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).

How to Trade During a Big Sell-Off

For a long time, the DayTradeToWin website and YouTube has been populated with new trading videos showing various trading methods and performance. The Atlas Line, ATO 2, Trade Scalper, and Roadmap have appeared most often recently. There are only so many ways to demonstrate performance – many videos throughout the years is one such way.

In this new video, you’ll see the Atlas Line produce a short signal followed by a couple of Trade Scalper signals. Are both methods included together? No, they’re sold separately unless you participate in the eight-week Mentorship Program.

Most of the focus, here, is the Atlas Line. You’ll see more of it in the second half. Strength signals cause John Paul to place a trade. They can be recognized by the small “S” characters above or below the candles. The ATR (Average True Range) indicates the Long trade should have a profit target of about three points. Five contracts are used for this trade. This amounts to a trade worth $750 before any commissions or fees. Please consider all trading as simulated.

How was this dollar amount computed? For the E-mini, the smallest price can move is a tick. Each tick is worth $12.50. What’s a point? Four ticks. Therefore, a three-point profit target using a multiplier of five contracts equals $750. Keep in mind, not everyone has the money to trade with five contracts. DayTradeToWin encourages practice in simulated mode for some time. Then, you may want to consider graduating to the Micro E-mini (MES in NinjaTrader). After that, the E-mini can be traded with the $12.50 tick value as described previously.

Eliminating guesswork by relying on a trustworthy trading system is what DayTradeToWin aims to provide.

Learn to Trade: Beginner and Intermediate Traders Welcome

Advanced traders are encouraged to watch these videos as well. DayTradeToWin has taught thousands of people about trading using price action. There’s no doubt some of these people are advanced traders. In fact, some of the DayTradeToWin testimonials say that success was finally achieved after many years of trying various types of systems. Does that sound like you? They’ve also helped people who have never even looked at a trading chart for more than a half-hour. And if you’ve had some time to get familiar with charts and trading, but do not consider yourself a pro, then there’s much to learn as well. You see, the approach John Paul, founder of DayTradeToWin, takes is much different than anything else out there.

Here we have his latest price action webinar split into two parts. He begins by discussing his general approach, risk management and what price action means. The ATR (Average True Range) is the indicator that dictates much of his trading. For just about every trade he takes, he looks at the ATR to determine the profit target and stop loss. You can think of the profit target and stop loss as the reward and risk potential, respectively. In the NinjaTrader chart, the ATR typically appears at the bottom. John Paul has thickened the line and changed the color to a yellowish gold.

The Long and Dbl Wick Long signals that you see belong to the Trade Scalper indicator software. There are different price options for the course and software: 6-Month or Lifetime. If you’ve been following John Paul for some years, you may be ready to jump into a Lifetime license. If you’re just getting your feet wet, by all means, consider a 6-Month License. Toward the end of this first video, he explains what counter-trend trading means.

Moving forward, we continue with John Paul’s explanation of counter-trend trading. He discusses more price action dynamics then goes into overbought and oversold market conditions. This is similar to the large candle explanation he gave in another recent video.

There’s also some time spent scrolling through the charts, so you can see all of the recent Trade Scalper signals: good and bad. He readily points out a Long signal that wasn’t so great, as the market soon turned around. To mitigate against some losses, he recommends using three different stop strategies: a time-based stop, a prove-it stop, and the catastrophic stop. The catastrophic stop is used as safety net and is the default stop applied when he places a trade using an ATM Strategy. If the trade doesn’t go well, he can try to lock in profit or close it out according to the other two stop loss rules.

Live Scalping the E-mini Using Price Action

Would you bother with a trade worth +3 ticks? If you’re scalping multiple times a day and/or using multiple contracts, you might seek out these trade specifically! Here’s an example of how John Paul from DayTradeToWin.com scalps the E-mini S&P 500 using price action. Watch how fast this trade is over.

He’s using eight contracts. If you do the math, the trade is worth $300. The whole thing is done and over within a couple of minutes. Keeping in mind there can be no performance guarantee and trading is always subjecting the trader to potential significant loss, wouldn’t you like to have an extra $300 for just a couple minutes of “work”? For some people, that amount is considered a nice daily wage.

Trading for income is not something you can do after buying a course, reading it, and then starting the next day. It takes practice. You have to make sure you’re following the rules. When you got your first bike, did you use training wheels or did you slalom an interstate highway on a multi-geared, aerodynamic cycle? Probably the former. Take baby steps; practice in a real-time simulated account for some time. Then as time goes on, attempt to grow your account by first trading the MES (Micro E-mini) for a while followed by the regular ES.

With the Trade Scalper, you’ll want to enter the trade as soon as possible after the signal appears. Remember, the candle has to close for the signal to appear. Then it’s up to you to place the trade. Slippage will occur depending on the type of order used. When trading for a small number of ticks, slippage becomes more of a factor. Follow the instructions and use the correct order type. Avoid chasing the trade, as this can reduce the profit potential as well.

How to Trade Pre-market: E-mini Scalping Signals

Although you could use the Trade Scalper software to trade 24 hours a day, that doesn’t mean you should do it! There are a number of great trades that occur in the early or evening periods, beyond what is considered standard trading hours. The first portion of this video covers one such signal, a long. After the close of that candle where the long signal was generated, we see price rise for three candles. The indicates a winning move.

The next signal that appeared was a Double Wick Short. A Double Wick is another type of signal that is produced by the Trade Scalper software. Price moved against the signal and then dropped right down via three consecutive red candles. You’ll see this trade unfold in real-time.

John Paul used eight contracts. He has Chart Trader configured to show his current profit or loss as it fluctuates. This particular trade’s goal/profit target was worth $1,000 before any commissions or fees. Fantastic, right? Such a short period of time. That’s what scalping is all about. If you were trading just one contract, that would have been $125. Still, if you can find multiple trades like this daily, they add up. The idea is to grow your account over time.

If you have three or four winners in your pocket for the day, it’s time to call it quits. Yes, let’s keep that money in the pocket, and hopefully saved up long-term rather than take yet another chance. There will be other days to trade. Look at the bigger picture: the week, the month, 90 days, six months, then a year. How was your performance? Were you following the rules correctly?

There are people who sleep at the casino’s hotel so they can maximize their gambling. There are also those people who are hardly awake at their slot machines for sixteen hours, sitting in unhealthy positions for too long, not nourishing their minds or bodies. A few hours a day should be the goal. Life is about living; and most of us would probably define living as something different than what happened on a chart for a given period of time.

Should You Take an Online Day Trading Course or Class?

“Is this a good trade? Should I enter here? Should I exit here? Am I risking too much or too little?”

These are questions you shouldn’t be asking yourself after you’ve been trading for some time. It’s normal to have these questions when you’re starting out, trying to figure out if you’re using your trading software correctly and applying a technique properly.

But if you are just guessing your way through trading or “hunch trading” as some may call it, well, that can be a problem long-term. So, what’s the solution? Learn from someone who has been a successful trader for years. Hopefully, that person is willing and able to relay all techniques and understanding. Not everyone is a good teacher. Some very rich traders are poor teachers. And of course, some great teachers are poor traders! This is why there may be just a handful of people with the right knowledge and educational ability to teach you how to day trade.

John Paul from DayTradeToWin is such a teacher. He has been teaching people how to day trade for many years. In fact, he didn’t even consider becoming a teacher. He was selling one or two trading methods online, then one of his clients asked him basically, “Hey, do you have anything else you could teach me?” And unbeknownst to John Paul at the time, this became the start of what is now the 8-Week Mentorship Program. Interesting how things in life happen like that, huh?

If you’ve never heard of the Mentorship Program, the above video will run through a number of the methods that are taught. Remember, it’s eight weeks in duration. Class is twice a week. You get all courses and software with Lifetime licenses. Classes are recording so you can watch them later online. It’s the complete package; a treasure trove of trading knowledge being shared with you by a trading expert who can actually teach! Note that John Paul is currently only available for the Individual, on-on-one version of Mentorship. There is another very qualified instructor who teaches the Group class.

3 Price Action Trading Systems From DayTradeToWin

Are you just using one trading system? Sure, that can work depending on how reliable the signals are. However, for some traders, when they have significant money on the line, they like to get a second “opinion” from another trading system. DayTradeToWin’s John Paul often advises this approach, as demonstrated in his latest video. He’s showing a Trade Scalper scalping signal “confirmed” by an ATO 2 short signal. Both system are confirming the same anticipated market direction around the same time. Sure enough, the market drops soon after. Nice!

Get all three price action day trading systems here.

The ATO-C is the “Chaser” trade. It’s an optional follow-up signal you can use to potentially find another win or help recover from an earlier loss. Of course, as with any trade or system, there is a potential for loss, so be careful and read all disclaimers.

Later on, there was a third method applied. That’s the Atlas Line and it, too, gave a short/sell signal. While price remains below the blue dashed line (the Atlas Line), the idea is to go only with short trades. Can you see why the Atlas Line is one of the best day trading methods offered by DayTradeToWin in terms of filtering, confirming, and generating signals? It looks at the projected “big picture” for the whole trading day; not just the next 20 minutes. The line itself stays in a constant direction. At a given moment, you can see how far away price is.

Those at DayTradeToWin believe it is less likely for the market to move 10 points in a moment than it is one point, so the same theory can be applied to risk management in terms of the profit target, stop loss, and general trading considering the distance of the Atlas Line compared to the real-time price value.

How to Potentially Avoid Losses When Trading During News Events

Are spontaneous news events causing you big losses? Do you even know if that’s the reason for your day trading losses? It could well be. Scheduled financial news is typically released multiple times per week. When the medium or high-impact events occur, volatility can suddenly increase, causing a shift in the market in opposition to your profit target.

As pro traders, we prefer to always remain informed. That’s why we use the news indicator from DayTradeToWin.com. The indicator plugs right into your chart. You can see news events right in front of you. As time progresses throughout the days and weeks, upcoming news automatically displays. There is no need to visit a website. Of course, you still could, and DayTradeToWin also has a solution for that, offering a news page with two of the best day trading news sources available.

In addition, DayTradeToWin teaches a free news trading method you can learn and apply today. You’ll learn it by watching the video above. John Paul discusses the psychology of those who trade news events and common pitfalls. There’s a pop, people and systems jump in late, the market begins to go sideways, positions get reversed, and then there’s a significant move in the opposite direction. See the full, free trading strategy for 2021.

The video shows the Trade Scalper scalping signals for the day. He says that if you look at the winning percentages, you’ll be ahead of the game if you have a plan and know why you’re making every move. There are two ways to get the Trade Scalper: purchase it standalone or get it with the full eight-week Mentorship Program. Both options are covered on the DayTradeToWin courses page.

It Happened as Predicted: Big Sell-Off Jan. 4, 2021

Remember that recent post where John Paul from DayTradeToWin.com predicted a big sell-off would occur in early January, 2021? Well, it happened! As shown in this video, you will see how much price fell. One headline says the Dow dropped over 500 points. That is significant. How did John Paul know this? Years of analyzing and trading the markets. This is one of the reasons why he is sought as a pro trading coach via the 8-Week Mentorship Program.

This may not be the only big sell-off in January. We have vaccines rolling out, alleged shortages, possibly new and more communicable viral strains, a pending presidential power transfer, pardons, and all sorts of other dramas occurring. In prior times, some of today’s the daily headlines would have been cover stories for weeks. What times these are! And what markets these are! That it why it is so important you have a plan for day trading.

In the above video, John Paul shares his approach to trading the big sell-off. A sell-off can be a single or multi-day event. In either case, it is possible to use a day trading system such as the Trade Scalper to find potential winning moves. The Trade Scalper works best with a 1-Minute chart. Signals appear according to price action. If price movement, over a given period of time behaves in a certain pattern, then a signal will appear. That signal may be long (buy) or short (sell). It is then up to you to place the trade according to the rules that you are taught. The technique is fully explained in the materials provided after purchase.

DayTradeToWin.com teaches how to use the ATR (Average True Range) to gauge recent market conditions and adjust the profit target and stop loss (essentially, reward and risk factors) according to what is potentially possible for the given moment. John Paul believes this allows for more realistic, safer trading.

He’s been offering his price action methods and occasional public market analysis videos for over 10 years. Very few, if any trading business, has hundreds of videos showing their methods working over such a long period of time.