How I Would Learn To Day Trade (If I Could Start Over)

Summary

This video script offers a trader's reflective journey and advice on mastering day trading. With eight years of experience, the speaker emphasizes continuous learning, the importance of the learning, testing, and execution phases, and the necessity of using a trading simulator before going live. They recommend finding a mentor, joining trading communities, and keeping a journal to analyze wins and losses. The speaker also stresses the importance of patience, entering trades only when confident, and finding a successful strategy to test rigorously.

Takeaways

• 📚 Continuous Learning: The speaker emphasizes the importance of always learning and improving in trading, with 10,000+ hours of educational videos watched.
• 🔑 Knowledge is Power: Knowledge is crucial in trading; the speaker suggests that understanding the market can lead to more profits than a traditional job.
• 📈 Three Phases of Trading: The script outlines the learning, testing, and execution phases as essential steps in becoming a successful trader.
• 🚫 Avoid Complacency: The speaker warns against becoming complacent and stresses the need for ongoing self-improvement in trading strategies.
• 💰 Profit as a Byproduct: Profit should be a result of knowledge and skill, not the initial focus for new traders.
• 🤖 Start with a Simulator: New traders should use a trading simulator to practice and gain confidence before moving to live trading.
• 🏦 Choose the Right Broker: The speaker recommends HankoTrade for forex or crypto trading due to its low fees, user-friendly interface, and deposit bonus.
• 🧑‍🏫 Find a Mentor: Learning from experienced traders can accelerate the learning process and avoid the need to reinvent the wheel.
• 📊 Join a Trading Community: Engaging with other traders in a community like Discord can provide support, share ideas, and build relationships.
• 📝 Keep a Trading Journal: Tracking all trades, both winning and losing, is a key method for identifying patterns and improving strategies.
• 🚫 Avoid Forced Trades: The speaker advises against forcing trades when the market conditions are not favorable or when confidence in a trade is low.
• 🔍 Test Successful Strategies: The importance of finding and rigorously testing a strategy is highlighted as a key to long-term trading success.

Q & A

What was the speaker's educational background and initial career plan?

The speaker went to college for Finance, graduated with a degree, and initially considered going into investment banking as a typical career path.

Why did the speaker decide to pursue stock trading instead of investment banking?

The speaker got hooked on stock trading and realized that they could potentially make as much, if not more, money from trading than from a traditional job.

What did the speaker do to improve their trading skills?

The speaker dedicated years of their time to studying and learning about the stock market, including algorithmic trading, and even created a private indicator based on their learnings.

How does the speaker describe their initial trading experience?

The speaker admits that they were terrible at trading when they first started, and they believe that a step-by-step guide would have significantly improved their learning curve.

What is the speaker's philosophy on continuous learning in trading?

The speaker emphasizes that knowledge is power and that traders should always be learning and improving, even with years of experience, as they themselves continue to learn new techniques.

What are the three stages of trading according to the speaker?

The three stages of trading mentioned are the learning phase, the testing phase, and the execution phase.

Why does the speaker recommend starting with a trading simulator?

The speaker suggests using a trading simulator to practice and gain confidence in trading abilities without risking real money, as new traders are likely to lose money if they start with a live account.

What is the speaker's advice on when to move from a trading simulator to a live account?

The speaker advises moving to a live account only after finding a successful strategy, doing thorough testing, learning risk management, controlling emotions, and being consistently profitable with the strategy.

Which broker does the speaker recommend for forex or crypto trading and why?

The speaker recommends HankoTrade for forex or crypto trading due to their low fees and spreads, user-friendly dashboard, and a 100% deposit bonus up to $25,000.

Why is finding a mentor important according to the speaker?

Finding a mentor is important because it allows traders to learn from others' experiences and strategies, avoiding the need to reinvent the wheel and making the learning process more efficient.

What is the significance of keeping a trading journal as per the speaker's experience?

Keeping a trading journal is significant as it helps traders to analyze both winning and losing trades, identify mistakes, and replicate successful patterns, which is a key to improving trading skills.

What is the speaker's view on the necessity of being in a trade constantly?

The speaker advises against the need to be in a trade constantly, emphasizing that patience is crucial in trading and that one should only enter trades when they are confident in the setup.

What final tip does the speaker provide for traders looking to improve their strategies?

The speaker's final tip is to find a successful strategy and rigorously test it, and they also mention that they share one of their own proven strategies in the video.

Outlines

00:00

📚 Embracing a Lifelong Learning Mindset in Trading

The speaker reflects on their eight-year trading journey, which began with a finance degree and a detour from investment banking due to a passion for stock trading. They emphasize the importance of continuous learning, sharing their personal commitment to self-improvement by watching over 10,000 hours of trading videos. The speaker stresses the need to never become complacent and to always strive for improvement in trading skills.

05:01

🚀 The Three Phases of Trading Mastery: Learning, Testing, and Execution

The speaker outlines the three essential stages of trading: learning, testing, and execution. They caution against the misconception that trading can lead to quick riches, highlighting the necessity to focus initially on education and strategy development. The speaker advises new traders to start with a trading simulator to practice and build confidence before moving to live trading, ensuring readiness with a profitable strategy and sound risk management.

🤝 Selecting the Right Broker and Finding a Mentor in the Trading World

The speaker discusses the importance of choosing a reputable broker, recommending HankoTrade for forex or crypto trading due to its low fees, user-friendly platform, and deposit bonus offer. They also advocate finding a mentor to leverage existing successful strategies rather than starting from scratch. The speaker shares their experience of learning from various sources, including YouTube and Discord communities, underscoring the value of engaging with a network of traders for support and knowledge sharing.

📈 Keeping a Trading Journal and the Importance of Patience in Trading

The speaker highlights the practice of keeping a trading journal to track and analyze both winning and losing trades. This method of reflection helps identify mistakes and successful patterns, accelerating improvement as a trader. They also stress the importance of patience, explaining that not every day will offer a good trading opportunity. The speaker advises against forcing trades and emphasizes the wisdom of waiting for high-confidence setups, sharing a favorite quote about the market rewarding patience over impatience.

Keywords

💡Day Trading

Day trading is the practice of buying and selling financial instruments within the same trading day. It is a short-term trading strategy that aims to capitalize on small price movements throughout the day. In the video, the speaker discusses their journey into day trading, highlighting its potential for high earnings compared to traditional employment.

💡Stock Trading

Stock trading refers to the buying and selling of shares in publicly traded companies. It is a common form of investment where traders aim to profit from the price fluctuations of stocks. The speaker mentions their initial interest in stock trading as a college graduate, which eventually led them to a career in trading rather than investment banking.

💡Algorithmic Trading

Algorithmic trading, also known as algo trading, is a method of executing orders using pre-programmed trading instructions that use algorithms to determine order entry and exit points. The speaker mentions developing a private indicator based on their years of experience in algorithmic trading, emphasizing the technical aspect of their trading approach.

💡Learning Curve

The learning curve refers to the process of gaining proficiency in a skill or activity over time. The speaker reflects on their initial struggles with trading, likening their learning curve to a steep ascent, and suggests that structured guidance could have accelerated their progress.

💡Complacency

Complacency is a state of being satisfied with the status quo without a desire to improve or innovate. The speaker warns against complacency in trading, emphasizing the importance of continuous learning and self-improvement, even with extensive experience.

💡Trading Simulator

A trading simulator is a virtual environment that replicates the trading experience without risking real capital. The speaker recommends starting with a trading simulator to practice and develop trading skills without the financial risk associated with live trading.

💡Risk Management

Risk management in trading involves the identification, evaluation, and prioritization of risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. The speaker advises learning risk management as part of the trading simulator phase to prepare for live trading.

💡Broker

A broker is an individual or firm that charges a fee or commission for executing orders to buy or sell securities, commodities, or other financial instruments. The speaker discusses the importance of choosing the right broker, mentioning specific features and benefits of a recommended broker for forex and crypto trading.

💡Mentor

A mentor is someone who imparts knowledge to and advises another person, typically someone younger or less experienced. The speaker encourages finding a mentor in trading to learn from their experience and strategies, rather than trying to develop everything from scratch.

💡Trading Community

A trading community is a group of individuals who share an interest in trading and support each other's learning and development. The speaker suggests joining a trading community, such as a Discord server, to exchange ideas, discuss strategies, and build relationships with fellow traders.

💡Trading Journal

A trading journal is a record of all trades made, including details such as entry and exit points, position size, and the reasons for each trade. The speaker highlights the importance of keeping a trading journal to analyze both winning and losing trades, identify patterns, and learn from mistakes.

💡Patience

Patience in trading refers to the ability to wait for the right opportunities without being impulsive or acting on every perceived signal. The speaker quotes a saying about the stock market transferring money from the impatient to the patient, illustrating the importance of patience in distinguishing good trades from bad ones.

Highlights

The speaker has 8 years of trading experience and originally studied Finance in college.

Initially considering investment banking, the speaker was drawn to stock trading due to its potential for high earnings.

The speaker emphasizes the importance of continuous learning in trading, having watched over 10,000 hours of trading videos.

Three phases of trading are identified: learning, testing, and execution, with an emphasis on focusing on learning first.

The speaker regrets starting with a live trading account and recommends beginning with a trading simulator instead.

A trading simulator should be used as if it were real money to replicate the emotional experience of live trading.

Transition to a live account only after consistent profitability with a tested strategy and emotional control.

The importance of choosing the right broker is highlighted, with a recommendation for HankoTrade for forex or crypto trading.

Finding a mentor is crucial to avoid reinventing the wheel and to learn from others' successful strategies.

The speaker suggests dedicating one day a week to learning from YouTube videos and trading books.

Joining a trading community like a Discord server can provide support, ideas, and relationships with other traders.

Keeping a trading journal to analyze both winning and losing trades is a key practice for improvement.

Automated sites can track trades, making the process of keeping a journal easier and more efficient.

The speaker advises against the need to be in a trade constantly, emphasizing patience and waiting for the right setup.

A successful strategy should be thoroughly tested, and the speaker shares one of their own strategies in the video.

The video concludes with the advice to watch the entire content for further insights into a tested trading strategy.

Transcripts

This is how I would learn to Day Trade if I could start completely over.

For some context, Ive been trading for about 8 years now. Man I feel old.

I originally went to college for Finance, graduated, got my degree, was thinking about

going into investment banking, you know the whole typical college route.

but ended up not because I got hooked on stock trading. And I realized I can make just as

much money if not more from trading, than a real job

So I studied my ass off. Putting in years of my time to try to learn all the ins and

outs of the stock market. Ive been teaching and mentoring premium members

in my discord for a while now and even made my own private indicator engineered with all

the things ive learned throughout the years about algorithmic trading.

Now I ll admit straight from the get-go. When I first started trading, I was terrible. Like

no actually, trash. And I could imagine now, if I found a video

exactly like this one, teaching me step by step on how to go about learning to trade,

right from the start. Like some wax on wax off type of shit.

It would have made my learning curve go through the roof.

So that s why im making this video. Because I know how much this video would have helped

me in the beginning of my trading journey. First things first. Knowledge is power.

I can not stress this enough. You should ALWAYS be learning and trying to improve your trading.

I to this day, still learn on a day to day basis. Im constantly trying to improve myself

when it comes to trading. I have easily watched 10,000+ hours of trading YouTube videos through

out my years of trading. And even with all my experience, I m STILL

learning new advanced trading techniques every single day.

So I guess the point im trying to get across. Is never become complacent. You should always

be trying to improve. Always. The next tip is probably one of the most important

tips I can give. There are three stages to trading. The learning

phase, the testing phase, and the execution phase.

Now I can not tell you how many of my students, watched the wolf of wallstreet, said hey that

looks fun, watch 3 trading youtube videos, and expect to become millionaires by the next

day. That is not how it works. When first starting out, you should not be

thinking about the profits at all. You should purely be focusing on learning, finding a

strategy, testing said strategy, and trying to improve as a trader.

The profits will be a complete by product of your knowledge. Put in the true effort

to learn, and the money will come later, I promise.

Which brings me to my next point. You should start off with a trading simulator.

Now I know, trading simulators. Boring. I get it.

But listen, especially if you re a new trader, use a trading simulator.

When I first started, I went straight into a live account. Which is an absolute terrible

idea. Like if there is a to do list for new traders.

Step 1 is lose money. Its almost guaranteed. If you re a new trader,

you re probably going to lose money. So you might as well save that money, practice first,

until your confident in your trading ability, then use real money. Trust me, you ll thank

me later. Now the trick is, you have to trade this trading

simulator money like its your very own. Treat it like its real money. Try to trade the same

amounts of money you would if it were real. Try to make yourself believe its real, so

youre feeling the same exact emotions as you would in a live trade. Its lot easier said

than done, but its very important that you try to do this.

You should only move to live account when you have found a successful strategy, have

done thorough testing, learned how to control your emotions, learn risk management, etc

and most importantly, you are consistently profitable with your strategy.

Only then, should you move to a live account. A lot of new traders move through this phase

way too fast and end up losing a ton of money they shouldn t have. Only move forward when

you are truly ready. Do not rush it.

My next tip is find the right broker. Now, this Is a pretty important step. As some

brokers are a lot better than others. I feel like I ve used every single broker

out there by now. Ive tried all the good ones, and have also

used the not so good ones. Ill help you out right from the get-go. If

you are interested in trading forex or crypto, I would 100% recommend HankoTrade.

They have some of the lowest fees and spreads on the market. And also have a very user friendly

dashboard. Plus one of the coolest things about their

platform is that they have a 100% deposit bonus up to 25 grand.

So if you deposit $25,000, hankotrade will literally match that and give you $25,0000

for free. They are just that awesome.

If you want that deposit bonus, sign up with the link in my description. Deposit whatever

you want and they will match it.

Next tip is find a mentor. Now when I first started I personally tried to create my very

own strategy, with my very own rule set, with my very own testing, with basically no experience

in my pocket. There is no need to reinvent the wheel. If

someone else is doing something that works, most likely, it ll work for you too.

That s why Id recommend finding a mentor. There s tons of free information on youtube,

the internet, discord servers, everywhere. I personally post news videos every single

week for absolutely free all with extremely valuable information in them. And there are

tons of YouTubers that do the exact same thing. Find one you like, and watch as many videos

as you can from them. Me personally, Ill just set aside one day

like a Sunday and purely just use that day for learning. That whole day Ill just watch

Youtube videos, read trading books, etc. I would also recommend joining a trading community.

For example, I have discord where you can join for absolutely free and talk to other

like-minded traders that want to learn just like you.

Whats nice about this you can post your charts, ask questions, or even see other people s

ideas and strategies and see what works for them. There are tons of nice people in my

Discord server and a lot of them would be happy to help you on your trading journey.

Plus some of my closest friends today, I met through the Discord Server. So you can build

some really cool relationships. The more people you can meet and learn from,

the better. Surround yourself with successful traders, and you too will become successful.

My next tip is keep a trading journal. I to this day, still keep track of all of

my trades. If I ever have a losing trade, I will take note of it, and look back at it

and try to figure out what I did wrong. Did I enter in a good spot? Was I letting my emotions

get the best of me? Did I exit too early? Did I exit too late? Did I chase a trade?

Whatever it is. I figure it out, so I don t make that mistake again.

This is an absolute game changer. If you consistently realize your mistakes and fix them immediately.

Its one of the fastest ways improve as a trader. You should not only be doing this with your

losing trades but also do it with your winning ones. What did you do right? That way you

can figure it out, find certain patterns in your winnings trades and keep replicating

those winning tendencies in future trades. There are tons of sites, that can automatically

keep track of your trades for you. So you don t have to manually do it yourself. Ill

leave one in the description if you want to check it out.

This next tip is extremely important. You have to realize you do not need to be in a

trade 24/7. Listen I get it, I wake up at 6:30 in the morning every single day, do all

of my stock preparation, morning analysis, look at charts, and some mornings I do all

of that work and wake up extremely early for absolutely nothing, because the market is

bad that morning and I don t end up taking a single trade that day.

Its frustrating, because you basically did all that work for nothing, but you have to

learn that if there isn t a good setup, there isn t a good setup. You shouldn t be forcing

anything. Only enter, when you re 100% confident in

the setup and the likelihood that the trend will go in the direction you want it to. If

the trade is iffy and you re thinking well I might aswell , DON T DO IT. The market is

always going to be here, so there really is no reason to force anything.

One of my favorite quotes in trading is the stock market is a device for transferring

money from the impatient to the patient . Which is so true.

And Id say that s what separates a good trader from a great trader.

A great trader knows when to sit on their hands and not enter in anything.

My final tip is to find a successful strategy and test the st out of it. Luckily for you

in this video I go over one of my very own strategies that has proven to work for in

the past. Go check that out, thanks for watching, and ill see you guys next time.