Ever heard of the January Effect? At Day Trade to Win, John Paul describes it as an accurate way to determine if price will be up or down by the end of the year compared to its price at the end of January of the same year. Sounds complicated? Watch the video. If you take a look at January, 2013, you will notice that price closed higher at the end of the month. January was an up month. This will also hold true for the entire year. At the end of December 2013, John Paul claims price will be higher than the closing January 2013 price. Now, there will be pullbacks along the way. When price drops to estimated bottom levels throughout the year, professional traders will buy the market expecting the overall trend to be profitable. This January Effect is known among the professional trading community. In 2012, price followed the January Effect. Although you may find a few years where the January Effect does not hold up, overall you will see a distinct trend – one that hedge funds, high frequency algorithms, and financial institutions will keep in mind. For the average retail trader, you likely won’t be holding positions long enough for the January Effect to matter. At Day Trade to Win, they focus on smaller time frames. The longest they’ll hold a trade for is typically 20 minutes or four bars on a five minute chart. In most cases, the profit target will be hit first, or if the trade goes against you, the prove-it stop. Trading dynamically using price action is important – it’s adaptive.
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.
Here’s a web testimonial for the beginner traders – Josh had zero experience in trading. One of his trading friends said that most losses occur from trading emotionally and without a plan. He set out to find a teacher who knows what he is doing and will meet you at your skill level. He recommended John Paul at Day Trade to Win. He said the staff was very response in answering questions. Without knowing anything, they were able to answer all questions clearly and had desire to succeed. This led Josh to purchase a course and begin a successful day trading career. Day Trade to Win has a large collection of video reviews and written testimonials from its students. Many of the testimonials emphasize how Day Trade to Win was able to provide them with a profitable strategy for trading every day. Testimonials come from people who have participated in the Mentorship Program as well as those who use the Atlas Line, Power Price Action, and The Trade Scalper
This Day Trade to Win webinar was sponsored by NinjaTrader and focuses on the following:
• Watch three educational trading videos to learn exact methods
• Discover the #1 tool every trader should use
• Difference between trading currencies and futures
• How to identify trends early
• Trading news events
• Why trading rooms aren’t a good idea
• Tick amounts between markets – British Pound, Euro, E-Mini, Canadian Dollar
• Volatility and when you should be trading
• Best approach from simulation to live trading
We have found NinjaTrader to be the best platform because of its advanced charting features, market analysis, and ability, and ability to switch between brokers. Some time in 2013, we expect NinjaTrader 8 to be downloadable, bringing in more features while keeping the platform streamlined. Where other platforms get bloated, you can count on NinjaTrader listening to its users and giving them exactly what they want – a fast, stable and accurate trading platform.
John Paul discusses the offerings at Day Trade to Win and how they are all based off of price action. For the most part, the methods can be traded on anything because they’re price-action based. There is no bias for trading long or short. Candles prove the direction to trade (long or short) moving forward.
After this explanation, you’ll learn:
• Yo-Yo Bars – what they are and how to trade them
• The rules of first-come, first-served in electronic markets, HFT at the CME
• “Front-running” trades – set your sights on one tick in front of your goal
• How the Atlas Line can be used on the Euro, E-mini, Crude and Russell
• Trading news events
• Catastrophic stops, pivotal stops, time-based stops, and prove-it stops
• The January Effect
Before finding Day Trade to Win, Nick was refunding his day trading account every month. Now, he says that he’s withdrawing from his account, making around $100 to $200 a day. He says that his losses usually result in break-even days. Day Trade to Win focuses on getting you in and out at the right time, but most of the time, it’s the profit target. This speaks to the consistency of the Day Trade to Win. Unlike other day trading programs, the DayTradeToWin courses do not have subscription fees. All the fees are set, one-time and then you’re all set. Nick compliments the service of JP and his team. He says that can log in to your computer, provide you with assistance and answer all your questions. He uses the Power Price Action method, Atlas Line, and The Trade Scalper. You can see all of the Day Trade to Win courses here.
Using the Atlas Line software from Day Trade to Win, John Paul trade with a ive account and goes for 6.25 points on the E-Mini. Trading five contracts (order quantity in Ninjatrader) for 6.25 points is equivalent to $1562.50, providing the trade works out in his favor. Using the ATR, he notices that the target may be a bit extreme so he reduces it to 4.25 (a safer target based on what the ATR can allow). In case you’re not familiar with NinjaTrader, the green line indicates the profit target. The orange line indicates what the current profit would be (current price position). After the successful 4.25 points, he realizes that the original setting of 6.25 would have worked in his favor. Remember, Day Trade to Win focuses on price action and limits the risk of trades through strategic stop and profit placement. 4.25 points is still more than most traders can hope for on days with such volatility.
Since our last Emini video post, the Emini has continued to fall due to economic uncertainty. The average true range (ATR) has climbed considerably, averaging above the five point range we like to trade. For quite some time, the Emini lacked volatility and now we have too much. The two videos below show the last two days, which were more tradeable in terms of the ATR value.
If you are using NinjaTrader, the ATR indicator is included. To add it to your chart, right click the chart and select Indicators. Navigate through the list until you see ATR then double click to add it to the selection box. Confirm the selection by clicking Ok. Remember to be cautious during this time. Your typical stops and profits can be reached too quickly and too unpredictably with ATR above 5.
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.