January 18, 2011

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?
        
– Price Reversal with POT        
– 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

    schooloftrade

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