Is the E-mini Playing Tricks on You?

You're watching a live E-mini chart ready to take the next signal. The market has slowed down because it's the afternoon. Yet, the last few signals have been good and you're up for the day overall. Do you ignore the rules and take this trade? Do you risk what you've made so far? John Paul says the only way to trade is to follow his rules of risk management. In this Trade Scalper trade, despite the good signals, the ATR is only around a tick. That's too low. For this strategy, the ATR needs to be at least two to three ticks. Okay, you stay out, but you can't help yourself - you watch the chart to see what would have happened if you took the trade. If the trade fails, you will feel relief as though you dodged a bullet. If it's successful, will you feel regret?

Even with clear, concise rules, a trader can struggle with the discipline required to successful in the long term. Trading is a financial activity that comes with great risk. As such, trading requires great responsibility and self-restraint. Even if you have the best trading system in the world, a trader can subject himself or herself to unnecessary risk. Multiple good trades can falsely increase confidence. Similarly, multiple losing trades can cause a trader to question how he or she will ever find success in the markets. Only through a long period of objective, critical analysis and following the rules will a trader be able to definitely gauge a system. John Paul helps traders learn to manage risk. The live training that is included with purchase will show you how he keeps his head out of the market.

Finding Morning Trades in the E-mini S&P

DayTradeToWin.com's John Paul makes his case as to why the morning session is the best to trade. E-mini S&P futures is what you'll see in the video below. By the "morning session," this refers to the first 2.5 hours of the day, starting from 9:30 a.m. During this period, automated trading algorithms and big trading firms come out to play. They influence the market's volatility, and market movement can lead to great opportunities.

One of the ways to gauge volatility is to use an indicator called the ATR (Average True Range). John Paul uses the ATR with a Period of 4. This means the average price of the last four bars is displayed. This value determines his profit target and stop loss. He only trades based on where he expects the market can reasonably reach. One of the stops he uses is the catastrophic stop. It's double the current ATR value rounded down to the nearest whole tick. By trading this way, he attempts to avoid increased risk where the market can suddenly take off or drop significantly. He believes it's best to trade when the market is between 1 and 5 points on the ATR.

The Atlas Line, a popular trading tool offered by DayTradeToWin, has a number of features. In many cases, it can provide a long or a short entry signal prior to a big move. If price is continuing to trend below the line, there as still trades you can take. Pullback and Strength trades are examples of this. When an intersection occurs and there are two closing bars on the opposite side of the line, a Dbl Bar Long or Dbl Bar Short signal will appear.

The ATO software appears in this video. This was the first course John Paul offered and is now exclusively available in the eight week Mentorship coaching program. This strategy is all about finding trades with the initial market movement. The next Mentorship class begins Nov. 3, 2016 and will be on Thursdays and Fridays from 4 p.m. to 5 p.m. EDT (UTC-4).