Below you will find a video demonstrating a live price action day trade. I like to demonstrate some of these sets up on occasion so that people can see them in real time and to also describe the price action and what I am seeing in real time. It’s amazing how people will try and tell me that it’s impossible to trade this strategy in real time. More than anything I hear some naysayers tell me how easy it is to see the trade set ups after the fact, and for this reason our daily chart lessons don’t really mean that much. If you have any understanding of price action, then you already know how wrong these people really are, but if you are one of the naysayers, this trade demonstration is simply one of a number of set ups that we teach that happen every day. This was not even one of the better price moves or money makers, but this very set up is good for a one point scalp almost 90% of the time and it rarely fails.
I would also like to point out for those that are not familiar with our videos that the purpose of them is for our students that are trying to learn price action. I am often asked why I don’t show any losing trades, and while I often talk about losing trades and failed set ups during the video lessons, the idea is not to show people the trades I took. The idea is to show the best set ups and to describe why they were good set ups so that people can learn to see them on their own, and so that they can also learn “why” these are good set ups. You should be attempting to do these trades on your own each, but then come watch the video at the end of the day in order to compare your work to mine and see where you went right and where you went wrong.
With continued study and experience simply watching prices print to a chart, you will slowly begin to see all the sets up “after the fact” at the end of the day. This is step one to learning price action. Step two is that with continued study and experience, you will eventually begin to spot them in real time as prices print to a live trading chart. Using this theory of teaching, step one is to be able to glance at a trading chart and then quickly point out all of the best set ups. You should be able to explain and understand why these are good set ups as well, and not just because there was a strong move off of these points. There are actually strong moves that occur that are not good set ups, and there are great set ups that stall on occasion too, but those are much more rare in reality. You can almost always find a reason why a trade did not work out, even if it’s after the fact!
Take a moment to view this video and take note of the reasons I like the trade and why I entered where I did. I actually liked the set up so well that I added a second set of contracts. While I did not catch a good runner on this trade, it still netted me $412.00 USD after commissions for 22 minutes of work. Where else can you make $412.00 in 22 minutes without leaving the comfort of your home? Also, make sure that you take not of how we use a strategy that we call scalp and run. By using this strategy, we ensure that we make money, no matter what once the trade has moved only 4 to 5 ticks in our favor. There is also no further risk in the trade after that initial 4 or 5 tick move either, yet we still have an opportunity to make more money if prices continue to move in our favor. This strategy alone has allowed up to increase our win rate to around 90% in the ES. Anyway, the video is below, so hope you enjoy it.
I actually decided that I would take this article one step further and share my actual trading results with you for this month. Since today is 2-19-13, I can only share the eleven trading days that have occurred thus far. I decided to show you the current month so that people would not say I arbitrarily picked my dates. Notice that I blacked out the money figures, as I do not want to post how much money I make or lose to the entire Internet and world. That part is private, and is irrelevant really. All that matters is my win percentage and how many winning trades and losing trades I have had this month, and that is all shown in the video below.
Note that I am not showing this to brag or boast about my trading results. I am showing this so that people can see some of my actual trading numbers, since many say these kind of results are simply not possible. I can tell you without a doubt that if you can understand and learn to read a price chart that you can indeed have these kinds of results. You may not have almost 100% win rates every month, but you can easily achieve 75 to 80 percent win rates and even higher if you stay with it long enough like I have. One thing I want to also point out is the fact that the 4 losing trades were actually runners that I got stopped out on with a one tick loss, so the actual trade was still a winning trade, so I actually have had zero losing trades for February! 🙂 You won’t always have this kind of success, but it shows what can be done if you learn how to read a price chart properly. If you would like to learn how we do this and how we achieve these winning percentages, you can find Mack’s price action trading manual at http://priceactiontradingsystem.com/pats-price-action-trading-manual. The video with my trading results is below, so take a moment to check it out.