Monday, November 22, 2010

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

 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 arent keep good notes, and if you have too many trades to review easily, youre 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 youre 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.