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

- What’s the best way to learn these patterns?

- AB = CD Pattern

- How do you find your Support and Resistance

o The AUTO-Levels indicator plots all of the s/r levels for me automatically
o I also use a swing-high/low indicator to confirm the exact entry location

- Where do you place your stops?

o Are they dynamic?

 Scalping = 6-8 tick stop

• Same profit targets and same trade management

 Day Traders will use different trade management

• Stops and targets are placed at the next level of support and resistance

- What do these Range Charts = time charts?

o 34-range = 15-minute
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.

- Average True Range, how do we use it?

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 don’t 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 ago…10 mins ago…1 day ago…

- Fast Track Method

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.

o $100,000 (USA)

 60,000 (60%) x 15% = long term = 9,000
 40,000 (40%) x 35% = short term = 14,000
 Total = 23,000
 Savings = $12,00/year/100k
 23% savings
 Corporations and LLCs speak with yout tax person

• LLC is a pass-through corporation

o 1-member LLC’s
o 2-members LLCs