Stop Loss Strategies for Trading

Why has the E-Mini S&P been so slow in the last couple of months? Political turmoil, tax regulation and fiscal cliff talk has scared investors. Many people are hesitant to spend money with a great risk to lose and then pay taxes on top of it.

Speaking of losses, an important part of effective day trading is knowing where to place your stop loss. Traders always want to have the smallest stop possible. Taking this into consideration, our stop can’t be so small that the random movement of the market cannot stop us out. What can be used to guide your stop for the current market conditions? Three stops are recommended, and whichever one happens first will get us out of the trade. At 8:40 in this video, John Paul begins to explain the three stops. A Catastrophic Stop will prevent a major world news event from wiping out your account. Having something that will prevent major loss like this is very important. It’s not something we want to get hit. By using an ATR value of four (mentioned in NinjaTrader), we double the current ATR value to determine the Catastrophic Stop. To learn the remaining stops, watch the video above. There any many more trading videos at Day Trade to Win.

Learn to Trade Price Action with Day Trade To Win

DTI Trading Pub sponsored this live webinar in which John Paul from Day Trade To Win teaches price action trading fundamentals. John Paul first covers the importance of trading news events and being aware of them using the free news indicator. Using the indicator you can see upcoming news events plotted on your NinjaTrader chart. This is a must-have. On the DayTradeToWin videos page, you can also see a video on how to trade news events. After discussing news, John Paul explains the Atlas Line entries and types of stops to use: catastrophic, time-based and prove-it. The ATR (Average True Range) is an excellent tool for telling whether a market is good for trading. This webinar is only a half-hour long and provides a coupon code for 10% off.

Professional E-Mini Trading – Words of Wisdom

Sandy, the trader in the above video, searched for a private educational program for quite some time. Weighing the dozens of day trading courses out there, he decided to go with Day Trade to Win’s Mentorship for the following reasons:

  • Ask sucessful traders who you trust – get their recommendations
  • Look at the methods – are they objective? Are they based on price? Or are they hidden indicator methods?
  • Do the methods recognize time of day? The markets behave differently depending on the time of day. Many day trading courses expect you to trade a system the same way all day long. John Paul’s Day Trade to Win techniques adapt to the market depending on how price action behaves throughout the day
  • Are there enough entry and exit strategies to work with? Having a couple may not be enough for trading every day.
  • Are each of the methods linked in some way, as to provide an overall strategy for engaging the markets?

As Sandy has said, learning by trial and error is far too costly – the markets will take your money, resulting in a far greater expense than the cost of a training program.

An E-Mini Trading System That Works (Video)

John Paul from Day Trade to Win gives up a handful of e-mini day trading tips in a webinar presentation recorded last week.

He covers topics ranging from the following:

  • Why day traders shouldn’t use indicators
  • How to day trade the news
  • Avoiding common mistakes and misconceptions when trading
  • The importance of having a plan, or blueprint when trading
  • What is price action trading and how do we trade it?
  • How do the pros trade?
  • What are the best ways to enter the market?
  • What causes volatility and slowness in the markets?
  • And he shows a few price action setups all Emini traders can take advantage of

You can find out more about Power Price Action trading at the official site.

How to Trade the E-Mini S&P – Easy as 1, 2, 3

Knowing when to enter and exit, where to put your stops and where to expect price to be headed are hugely important when day trading. This is where the Atlas Line dominates over other day trading software and methods, providing a clear cut way to trade price action.

In this video, John Paul from enters a long trade using the Atlas Line and NinjaTrader. Before the long order, the Atlas Line produced a bunch of short order signals because price was below the Atlas Line. According to the ATR, John goes for a little less than two points to make sure he’s not over extending his account according to the current market conditions. Always trade according to what the ATR indicates (as taught in the Atlas Line webinar).

Why did John Paul take a long trade on the E-Mini S&P?

  • Price is trading above the Atlas Line
  • Signals for going long appear on the chart
  • The trade is being mapped out
  • Profit and stops are known due in part to the ATR

E-Mini S&P Entries, Exits & Profits – Have a Reason

A common mistake among day traders is the overuse of indicators to determine when to enter, exit and how to take profit. There’s one proven method with a high degree of accuracy that works with every market, not just the E-Mini S&P and that’s the Atlas Line from Day Trade To Win. Using the ATR (Average True Range) in combination with the Atlas Line to decide how much profit is possible will free you from the guesswork and overspending. Creator of the Atlas Line, John Paul, covers all of the trade setups produced by the software, including how to take advantage of the ATR.

Video Recap of the Atlas Line E-Mini S&P Live Trading

Using the Atlas Line is very easy and a great tool to day trade or scalp the markets. See this video of how John Paul demonstrates the Atlas Line in real-time. Along with a great setup in the morning, a Double Bar Short Signal was given by the Atlas Line at around 2:30 p.m. EST. Upon comparing the signal with the ATR (Average True Range), we knew in advance where the bottom was.

The Atlas Line is a line drawn on your day trading chart from the time the trading session starts, calculating odds using a proprietary formula. In the morning, three Bounce Long symbols appeared between 9:30 a.m. and 10:00 a.m., all advising to “go long.” Of course, these notifications occurred prior to the hike that began at around 10:30 a.m.

Then about halfway into the video, John Paul shows how the Atlas Line can be used in pre-market sessions. A Short signal is produced after-hours and shortly thereafter, price dropped a few points allowing for a pre-market profit.

John then rewinds the video again to show day trading the E-Mini activity on the 30th. A Long signal was generated that didn’t amount to that much, but check out what happens with the short signal at 1203.5…

John Paul has been teaching traders how to improve their day trading and you can trade like the pros.

Atlas Line
Atlas Line

Webinar Video: Using Price Action to Your Advantage

Price action allows traders to ignore conflicting data presented by indicators, news sources and other distractions. Traders should be able to execute trades with a fair amount of confidence that there is a decent chance of profitability. The courses and tools from take the guessing out of the question by letting traders know the direction of market ahead of time!

In this webinar, see how John Paul uses the ATO (At The Open) and the Atlas Line to his advantage with confirming order signals:

Part 2 – Trading Price Action with
Part 3 – Trading Price Action with
Part 4 – Trading Price Action with
Part 5 – Trading Price Action with
Part 6 – Trading Price Action with
Part 7 – Trading Price Action with

Winning Two to Four Points Every Day on the E-Mini

Winning two to four points every day on the e-mini is not possible 100% of the time. Some days, market volatility is nonexistent with no driving force behind price. However, days with decent volatility allow traders to capitalize on the market despite the direction of price (dropping or rising). On such days, it’s possible to get in and out of the market quickly (for lower risk) and take home a reasonable profit.

This video shows DayTradeToWin price action trading methods used by trader John Paul:

Since the market was rather volatile on the day traded in the video, you can see how he extended his range to allow for four points of profit.

An excellent starter course to learn such price action trading methods is offer in the ATO (At The Open) Course from The course is offered for a limited amount of time – accepting students until the quota is reached. Learn how to trade the E-Mini S&P properly before it’s too late!

Best Price Action Tool for the E-Mini S&P

Price action trading is best defined by John Paul in this Atlas Line webinar:

Atlas Line Webinar Part 1 of 9

For more videos in this series, click the video above to launch the YouTube page or look for the next video links at the end of each video.

Recorded on July 8, 2010, nearly 200 people attended to see how to use price action methods in combination with the Atlas Line indicator. John takes a few winning trades as the order signals appear on the Atlas Line automatically.

For a limited time, the following coupon codes are available (as posted on the DayTradeToWin Twitter):

ATLAS180OFF = 10% off Lifetime License
ATLAS60OFF = 10% off 6-Month License

Official Atlas Line Page