Ultimate Day Trading Strategy Guide 📚🍏for Beginners (Working in 2024!)
Summary
TLDR罗斯·卡梅伦在这段视频课程中介绍了他的八周日内交易课程。他强调了日内交易者如何利用市场波动性获利,并指出交易最活跃的时段是开盘后的头一个小时内。卡梅伦分享了他专注于开盘交易的策略,如何寻找低风险入场点,并强调了风险管理和纪律性的重要性。他还讨论了为何许多交易者失败,以及如何通过练习和持续学习来提高交易技能。此外,卡梅伦提到了交易者如何通过扫描市场、关注新闻和股票图表模式来寻找交易机会,以及如何避免在市场波动性较低的时段进行交易。
Takeaways
- 📈 交易课程强调了股票交易的基础知识,包括如何在市场波动中获利。
- 🕗 市场在开盘时最为波动,尤其是早上9:30到10:30之间,为交易者提供了最佳交易机会。
- 💡 交易者应专注于寻找流动性好、交易量大的股票,以便于进出市场。
- 🎯 交易者应设定明确的每日盈利目标,并在达到目标后减少交易,以降低风险。
- 📊 风险管理是交易中最重要的概念,交易者应始终寻找低风险进入点,并保持风险与回报的比例合理。
- 📉 识别和利用市场模式是交易成功的关键,交易者应专注于易于识别的模式,如旗形或楔形突破。
- 🤔 新手交易者需要学会区分不同交易设置的潜力,并随着经验的积累提高识别高潜力交易的能力。
- 📊 交易者应使用图表和模式来形成对股票的一般态度,例如通过阅读蜡烛图来理解市场情绪。
- 🚫 大多数交易者失败的原因是缺乏纪律和快速决策的能力,在压力下保持冷静和遵守交易规则至关重要。
- 🔍 成功的交易者需要持续学习和适应市场变化,永远不应自满或停止提升自己的技能和纪律。
- 📝 交易者应记录和分析自己的交易,以了解自己的交易模式和改进策略。
Q & A
什么是日内交易,它如何运作?
-日内交易是一种交易策略,交易者在同一交易日内买入并卖出股票,不持有股票过夜。它依赖于市场的波动性来获利,交易者寻找那些快速上涨或下跌的股票,并尝试以可预测的方式进行交易。
为什么市场在开盘时最为动荡?
-市场在开盘时最为动荡,因为这是交易量最大的时段,通常是早上9:30到10:30。高交易量提供了流动性,意味着有很多买家和卖家,使得交易者可以容易地进出交易。
日内交易者如何最小化风险?
-日内交易者通过寻找低风险入场点来最小化风险,这涉及到找到良好的交易设置,即潜在收益远大于潜在损失的交易机会。
为什么大多数交易者会失败?
-大多数交易者失败是因为他们无法快速做出决策并且缺乏纪律性。日内交易需要在压力下进行多任务处理,保持冷静,并始终遵循交易策略和风险管理规则。
什么是交易中的‘好设置’?
-‘好设置’是指一个交易机会,它允许交易者以尽可能少的风险进入交易。例如,可能涉及冒着$100的风险去赚取$300的潜在收益,这是一个3:1的利润损失比率。
交易者如何找到交易机会?
-交易者通过扫描市场来找到设置良好的股票。这涉及到使用股票扫描器和关注市场新闻、收益发布或其他可能引发股票大幅波动的催化剂。
为什么交易者需要专注于股票模式?
-专注于股票模式是因为模式可以提供市场参与者的共同关注点,这些模式包括旗形、楔形等,它们在具有高交易量的热门股票上特别有效。
什么是蜡烛图,它如何帮助交易者?
-蜡烛图是一种股票图表,显示特定时间段内的股票价格变动。它通过比较开盘价和收盘价,以及最高价和最低价,帮助交易者理解市场情绪和趋势。
交易者如何使用蜡烛图进行交易决策?
-交易者通过识别蜡烛图上的模式,如大阳线通常表示看涨,而大阴线表示看跌。此外,特定的蜡烛图模式,如旗形或楔形,可以提供关于市场可能的转折点的线索。
为什么交易者需要避免在交易中结合基本面分析?
-结合基本面分析可能会导致交易者在面对图表上的不利信号时,仍然因为对公司基本面的看好而持有不利的交易,这可能会增加损失的风险。专注于技术分析可以让交易者更客观地根据市场行为做出决策。
日内交易者如何管理风险?
-日内交易者通过设置止损点来管理风险,这意味着他们有一个明确的退出点,当市场走势不符合预期时,他们会选择退出交易以限制损失。
为什么交易者需要跟踪他们的交易?
-跟踪交易可以帮助交易者了解自己的交易习惯和策略的有效性,通过分析交易数据,交易者可以发现哪些策略最有效,并据此调整自己的交易方法。
Outlines
📈 课程介绍与日内交易基础
Ross Cameron 开场介绍日内交易课程的第一节课,解释了日内交易的基本概念。讲述了作为日内交易者需要寻找市场波动性,以及早盘交易的优势。强调了交易者需在市场波动性大、交易量高的时候交易以确保流动性。此外,Ross 分享了他每天早盘交易的策略,即在市场开盘后的前一小时内进行交易,以较少的交易次数达成日目标。
🤔 如何做出快速且理性的交易决策
本段探讨了交易者在进行快速决策时所需的多任务处理能力和纪律性。Ross 强调了在面对市场突发消息时,交易者需要迅速判断并采取行动,同时确保决策符合其交易策略和风险容忍度。他还分享了个人经验,描述了在交易中超出舒适区的风险和后果,提醒交易者要保持冷静并注意自身情绪状态。
💪 交易中的技能与纪律
本段讨论了交易中的技能和纪律的重要性。Ross 强调,技能是通过长期的实践和学习获得的,而纪律需要不断地培养和锻炼。他指出,尽管掌握了交易技能,但保持纪律仍然是交易成功的关键。此外,他强调,交易者应不断学习和适应市场变化,避免自满和过度自信。
📊 如何寻找交易机会
本段详细介绍了寻找交易机会的方法。Ross 讲述了扫描市场以找到有利交易设置的过程,并解释了为何关注质量而非数量的重要性。他分享了他通过观察市场波动和新闻催化剂寻找交易机会的策略,并强调了耐心等待最佳交易机会的重要性。
🚀 图表模式与交易设置
Ross 详细讲解了常见的图表模式如旗形和阶梯模式,强调了这些模式在高交易量股票中的有效性。他分享了自己的交易策略,即只交易第一和第二次回调,并强调了图表模式在市场中被广泛关注的重要性。
🔍 零售交易者与机构交易者
Ross 讨论了零售交易者与机构交易者之间的差异,并建议零售交易者关注市场中零售交易者集中的股票。他解释了如何利用市场上的新闻和社交媒体来找到当日最热门的交易机会,并强调了与其他交易者交流的重要性。
🔧 日内交易所需工具与平台
本段介绍了日内交易所需的工具和平台。Ross 推荐了几款关键工具,如图表软件 eSignal、经纪商 SpeedTrader、股票扫描工具 Trade Ideas 以及新闻服务 Benzinga Pro。他强调了这些工具对快速执行交易和发现交易机会的帮助,并提醒交易者学习如何使用这些工具。
💡 日内交易策略与风险管理
Ross 强调了交易策略和风险管理在日内交易中的重要性。他指出,每个交易者需要有一个经过验证的交易策略,并根据市场条件调整风险。他分享了自己的交易策略,并建议新手交易者在证明某个策略有效之前,不要进行实际资金交易。此外,他强调了保持耐心和管理风险的重要性。
📝 交易记录与绩效追踪
本段建议交易者记录和分析自己的交易,以了解其绩效和改进交易策略。Ross 分享了他早期记录交易的经历,并强调了跟踪交易数据以识别成功和失败模式的重要性。他鼓励学生开始记录他们的交易,并向他汇报他们的发现。
Mindmap
Keywords
💡日内交易
💡波动性
💡流动性
💡风险管理
💡交易策略
💡模式识别
💡突破交易
💡反转交易
💡股票扫描器
💡新闻驱动交易
💡交易纪律
💡交易心理学
💡滑点
💡交易量
💡股票图表
💡交易计划
💡交易执行
💡杠杆
💡交易者类型
💡市场宏观趋势
💡交易工具
💡交易教育
Highlights
课程由Ross Cameron主讲,为期八周,专注于日内交易基础和进阶策略。
日内交易者寻求市场波动性,利用快速且相对可预测的股票价格移动来获利。
市场在开盘时最为动荡,尤其是上午9:30至10:30之间,为日内交易者提供了最佳交易机会。
交易者应专注于开盘时的交易,因为此时市场流动性最好,便于进出交易。
日内交易者应避免在缺乏流动性的市场中交易大额股票,以减少滑点和交易成本。
寻找低风险入场点是交易的关键,良好的交易设置意味着潜在收益远大于风险。
交易者应避免负风险收益比的交易,始终寻找具有高收益潜力的低风险交易机会。
日内交易需要快速决策和纪律,对新闻事件的即时反应需要结合交易策略和风险管理。
交易者应保持情绪稳定,即使在连续亏损的情况下也要维持交易纪律。
技能和纪律需要持续锻炼,即使成为熟练交易者也不能停止学习和提升。
风险管理是交易中最重要的概念,交易者需要全天管理风险以做出良好决策。
找到交易机会对于新交易者来说是一个挑战,需要学会扫描市场和识别股票的交易设置。
交易者应专注于质量而非数量,耐心等待值得交易的机会,避免过度交易。
Ross Cameron采用基于图表模式的交易策略,关注蜡烛图和股票符号,而非公司基本面。
交易者应识别并专注于那些零售交易量高、能够抵抗算法交易的股票。
蜡烛图模式,如旗帜形态和楼梯步形态,是交易者识别交易机会的重要工具。
交易者应专注于股票的突破交易,减少在股票盘整期间的交易,以降低风险暴露时间。
交易者应学会识别和利用市场新闻作为交易催化剂,但避免仅基于新闻冲动交易。
使用适当的工具,如图表软件、经纪人平台、股票扫描器和新闻源,对交易者至关重要。
交易者应根据市场条件调整风险,避免在市场波动时过度交易。
每个交易者都应发展和坚持自己的交易策略,并通过跟踪交易来优化策略表现。
Transcripts
all right everyone welcome to class one
of our day trading course so as you guys
know my name is Ross Cameron and this is
our eight week long course in day
trading alright so first chapter here
we're gonna cover a lot of the basics
and we will get into more detail as we
go so you may have some questions today
that will be answered in the coming days
but you can of course feel free to call
out your answers in the chat room and
anyone watching on the recording you can
feel free to email me Ross at date red
warrior comm alright so first question
here how does day trading work okay so
and another another thing to ask here is
what are we looking for as day traders
all right we talked about this a little
bit today it's a very simple concept but
we're looking for stocks that are moving
ok as day traders we profit from
volatility in the market so if the
markets are flat we're not going to make
money we need to find stocks that are
gonna make quick moves to the upside or
the downside in a relatively predictable
manner
okay so we profit from volatility when
is the market the most volatile it's in
the morning okay it's in the morning at
the open 9:30 to 10:30 in the morning
the first hour is when we have the most
volume in the market okay so we have a
lot of volatility and we have a lot of
volume now the advantage of having that
volume is it provides liquidity when we
have a lot of volume it means there's a
lot of buyers and a lot of sellers so we
can easily get in and out of trades and
now on the flip side mid day we can have
volatile markets but we don't have the
volume which means we lack liquidity
which means it'll be harder to get in
and out of stocks okay especially if we
want to take large size so my focus has
always been trading at the open and
trading in the morning I find that the
first one to two day trades usually four
out of five days I can hit my goal in
the first thirty minutes with one to two
trades I keep it simple I try to hit my
daily goal and then
ease up right we know how quick it is to
lose money so once we have some money in
our pocket we want to hold on to that
alright so we know we want to find
stocks that are moving but finding
stocks are gonna move in a relatively
predictable way is the struggle right
that's the struggle for every trader how
do we find a stock that's gonna make a
move and get in with a low risk entry
and that's the name of the game finding
low-risk entries every time we trade we
know we're exposing ourselves to risk so
how do we minimize that risk that's what
we call finding a good set up any good
set up is an opportunity for us to get
into a trade with this little risk as
possible so a good set up means we might
be risking $100 but we have the
potential to make 300 okay so we would
call that a three-to-one profit loss
ratio risking 100 to make 300 is 3 to 1
all right now on the flip side if you
get in a setup where you're risking $100
to make 10 you have a negative risk
reward ratio and that's going to be a
trade that you should not take all right
so we're always looking for
opportunities to get low-risk entries
with big wind potential but being able
to identify setups that have big wind
potential is also part of the learning
process right as a beginner trader you
may not be able to differentiate
different setups and recognize what is a
homerun potential flag and what is a
most likely failing flag that's
something that comes with experience but
also with training okay so our job as
day traders is to always hunt for volume
and volatility
okay so we're searching the market all
day long looking for that volatility so
we look for earnings releases we look
for press releases any type of catalysts
that can cause big movement in the stock
we're gonna be interested in it all
right and it comes in many forms and
we'll review those in more detail later
in the course
so here's another question why do most
traders fail right day trading requires
you to make quick decisions and at the
same time it requires you to be very
disciplined right now when we hear
breaking news that activist investor has
just taken a stake in Amazon okay the
initial reaction might be to load the
boat let's buy 5,000 shares of Amazon
right put put on a big order that's like
a 1.5 million dollar order right but you
need to be able to make a quick decision
whether you should buy or sell or short
that stock and make it with discipline
does this fit into my trading strategy
what strategy would this fit into if
this trade goes the wrong way what is my
stop how much my risking in this trade
and what is the reward potential right
being able to make all those decisions
and making sure those decisions fit into
our risk tolerance and our strategy
parameters is what for a lot of traders
is very difficult it's multitasking but
it's multitasking when you're under
stress you know there's times where I've
been in a trade where I had too much
sighs maybe I had 10,000 15,000 shares
and all I need to do is sell and I'm
looking at my keys and it becomes hard
to even figure out how to punch the
right keys you just sort of get this
moment of paralysis where you're
overwhelmed and any time that happens
you realize that you pushed yourself a
little too far out of your comfort zone
and that will happen to every one of us
I mean it happened it's happened to me
it'll happen to all of you from time to
time right it's it's good to work on the
edge of our comfort levels so we're
always pushing our boundaries but if we
find ourselves far outside our comfort
level and outside our risk tolerance we
can really end up making some big
mistakes so it's always good to be in
touch with ourselves both of our sort of
emotional state of you know are you
focused are you calm are you making good
decisions you know and also be in touch
with
the result of your decisions are you
trading profitably have you had five
winners in a row or if you had five
losers in a row right because inevitably
when we get on the losing streak it's
going to start to impair our judgment so
being able to be in touch with your own
emotions and maintain composure even
through a losing streak is really really
critical
okay so skill and discipline these are
like muscles they require exercise to
grow and it's not something that once
you grow them you have them forever and
you don't have to work on them anymore
you still have to exercise them right
and that that's what I experience every
day I'm still exercising my ability to
have self-control to have discipline
right now the skill is something that
I've built up so you can't take away the
skill to ride a bicycle and you can't
take away the skill to identify good
stock charts right those are skills but
the discipline is something that we
always have to work on and the skills
you know in truth or something that
we're always developing and refining
it's this is a job where we're always
learning which is great it's very
stimulating but it's important to
remember that if you start to get
complacent and think oh I know
everything you know I don't need to you
know I don't need to study anymore
oftentimes you'll get a quick correction
and you'll lose money so that's the
market correcting you all right so being
able to make quick decisions and follow
your trading rules that is critical for
success in the market as we go on with
this course we're gonna talk a lot about
risk management everything that we do is
gonna come back to how are you managing
risk because ultimately that is the most
important concept for a trader to
understand all day long I'm managing
risk that's what I'm doing I'm trading
stocks but I'm managing risk okay so
we're gonna teach you how to manage risk
so you can make good decisions all right
now next how do you find trades
okay this is really hard for line new
traders you may understand the theory of
trading but when it comes down to
actually finding setups in real time it
can be really difficult
I certainly experienced this as a new
trader I might be able to see setups in
hindsight when I looked back on charts
during the day but to find them while
the day was unfolding was really
difficult for me so we're gonna go over
how to find the trades right so first
we'll start with scanning how do we scan
the market to find stocks that are set
up in a good way so first we have to
find the stocks and then once we've
found the stocks we'll start to look for
the individual setups okay now we are
going to be very specific about what
types of stocks and what type of setups
were willing to trade alright and I
focus a lot on quality versus quantity
now there are millions of traders out
there and there are millions of
strategies out there I'm trading a
strategy that works for me right and
that's what we're teaching and we're
finding that it works really well for
our students as well so it's a strategy
that's easy to implement easy to learn
and for a lot of our students and
certainly for me has been very
profitable okay so that means only
taking the best setups and waiting on
the sidelines until we see something
worth trading and this gets into the
value of patience learning to be patient
is extremely important there are a lot
of traders out there that are over
traders if you over trade that's where
you're gonna see yourself trading 20 30
40 times a day that's over trading over
trading results in very high commissions
your broker will love you but you're
paying him a lot in commissions to do
all those trades okay so you're gonna
lose money in commissions you're also
gonna lose money on trades that go south
because of slippage slippage is an
inevitable factor in the market slippage
is when you go to sell and you thought
you're selling at $5 but the market
filled at 490 so you lost an extra 10
cents and so what it's an extra ten
cents it's not that big a deal but when
you
an over trader and you're trading 20 30
40 times a day that slippage starts to
really add up right 10 cents with a
thousand shares is $100 if you do that
ten times in a day with slippage you
just lost a thousand bucks right so you
can see how if you're going to put
yourself into the market and take a
trade you're you know you're immediately
exposing yourself to the potential of
slippage and the potential of other
forms of risk that we'll review later in
the course okay so as soon as you're in
a trade you're exposed to risk so we
don't want to expose ourselves to risk
unless we have proven that this is a
setup and a strategy worth trading okay
so my strategy is a pattern based
strategy I don't care about companies I
don't care about what they do I don't
care about their earnings I just care
about the patterns I focus on charts
okay and I focus on the symbols I know
more stock symbols than I know the names
of companies I've trained myself to just
focus on the patterns the candlesticks
and the symbols I don't mingle
fundamental analysis with technical
analysis I focus just on the technicals
now with that said I do hunt for a
fundamental catalyst a reason why a
stock is running up if we have a stock
that's running up 80% I want to know
what the catalyst is oh it's a
biopharmaceutical stock they just got
FDA approval or they just passed through
clinical trials okay there's a catalyst
there I can understand that right but
beyond that I'm not gonna be sifting
through the conference cup I'm not gonna
be able to sitting in on conference
calls and I could be sifting through
their earnings papers I don't care about
that stuff I'm not a long-term investor
I'm a day trader we trade very very
quickly sometimes we trade as quickly as
10 second to 30 second long trades and I
can tell you from experience that in ten
seconds you can make thousands of
dollars I've done it in ten seconds you
can also lose thousands of dollars I've
done that too so both ways the market
moves quickly we need to make
sure we're positioned in the right place
to take advantage of the profits and
reduce our risk exposure all right and
it's really important to recognize that
like I said millions of traders out
there millions of strategies but every
trader needs an edge okay
and you need to find your spot in the
market where you feel comfortable my
edge is focusing on patterns okay I
focused on patterns because this is just
what worked for me
now before I was a day trader I worked
as an architect in New York City
patterns have always been something that
fascinate me I'm drawn to patterns I
pick them out everywhere I see them on
charts and I recognized early on in my
trading career that the best setups or
breakouts of patterns very simple
patterns a breakout of resistance a
breakdown of support these patterns work
really well and the reason they work
really well is because so many people
are watching them okay now using this
strategy I can be wrong forty percent of
the time and still make money that's
because I'm using proper risk management
so we'll talk about the risk management
parameters that I use later in the
course but just at this point remember
that we don't have to be right a hundred
percent of the time to make money we can
be right even just fifty percent of time
and you can still book a profit okay now
another thing to remember is that in
this market right now over sixty percent
of the volume is algorithmic
high-frequency trading
that means we're trading against
computers so if you've ever tried to
play chess against a computer you know
you're always gonna lose you will always
lose we're trading stocks against
computer systems okay sixty percent of
the volume is algorithmic trading that
for us on the one hand represents a
problem it means that the majority of
stocks that we're looking at the the
price action that we're seeing is simply
the result of computers and moving
shares around okay now on the other hand
it means that there's a small
handful of stocks each day that are
gonna be trading on such heavy retail
volume okay retail as opposed to
institutional algorithmic trading we'll
be trading on such high retail volume
that we will overpower the algorithmic
trading and we will as retail traders
control that stock we focus on trading
those stocks each day those are stocks
typically that are gapping up on
earnings a PR of some type they have a
ton of retail interest and a ton of
retail volume so regular traders like
myself and all of you are going to be
buying these stocks and we're
overpowering the computer systems okay
so these are the stocks that are gonna
run up 20 30 40 % intraday we've even
seen stocks around 200% intraday you get
a big catalyst like FDA approval on a
new drug and all the retail traders see
it and they buy that stock is going up
okay so we focus on that handful of
stocks now if we try to trade the stocks
that are trading on very light volume
and if you think that 60% of the volume
in the market is high-frequency trading
60 percent on average so it's going to
be much higher on some stocks and much
lower on others so if we trade the
stocks that are dominated and much
higher in high-frequency trading
we're gonna lose money hands down every
time it's very hard to make money when
you're trading against a computer okay
so instead we should try to focus on the
stocks that are gonna have a very low
level of institutional high frequency
trading okay so those are gonna be the
stock that have therefore a high level
of retail interest and what creates a
high level of retail interest or buzz
around the name it's going to be news
okay so every single day I'm looking for
the catalyst that's gonna drive the
small handful of stocks up
all right so pattern trading when price
action is plotted on a chart patterns
are formed I personally use candlestick
charts so each candlestick represents a
period of time and you can choose the
timeframe of the chart that you're
looking at you can choose daily charts
hourly charts 5-minute charts 1 minute
charts etc I prefer one minute and
5-minute candlestick charts okay here's
an example of what a candlestick looks
like you have the low which is the
bottom of the candle wick you have the
high which is the high of the candle
wick you have the open which is the
bottom of the body right here in the
case of a green candle and you have the
close which is the top of the body in
the case of a green candle okay this
upper area here this is the upper candle
wick this lower area is the lower candle
wick okay so these are candlesticks
candlesticks can tell us a great deal
about the general trend of a stock okay
large body candles like this one right
here are very bullish candles like this
that have a high wick and a low wick are
usually going to be a little bit more
indecisive candles of indecision okay in
red candles that have this big red body
means that open was at the high and the
closes at the low this is a pretty good
indication of bearishness in the market
right so just by learning to read
candlesticks we can begin to generate
some opinion on what's the general
attitude for the stock okay and we'll
review more of these later these
candlesticks how they form patterns this
pattern right here is called a flag you
have three big candles going up it can
be anywhere from 3 to 10 or whatever you
have a series of candles shooting up and
then you have a series of candles
consolidating this is a move a stair
step consolidation resting another move
up this is a very common pattern that we
see
here's another one
a pop-up consolidation and then another
move up stair stepping very common
patterns
I love trading patterns because everyone
can see this everyone is watching this
stock because this stock is a hot name
today it's a hot stock right it's a
gapper it has everyone's attention so
we're all watching it we see this
pattern unfolding it has resistance at
37 50 that's a very clear visually it's
very clear as soon as we break 3750
buyers come in and anyone that is short
covers and you get that spike up okay
then it consolidates again here you guys
that have followed me for a while you
know that I trade the first and the
second pullback okay so here's the first
flag the first pullback here's the
second pullback
I never trade almost never trade the
third I trade the first and second
pullback we'll review that more when we
review my actual trading strategies and
setups but just for now recognize that
these patterns are very well respected
in the market but remember they're only
well respected on that small handful of
stocks that have a lot of volume this is
not going to be well respected on a
stock that's dominated by the computers
because these patterns are meaningless
okay this is only a value because lots
of people are watching these names okay
so my routine every morning is finding
these names that we should be trading ok
so what do other traders do right
there's millions of traders out there
will some focus on technical indicators
like the relative strength index moving
average Convergence divergence moving
average crossovers okay there's a lot of
technical indicators out there there's
thousands right and some traders think
they have the holy grail of technical
indicators you know
combination of the relative strength
index or the moving average crossover is
a 90% successful you know buy set up but
I don't believe in any of that stuff
I don't believe that stuff works
especially over the long term I tried
for a long time I did write algorithmic
scanners I did some black box trading
and what I found was that I would write
a set of conditions I would write a
formula I would back test it and I would
see when I back tested that formula that
I would have a you know an 80% chance of
being right an 80% success rate okay I
would run that formula live for 60 days
and what at one time when I first back
tested it was an 80% success rate would
drop to 40%
okay at the end of that 60-day period I
would review that formula I would tweak
it I would fix it I would bring it back
up to 80% so when I back tested it it
would say it was 80% successful I'd run
it again and the profit curve would drop
off again so what was happening well
what I was doing was I was writing a
formula to match inadvertently I was
writing a formula to match a certain set
of back test results so every time we
change those back test results there was
the result of the scanner would change
so the scanner was great backward
testing but was impossible for were
testing it would never run positively
forward because the market is always
changing okay so that for me I don't
think is a sustainable way to trade I
think pattern based trading is much much
better because these patterns will
always be here and retail traders will
always be watching them okay now yes we
do use the relative strength index for
some of our trading in particular
reversal trading we have scanners that
do rely on a high-low RSI but that is
that is more condition to find stocks at
extremes it's not by any means a buy or
sell indicator
it's just something that we use in
addition to the pattern based scale
that's a great question about the
Fibonacci retracement and that's not a
tool that I use or an indicator that I
use okay so some day traders scalp
volume spikes and hi a day moves so they
have high of days scanners and anything
hitting that high of a scanner with high
relative volume they're gonna be
watching okay I personally I have high a
day scanners but I don't find it to be a
successful strategy just to buy a stock
because it's hitting high a day I'm
usually chasing when I do that and it
doesn't work okay and some day traders
focus exclusively on counter trend
trading now I do it myself some counter
trend trading but it's not the
cornerstone of my trading strategy okay
so with pattern trading the more traders
using these patterns the better they
work right the more people that
recognize that this is the line in the
sand or we should be a buyer that means
more people are going to buy at that
point which means the stock is going to
move up faster right the more buyers the
quicker it'll move so this is the type
of thing where I'm so happy to share
pattern based trading not only to help
other traders become more profitable but
in truth the more people that are
trading this strategy the better it'll
work and the reason it works is because
these small handful of stocks each day
are being very well watched so lots of
people are watching them for that simple
breakout right that flag breakout that
wedge breakout the sending wedge that
breakout so many people are watching it
it comes true
okay so pattern trading you have to
remember does not work on all stocks and
we'll go into the details in our stock
selection chapter but it only works on
the stocks that have high relative
volume okay so volume is relative right
some stocks like Apple are going to
trade millions and millions of shares a
day on average
other stocks on average might only trade
500,000 shares a day so what is high
volume is going to be relative from one
stock to another so we actually look for
high relative volume okay if we just
look for a high total volume that's
gonna really throw us off right because
there's some stocks that trade on
average with a lot of volume so we just
look for what's above average for that
stock okay now in particular for pattern
trading I am a breakout trader I love
buying breakout this is also called
momentum trading okay I want to buy when
we're having a stock that's running I
don't like to buy during consolidation
during that waiting and holding phase
okay so some of those charts we looked
at a few minutes ago we saw that quick
pop up followed by that period of
consolidation I don't like to buy during
that period of consolidation I wait for
us to break the top of that resistance
area that's gonna be the apex point
that's the breakout if I buy there
that's where everyone else should be
buying who's looking at taking this for
the breakout so it's it's just instant
it either works instantly or it doesn't
so one of the risk factors that we'll
talk about later in this course is your
exposure time the longer you're in the
market the more you're sitting exposed
right so I reduce my exposure time by
only buying at the breakout instead of
buying and holding and waiting which
would have increased exposure time I
just wait for the breakout and then I
punch my order I get in and I get out
quickly right I take my money and I run
that's been my philosophy trading
getting the breakout get your profit and
get out of the way right and that's why
I only trade the first and second
pullback I don't want to overstay my
welcome with these setups I know they
run quickly but I don't want to stay too
long I don't want to be caught in the
people in the flood of people selling
because they chased it
all right so yeah we'll review the apex
point on a few trades but we'll do that
at the end of the lesson okay now with
reversal patterns in contrast to the
breakout patterns with reversal patterns
we're looking for our clear confirmation
that the pattern is beginning to reverse
okay so for me this is usually going to
be the first candle to make a new high
I'm gonna be looking for the first one
minute or the first 5-minute candle to
make a new high when we review reversal
strategies we'll be talking about the
rubber band snap back so we think of
stocks trading we think of them as a
rubber band and when they get really
stretched out to the downside inevitably
they're due for a correction okay so
when a stock is really squeezing down we
know at some point it's gonna make a
bounce and we want to be in that for the
bounce but we don't want to buy it when
it's still sell it okay if you buy a
stock when it's still selling it's
called catching a falling knife right it
doesn't sound like a good idea in life
and it's not a good idea in trading okay
so stocks dropping we want to wait for
the confirmation of the reversal that's
gonna be the first candle to start
making a new high that's the place where
I look to jump in all right
I set my stop at the lows very important
in day trading is setting a stop whether
it's mental or alive stop you have to
have a line in the sand where you get
out okay this is the place where you
admit defeat
and you say I was wrong I'm getting out
of the way now let's be honest I'm a
successful trader but I still lose all
the time so that means I must have found
out a way to be a really good loser and
it's true I lose all the time but I lose
gracefully I take the losses and I walk
away you have to be a good loser if
you're not a good loser it's gonna be
really hard to be a good trader you just
have to be able to walk away when it's
the time to step back so you can ask
yourself a few questions
is the stock still moving up
are we still trending up right what is
the low of the last five minute candle
and have we broken that low because if
we broke the low of the last five-minute
candle in an uptrend then the trend may
be starting to change we have to follow
the charts and this is one of the issues
where if you combine the fundamental
analysis you can start getting yourself
into the pattern of justifying staying
in a bad trade simply because of the
fundamentals well you know it's nice and
they make really great sneakers they're
definitely not going out of business
I'll just hold this longer okay you
don't want to do that you want to follow
the chart if the chart is telling you to
get out you get out you can always get
back in but it's really hard to recover
from a big loss right you don't want to
take a $50 loss well you certainly don't
want to take a $200 loss by the time you
finally take the you know $800 loss it's
really hard to get back from that so
it's much better just to take the quick
losses get out come back when the timing
is better
all right now it's also good to keep in
mind that stocks will trend with the
overall market unless they have a reason
not to so this is part of the
algorithmic trading this is part of what
the computer systems do they're trending
stocks with the market ok so the markets
moving up stocks are moving up but
they're gonna be a handful of stocks
that will buck the trend of the market
because they have a catalyst again this
is what we're looking for that small
handful of stocks that are going to be
running when the markets tanking are
there gonna be tanking when the markets
running because they have a reason to
make that move that's what we want now
if the markets running and these stocks
are running too that's fine I have no
problem with that we just want to make
sure we're trading stocks that are
moving because they have a reason to
move so when I do reversal trades my
favorite reversal trades are on stocks
that are selling off because there's bad
news out ok a quick sell off because of
bad news lots of people are gonna notice
it and start watching it for a bottom
bounce those are my favorite bottom
bounces they can be really really quick
really solid
okay now stocks are just trending down
with the overall market the way oil was
a few a few weeks ago you try to do a
bottom bounce they pop up 10 cents and
then they sell off another 50 cents try
to another bottom bounce they pop up 15
cents and the miss sell off another 60
cents they're selling off because
they're trending with the market and
it's a weak sector so that's where we
have to differentiate is this moving
because the market is moving or is this
moving because it has a unique catalyst
okay so that's where we have to do a
little bit of research and as you have
more experience as a trader you'll be
able to differentiate what is
catalyst based price action and what is
just you know market general market
trending alright so retail traders
versus institutional traders okay so
retail traders that's all of us regular
traders part-time traders full-time
traders but we're not working for a firm
and we're not managing other people's
money okay retail traders we are a small
percentage
of the volume in the market the majority
of the volume of the market is
institutional traders these are traders
that represent large amounts of capital
okay they may be trading with banks
hedge funds mutual funds they have a lot
of money behind them and they can be
very aggressive and we have to be
careful that we're not on the wrong side
of institutional traders okay but how do
we identify where the institutional
traders are in the market okay now we'll
go over this a little bit later in the
class but for right now just recognize
that what we want to do is instead of
trying to find institutional traders
they're everywhere
so what we want to try to do is find
where are the retail traders hanging out
today and let's trade with them okay so
think of all the kids on the playground
and everyone's hanging out at the slides
because that's what's fun okay but
you're over fiddling around you know in
the sandbox just doing your own thing
well you're off on your own in the
sandbox trading a stock that no one's
paying attention to you're in the wrong
place
focus where everyone else is focused
that is gonna be the stock that's moving
okay and there's usually a stock every
single day that's getting a ton of
action that's what day traders are going
to be looking at so can we date trade a
stock like apple or Priceline or
coca-cola or IBM sure we could but these
are slow-moving stocks they're dominated
by institutional traders algorithmic
traders and in general they're going to
be very hard to day trade okay so how do
we find what retail traders are focused
on how do we find the cool place in the
playground there's a couple weights one
is watching our scanners okay the stocks
that are gapping up the most those are
gonna be the stocks that retail traders
are watching okay so first watching the
gap errs secondly it's good to be in
touch with social media stock twits
Twitter and see what is trending okay
what stocks are trending and this is a
especially helpful on stock twits
Twitter it's got someone
other stuff going on but if you follow a
handful of traders then you'll be able
to see what everyone's talking about and
this is another huge advantage of being
in a track a chatroom
like the one that we have at warrior
trading right you've got hundreds of
traders and we're all talking about
what's hot today okay so if you're
trading completely on your own you know
you're off in the corner of the
playground you're not in touch with
other people are doing inevitably it's
gonna make it really hard on yourself
you just don't know where the activity
is I tried doing that you know I tried
trading in a bubble I tried blocking out
social media and blocking out you know
all these things and just doing my own
thing it didn't work it did not work so
you can try it if you want my experience
was that it didn't work at all okay so
what do I do well I don't trade
fundamentals right I'm not a value
investor I'm not a long-term investor I
don't trade Forex I don't trade futures
right I don't trade commodities I'm an
equities day trader okay and I focus on
real stocks we don't trade penny stocks
we don't trade the OTC markets we don't
trade that junk we trade real stocks and
sometimes we are trading coca-cola and
sometimes we are trading Apple but we'll
be trading the stocks that are having a
big day every single day in the market
there's a stock having a big day because
they released earnings
maybe it's Expedia right maybe it's
fireEye maybe it's first solar but these
are big companies okay these are the
companies we're gonna be trading this is
how I've made my living it's what works
for me this is the strategy that we'll
be sharing with you all right so a day
in the life for me
typically starts around 8:00 a.m. 8:30
with pre market scanning okay so pre
market I'm scanning to see where is
their volume in the market right now
as early as 8:30 9:00 a.m. we'll know
what stocks are gapping up okay I look
at the top 10 Gabor's and I start
sorting through the news okay
what's the catalyst causing the gap
right
I put together a watch list I start
ruling some out I start picking and
choosing which ones do I like which do I
not like by 9:00 a.m. we're in the
chatroom warrior trading going over our
watch list alright going over the watch
list with all of our students and all of
our traders by 9:30 when the bell rings
my orders are ready I've placed orders
as early as 9:30 and one second okay and
I've been up to thousand dollars in the
first five minutes more times than I can
count I trade aggressively at the open
trading these Gabor's trading these
momentum stocks right 9:30 to 12:00
that's when I'm the most aggressive
that's when we have the most volume and
momentum in the market from noon to 4:00
I really ease up on the throttle I don't
want to go overboard midday and
afternoon because that's when we have
lower volume in the market lower volume
means lower liquidity less liquidity and
higher risk okay so after noon I really
go easy with the exception of trading
breaking news if we have breaking news
that's an instant catalyst that's gonna
cause a tremendous amount of volume in
terms of trading pre-market I avoid
pre-market trading because there's very
low liquidity there's a very few traders
trading pre market which means stocks
can pop up a dollar drop a dollar you
can't get in and out with large size so
I can't go heavy with thousands of
shares you have to go really small and
you have to use such small positions
that for me it's not even worth it if
you don't mind trading a couple hundred
shares you could trade pre market you
know you can size up a little bit pre
market maybe a thousand two thousand but
you don't have good liquidity and that's
why I avoid pre-market trading okay so
on a good day I have my goal by 10:00
a.m. and I'm easing out lightening up
trading and by four o'clock I'm done
right but oftentimes by lunchtime I've
already hit my goal and I'm gonna be
sitting on my hands
unless there is that perfect setup from
4:00 to 6:00 p.m. we've got our trading
courses and we're reviewing our trades
from the day now let's think a little
bit about the market okay if you make
$1,000 by 10:00 a.m. what do you think
you're gonna do are you gonna walk away
take the profit some well many will okay
so a lot of people if they make their
thousand dollars by 10:00 a.m. they're
done for the day they're gonna go
golfing they're gonna go do whatever
they want but if you lost a thousand
dollars by 10:00 a.m. most traders are
gonna keep fighting it out okay they're
gonna stay in the market they're gonna
keep trading and they're gonna try to
make back what they lost
so that means midday trading is
dominated by traders that have lost in
the morning and they're aggressively
trying to make it back that causes a lot
of volatility but not in the good way
that causes stocks to shoot up and then
shoot down because people are going in
and out with market orders it's a time
that I consider dominated by more
amateur trading okay so I go really easy
mid day the only trades I take mid day
would be breaking news or swing trades
trades that were giving a lot of space
and that we don't need to micromanage on
the 1 minute or 5 minute chart I would
not trade the 1 minute or 5 minute
midday unless we have a stock that's
really running on big momentum in order
to get started trading you need a few
things you need charts you need a broker
you need stock scanners and you're gonna
want news okay I use these signal for my
charts
these signal is a terrific platform for
charting now I personally have so many
monitors that I have e signal running on
one two three four five six different
monitors and it's running on six
monitors with no lack okay now there are
other charting platforms you can use but
my problem has been that they result in
lab
when you try to run them on multiple
monitors so East signals very low
latency very quick charting software
alright in combination with East signal
I used has market profile indicators
alright these are a custom suite of
indicators used by over 15,000 traders
on the Bloomberg Bloomberg terminals ok
Bloomberg terminals that's what hedge
fund traders are using right and I like
to see what the big guys are seeing I
don't want to be going against them
alright so we'll go over those Taz
market profile indicators later in the
course but for right now right now just
know the East signal is the charting
platform that I use alright best brokers
you need hot keys you need to be able to
move in and out of trades quickly ok now
I personally use speed trader I love
speed trader we've got the direct access
routing we have high speed executions
and we have hot keys alright so this and
we have aggressive pricing so these are
some of the real fundamental things to
look for in a broker if your broker
doesn't have hot keys you're not gonna
be able to get internet of trades
quickly ok that's critical you need to
be able to get in that trades quickly I
can't tell you how many times I've been
up a thousand dollars in a matter of
seconds because all of a Sode
all of a sudden the stock spikes right
when you see a stock spike like that you
want to be able to put money in your
pocket and profit from it you don't want
to be fumbling with your orders and
trying to enter your order window and
then confirm it and then send it again
it doesn't work you need quick
executions all right so I highly
recommend a broker such a speech trader
it's gonna give you the technology to be
the fast day trader you need to be to
make money there's a lot of full-service
brokers out there each raid Ameritrade
those are terrific if you're trading a
couple times a month you know a little
bit of day trading here and there but
mostly you know investing but when
you're an active trader meaning 10
trades a day or more yeah you need
better software ok
so remember that brokers will give you
four times leverage so if you put in
$30,000 you're gonna have a twenty one
hundred and twenty thousand dollars of
buying power okay so that leverage is
Marge you're allowed to trade on margin
but you have to be responsible if you're
gonna trade on margin you have to be
responsible we'll review that in the
risk management section of the class
scanning tools I use trade ideas and I
can't say enough good things about them
I love trade ideas 90% of my trades I
find on the scanners but I built in
trade ideas so you need a way to find
stocks I mean this is just part of the
deal we need a way to find stocks trade
ideas for me that's how I do it all
right so when you're in the chat room
you can see my screen while I'm screen
sharing you can see all my scanners are
running you can watch the scanners that
I'm watching so if you're in chat you
don't need to separately have a
subscription to trade ideas you can just
watch my scanners and benefit from it
but you know if you do go out on your
own you want those tools you're gonna
need it okay now something I've talked
about and I'll say again is that tools
are of no value if you don't know how to
use them so this course is gonna be
focused on teaching you how to use these
tools all right and streaming news I use
the been Zynga pro for the Squawk Box
this is basically a radio that's
constantly talking about stock news
right breaking news on stocks options
activity takeover chat or anything you
can think of it's coming out on the
radio this is really terrific
I love been Zynga for the news alright
so I generally when I'm trading news I'm
gonna wait for the dust to settle we
will go into more detail about news
based trading strategies but for right
now remember you don't want to be an
impulsive trader right we know we have
to make quick decisions but we also need
to maintain discipline and composure and
make sure all of our trades fit within
one of the strategies that were
there were live training all right now
on another note we have to think a
little bit about the ebb and flow of the
market okay now there are times when the
market the overall market is very choppy
we it is okay for us and it's advisable
for us to adjust our risk based on
market conditions
if we're gonna period where the market
is choppy we're having a hard time
generating profits it's a good idea to
scale back taper back the risk a little
bit right reduce the exposure so our
losses aren't so bad then when the
market starts picking back up and we get
on a hot streak we can start to lean
into it a little bit and go heavier so
knowing when to lean into trades and
when to ease up a little bit is
important it's something that will come
with experience and we will review that
again more in the course okay and you
can look at the macro channels on the SP
Y and draw trend lines and if you can
see that we're trading at the top or a
bottom of a macro channel you can expect
a little bit of choppiness so it's kind
of like a pinball you're bouncing up and
down between these channels okay when
we're moving between them we often have
nice clean moves but we're consolidating
along the highs all along the lows we
can get a little bit choppiness so
something that is absolutely critical
for every trader is that you're trading
a strategy I wish someone had told me
this when I was first starting trading
bross you need to trade a strategy if
you're trading with real money
you must be trading a written strategy
it must have historical data to prove to
verify that it's worth trading with real
money
we must justify to ourselves that were
worth investing it otherwise we might as
well put the money somewhere else in a
mutual fund or in a CD because at least
there we won't probably lose half of it
right but the experience for a lot of
traders is that they fail they lose
money okay and a large a large
percentage of those traders they're not
getting the education that all
are getting here they're going to be
live trading strategies that are not
even they're not even hammered out right
they're just haphazardly trading a
little of this a little bit of that
until their accounts gone and then they
wonder what happened
so everyone here in this class you have
the big advantage of working with me and
the other traders in our chat room to
help develop a strategy worth trading
okay so remember the market is gonna be
here we don't need to rush this is a
marathon not a sprint it's not about
making fifty thousand dollars by the end
of next week it's about developing a set
of skills that can last for a lifetime
okay so we don't want to live trade a
new strategy until we've proven that
it's worth investing in and we don't
want to be impulsive and this is part of
going back to having patience and it's
also a big part of managing risk we all
have our place in the market all right
trading is not for everyone but for
everyone that feels like trading is a
good fit for them we still have our own
place in the market I may be a 1 minute
5 minute trader you may be a 60 minute
120 minute trader right maybe a 60
minute for our trailer he may be a daily
trader weekly trader there's a place in
the market for everyone okay so you have
to find your place what time frame works
for you what strategies work for you
inevitably what you're learning here are
gonna be pieces of the puzzle learning
to trade it's like a big puzzle you're
gonna look you're gonna get some pieces
here in our trading course you're gonna
pick up pieces on your own from your own
reading your own research inevitably
you're gonna create the puzzle it's
going to be your own unique trading
strategy it's going to be unique to you
it'll have a little bit of what Ross
does it'll have a little bit of what
someone else does you know have a little
bit of your own thing you're gonna take
what works for you I don't expect
everything I do to work exactly for you
right we're all individuals we all have
our unique approach that's fine that's
okay and I'm happy to help you develop
the strategy that's going to work
you the important thing is that you need
to be good at one strategy right one
strategy once you can tread water in the
market if you can just tread water you
can get by right the longer you sit in
the market the longer you can be a
trader but without blowing up your
account the better your odds are this is
just a matter of having time in the
chair right the more time you see
watching these charts the more you learn
so this is a job where you survive until
you can make it so if you can just
survive if you can just break even just
tread water until you learn to swim
that's what you do and with one set up
with one strategy you could be
successful and you can tread water and
you can just sit and wait for that one
setup to come to you right it's like
having a very very narrow diet
you only eat apples well you just have
to wait for apples to come all right and
sometimes you're gonna sit and there's
not gonna be any apples for a while you
just have to wait for them to come to
you all right and then eventually you
start eating pears and peaches and
oranges stuff like that so you start
branching out but first you need to get
down one strategy okay all right so that
can be the gap and go that can be the
momentum strategy that can be the
reversal strategy or it can be one of
your own okay but those are the three
that I trade most actively my favorite
is the gap ago all right so this was
what works for me focusing first on what
I was good at and then narrowing down
narrowing it down developing that area
of strength into a workable strategy and
then using that strategy to survive
until I could develop others right one
of the first things I did as a trader
was create an Excel Doc I wanted to
trick I want to track all my trades and
I actually did this when I was younger
when I was I don't know maybe 14 or 15 I
had some some stocks that I was buying I
was buying Caterpillar and some computer
companies and some bicycle companies car
companies I was buying stuff that I
like with like a hundred shares just a
little of this and a little of that
and I had it all on a yellow legal pad
and I was so pumped to make that kind of
spreadsheet on you know legal yellow
paperwork I love doing that and as soon
as I started trading when I got into it
to day trade full-time I opened up my
Excel doc and started making a
spreadsheet and it was one of the best
things I did because I was able to track
my performance so I would track ok these
trades are this strategy this strategy
in this strategy I'll be able to
categorize them and then sort that data
and I was able to find ok
look Ross you're doing a great job
buying breakouts of resistance that's
where you have the biggest winners
that's we have the most consistency
focus on that so I highly recommend
tracking your trades get to know your
statistics you're gonna learn a lot from
those all right so homework for today's
class start tracking your trades all
right and if you're already tracking
them and start going through that data
and email me Ross the day trade warrior
comm with some some of the info that
you're picking up I'm gonna be excited
to to hear about it okay so that wraps
up class for tonight class one of the
warrior trading course again any
questions please feel free to email me
Ross today trig warrior calm
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