Intro To Trading Live Webinar
All right good morning everyone let's do a quick sound check. William steve satish, rob. Matt marshall liz. Jeff james. Geraldo, frank eric hopefully everyone is doing well just give me a quick sound check let me know if you can hear me. And we will begin. Today is friday july 31st. You should be able to see a, q a box, if you do have any questions you can always, email, support. At daytradetwin.com. This is a live presentation. So i will be answering questions that you have, it's not pre-recorded. I like to do. Live presentations. All right dennis ed. Just a quick sound check let me know if anybody can hear me. We're looking at the e-mini, s p. I have the. The at the open i have the trade scalper. Here is, uh the range chart as well. Over here. And, we're going to be looking at the orders. That exist, i want to make sure everybody understands. What. Trading is all about before we begin remember, trading is risky, it's not for everybody. If you're looking to. Learn how to day trade, you should. Get, i think professional, assistance. Instead of trying to trade on your own because, it is difficult. To do there's a risk involved, obviously. There's a lot of, profit potential that can be made but, it's very easy. To lose money, in, trading. So you have to understand what you're doing. What we're looking at here. In the e-mini, s p. As the market opens. Is typically. A, higher volatility. Situation, a little bit more riskier. To trade right as the market opens and so the video i just did. Yesterday. Outlined, how the market sometimes. Can. Swing. Up and down. As the market. Moves. Into the beginning of the day there's an explosion, so what we have here. Is the atr, the average true range, i like to use a setting of four. And this value. This value that you see here. At, 2.33. Is telling me that each of these candles. Here that you see. Has a high to low. Range. Of, about two, and a quarter, points. So. And i'm just rounding down to the nearest quarter point. So that means that. If i expect to buy, or to sell. Any of these. Positions, any of these signals, either atlas line trade scalper, at the open whatever the case may be. I want you to have an understanding, of what to expect, and that's why. I like to teach. Traders how to read the market how to understand, price action. And also, how to have a handle. On the situation. Stops. Targets. Trade management. Is very important. As well, you'll also see here that i have, the news indicator. Here, and the news indicator. Is something that you can download, for free we give a trial for it and we offer it, uh with some of our products, especially with mentorship, we provide this news indicator for free. And the idea, behind using the news indicators, to know in advance. When we have. Some type of report. That's about to be released so if you have, a. News report whether it be the, the fed, raising, interest rates. The fomc. Or you have, some type of. Let's say ppi. Or, manufacturing. Index or unemployment. All right thank you, so that's, what we're looking at here we're looking at, whether or not we have news and so we don't have any news, here usually it's listed in red, and you can prepare yourself, in advance. That there is news. So we're looking for a trade. Right now i have, the trade scalper. On, on this chart here, and i have the at the open. Your. Goal, for each of these trades. Should be, especially, if you're just scalping, should be a quick in and out. Now you can take, one times the atr, so right now you see the atr, is about two and three quarters. Of a point two point eight six. Is two and three quarters. Of a point. And so. What i'd like to do, is have a target, and a stop. Based, off of that so you always know, instead of guessing. Whether or not we have, a. Target of one point two points, two ticks three ticks, you know just look at the atr. Now a one minute chart has its advantages. And i also like to use. A range chart but there are differences, between the type of charts. So if you're a new trader and you're thinking well i've only heard of one, minute charts. Or five minute charts. And so what this, is telling me that every. Candle, this is a candle. Here. A price bar. Every candle, here, is indicating. A time frame, of one minute, or two minutes or five minutes so i'm using here a one minute chart. If you use a different type of chart and i just got this, question here recently. From somebody you know what's the difference between, uh the type of trading that you do.
With, A one minute chart. Or or a range chart or a tick chart or a volume chart so the, the charts are all different they, all work. In. Um a different way. Based off of time. I can see here, that we have a trade, only, when, a candle closes. So when this candle closes. After the one minute after the two minutes after the five minutes, we have a trade we have a signal. So that's a good thing because we know, when this candle, is going to close you can add a bar timer, which counts down so here is, the bar timer this is something i actually recommend. For everybody. Using, a. Time chart. And so you can see here that there's going to be a countdown. Timer, it's going to count down. Since i'm using a one minute chart it's going to count down, 60 seconds, for every. Price bar for every candle, and that's something good that you could use. For other type of charts they have a tick countdown. Tick counter. So a bar timer is something that you should add here to the chart. And, for a range, chart here it's a little bit different here so let me just try to. Add this here to both. So you can see both, so a range chart. Here is a little different because every. Price bar every candle. Is not linked to time. It's only linked. To. The. Two ticks. To range. For each candle, so every time the market moves two ticks up or two ticks down. You can see. The. New candle being created. If you have any sound issues we have a lot of people in the room. It's almost filled here to capacity, but if you have any audio issues sometimes the best thing to do is log out, and log back in. And, you should, have and fix any sound issues as well okay, rob. So what we're looking at here. Is every candle, moving. Up or down, as soon as it makes. Two ticks. Which is two quarter of a point so from from. This candle. Low to this candle high from this low to this high. A new candle is created so it's a completely. Different way. Of looking, at. The chart. Looking at the market. So before, i continue i want to make sure everybody understands, the difference, between looking at a range chart, which is not based off of time it's based off of distance. And this. Chart here is based, off, of. Time, where only after a certain amount of time, a minute two minutes five minutes has completed. Then we have a new price bar plot, that's the first thing. That everybody should recognize. The second thing, is whether or not we have, a higher volatility. In comparison. To, other areas, or other time frames. Because we cannot. Enter. And have, into, a trade. Using the same. Stop. Whether it be one point stop or two point stop or a five point stop. Or. A target. Of 1.2. Points it's not the same. Depending. On how slow or how fast the market is you can't trade the same way, so when the market is slow. We should take and look at a smaller. Target. And a, slower, or smaller. Stop, when the market is more volatile. These, candles, here. Move, much further, they, go, up and down. Stronger, faster. And so if you have a small, stop. And you say i'm only going to risk. Four ticks or one point, on every trade. We can already see, that, four ticks. Or one point. Is. Within, this candle. Here. This is two and a half, so. The market, moves within a minute. Up and down two and a half points. We can be, taken out of the trade very fast. And so the idea. Behind trading is first to understand. Really what's happening is the market's slow is the market fast. Then we can say. Well if, this value, two and a half points. Indicates. That. Each of these candles, can move about 10 ticks two and a half points my stop. Needs to be at least. This value if not higher, to keep me in the trade so just this whipsaw. Back and forth, i don't want to be taken out of the trade, because of my small stops, i need to understand, that. And so everybody should be looking at, some reasoning, behind, it, now when the market's, slow. There's no reason to risk, four or five points just take, enough. Or risk enough. Based on the current condition so now you see three points. Here so the market's, accelerating, it's getting a little bit more volatile. As, as it continues. And that means that every trade that you take, needs to be based off of three points.
Rob Let me know if you're okay you can hear me okay alan andre, anthony art bill. Bjorn, clyde. At this point the room. May be just about full. All right if you do have any questions thanks art if you do have any questions please don't hesitate, to ask. Like i said this is a live presentation, it's not a pre-recorded. Presentation, okay. All right so i'm waiting for a signal. I can already see the conditions, that exist three points. That means that should be your target. Even if you want to be a little bit more conservative. Let's say two and a half or two and three quarters that's fine, but at least i know, exactly, what to expect. Three point, move. Whatever trade comes my way. Now on the range chart, sometimes, it's a little hard, to enter. Because these candles are moving so fast so when the market is very volatile, or volatile, and fast. When these trades occur, see if i can show you here trade. Here, so when. This trade, occurred here at 32, 54, quarter. On, this. Range chart. Obviously, if it, just, occurs. And. Blows, right through and just keeps on going and you don't have a chance to enter, i don't want you to chase it and that's a mistake a lot of traders make. So let me just expand this out here. Like this. So you see 32, 54, quarter, when this appears. The market. Takes off. Now if by the time that you recognize, that this, occurred. And instead, you try to enter down here. That's not what i want that's not what i teach i want you to get this price. As close as possible within a tick or two i think is acceptable, so 32, 54. 32. Even better 5450. But 3254. Quarter, that's the entry that you should get you should not. Try to chase it, and let's say that now you realize that this occurred and you're all the way down here and say okay now i'm going to enter short, that's not at all what i want. All right uh clyde said sound is good. All right thank. You. All right so, list is here are the signals. Based on the range chart or ti or both, actually liz, so what we're looking at here. Is. Either. Because you can add the trade scalper. Or the atlas line, to any type of chart, so we're looking right now just at the trade scalper, and it can be applied, to any type of chart so i have both. The one minute chart and the range chart with the trade scalper. Software, and we can see whatever, signal occurs first. We can see or whatever signal occurs on either chart we can see, so you can apply it to both let me just. Come here. So to answer your question liz, you can apply. The. Software, to any type of chart and that's why i have both charts up here. Vince says how is a four to six range compared to a choppy two range, well the, it's a good question so when the market is more volatile, i would suggest you use a four or six range. Compared, to. That choppy two-range, chart so let's say i put here. A four-range, chart right. Vince. So we'll do a four-range, chart, a lot of traders tell me, that when the market is more volatile, two range is harder, to jump in because it moves very fast, so a four or six range chart so i'll leave a four range chart here for you vince, if we see a signal, you'll see how it works out okay. Uh anthony says here with the trade scalper, to be in and out if the atr. Is at three like it is right now. Would we set up an atm for three tick target, with a three-point, stop definitely not so it's a very good question. Anthony we're not looking, at, a. Three-point, stop, and a three-tick.
Target That's never going to work, okay so with the atr, being at three or two and three quarters the profit target needs to be. Closer. To the atr, value, so, if the atr, is 2.73. The target should be close to 2.73. So in this example, i would say two and a half point target. And a two and three quarter point or three point stop. So the, target. Isn't three ticks. When this. Volatility. Showed on the atr, is this high it has to be closer. To one times the atr, anthony. All right, so increase the profit target. To two or two and a half points. To compensate. For, the, volatility. And so now you have your stop and your target, anthony let me know if that makes sense. Oh very good questions okay good, so the mentorship, class, includes, the trade scalper, and the atlas line and it begins. On august 4th so yes it does include lifetime licenses. With both. The. The software, the roadmap. Atlas line, blueprint, trade. All of the software, that we, have, is included with mentorship, with lifetime licenses. And starting august 4th correct, there's no recurring charges. It's a lifetime license. Right anthony so if you look at the. The atr, right now. It's not always going to be, two points, or one point or three points, it's really based on what's happening, so. Anthony's, question here is so the stop and profit target will be at one to one, ratio two point target two point stop, and the answer is yes but i always like to have, a little bit of a buffer. So even though the atr. May be. 2.89. I'm going to round up, for the. The stop so it keeps me in the trade. And, let me just show you what i mean by that. If this. Candle, here. Can move two. Point, three. And a quarter points, right two and three quarters of a point. That means that, from, this. To this. Is the distance. That this candle. Will make right so. Based on the atr, value. I can already dictate, that this current candle, here, is going to be two and three quarters of a point, high to. Low. The doorbell. Was on the range chart okay so i did hear an alert audio alert. And so i have the range chart, on the, left, and i have the minute chart on the right so you guys can see. So if i know that. This exact. Distance, this candle, can move high to low, if that's correct, then if my stop is smaller than that or equal to that i can get stopped out of the trade anthony. So that's why i like to increase the stop a little bit more to keep me. In the trade. As opposed, to. Having it exactly, one to one i need to have a little bit of a buffer maybe a tick or two not more than that. Uh anthony let me know if you're okay with that question with that answer. Right so it's not exactly, one to one because. It could hit, it could be exact one-to-one, and stop me out so i'd have a little bit of a buffer there a tick or two, extra. To keep me in the trade. Okay. And the, uh. 2.92. Rounding down two and three quarters of a point, that could be your target and a little bit, more conservative. Let's say two and a half point target so, this 32, 46, quarter. Here. Entry. If you look at the distance, the market could move. 2.75. 2 and a half. That's the. Target. Right anthony. Yeah sure you can customize, the atms but you don't necessarily, have to. Have every single. A variation. Of an atm strategy, as long as you have i recommend to have two or three and then you can. Change them. On your chart as needed, or update them on the chart trader as needed it's very simple to use it's not. Complicated, at all. If if you have let's say. An atm strategy of two points, right. Then. Your. When you enter into the trade you can then adjust, to three points or to four points or one point so if you as long as you, get into the market. You can adjust it very simply. Anthony and i can show you that if you want me to it's very simple. No problem showing that to you. Okay so let me see some other questions here. Well. Um. Yes, rob, depending on the chart that you use, you'll get different signals, correct, and the audible, alert and the text that's correct, so depending on the chart that you use, the software, calculates, it a little bit differently.
And Sometimes the trades are similar, or exactly the same. The algorithm, for the range charts a little bit different. Than, using a one-minute chart but the signals are very similar so we did get a. Signal here on the. On the range chart but we didn't get one on the one minute chart. Very good question liz says here do you adjust. Your stop, if the atr, goes up or down and the answer is absolutely. So, i'm going to show you that in a second list because that kind of goes along with what anthony, is asking how do you. Move your stops and your targets, using the atm, strategy. So i'm going to show you that in just a moment. Frank the software, is only available currently. For ninjatrader. The course, outlines, exactly. For the trade scalper, that is and for all the other methods that we teach we actually, teach you. The the method so it's not black box, you learn it you can do it manually, if you're using, a different type of charting, software, think or swim. Or tradestation. Or any other type of software what software do you use frank and i'll let you know if we have something, on the horizon, for it. Okay so. 32, 4250. Short, right so let me show you how this is done, since, liz, and frank. Is asking, for this here. Okay, so we come here. 32, 42, 50. Place a trade 32, 4250. Which is here within a tick, right like that. Order, submitted. Okay, so. And the c32, 4250. It's the same exact signal on the minute chart and, on the. Um. Now you see how this automatically, placed it now i can click this, and move this. Like this and i can click it on the chart as well, so on the chart. It could be moved as well. So you can see, this, can be moved. On the chart i think anthony was asking about that and also. Liz, right. So if you wanted to move. After, you have, already, been entered into the trade. You can move the targets, and the stops, so this is called the atm, strategy. It places, the target and stop. For you automatically. And you can, adjust, the target, and the stop, while being in the trade so it's very easy to do. You don't have to have to have like i mentioned earlier. Every single. Uh variation. Of. Um. Eight and a team strategy so it's not as if you have to configure. Two points four points one point two points. Um. You know you can just have, two or three and then adjust. As soon as you're in the trade. All right. That's the way, that we use it on the, ninjatrader. Platform. To adjust, once you're if you want to learn more about trade questions, at daytradetowin.com. Subscribe. To the day trade to win youtube channel, the next mentorship, class, where we cover, all of these methods. With lifetime, licenses, for the. Software.