January 18, 2011
- in Uncategorized by schooloftrade
Prevent Losing Trades BEFORE They Happen With Simple Day Trading Techniques
– Anticipating lower % trades before you make them (early in your day)
o The dollar is the first place I begin
o 3-min Average True Range Chart
o Mark the recent swing high/low
o 34-range (slow) chart
o Is the market sideways?
o If yes, mark the highs and the lows with a price alert indicator
o When the dollar breaks new highs or new lows you will get an alert and you will know that the markets are ready for trading.
– Fast Track Method
– The main objective:
– To get you confident in the patterns (learn the patterns)
– Confident in entries (learn the triggers)
– Patience to let the trade play out (no trade management)
– Confidence in your trading! (keep it simple)
– If you see 2 weeks of profit you will NEVER have lack of confidence again, but it takes…consistency!
– Show you that losses won’t kill you (1:1 risk/reward ratio)(60% win ratio = always come out in the green)
– Keep it simple, and take out the chaos
– Give you a way to communicate with JJ with a set plan of attack so you can see progress.
– The challenge:
– Trade this for 2 weeks straight
– Ask JJ questions in the trade room about patterns that are setting up
– Don’t trade JJ’s calls, trade YOUR CALLS, make mistakes, and LEARN from the experience.
– E-mail JJ with your progress daily, weekly, etc. Send snapshots to show patterns and ASK FOR HELP if you need it!
– Keep it simple, Don’t use other indicators or try to get fancy!Follow the plan.
– Price Alert indicator
o How do we use token prints?
o Sign of a price reversal
o Looking for 2-step pattern at the highs/lows
o Make sure your rules line up correctly
– 2-step reversal pattern
o Watch the training in the advanced course
– Speed as it applies to momentum
o The higher the speed, the more traders are involved = consistent momentum indicators
o The lower the speed = fewer traders in the market = less consistency in your momentum indicator
o Slow speed affects momentum a lot.
o As the speed slows down, the momentum indicator begins to LAG (confirms late)
– Entry Rules cheat sheet
– How do we use the trend line tool with Range Charts?
– What is the last signal im looking for to enter a trade
– Always follow my rules, and the last 2 rules are the most important to trigger a trade entry.
– Watch the members training from 01-12-2011 for the detailed review of our patterns
– Can we use PREVIOUS swing highs and swing lows in our trading?
– Time and Sales window (update interval)(0.25, THE DEFAULT)
– Leasing a seat on the exchange
– 2 main reasons
o Gets you access to the exchange, you’re a member so you can physically go into the pit and see the action
o Removes the exchange fee from your RT commissions
o When you pay $5.00 for a RT trade
o .10 goes to the broker
o .25 to the exchange
o $4.90 goes to paying for regulation, overhead,
o Ask your broker for more info
– Divergence Method
– Video and the notes
– Day Trading Wheat (ags)wheat, corn, and soybeans
o Day trading the ags/grains can be a disaster waiting to happen
o Window of trading is only 1030-215 (small)
o Margins are SO high because of the lack of liquidity leads to excessive volatility
o Low volume market
o You need to know more than other markets, you need to economic news and crop reports, and the global need for these commodities.
– Entering trades quickly and using our Trade Management Chart
– Nt7 Charts and indicators
– Monday is a Holiday (MLK)
– Closed on Monday
