. No disrespect intended – it is just that the way the pages are designed and the information is presented, sometimes it’s difficult to assess what you’re getting. The way DayTradeToWin approaches day trading is with simplicity in mind, and that includes the main DayTradeToWin.com website. There, you can get a sense that four trading methods are basically offered: Atlas Line, Trade Scalper, ATO 2, and 8-Week Mentorship.

The focus of the video above is of DayTradeToWin’s Atlas Line. As you can see, there are a few aspects to the indicator that are important: the dashed line, the main Long and Short signals, the bounce Long and Short signals, and long and short Pullback (P) and Strength (s) signals. How interesting it is to see how all of these signals work together to form one complete strategy! The approach is aided by the free ATR (Average True Range) which serves to provide the profit target and stop loss amounts.

Is it possible to consistently win in the markets? That’s the goal of every trader. It’s best to take trading one day at a time rather than overwhelm yourself with what-ifs. By all means, measure cumulative wins and losses over a good period of time: two weeks, one month, three months, six months, etc. and see how successful you’ve been. Sure, you could have an amazing month next month, but if the performance is not so good, do you want to keep trading? Does it make financial sense? Sure, past performance does not indicate future results, and the way that phrase is commonly worded, the meaning can go either way.

Clear, objective thinking and following the rules of the method will be the best way to assess the viability of that method. Does it work better than other systems you’ve used? Those that you’ve developed? Did you at least make back your money that you spent on the system? Did you learn one or more things? Even with losses, day trading can teach us a lot about ourselves – how well prepared we are, how we perform under pressure, what it’s like to potentially make money or have such potential in a relatively short period of time, to reach heights, to reach lows, and pull ourselves up with renewed insight.

3+ Reasons Why a 2nd Opinion on Your Trades is Important

Here’s the latest DayTradeToWin video in which many trading signals are reviewed. First, we start with the Atlas Line trading software. As demonstrated about 2:00 into the video, the signal did not work out. That’s just a part of trading. Sometimes, additional signals the same day will set you back on the path to profit. Other times, you’ll hope to make profit the next day or thereafter. The idea is to have consistent wins over a specific period of time, which could be 30 days or longer.

If you had the ATO 2 and the Atlas Line or the Trade Scalper and Atlas Line, you could say to yourself, “I am only going to take signals from either system (or both systems) when both signals agree on the anticipated direction and the signals occur around the same time.” If you do just that, as demonstrated in the video, there can be great results. However, such results cannot be guaranteed – “can” means “possibly,” which is not as definite as “will.” The market will do what the market wants to do. Again, it’s a matter of cumulative wins outsizing cumulative losses per period of observation.

Adding a third method to the chart to get a third opinion can also be helpful. That’s what happens here when the Trade Scalper is added. Notice how there are multiple Short signals for all three systems that “follow” the price movement down? That was a great area of opportunity for winners. The following Strength (S) and Pullback (P) signals represent additional opportunities from the Atlas Line, however, some of those signals did not work out. Do you notice any additional signals from the ATO 2 or Atlas Line around that time? No. Well, that’s exactly demonstrating why it’s important to use multiple systems!

Profit Target & Stop Loss Rules: Managing Risk

So, like the thumbnail of the video says, how does one trade rule-based strategies? By following the rules. Are you going to be taught all the rules in this video for the trading system(s) shown? No, of course not. That’s because you have to purchase the trading system in order to learn the rules. This is merely a demonstration with emphasis that it’s important to follow rules rather than going off-course, using your imagination, guessing, or stretching recommendations.

There are so many ways begin day trading. Just looking at the video recommendations when writing this present soptions regarding the mental game of trading as a whole, how to research trading, how to use relative volume to predict home run trades, and various steps to perform a specific strategy. Are any of these methods going to be valuable? Possibly, in terms of some self-understanding. However, the nature of such things is that sometimes a paid method is a paid method for a reason – it’s exclusive because it’s worthwhile. If someone can make money selling it and trading at the same time, why not? However, a lot of paid courses are junk. Many in the industry say this – rather than teaching exact rules, the course will show you demonstration after demonstration, providing little in the way of rules.

Rest assured, DayTradeToWin has all of the rules clearly defined. If you’re not successful, it’s just because the market isn’t aligning itself with the rules. This can be a good thing, as there is no need to blame the self. That’s the great thing about objective trading – no need to have emotions take charge. If you did everything correctly and it works or it doesn’t, you did everything correctly in either case.

The main purpose of the video above is to go over multiple Atlas Line signals. If you see a number of winning signals, that may provide a positive impression the method works consistently. It will be up to you to apply the rules that you learn. There are no guarantees in trading, only probabilities, and estimating on those probabilities is a most curious and risky endeavor! We wish you well. However, trading using a specific stop loss and profit target ruleset is one way to control risk.

If you, ahead of time, configure many stop losses and profit targets within NinjaTrader’s ATM Strategy area, then you can select the most appropriate given current circumstances. These stop losses and profit targets are not set in stone – you can modify them on the fly once your initial order has been filled. The easiest way to do this is by enabling NinjaTrader’s chart trader feature then dragging and dropping the profit target and stop loss to their desired values. Are there any caveats? Yes, doing so places you in the “back of the line,” so to speak. Your profit target or stop loss may not get hit when expected, so be careful.

With the DayTradeToWin trading methods, the ATR (Average True Range) is always used to determine the profit target and stop with the exception of some chart types where their use doesn’t make sense (i.e. range charts). The ATR is configured with a period value of four. Why four? Because that means the last four bars are used to determine the value. If greater than four, the calculation is based on older data. If the value is less than four, less data is used that may only give a picture of recent activity, which may be really dramatic or slow (thus limiting potentials).

Big Candles May Indicate a Trend is Over

When day trading, how do you know if you’re looking at the beginning or end of a trend? You need to follow trend identification rules that tend to work more often than not. Of course, just because a method has worked well historically does not mean it will continue working well in the future. Please understand there are no guarantees of future performance.

In this video, John Paul from DayTradeToWin says to be cautious around large candles. They may indicate a trend is over, as the trend may be “exhausted.” Some traders make the mistake of thinking large candles are a sign that the market is about to move further in that direction. That’s not always the case, and from John Paul’s experience, it’s more likely the market will soon stall out or reverse, as demonstrated around 3:43 in the video.

Sideways or choppy markets are almost guaranteed problems for traders unless you’re scalping and have a really good technique that gets you in and out fast with accurate prediction. As mentioned, the market can go sideways after a trend. If that’s the case, you probably want to wait it out until you see some constant direction, up or down, again.

If your connection/data provider supports it, you can always take a look at the buying and selling action, also known as Level II data. In NinjaTrader, this information is displayed in the SuperDOM. The buying and selling numbers move rapidly. Typically, we focus more on price action (patterns) than DOM action.

It’s important to enter at the beginning of a move up or down, not at the end, once the trend is over. By the way, just because there’s a period of stagnant activity does not mean that you should see a trend. As shown here, it’s entirely possible a big candle will emerge out of nowhere. Then, it’s possible to again see stagnation or a period of large candles.

In the 8-Week Mentorship Program, you’ll learn how to identify trends with specific rules. Also, the signals that you’re provided are designed to get you in at the start of a move.

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.

Flip-flop or Trend? This Price Action Indicator Helps

In this video, the Atlas Line gives two winning signals. The first signal is a Short winner. The second is a Long winner. The market is the E-mini S&P 500. The Atlas Line is installed as an indicator into the NinjaTrader 8 platform. Once applied to the chart, it will automatically provide signals based on how price moves around and through the plotted line (dashed pink line in the video). When two candles close above, that causes a Long signal. When two candles close below, that causes a Short signal. Since you know the basis of the signals, you can prepare yourself for placing a trade ahead of time. This is made easier with a 5-Minute chart, as the market moves slow enough for most people to prepare a trade.

Do you focus on previous highs and lows or guess when trends start and stop? That’s a mistake. As demonstrated, if you thought the market was going to continue down, you could have been stopped out by the reversal. This is where the Atlas Line is useful: the line itself maintains its direction all day. In effect, you can gauge the overall “bias” of the market: whether you should be prioritizing long (buy) or short (sell) trades. The automated signals are icing on the cake.

Whether you purchase the 6-Month or Lifetime Atlas Line, the signals will be the same. Remember that your 6-Month won’t count towards your Lifetime, so keep in mind that purchase a Lifetime license may be a better value unless you decide to roll into the eight-week Mentorship Program. In that case, your purchase may count towards Mentorship.

We should mention the Atlas Line can be used across many market types: the YM, CL, NQ, etc. The requirement is that the market needs to trade overnight and be reasonably volatile. Therefore, stocks won’t work. However, you can trade currencies (aka forex) just fine. NinjaTrader is free to use with futures and forex data available. You only have to purchase or lease the platform when you’re ready to trade with real money. Click here so we can help you get set up with NinjaTrader.

3 Market Entry Methods: Webinar Video

Webinar Video

Did you miss the live trading webinar video? As you know, most traders sit in and watch the signals happen in real-time. So, John Paul goes into the details and answers questions from the audience. Watch the replay below. The webinar, which took place on 22 November 2019, is recent. The presentation begins with a general description of John Paul’s markets.

So, if you missed the live webinar video on Friday morning here is your chance to review the trades taken, the questions and answers are given, and the explanations of the webinar for each trading were over an hour broken down into three parts.

This is provided for Part 1: Order forms, Phantom Orders, Live Market Scalper Orders, Questions, and Responses. While part 2: Phantom orders, Atlas Line Live Trade, Trade Scalper Live Trades, Filtering Trades, Q & A

Want to learn more about how to trade the market? Check out our blog post here: https://daytradetowin.net/2019/11/21/price-action-trading-learn-more-how-to-trade-the-market/