Beginner Trading Method Works for 2018
Was today’s E-mini S&P move predicted by the January Effect? John Paul thinks so. In this video, he explains why the January Effect can be a useful technique to find long trades in 2017. Today, we are seeing the market trend upward, which may be indicative of a retracement to the previous high. Days before, we saw the high reached, followed by days of price dropping. Since the January Effect has identified 2017 as a year of upward movement, we can wait for the market to “prove” that it’s ready to trend upward. After price drops, the climb back up is when you can potentially ride a trend into profit territory. The January Effect is easy enough to be considered a beginner trading method.
NinjaTrader’s Fibonacci tool can be used to find the halfway point between two prices. Here, John Paul draws a line between the recent high and low. Watch for price to climb back through the 50% level, and that’s your entry point. Some traders prefer to enter when price surpasses the previous high. Use a day chart and scroll back to see what worked best. Of course, past market movement is not indicative of future movement. However, some traders swear by the idea that patterns in the market exist and can be used for future profit.
Beginner Trading Method: Overnight Positions
Not every trader can hold a position overnight, as would be required by the January Effect. Instead, it may be wise to use a system like the Atlas Line. The Atlas Line provides intraday signals and can also be considered a beginner trading method, though it’s suitable for veterans as well. If you follow the rules, you are only holding a position for 20 minutes maximum. If the January Effect says to expect a bullish trend, then see if the Atlas Line signals also confirm that direction. The video provides a great example of this that starts at about two minutes in.
Interested in getting coached on all of the DayTradeToWin.com methods? A new eight-week class begins Jan. 31, 2018. Classes are twice a week. Click here for details.
