The Only Day Trading Strategy I Would Use If I Started Over

Summary

The speaker emphasizes the importance of developing a personalized trading strategy rather than copying others. He suggests that every trader should adapt concepts like ICT, smart money, supply and demand, or order flow to their unique style. The key to success lies in consistent journaling to collect data and refine one's approach. Risk management is highlighted as the most crucial aspect, often more important than the trading strategy itself, as it ensures longevity in the market and allows traders to learn from losses.

Takeaways

• 😀 Every trader must develop a unique trading strategy that aligns with their personal style and approach.
• 🔍 It's important not to copy a trading strategy entirely but to adapt and make it unique to one's own personality and risk management parameters.
• 📈 Traders should not give up on a strategy after a few trades; persistence is key, and a significant amount of trades are needed to evaluate a strategy's effectiveness.
• 📊 Journaling and maintaining a physical database of trades is crucial for understanding patterns, emotions, and decision-making processes in trading.
• 💡 Data collection and analysis are essential for developing an edge in trading, as they provide concrete evidence to learn from and improve upon.
• 🏗️ Journaling is likened to building a foundation for a house; it's the base upon which a trader's edge is built through trial and error.
• 🚫 Avoiding generic approaches is vital, as uniqueness in trading strategies is what gives them value and sets them apart from the crowd.
• 💼 Risk management is paramount, with the speaker suggesting it might be even more important than the trading strategy itself.
• 💰 Proper risk management allows traders to afford losses and still come out profitable, as long as the wins outweigh the losses.
• 🤔 Traders should view losing trades as learning opportunities and business expenses, integral to the trading journey.
• 🎯 The speaker emphasizes that being in the trading business is not about being correct all the time but about managing risk effectively for long-term success.

Q & A

What is the main focus of the video script?

The main focus of the video script is to discuss the importance of developing a unique trading strategy and the role of risk management in successful trading.

Why is it important for traders to develop a unique approach to their trading style?

It is important for traders to develop a unique approach because every individual is different, and a personalized strategy can better fit their personality, risk tolerance, and trading goals.

What does the speaker mean by 'Carmine Rosado strategy'?

The 'Carmine Rosado strategy' refers to the speaker's own personalized trading strategy, which he emphasizes is unique to him and not a generic approach that can be simply copied from others.

Why do traders often fail when they try to copy and paste a trading strategy?

Traders often fail when copying strategies because they might not consider their own risk management parameters, emotional intelligence, and personal trading style, which are crucial for the success of any strategy.

What is the speaker's view on the role of risk management in trading?

The speaker views risk management as the most important aspect of trading, even more critical than the trading strategy itself, as it helps protect traders from significant losses and ensures longevity in the market.

How does the speaker recommend traders develop their trading edge?

The speaker recommends traders develop their edge by sticking with a strategy for a significant amount of time, journaling their trades, and collecting data to analyze and refine their approach.

What is the significance of journaling in the process of developing a trading strategy?

Journaling is significant as it provides a concrete database of trades that traders can refer back to, helping them understand their strengths, weaknesses, and emotional responses to different market conditions.

Why is it necessary for traders to have a solid foundation in their trading strategy?

A solid foundation in a trading strategy is necessary because it forms the basis for consistent and repeatable trading decisions, which is crucial for long-term success in the market.

How does the speaker define success in trading?

The speaker defines success in trading as being able to manage risk effectively, learn from losses, and ultimately achieve profitability even when facing a lower win rate.

What is the speaker's advice for traders who are struggling with a low win rate?

The speaker advises traders to focus on managing their average losses compared to their wins, emphasizing that it's possible to be profitable even with a lower win rate if risk management is properly implemented.

Outlines

00:00

📈 Developing a Personal Trading Strategy

The speaker emphasizes the importance of developing a unique trading strategy that suits an individual's personality and style. They discuss the common mistake of traders trying to copy strategies without adapting them to their own needs. The speaker shares their belief that any strategy can be profitable if tailored to the trader's approach, highlighting the uniqueness of each person's trading fingerprint. They also stress the need for traders to look beyond generic strategies and to develop their own specific approach, which includes learning from others but making it their own.

05:02

📊 The Importance of Consistent Data Collection and Journaling

This paragraph focuses on the necessity of sticking with a trading strategy long enough to gather meaningful data, suggesting a minimum of one to three months. The speaker advocates for maintaining a physical database of trades, which can be in the form of written journals, screenshots, or digital platforms. They argue that data is crucial for understanding patterns, emotional responses, and the effectiveness of trading setups. The speaker likens journaling to building a solid foundation for a house, essential for developing an edge in trading and learning from both winning and losing trades through proper risk management.

10:03

🛡️ Risk Management as the Cornerstone of Successful Trading

The speaker discusses the paramount importance of risk management in trading, positioning it as more critical than the trading strategy itself. They argue that even with a well-developed edge, without proper risk management, a trader's account could be quickly depleted. The speaker shares their perspective that risk management might constitute 51% of successful trading, with the trading strategy making up the remaining 49%. They highlight the need to be comfortable with losing trades as part of the business and to view them as learning opportunities, provided risk is managed effectively. The speaker concludes by encouraging traders to focus on risk management to ensure longevity in the trading game.

Keywords

💡Trading Strategy

A trading strategy refers to a specific approach or plan that traders use to determine when to buy or sell assets in financial markets. In the video, the speaker emphasizes that the best trading strategy is not a one-size-fits-all solution but rather a unique approach that each trader must develop based on their personal style and preferences. Examples mentioned include ICT (Institutional Cluster Theory), supply and demand, order flow, and price action.

💡ICT (Institutional Cluster Theory)

Institutional Cluster Theory (ICT) is a trading concept that focuses on identifying areas of concentrated institutional buying or selling. The speaker mentions ICT as one of the strategies that traders might learn and adapt to their own trading style, highlighting the importance of personalization rather than simply copying someone else's approach.

💡Supply and Demand

Supply and demand is a fundamental economic concept that describes the relationship between the availability of a product or service and the desire for it among consumers. In trading, this concept is used to analyze market trends and identify potential turning points. The speaker discusses combining supply and demand with order flow as part of their unique trading strategy.

💡Order Flow

Order flow in trading refers to the volume and direction of buy and sell orders in the market. It is a key factor in understanding market dynamics and can be used to predict price movements. The video emphasizes the importance of integrating order flow with other strategies like supply and demand to create a personalized trading approach.

💡Price Action

Price action is a trading approach that focuses on the study of price movements and patterns, rather than relying on technical indicators or fundamental analysis. The speaker briefly mentions price action as one of the strategies that traders might consider, but the main message is that any strategy must be adapted to fit the individual's trading style.

💡Unique Approach

A unique approach in trading means developing a personalized strategy that suits an individual's trading personality, risk tolerance, and goals. The speaker stresses that traders should not simply copy others' strategies but instead create their own by learning from various sources and adapting them to their own needs, as exemplified by the phrase 'Carmine Rosado strategy'.

💡Risk Management

Risk management in trading involves the process of identifying, analyzing, and accepting or mitigating unwanted risks. The speaker considers risk management as the most crucial aspect of trading, emphasizing that it is more important than the trading strategy itself. Proper risk management allows traders to survive losses and stay in the market long-term.

💡Journaling

Journaling in the context of trading refers to the practice of documenting trades, emotions, and decisions to analyze performance and improve trading skills. The speaker recommends journaling as a foundational step in developing a trading edge, as it helps traders understand their subconscious actions and thoughts, leading to better decision-making.

💡Edge

In trading, having an 'edge' means possessing a competitive advantage or a systematic approach that consistently produces profitable outcomes. The speaker discusses building an edge through trial and error, learning from losses, and implementing proper risk management. The emphasis is on developing a solid foundation of understanding and strategy before expecting consistent success.

💡Generic Approach

A generic approach in trading refers to using strategies or methods that are not tailored to an individual's specific needs or style. The speaker warns against adopting a generic approach, arguing that valuable and effective trading strategies are unique and require personalization. The video encourages traders to develop their own strategies by learning from others but adapting them to fit their own trading personality.

💡Emotional Intelligence

Emotional intelligence in trading is the ability to recognize, understand, and manage one's emotions and those of others in the context of trading decisions. The speaker mentions that traders cannot simply copy and paste the emotional intelligence of others, highlighting the importance of developing a personalized approach that accounts for individual emotional responses to market conditions.

Highlights

The best trading strategy is one that is unique to the individual trader.

Every trader must develop their own approach to trading, similar to a fingerprint.

Traders often fail by trying to copy and paste strategies without making them unique to themselves.

Carmine Rosado emphasizes the importance of making a strategy your own, rather than just copying others.

Many traders give up on strategies like order flow or smart money concepts too quickly without understanding why they fail.

A unique approach to trading involves looking for specific things that not many people look for.

Value in trading comes from uniqueness, not from generic strategies.

Carmine Rosado's strategy is a combination of supply and demand with order flow, tailored to his personality.

Traders should not try to copy strategies entirely but adapt them to fit their own trading style.

Risk management is crucial and should be a part of every trader's strategy.

Journaling trades is essential for developing an edge and understanding one's trading patterns.

Data collection through journaling helps in identifying the best and worst times for trading.

Physical evidence of trades is necessary for analyzing and improving trading strategies.

Journaling helps in making subconscious trading patterns conscious, leading to better decision-making.

Risk management is more important than the trading strategy itself in ensuring longevity in trading.

Proper risk management allows traders to afford being incorrect more often than being correct.

Carmine Rosado views losing trades as wins if something is learned from them and risk is managed.

Risk management is the foundation of a trading strategy, similar to the foundation of a house.

Carmine Rosado emphasizes that he is in the business of managing risk, not just trading.

Transcripts

what do you think the best trading

strategy is is it ICT smart money

Concepts supply and demand order flow

price action Fibonacci what's the best

strategy and what strategy do you use in

this video I want to explain in a raw

unedited unscripted way of what I find

to be the best trading strategy and the

strategy that you all need to implement

into your own trading to see a major

difference so the first thing that I

really want to dive deep into is

regardless of the trading strategy that

you use every individual Trader must

develop a unique approach to their own

style the way I look at the traders in

the stock market is we are all unique in

the sense of we are like the

fingerprints on our hand right like my

fingerprint will look similar to yours

but my fingerprint will identify me as

Carmine rosado in the same the same

approach of the stock market you're

going to have traders that Implement

different strategies ICT Fibonacci

support resistance right and what a lot

of Traders do is they try to copy and

paste a strategy in its entirety out of

everybody that I know on Wall Street out

of everybody that I know personally even

including myself we've all developed a

strategy like we've we've learned it

somewhere right like you've learned ICT

you've learned orderflow you've learned

support and resistance you've learned

different spreads right you've you've

implemented other strategies but you've

made it unique to yourself so the way I

look at it is if you trade orderflow if

I trade uh Supply demand combined with

orderflow I don't look at it as I trade

Supply demand and orderflow I look at it

as I trade Carmine Rosado strategy what

a lot of Traders do is they try to trade

orderflow and it doesn't work out for

them after one trade or two trades and

they give up on the concept of orderflow

or they try smart money Concepts they

try it for a week maybe they had one or

two good winning trades and then the

rest were all losing traits but then

they give it up without trying to debunk

what was going wrong and without trying

to scale it up because they made the

mistake of using it in a very generic

approach what I recommend everybody and

even including myself like if you go

back and look at all my setups it's very

unique and I look for specific things

that not a lot of people look for and

that's the goal with trading is

developing a unique approach and not

being so generic a lot of Traders now

with days and you know I was victim to

this when I first started out trading

was I was looking for generic ways to

make money and anything worth wild

you're not going to find being generic

things that are very valuable you could

look at homes being over a million

dollars you could look at artwork right

cars anything that's super valuable is

not going to be generic it's going to be

very unique because that uniqueness is

what gives that item or the uniqueness

is what gives that trading Str strategy

it's value so if you learn

hypothetically speaking ICT or orderflow

or Supply Demand right don't try to copy

the rules entirety of whoever the guy

you just watched on YouTube was saying

to do you need to develop it unique to

your own approach which fits your

personality so I'm a firm believer that

you can make money with any single

trading strategy it's not the strategy

it's the trader so what you have to do

and this is what I recommend if I had to

go back and start over was I would have

it in the back of my mind that I need to

develop a unique strategy influenced by

other things that I have learned so

let's say you go and you learn how to

use supply and demand combined with

orderflow which is exactly how I treat

right I'm going to learn from Carmine

Rosado but I know Carmine Rosado has a

unique personality and he's going to

treade a little differently than I trade

right it's not copying carine and Rosado

it's not copying supply and demand and

orderflow in its entirety it's

developing his Concepts and adapting it

to your own trading right like if you

copy somebody if I go on Wall Street and

copy somebody's trades or copy exactly

why he buys and sells without putting an

influence on risk management he might be

the guy that makes money and I might be

the guy that loses money why is that we

all have different personalities and we

all have this different riskmanagement

parameters so that's why trying to copy

and paste will never work out because

not only do you you can't copy and paste

emotional intelligence but you can't

copy and paste risk parameters the guy

on Wall Street might have a 50,000 or

$50 million account he's trading with

versus you you might be trading on A1

th000 account right so you have to

compensate for emotions and you have to

compensate for risk management which is

why copy and paste trading will never

work out and this is why making the

strategy unique to you based off of your

own unique self the fingerprint on your

hand is going to be different than mine

but they're going to be similar in a way

that we could take influences and make

them uh similar in the way that we can

conform it to our own self and our own

rules now how to develop this Edge

number one is stick with the strategy

for at least in my opinion you need a a

numerous amount of Trades you can't do

it for a day and give up on a strategy

because you took a losing trade on it

right you can't supply and demand or

order flow for 3 days have one winning

trade and three other losing trades and

give up on it because you took losses

right every strategy is going to have a

loss what I recommend everybody to do is

have at least a minimum of one to three

months on a minimum of collecting data

with a strategy right how are we going

to collect data number one we need to

journal hour trades we need to have a

physical database we need to have

concrete evidence whether it's writing

on paper

whether it's taking screenshots on our

phone whether it's using a journaling

platform on a computer we need to have a

physical database that we can go back

and reference to and say okay at 9:30 to

10:00 Eastern that's when I take the

worst trades and when 11:00 to noon

comes I'm trading better in the

afternoon right we'll be able to dissect

what not only the time the type of setup

how our emotions were but we're just

going to have a physical database that

we can go back and reference to

you cannot deny data data does not lie

so if you're using a strategy for maybe

a month right and you have a 5% uh win

rate okay so now we have to look back at

is it the strategy or is it my emotions

what is it right and the only real way

that we're going to be able to narrow it

down is if we have physical evidence in

front of our faces people try to skip

this step and Traders try to try to

avoid the whole journaling aspect and

they think that they'll just be able to

figure it out in their head they there's

so many things that get processed on a

subconscious level and by having a

journal or having things in front of you

will'll put subconscious Concepts on a

conscious level and us being able to

read subconscious things consciously

will enable us to figure out what's not

working what to stop doing more of and

what to start doing a lot more of and

scaling it up so besides journaling this

is how you develop your Edge right you

cannot develop your Edge you can't build

a house with without a solid foundation

a house what first gets built when you

build a new home is the foundation right

then you build everything around it you

you frame the house you do the siding

you do the roof right you do everything

inside but most importantly the first

thing that gets done is the foundation

of the house and look at journaling or

look at collecting data as the

foundation and an edge or a house cannot

be built without a strong foundation and

the foundation to your trading is a

solid strategy that you can go back and

repeat consistently on a daily basis and

the only way we can do this is through

journaling and being conscious of our

subconscious actions and our

subconscious thoughts it's all about

putting the conscious together and this

is how we develop our Edge through trial

and error through screen time through

having losing trades and learning from

those losses the best trades you're

going to ever take in your journey

especially when you're beginning and and

trying to build a system the best trades

you will ever take are your losing ones

so when you lose you need to implement

proper risk management that way you

could absorb the losses and be okay with

losing yet still take a lesson out of it

I made a video on this before about how

I win 100% of the time and it's not

clickbait it's not me lying like you can

win 100% of the time if you take a

losing trade and you take something out

of it while you are managing your risk I

may not profit all the time I may not

take money out of the market 100% of the

time but I look at losing trades as wins

if I learn something and I take

something out of it and the only way we

can do that is implementing proper risk

management so risk management and Edge

development are kind of synonymous

because if you don't Implement proper

risk

management while you're developing and

building your Edge then that's when

you're going to deplete your account

faster and it's just going to be just a

slow burn or a big cut a small cut that

turns into a bigger cut uh so risk

management and Edge building are

synonymous that when you're building

your edges and when you're building your

system you need to implement proper risk

management that way you can collect a

database of 50 trades 100 trades that

way when you do lose you're not losing a

lot because you're implementing that

proper risk management system so

regardless of trading strategy

regardless of building your Edge risk

management in my opinion especially once

the edge is built is the most important

trading strategy that you could use it's

not Carmine Rosado strategy it's not

order it's not supply demand price

action it's your risk management system

because without risk management we're

not Traders we're not in the business to

be correct all the time in fact when

people ask me what do I do for a living

I tell them I'm a risk manager I never

tell them I'm a Trader they say hey

Carmon you know what do you what do you

do for a living I'm a risk manager I'm

in the business to manage risk so not

only developing your Edge you have to

manage your risk but when you have that

edge you also have to manage your risk

because you're going to have those

losing trades there's times where I'll

take three four five losing trades in a

row right but if you implement proper

risk management let's say your losses

are 500 bucks 1,000 bucks if you

implement proper risk management coupled

with a solid trading strategy three

losses five losses are not going to mean

anything compared to one two wins right

and that's why risk management is the

number one important aspect because it

will keep us in this game for longevity

we are in this game to be here for a

while right and the only way we're going

to be here to stay is if we protect

losses when we are incorrect so for me

and a lot of people may disagree with

this and I'm totally up for

discussion I find the risk management to

to be maybe 51% of trading and a trading

strategy being

49% of of successful trading right

strategy is very important but I find

risk management to be a little more

important than a strategy itself now

some might argue with that that if you

don't have a strategy no risk management

will save you and that's correct but the

only way you're going to be able to

develop a trading strategy and learn

through trial and error is actually

having real skin in the game right and

when you don't have a strategy you're

especially going to lose a lot more

right but the only thing that will keep

you there is the risk management and

that's why I've made risk management

51% and trading Edge or building a

system at 49% right I find risk

management to be way more important than

a trading Edge or a trading system and

uh if if you can focus on that whether

you're in the stages of developing an

edge whether you're in the stages of you

have an edge but your losses are a lot

higher um you know we're not in the

business to be correct in fact this

month I have a 45% win rate which people

would look and say hey he has under a

50% win rate you know he he doesn't know

what he's doing but if you look at my

average losses to my average wins my

average losses are nothing compared to

my wins and that's how I like

positioning myself right so regardless

of strategy Supply demand ICT smart

money Concepts if you can Implement

proper risk management you can afford to

be incorrect more than you are correct

yet still come out green and yet still

come out profitable and that's try how

how I try to position myself is I try to

not say that I want to be incorrect but

I don't mind losing anymore and I've

accepted it because I know it's a

business expense I know it's a part of

the game but I'm not fearful of of

taking a setup that I lose out on

because I know my next winning trade

will completely outweigh two or three

losing trades if I Implement proper risk

management um so that's pretty much all

I have if you have any questions if you

have any comments let me know down below

if you got any value out of this

subscribe to my channel and uh I will

see you all in the next one