The ONLY 2 Indicators I use to make $4351/Day Trading

Summary

In this video, a trader reveals their simple yet effective strategy for profitable trading using two key indicators: VWAP (Volume Weighted Average Price) and EMA (Exponential Moving Average). They explain how VWAP helps identify key levels of support and resistance, while the EMA is used to manage trade exits. The trader demonstrates their approach with real market examples, showing how to navigate trades with precision. Emphasizing discipline and patience, they share how perseverance led to success, inspiring others to take a disciplined, methodical approach to trading.

Takeaways

• 📊 The speaker uses only two indicators daily: VWAP (Volume Weighted Average Price) and EMA (Exponential Moving Average).
• 💡 VWAP helps determine whether to take calls or puts and identifies key retest areas for stocks.
• 🔵 EMA is primarily used to decide when to sell or hold positions and can act as a trailing stop loss based on market data.
• ⚠️ The speaker emphasizes that trading is not a get-rich-quick scheme; it took years to become profitable.
• 📈 Combining VWAP with pre-market highs or lows creates strong confluences for identifying high-probability trades.
• 💰 Real-life examples show trades where following these indicators led to significant profits, including daily gains over $4,000.
• 🎯 Simplicity in trading indicators can be more effective than complex strategies, especially when combined with disciplined execution.
• 🧠 Discipline, patience, and mental fortitude are essential; even the best strategies fail without consistent self-control.
• 🔁 EMA can also be used for smaller scalps, but its main advantage is holding 'runners' as long as the stock stays above/below it.
• 🙏 The speaker views trading as both a calling and a learning journey, emphasizing persistence, motivation, and personal growth.

Q & A

What are the two key indicators used in the video for trading?

The two key indicators used are VWAP (Volume Weighted Average Price) and EMA (Exponential Moving Average). These indicators help the trader make decisions about when to enter and exit trades.

How does VWAP help in identifying potential trades?

VWAP helps identify the average price a stock has traded at throughout the day, factoring in volume. It is used to determine market strength. For example, if a stock is below VWAP, it indicates weakness, while a stock above VWAP suggests strength.

What is the rule for trading calls and puts based on VWAP?

The rule is to never take calls below VWAP and never take puts above VWAP. VWAP acts as a key level that helps determine the overall market sentiment and guides whether to take long or short positions.

What does the EMA indicator do in this strategy?

The EMA helps determine when to hold or sell a position. It serves as a trailing stop loss, where the trader stays in the trade as long as the stock is above the EMA, and exits when the price drops below it.

What is the significance of the 5-minute chart for using EMA?

The 5-minute chart is used for short-term trades, where the EMA helps the trader decide when to exit based on the stock's movement within a 5-minute period.

How do you determine when to exit a position using EMA?

You exit the position when the stock price breaks below the EMA. The EMA acts as a dynamic stop loss that adapts to the price action over time.

Can the EMA be used for scalping trades?

Yes, the EMA can be used for scalping trades. While the main strategy involves holding trades, some traders use the EMA for short-term exits, such as when the price breaks the EMA during a quick move.

What is the advantage of using both VWAP and EMA together?

Using both indicators together provides a more comprehensive view of the market. VWAP helps determine the overall market sentiment, while EMA helps in managing trades by indicating when to stay in or exit based on price action.

What does the trader mean by 'A+' trades?

An 'A+' trade refers to a high-quality trade setup that meets all the criteria for a successful trade. For example, it could involve a strong VWAP retest along with confirmation from the EMA, ensuring a high probability of success.

What advice does the trader give regarding trading discipline?

The trader emphasizes that discipline and patience are essential for success in trading. It’s important to stick to your strategy, follow your rules, and be patient. Success in trading comes from consistency and mental toughness, not from trying to get rich quickly.