Day Trading for Beginners; Easy way to learn patterns, 1-contract strategy, Divergence, Multiple Timeframes.

– Email JJ@SchoolOfTrade.com for a copy of the beta version

o Train on this next week
o Both 6.5 and 7.0 will be available.

– Using the Divergence method with the Fast Track

o Divergence Method:
o The goal is to get more accurate filters for our fast track entries

 Fast Track = 65% winning ratio (1:1 R/R)

• Im looking for ways to improve this
• Add more filters, looking to remove the lower % trades from my daily trading.

– Holiday Schedule: Thursday and Friday next week we are closed for the Holiday, re-open on Monday
– Trading with Different Contract sizes

o 1 contract = we have a specific strategy for 1-contract

 Also use the Fast Track

o 2 contracts:

 2 options:

• Add the 2nd contract and use the same 1 profit target
• Add another profit target, and use both profit targets

o No runner, fixed 2nd target

• Add a runner and wait for the big move

o This is NOT a fixed final target
o 3 contracts:

 Fast Track = take all 3 contracts off at the 1 target
 Day Trader = 2 options for day traders

• Use 2 targets

o Take 2 off at T1
o Take 1 off at T2 (higher %)

 Take 1 off at T1
 Take 2 off at T2 (more money)

– Easiest way to learn the patterns

o Beginners Course has all three of our high % patterns
o Intermediate course will tell you how to use indicators, market profile, other tools to identify sentiment
o Advanced course will teach you the entry rules, reading tape, reading speed and confirming your entries.

 Tips and tricks

• Always use market replay to review the price action we saw today
• I also review every single trade I take

o If you cant, you aren’t keep good notes, and if you have too many trades to review easily, you’re over trading.

• Take pics, use notecards, make sure you use every minute of the day to practice seeing those patterns.

– Different Stops for different timeframes

o Scalping always uses the same trade management

 Same stops and same targets

o Day Traders / Swing Traders / Position Traders will use different stops and targets

 Long trade =

• Stop is at the next level of support
• Targets are at the overhead resistance

o How you can adjust your stop to keep you in trades longer, not get bounced out because of choppy markets

 Widen your stop, but also widen your targets, and potentially use a slower timeframe

• If you’re having trouble on the 4-range scalping timeframe, move to a different timeframe
• 8-Range chart

o 8-10 ticks stop
o Targets = 8/16/Runner

– How to take more trades per day / fewer trades per day?

o Watch a faster timeframe = more traders

 Will be less powerful

o Slower timeframe = fewer trades

 More winning potential

– What will disqualify a divergence signals?

o Price action, read the tape

 Look for big money to tell you where the market is REALLY
 Trending markets will often have the divergence indicator be worthless

– If we see divergence on the 21-range as well as the 4-range, which is more important?

o 21-range
o Slower is the most important

– Does watching Options help you make decision on trading futures?

o Yes, if you have the knowledge
o But most traders will be overcome by too many variables to really use this info to your advantage.

– How do you make profit when you close your position at your point of entry

o Taking profit, and then moving my stop loss to my entry point.
o Then with a little profit already made, I may get stopped out at my entry point.

– DAX Template:

o The variable im concerned about it the BIG ROUND NUMBERS
o I will post this in the download section

– Aussie Template: traderoomslow_6a