Futures Contracts: Market Orders, Limit Orders & Scalping
This is the second half of a recent webinar conducted by John Paul of DayTradeToWin.com. In these live webinars, he’s broadcasting his trading charts live so attendees can see exactly what he’s looking at. This providers onlookers the opportunity to experience real-time charting conditions, as though they are looking at the markets with the same amount of uncertainty. Therefore, when John Paul demonstrates a technique or provides insight into how he trades, and a trade actually works out to be profitable, the results are more palpable. Unlike other vendors who use live trading rooms daily as their main product, DayTradeToWin.com does it differently. While live webinars like this one is used for promotional purposes, the only other type of live room environment offered is with each course’s included live training.
John Paul takes a real-time trade worth three ticks. NinjaTrader’s Dynamic SuperDOM is preferred over Chart Trader because of the extra bells and whistles. Each Trade Scalper trade is worth about two to four ticks. The maximum stop loss is six ticks. The ATR (Average True Range) is used to assess risk and determine profit target and stop placement. Speaking of profits, even if you have the ability to trade many contracts (over 10), do so cautiously. It’s better to practice first, eventually begin with one contract, work your way up to two as success is indicated. If you eventually work your way up to over 15 contracts, then you may not always get filled when using limit orders. Instead, market orders increase the chance of getting filled for larger contract quantities.
In this presentation, John Paul provides a number of general trading guidlines. Within the first 10 or so minutes of market open, traders are competing against one another for positions. Stay out of the market the first 15 minutes or so until an equilibrium is reached. Two scalping strategies are taught in the Group Mentorship Program. For John Paul, his personality prefers trading two or three times a day on a five-minute chart instead of scalping. However, some people like multiple fast moves daily, so that’s why a scalping product is offered. When scalping, it’s best to trade up to five or six trades daily at most. If you continue trading later in the day, you’re subjecting yourself to increased risk. The market tends to chop later in the day or entirely stall out with little activity. Also, unexpected news events can be hazardous.