Day Trading Strategies for New/Beginner Traders

- New Divergence Method

- When do I use the Pink line on my Trade Management Chart? When do I leave the stop alone?

o Look for divergence, and then tighten the stop

- Whats the best way to learn these patterns?

- How do you find your Support and Resistance

o The AUTO-Levels indicator plots all of the s/r levels for me automatically

o 21-range = 10-13m

o 13-range = 5-10m

o 8-range = 3-5m

o 4-range =1-2m

o My job is easier to learn when ALL the same patterns LOOK the same

o Range charts always use the same # of ticks of range/candlestick

o Each pattern has the EXACT SAME LOOK

 Compare that to a tick, minute, volume chart and all the patterns are a little different.

- Why do we use tick charts instead of range charts for your trade management?

o I use tick charts because im more focused on measuring volume with my MACD indicator on my trade management chart.

o Used on a time chart (James 2-min Range Template)

o Compare the ATR at specific times of the day and see if its rising or falling

o I dont pay attention to the reading of the ATR indicator

o All I care about is rising or falling

o Are we above/below the ATR 5mins ago10 mins ago1 day ago

o Simple and streamlined trading method

o Uses 1/1 risk/reward ratio (vital to new trader)

 Risk 10 ticks to earn 10 ticks

 10 tick stop and 10 tick target

o Easy entries with resting limit orders

o Sale-able to fit any traders needs

 1 contract or 100 contracts

 No trade management for a beginner, or advanced trade management for experienced traders.

o Use the same high % patterns we use here in the room

- What account size do you need to trade like this?

o I only need 1 contract to start

o $1,000-$2,000usd per contract

o Start on a DEMO and then once you know how to trade we have accounts for you to manage!

o 1 contract = $2k

o 2 contracts = $4k

Tax advantages for different types of traders:

- Stocks, Forex, treated as securities, means your income is 100% short term capital gains

o I earn $100,000 (USA) x 35% = $35,000

- Futures are classified as commodities, hefty tax discounts, 60/40 short-term and long-term capital gains.