Smartest Route To $10,000/Month Trading in 2024 (With ZERO Experience)
Summary
TLDRThis video script offers a comprehensive guide for aspiring traders, sharing the speaker's journey and strategies that led to their success in trading. It emphasizes the importance of mentorship, finding a consistent trading strategy, and managing risk effectively. The speaker debunks common myths, stresses the significance of process over monetary goals, and provides actionable tips for maintaining consistency and growing a trading account. The script is a testament to the belief that with discipline, the right approach, and a focus on learning from data, anyone can achieve trading success.
Takeaways
- 😀 Consistency in trading success comes from years of experience, trial and error, and learning from various mentors and strategies.
- 📈 To become profitable quickly, a trader should focus on a simplified strategy with clear entry and exit criteria, rather than over-complicating trading with multiple systems.
- 📊 The importance of having a verified trading record and following a single mentor to block out noise and distractions from various trading strategies.
- 🤔 A profitable trader is made through education and experience, not by a single course or program, emphasizing the need for continuous learning and practice.
- 💡 The necessity of managing risk, balancing emotions, and waiting for the right trading opportunities to avoid blowing the trading account due to small mistakes.
- 🚀 The significance of focusing on process-based results rather than monetary goals, which can lead to more enjoyment and consistency in trading.
- 🔍 When choosing stocks to trade, focus on those that are trending, have news events, and show unusual volume, as these factors can indicate potential market movement.
- 📝 The value of keeping a trading journal to identify personal strengths and weaknesses, understand market cycles, and adapt strategies accordingly.
- 🛑 Setting a daily stop-loss dollar amount to prevent significant losses and maintain consistency in trading performance.
- 🚫 Avoiding the common advice of risking only 1% of capital without context, suggesting that risk should be sized appropriately based on market conditions and personal consistency.
- 🌐 The role of community and sharing success stories as a source of motivation and validation that profitable trading is achievable with the right approach and mindset.
Q & A
How long did it take the speaker to become a profitable trader after starting?
-It took the speaker 3 years of trial and error to become a profitable trader.
What is the speaker's confidence level in being able to restart and become profitable again with current knowledge?
-The speaker is confident that they could become a profitable trader in half the time with the knowledge they have today.
What is the main goal of the video according to the speaker?
-The main goal of the video is to provide a roadmap to profitability for new traders and to bust any myths about starting trading.
How did the speaker validate their trading success in the video?
-The speaker validated their trading success by showing a real broker statement from Interactive Brokers and mentioning their live logins and daily P&L on Instagram.
What does the speaker believe is the key to fast-tracking the learning process in trading?
-The speaker believes that finding a core group of traders or mentors and following their teachings is key to fast-tracking the learning process in trading.
What is the speaker's opinion on the effectiveness of trading courses in making a profitable trader?
-The speaker believes that while trading courses are good for getting on the right path, they alone will not make someone a profitable trader.
What is the speaker's advice for new traders regarding the number of trades they should take per day?
-The speaker advises new traders to have a defined rule on the number of trades they can take per day, suggesting a maximum of three trades.
What is the speaker's view on the common advice of risking 1% of capital per trade for growing a trading account?
-The speaker believes that the advice of risking 1% of capital per trade is wrong and suggests slowly increasing risk when seeing A+ setups in a good market instead.
What are the speaker's tips for keeping losers small and winners big in trading?
-The speaker's tips include having a defined stop dollar amount for the day, knowing how many trades you can take per day, not having a dollar goal per day, and taking time off when learning to trade.
Why does the speaker emphasize the importance of journaling trades for new traders?
-The speaker emphasizes journaling trades to help new traders identify their mistakes and strengths, understand market cycles, notice discrepancies in their strategy, and improve their trading over time.
What is the speaker's perspective on the role of emotions in trading and how to manage them?
-The speaker believes that emotions play a significant role in trading and suggests taking time off to manage them, ensuring a fresh mindset for better trading decisions.
Outlines
🚀 Trading Success Framework
The speaker shares their seven-year trading journey, emphasizing the importance of finding a profitable strategy through trial and error. They offer to provide a comprehensive framework for new traders to follow, covering market structure, price action, and strategy. The speaker validates their expertise by showing a broker statement from Interactive Brokers, demonstrating a 30% gain in one month. They stress the importance of education and finding a core group of mentors, recommending focusing on one mentor to avoid information overload. The speaker also discusses the need for a simple trading strategy with clear entry and exit criteria for beginners.
🔍 Understanding Trading Failures
This paragraph delves into the reasons why traders fail, highlighting the misconception that having a strategy alone leads to profitability. The speaker explains that sticking to a strategy for an extended period is crucial, as short-term results are not indicative of a strategy's effectiveness. They also discuss the importance of risk management and emotional balance, emphasizing that traders often underestimate the effort required to succeed in trading. The speaker advises focusing on process-based goals rather than monetary outcomes, suggesting that consistency in trading will naturally lead to financial success.
📈 Choosing the Right Stocks
The speaker provides guidance on selecting stocks for trading, recommending focusing on stocks that are already trending to increase the probability of a winning trade. They discuss the significance of gaps in stock prices, news events, and volume as indicators of potential market movements. The speaker explains how these factors can be used to identify stocks that are likely to continue moving in a particular direction, thereby increasing the chances of a profitable trade. They also touch on the importance of understanding market structure and using higher time frames to identify key levels and patterns.
📊 Market Structure and Price Action
This paragraph focuses on the importance of understanding market structure and price action for successful trading. The speaker explains how to identify uptrends and downtrends and advises new traders to avoid focusing on sideways or consolidation action due to lower win rates. They also discuss the significance of price action near key levels of support and resistance, emphasizing that traders should only read price action near these levels to avoid noise. The speaker shares their favorite price action candles for entering long and short positions and provides examples of how these can be used in trading strategies.
💹 Growing a Trading Account
The speaker addresses the common advice of risking 1% of capital per trade and challenges its effectiveness for growing a trading account. They advocate for starting with small trade sizes to minimize losses and learn the market. The speaker suggests that the key to growing an account is to slowly increase risk when the market conditions are favorable, highlighting the importance of consistency in trading. They also discuss the importance of taking time off from trading to maintain a fresh mindset and avoid emotional trading decisions.
🏆 Strategies for Consistent Trading
In this paragraph, the speaker outlines strategies for maintaining consistency in trading and maximizing profitability. They recommend setting a daily stop loss dollar amount to prevent significant losses, limiting the number of trades per day to avoid overtrading, and avoiding setting a dollar goal per day to ensure that trades are not prematurely closed. The speaker also emphasizes the importance of taking breaks from trading to maintain a clear mind and avoid emotional decision-making.
📚 The Importance of Data in Trading
The speaker stresses the importance of keeping detailed trading journals as a new trader, as this data can reveal both strengths and weaknesses in trading strategies. They explain how analyzing past trades can help traders identify mistakes and improve their approach. The speaker also discusses how long-term data can reveal market cycles, allowing traders to adjust their strategies accordingly. They highlight the need to adapt strategies based on market conditions and the value of historical data in making informed trading decisions.
🌟 Real Stories of Trading Success
The speaker concludes by sharing success stories from their students, demonstrating the effectiveness of the strategies discussed in the video. They show how traders who have implemented the recommended strategies have achieved significant gains and improved their consistency. The speaker emphasizes that trading success is possible with the right mindset, work ethic, and adherence to the provided roadmap. They encourage viewers to subscribe to the channel and engage with the content to continue their trading education.
Mindmap
Keywords
💡Trading
💡Profitable Trader
💡Trial and Error
💡Momentum Trading
💡Break and Retest
💡Risk Management
💡Consistency
💡Process-Based Results
💡Market Structure
💡Price Action
💡Gap Up/Gap Down
💡News Event
💡Volume
💡Higher Time Frame
💡Risk-Reward Ratio
💡Stop Loss
💡Journaling
Highlights
The speaker has been trading for 7 years and has made over seven figures.
It took 3 years of trial and error to become proficient in trading.
The speaker is confident they could become a profitable trader faster with their current knowledge.
A framework for going from beginner to professional trader will be outlined.
The importance of understanding market structure and price action is emphasized.
A profitable trader is taught through trial and error, not just by courses.
The speaker spent $25,000 on a trading program to improve their skills.
Finding a core group of traders or mentors was key to the speaker's success.
A simple trading strategy is recommended for new traders.
The speaker is a momentum price action trader using the break and retest system.
Strategies need time to prove their effectiveness; one week is not enough.
Risk management and emotional balance are crucial beyond just having a strategy.
The input traders put into learning and understanding the market is often insufficient.
Traders often fail due to chasing monetary results instead of focusing on the trading process.
Focusing on process-based results leads to achieving monetary goals more effectively.
The speaker validates their trading success with a $71,000 gain in one month from Interactive Brokers.
Consistency in trading comes from managing risk and emotions, not just having a strategy.
New traders should focus on stocks that are already trending to increase the probability of winning trades.
Four key factors to consider when choosing a stock to trade: gap up/down, news events, volume, and higher time frame trends.
Market structure and price action are essential for understanding when and how to enter trades.
The fastest way to grow a trading account is by slowly increasing risk when conditions are favorable.
Keeping losers small and winners big is achieved through defined stop loss values and not having a dollar goal per day.
Journaling trades daily is crucial for identifying mistakes, strengths, market cycles, and strategy discrepancies.
Real trading success stories are shared to motivate and demonstrate the effectiveness of the provided strategies.
Transcripts
I've been trading for 7 years and I've
made over seven figures trading but to
get to this point it took me 3 years of
trial and error I was trying different
strategies different mentors hopping
from one concept to another but if I had
to restart with everything I know today
I'm confident that I could become a
profitable Trader in half the time so in
this video I'm going to lay out the
exact framework that I would follow to
go from beginner to professional Trader
I'm going to speak on everything you
need to know to restart your trading
Journey from Market structure to price
action to even the strategy you should
follow as a new Trader by the time
you're done watching this video the goal
is that you will have the road map to
profitability so how would I restart
trading if I had to start with $0 now in
this video I want to give you the full
road map on what to follow and I want to
also bust any myths that you may have
about starting trading now a lot of you
have already started your trading career
and that's completely fine this video
will still help make sure that you're on
the right track to actually see some
consistency and success with trading now
before we get any further in the video
it is important that I validate myself
as a Trader and very quickly I just want
to show you guys a real broker statement
from interactive brokers a very
regulated platform for
$71,000 in one month and this was a 30%
gain on that one single month now a lot
of Traders on YouTube can make big
claims but they can't back it up with
real proof so this is a one- month
broker statement from interactive
brokers and of course if you do follow
me on Instagram I do live logins and
show my daily p&l every single day this
is a live login for over a week period
and you can see that this week I made
$41,000 along with one single day where
I made $222,000 and this is once again a
live login from the actual regulated
broker so now that I've shown some proof
of real trading and of course if you
want to see more proof you're always
able to go over to my Instagram or my
Twitter where I post proof almost every
single day of the trades that I take I
want to mention one main thing a
profitable Trader is not taught by a
course a profitable Trader is taught
through trial and error however this can
be fast-tracked by someone who has been
where you are now if you guys have
watched my previous videos you know I've
bought many courses discords I've bought
masterminds I bought oneon-one I bought
a
$25,000 trading program when I was
getting a little bit more consistent and
I was winning in my trades I bought a
$25,000 program trying to learn how to
trade so I am someone that 100% believes
in education but I also know after all
the experiences that I've had through
courses discords and everything in
between I'm telling you right now those
are really good to get you in the right
path however that one Discord or that
one course will not make you a
profitable Trader everyone's looking for
that one thing that's going to make them
a profitable Trader for me I think
personally what helped me the most to
actually see consistency and become a
profitable Trader is finding my core
group of Traders or mentors that I
follow right so I only follow one or
three Traders and mentors that that
allowed me to get to the position I'm in
today because I was able to only stick
to what they were teaching me because
there's so much information online
everyone has a different strategy you
have ICT SMC you have price action you
have supply and demand so many people
trade different strategies and yes they
may work however it is so easy to get
lost in which strategy you should trade
or how you should manage your risk
because everyone has their own opinions
based off their own previous experience
so what I recommend to you in the
beginning is find One Mentor find
someone that has been through where you
are they've been through the trials and
tribulations and of course they have a
verified trading record and follow them
if you follow one person you will block
out the noise of everybody else and you
will stick to that one strategy and if
you can see consistent results with that
Mentor then of course you're going to
get better over time so just understand
that trading is a long-term game however
if you're able to follow One Mentor that
has the same trading approach as you and
can simplif trading down so you can
understand follow that person it doesn't
have to even be me and make sure to ask
questions don't be shy even in the
comments of this YouTube video if you
have questions of this video try to ask
those questions and I will try my best
to get back to you as soon as possible
as well with this being said as a new
Trader you need a simple trading
strategy a lot of Traders over
complicate trading and in the beginning
I've said this multiple times you need
the most simple strategy with the most
simple entry and exit criteria so you
can see it and replicate it in in real
time for me personally I'm a momentum
price action Trader and I trade the
break and retest system now within the
system I have a lot of different setups
that I can trade for example the 5
minute opening range the pre-market high
and low the previous high of day and low
of day setup and I have much more
different setups that I can trade within
my break and retest system and that's
why I think this is one of the best
systems to follow and of course you guys
have seen the results for me as well so
I have full in-depth videos going over
all these strategies however in this
video I want to talk a little a little
bit more about how a new Trader should
approach the way I trade so as I say
this because I did give you the strategy
what if I told you you have the strategy
go become profitable well wait you can't
and a lot of Traders go when they watch
strategy videos which I think are very
valuable however when they watch those
videos they think that's all they need
and boom all of a sudden they're going
to become profitable and I'm here to
tell you strategies is very important
you need to have a profitable strategy
with a proven Edge however just having
the strategy alone will not make you
profitable why the main reasons that I
think that most Traders fail is after
the strategy if it doesn't work in one
week they'll jump ship right so they'll
watch let's say my 5- minute opening
range break and retest that's a really
effective strategy especially for new
Traders intermediate Traders even
Advanced Traders I still use that
strategy to this day when I'm live
trading if a strategy doesn't work over
a onewe period that's not enough time to
actually know if the strategy works
that's way too short however as a new
Trader you want to be profitable as fast
as possible so if it doesn't work in a
onewe period you're just going to jump
ship into the next strategy which may be
the pre-market high and pre-market low
or you might just go and change your
system into the breakout system because
that's what's working for some other
Traders but what you need to understand
is you need to give your strategy time
to work one week might be a down period
for that strategy the market may not be
trending the market may not have
momentum it may not have volume there's
a lot of different factors that come
into play so you need to make sure that
you're trading your strategy over a
longer period of time to actually see if
it works or if it doesn't work one week
two weeks 3 weeks is not enough time you
want to trade that strategy for a month
two months 3 months and really see that
strategy has a proven Edge number two a
strategy is half the battle so like I
just talked about previously if I give
you a strategy and I tell you okay I
gave you the strategy go become
profitable with it that's not how it
works you need the strategy which is
important but after the strategy you
need to be able to manage your risk you
need to have your emotions balanced you
need to make sure that you're only
waiting for that strategy so there's a
lot of different factors that come into
play after the strategy that you need to
follow and in this video we will touch
on those different factors as well
because if all the other factors aren't
aligned and you will make small mistakes
that will end up unfortunately blowing
your account and finally number three
your input does not equal the output you
want so a lot of Traders they come into
the market and they want this great goal
the output they want is making thousands
of dollars a day they want to retire
they want to quit their 9 to5 they want
to live the life that they've been
seeing on social media however the
actual input they're putting to actually
make trading work is very very minimal
they're not doing enough to actually
make trading work they think they are in
their head they're sitting in front of a
computer and they're watching the screen
however they're not actually learning
anything they're just sitting in front
of the computer watching the charts
without actually understanding how the
market structure is moving they don't
actually understand what's going on but
they think they are just because they're
sitting in front of a screen and the
same thing happened to me as a beginner
when I was sitting in front of the
screen for hours per day thinking that I
was learning so much about the markets
but in reality it was coming in one year
and out the other because I wasn't
retaining the information so one thing I
will recommend to you is if you're
watching this video take notes take
notes of what I'm saying or all of my
previous videos take notes of what I say
and make sure you're actually applying
the information that I'm saying because
it's very easy to watch these videos get
a little motivated and then do a little
bit of work and then think okay that's
enough work but in reality you need to
consistently have the same input every
single day to actually get to the output
or the goal that you want to get to so
these are the three main reasons that
Traders fail even if they have the
strategy given to them you need to
combine a lot of different factors in
trading to actually become profitable
and by the time you're done watching
this video the goal is you will know all
the different factors that you need to
actually see consistency in trading so
with this being said what is the main
difference between you and a profitable
Trader I really want you to think about
this question think about yourself today
right now as you're watching this video
and think about yourself in 3 years now
most likely you guys are picturing
someone that is doing much better than
the current position you're in most
likely you thought of someone that put
in a lot of hard work you thought about
your dream or ideal version of you so
what is stopping you today from becoming
the ideal version of yourself well I'll
tell you right now it's the fact that
you're chasing monetary results whereas
a profitable Trader chases process based
results now what does this mean for you
the problem is is because you want to
become a profitable Trader you're trying
to chase these monetary values you want
to make a $100 a day or maybe you want
to make $500 a day maybe you even want
to make $50 a day but you're chasing
these monetary goals because that's
what's going to help you quit your job
or quit your 95 to focus all on trading
but what you need to understand and what
every profitable Trader understands is
focusing on those monetary results is
only going to keep you from being a
profitable Trader because a profitable
Trader focuses on the process-based
results your goal should be to become
more consistent in trading it should be
to manage your risk better it should be
to actually understand technical
analysis in a much more deeper
understanding than you have right now
the more you focus on the process-based
goals you'll notice that your monetary
goals that you did have you will start
achieving them because you're getting
better at trading you're getting better
at the process of actually getting to
your outcome so when people say the
cliche enjoy the process what that means
is have process-based goals and try to
reach them because every time you reach
a process-based goal you will get a dop
and bean feeling similar to if you were
chasing that monetary goal but now
because your mindset has shifted into a
process-based mechanical Trader you will
see that you actually get much more
enjoyment focusing on the process rather
than focusing on the outcome and the day
that you see that happen there will be a
shift in your trading where you're going
to see a lot more consistency and a lot
more profitability much faster so now
with that being said now I want to talk
about some steps that you can Implement
today to actually see a little bit more
consistency in your trading and what you
should focus on as a new Trader so
number one what stock should you trade
this is a question I get quite often
from new Traders and the main idea
behind this is you want to focus on
stocks that are already trending this
increases the probability of the trade
winning so the reason I personally focus
on momentum trading and stocks that are
already trending is because even if I
mess up the entry if I enter a little
bit too early or if I enter a little bit
too late that's still fine because if
the stock is trending on the higher time
frame or in general just trending on
even the lower time frame if we have
clear and defined Market structure with
the stock trending I can have my entries
be a little bit late or a little bit
early and I know I'm still going to win
that trade why because I know that the
market favors me I want you to think
about it like an ocean the ocean has
waves imagine you're trying to fight
those waves it's going to be much harder
for you to get to the other side but if
you're swimming with the waves in your
direction then you're going to get to
the other side or your desired
destination much faster similar with
trading if the market is trending then
the wave is in your favor therefore the
wave is going to carry you to your
destination however if you're trying to
fight the trend so if it's in an uptrend
and you're trying to short the stock
then of course the market is not going
to favor you and it's going to be a much
harder trade so four things you should
focus on when you're looking at what
stock to trade every morning is a is a
stock gapping up B does a stock have a
news event C is a volume higher or lower
than average and D does the higher time
frame look ready to go and we're going
to talk a little bit more about that as
well so if the stock is gapping up or
gapping down this shows that the market
direction is very strong because buyers
brought the stock up before it could
even open therefore buyers most likely
want to continue the direction that the
stock is trading in here we can see a
breakaway Gap and what this implies is
the stock broke up right so this is a
gap that the stock broke up from and
therefore buyers were much more in
control and here we actually left orders
of unfilled liquidity so as we can see
here the stock actually retraced and
retested this gap for an impulsive move
to the upside so if you see a gap up or
gap down on the markets most likely the
stock will retrace into that level for
an impulsive move in the direction that
it was already heading the reason I want
you to look for Gap up or Gap Downs on
stocks is because it shows that the
market is trending and therefore the
stock will be in favor of the direction
that you want to trade that stock so if
you see a gap up for example and if
you're able to combine the Gap up with
let's say the previous high of day or
low of day strategy that's going to be a
very effective and Powerful setup for
that day here we can see a little bit
more of an illustration of that
Breakaway Gap so this is the previous
day we closed the previous day high
right here we open up the next day in
the Breakaway Gap we can see here that
the stock has a clear uptrend as well
then we retest and where do we retest we
retest this previous day high level
which is already a setup within our
system but we have a gap up as well so
it's a little bit more conf fluence and
this is a stock we should be focusing on
because the trend is going to the upside
and as we can see if we enter this
retest this would have been a very
profitable trade and a very impulsive
move to the upside number two when
you're looking for a stock to trade make
sure you know when it has a news event
the reason this is is because when a
stock has a news event that is
individual to that one stock and not the
industry or the sector of the stock
itself then most likely that stock is
going to have relative strength or
weakness on the day so as we you can see
here this is a news event that happened
we can see where the news event happened
and the company is white and of course
the sector is green with this stock we
can see that this was actually affected
by news as a whole sector so for this
company the sector that it's in or the
industry that it's in it had news
impacting the whole sector therefore as
a sector goes down the company goes down
with it however if the company has
individual news as we can see here the
news event occurs but this is only for
the one company that we are trading for
example example let's just say Tesla
right let's say Tesla has bad earnings
well now if the tech Market or the EV
Market continues to go up well Tesla's
going to continue to go down why because
it had an individual news event
correlated to it and it was a negative
news event therefore the stock or the
company will go down and show relative
weakness now how can we use that to our
favor well what this shows us is the
entry does not have to be perfect so if
we can understand if it is a positive or
negative news event even if the overall
sector is going down and let's use Tesla
one more time and let's say Tesla is
going up well we can look at Tesla in
terms of the news event and see that it
has relative strength compared to the
rest of the market and therefore that is
a name that we could trade based off of
the news event with our break and retest
setup because we know that stock has
relative strength even with the industry
or the sector going down Tesla is going
up and therefore that is a stock you
want to focus on because buyers believe
that the price of the stock should be
higher based B off of the news event
that occurred now after this volume so
if a stock has higher or lower volume
what does that indicate well that
indicates that more buyers or sellers
are either selling or buying that stock
how does a stock move well a stock only
moves if somebody else thinks that the
stock should be priced higher or lower
so when a stock is in consolidation that
means both buyers and sellers believe
that the stock is at a fair price so
when you see a stock going up or when
you see a stock going down that means
that somebody else or big hedge funds
believe that the stock is not at fair
price or fair value so when we do see
volume increasing on a stock and we see
the stock having an impulsive move to
the upside that means that buyers
believe that the stock is not fairly
priced and therefore the price of the
stock should be higher so when you see
these volume spikes as we can see here
this volume spiked right here and on
this day we did have a little bit of a
gap up but this was more of an
accumulation phase for this stock and we
can see that this stock after this
accumulation we see the volume slow down
a little bit then a big candle right
here even though the range of this
candle did not move too much and then we
can see lower volume and then the stock
absolutely spikes or rips to the upside
right so the buyers that were here right
and as we can see this is of course a
very big candle these buyers were
rewarded for understanding that the
higher volume indicates that bigger
institutions want this stock to increase
in value so make sure when you're
looking at the stock you want to trade
is it trading average volume or is it
trading higher or lower than its volume
if it's trading higher volume than
average then most likely that means that
that stock will have a move to the
upside if the trend is also moving in
that direction and finally higher time
frame so on the higher time frame you
want to look for key levels or patterns
these levels and patterns will help you
have the lowest risk but also have the
highest reward some of the patterns that
I like the most personally is going to
be the bull flag pattern the bare flag
pattern and of course the rising wedge
or the falling wedge these are very very
similar but all these patterns really
mean is that the stock is moving to the
upside as we can see here the stock was
moving to the upside and then we were
just ranging or consolidating so if the
stock is ranging or consolidating after
a pushup what does that indicate well it
indicates that sellers are trying to
bring the stock down but buyers still
believe that the stock should go higher
and therefore we're just at a fair price
in the current moment but as that range
gets Tighter and Tighter it will most
likely break out in the direction that
it's already going and because it
already had a bullish Trend then it'll
continue in this direction and therefore
this is the lowest risk entry so you
want to look at those patterns only on
the higher time frame but then on the
lower time frame we want to trade once
again our break and retest setups now
that we talked about what stocks we
should focus on we need to talk about
how can we actually enter into the
trades for the lowest risk but the
highest reward so there's two main
things you need to understand when
you're looking to enter a trade and
number one is Market structure and
number two is price action so let's talk
about both of them now in terms of
Market structure I have full indepth 30
40-minute guides on exactly how to read
Market structure and how to better your
actual understanding of technical
analysis however the most simplified way
in an uptrend you have a low you create
a higher high you create a higher low
which means the low that we create here
is above this previous low and then we
need to create a higher high above the
previous high that we had right and this
continues the trend and of course for
the downtrend vice versa you have a high
you create a lower low lower high lower
low lower high and then of course a low
now for me personally as a new Trader I
would focus on the uptrend and the
downtrend I would not focus on Sideways
or consolidation action and it's because
your win rate will be much higher if you
focus like I've talked about earlier on
the trending stocks for the day right
trending stocks is where you're going to
have the highest win rate if you focus
on stocks that have consolidation most
likely these stocks are going to have
lower volume as well and therefore if
not enough institutions are buying and
selling these stocks well most likely
what's going to happen is the stock will
not have significant breakouts and
because of that you're just going to sit
in this choppy period and it won't hit
your profit Target or your stop loss and
if you've ever been in a trade where it
looks like a really good trade but then
it just doesn't move and it moves very
very slowly and just consolidates most
likely you just chose a stock that is
consolidating on the higher time frame
with lower volume so therefore as a new
Trader I would focus on the uptrend and
the downtrend now in terms of price
action I also have full in-depth guides
on this as well on my channel but I
would focus mainly on price action near
key levels this is very important focus
on price action only near levels of
support and resistance most of the other
times where it's not near a key level
it's just noise and what's going to
happen is let's say you enter a bullish
trade and it's an A+ setup and it's
working out really well well you're
going to see one red candle and all of a
sudden you're going to stop yourself out
because think oh this may not work
because I know how to read price action
but if it's not near a key level that
price action is noise so just understand
that only read price action near key
levels and in between key levels just
let the trades probabilities play out so
for me personally my favorite price
action candles if I'm looking to go long
on a position is of course if it's a
full green candle but most likely you're
not going to see too many of these near
key levels what you're going to see is
this candle right here which is the
hammer stick candle this is my personal
favorite candle is the hammer stick
candle or I'll even enter in on a normal
bullish candle as well a candle that I
wouldn't like to enter in on if I'm
going long on a position is of course
this candle right here which is
basically a shooting star candle right
because what happened on this candle
right here is we open up on the candle
down here the candle moved all the way
to the upside creating this Wick and
once we got to this high of this candle
sellers brought it all the way down and
we closed near the low of that candle
therefore it shows that sellers are more
in control because the wick you always
want to look at the wick the wick will
tell you the story of what happened
behind the candle but the body is what
actually matters now for the be side if
the candle is fully bearish of course I
would enter into that as well but once
again vice versa to the bullish side
right I would like this candle the most
this is the inverted shooting star
candle which is the least bullish candle
here is the second most bearish candle
here and therefore that's why I like to
enter into this for a short position and
then of course I would not want to enter
into a hammer stick candle when I'm
trying to go short on a position
so once again my favorite setup in terms
of price action we can see the stock
coming down after a move up and then we
can see that we put in a strong Hammer
stick candle we see this Hammer stick
candle we see that if this is near a key
level this is the most important part if
you are near a key level when this is
happening then you can enter into a long
position here by simply having your stop
loss below this candle and you can
Target out these previous highs right
here right and as we can see this trade
would move nicely to that direction now
another example of price action we can
see right here right so this is going to
be the pre-market High strategy right so
we can see we marked out pre-market high
right here we can see that we had an
impulsive move with strong displacement
and then when we retest this is the
pre-market High retest we see a hammer
stick candle forming so what do we do
well we enter in on this Hammer stick
candle right here and we look for our
profit Target which is going to be the
previous high of day and as we can see
our stop loss in this scenario is simply
going to be the Candlestick that br
broke out as we can see this is the
Candlestick that broke out of the
pre-market high so we put our stop loss
right below that impulsive candle that
broke out and as we can see this trade
worked out extremely well simply because
we understand that the market structur
is to the upside after we broke out of
the pre-market high and we can see that
this is a higher low right on top of a
strong price action candle with our
pre-market high and low strategy right
so now you can see a little bit more
confluences on how I enter into the
trade so so far I've talked about why
Trad fail I've talked about what stocks
to trade and I've talked about how to
actually enter the trade if you have
gotten value so far make sure to leave a
like on this video but we are still not
done we still have the most important
Concepts to cover so let's continue with
one of the main questions that I get
from New Traders and that is how would I
grow my trading account this is a
question I get all the time Traders are
very very curious how they should grow
their trading account and the classic
advice that you most likely receive is
risk 1% of your capital I see this
advice everywhere on the internet if I
go on Instagram I see this advice if I
go on YouTube I see this advice and in
my opinion this is wrong if you actually
want to grow your account and we'll talk
about the reason why I think this is
wrong but before I talk about growing
your account you need to understand one
very important thing and that is that
you need to size low in the beginning
when you are first starting out and
you're learning how to trade if you're
watching this video it most likely means
that you haven't seen consistency just
yet and therefore this applies to you
you need to start with small size I know
you want to make $1,000 I know you want
to make $5,000 in a day right like I
know I've been there myself as well but
what you need to understand is the more
you can delay that short-term
gratification of making $1,000 in a day
is the better result you will get in the
long term because you're going to lose
less money therefore whenever students
ask ask me in terms of option contracts
or even stocks how much they should
enter in with I always tell them one or
three contracts when we're looking at
option contracts and when we're looking
at other instruments it really depends
on how expensive the instrument is as
well however you will lose money
therefore the less money you lose the
better so I want you to only focus on
one to three contracts you won't make a
th000 5,000 $10,000 a day with one to
three contracts you see consistency you
will get to those goals so much faster
and with losing much less money an
example I usually give students is
imagine you and your friend are going to
the exact same college now in this
college you're going to the same program
you're going to the same dorm which
means you're living together and you're
going to have the exact same experience
as your friend so you and your friends
same College same program everything is
the exact same however the college
tuition charges him $5,000 for the year
and they charge you $110,000 for the
exact same experience the lessons and
the overall college experience would you
find that fair most likely you're going
to answer no why because why should you
pay $5,000 more than your friend when
you're getting the exact same experience
and it's the exact same thing in trading
why would you want to lose 10 20 or
$30,000 of this hard-earned money that
you saved up when you can only lose
$55,000 or even $1,000 or even less than
that to completely learn how to trade
and become consistent and size up after
you have became consistent so therefore
I really want you to think about that
example and this analogy I think it'll
help you guys in the long term but in
the beginning before I talk about how I
would personally grow my account you
need to understand before you see
consistency you need to size extremely
low just to learn how to trade now in
terms of growing a trading account the
fastest way to grow your account is to
slowly increase your risk this is how
you actually grow your account so as we
can see here with a $5,000 account if
you're able to make 5% weekly and
compound that account then of course
that's how you're going to make the most
money so the main thing you need to
focus on is in the beginning it'll still
not be the craziest account gains you're
not going to go from $55,000 to $500,000
overnight but with5 $5,000 what you can
do over a whole year you'll see growth
so in terms of $5,000 we can see the
first month we would make
$445 182 now this isn't anything too big
but it is very achievable for us now the
next month we would look at
$1,344 and as we can see these numbers
slowly increase over time and by the
time we're done next year so in one year
from the $5,000 that you initially
started with that 5% weekly goal you
would be looking at making
$11,000 per month right so now all of a
sudden that $5,000 that you initially
had you're making
$1,000 if you're able to Compound on the
$5,000 now for me personally I think 5%
a week is pretty aggressive however I
think it is possible to make 5% a week
you guys saw last month I made 33% on my
account on a $200,000 account so 5% on
$5,000 is possible however you do need
to see consistency as a Trader to get to
this level you can do it but you're
going to have to build on your good
trading habits and stay with that small
consistent size first and once you see
consistency then you can come in with a
$5,000 $10,000 account have a percentage
weekly Outlook and then based off of
that you would see these type of results
but the only way to grow a trading
account is not by risking that 1% that
everyone tells you but it is to actually
put on risk when you see your A+ setups
in a good market so for example if you
are trending on the higher time frame
and the individual stocks that you trade
on a daily basis the actual setup is
working extremely well and the market is
just hot in those times you need to
actually start sizing up if and only if
you're consistent that's what I do
whenever I see that the market is
trending and we have a very clear and
easier Market to trade I will size up
and when I size up in that market those
are the one to two weeks that I need the
whole year to make the majority of my
game and then for the rest of the year I
can just go on autopilot and just kind
of chill mode where I can just trade
whenever I see an A+ setup occur but you
will get periods of time in the year
where you need to know that this is your
go mode and this is when you need to
focus on actually increasing your size
to see those compounded gains or see
that p&l chart that you see online where
it kind of starts off slow and then just
has an exponential growth to the upside
now one quote you may have heard in your
trading Journey so far is keep your
losers small and your winner Big this is
something that basically every single
Trader says and it is a very important
thing to do but no one actually talks
about how you can keep your losers small
and your winners Big this is very
general advice and very basic advice so
now I want to actually go into depth on
what you can actually do to keep your
losers small and your winners Big so my
main tips for consistency for you to
keep your losers small and your winners
big is number one have a defined stop
dollar amount for the day so what you
may have noticed is when you're winning
as a Trader maybe you're having small
green days you have a $50 day a $20 day
a $30 day a $40 day and you're
consistently seeing small green days
what's going to happen is one day you're
not going to take a winning trade and
you're going to take a losing trade and
you may only lose $ 20 $30 but because
you have that red day in your head
you're thinking I need to make a Green
Day I need to make my red day a Green
Day why because I've had small green
days and I don't want to lose my
consistency so what you're going to do
is you're going to take another trade
another trade and another trade and most
likely what happens is on the days that
you had those small green days it was
trending markets it was easy markets to
trade but the one day you shouldn't
trade literally the one day you
shouldn't trade because it's a choppy
Market you're going to lose the most
amount of money and take the most amount
of Trades and because of that on a day
that you could have had a simple $20
stop day you ended up losing 400 $500 or
even
$1,000 and what happens is you just
wiped out your two or 3 weeks of
consistency in one day and now all of a
sudden you are back to being r on the
month so what I recommend is have a
defined stop loss for a dollar value per
day right so that could be $50 $100 $200
that really depends on you but look at
how your green days are right so in
terms of consistency look at how big
your green days are are you making $50
$100 $200 on average right you need to
see on average how much you make per
Green Day and based off of that your red
day should be that or less so your red
day dollar amount for your stop loss
should be less than the average Green
Day and this makes sense as well because
if you're using a 2:1 ratio which I like
to use for risk to reward right a two R
meaning if I'm risking $100 and making
$200 that means if your red day stop
dollar value is the average as your
green day that gives you still two
trades to take that day because
technically if you're doing a 2 to1 risk
reward ratio your average Green Day
should be $200 whereas your average
loser would be $100 and therefore you
could take technically two trades right
so it all kind of aligns together but
make sure you have a defined dollar
value for the day where you absolutely
stop trading no matter what number two
know how many trades you can take per
day what happened to me as a new Trader
is I would take one trade and it would
be a winning trade it would be an A+
trade but then I wanted to take more
trades why because I wanted to make more
money therefore I took two trades three
trades four trades five trades and all
of a sudden I went from taking that one
A+ quality trade to 20 trades and now
I'm back to being read on the day so
have a defined rule on exactly how many
trades you can take per day for me
personally I only take maximum three
trades per day however if you've been
following me on Instagram or Twitter or
a student of mine in The Mastermind or
accelerator program where I trade live
every single day you guys know I only
take one trade per day for the last 4
months on average I've only taken one A+
quality trade per day and that's what's
helped me had these really good solid
months for the last four to 5 months
right so have a defined amount of Trades
that you can take per day number three
don't have a dollar goal per day as we
talked about earlier it is important to
have a stop dollar value per day but do
not have a dollar goal per day why this
caps out your success this caps out your
profitability now let's say the trade is
working in your favor and it makes $200
and your goal per day is $200
technically you have to leave the full
trade even if it didn't hit your profit
Target because you hit your dollar value
and this caps out your gains and that's
something you don't want to do so don't
have a goal of dollar value per day but
rather just trade the chart trade the
technicals on the chart that is very
important as long as you still have that
2 to1 risk reward ratio at a minimum or
if you have a different strategy then of
course you can have different risk
rewards as well having a defined dollar
goal per day what I've seen in my
personal experience just caps out
Traders rather than helping them so in
my personal opinion don't have a dollar
goal per day and finally number four
make sure you take time off when you're
learning how to trade you're going
through a lot of emotions you have
excitement you have fear you're also
going through a bunch of different
battles in your head so it is important
to just take time off of the market
sometimes right so on the weekends have
some time off to yourself and your
family and just come back with a brand
new and fresh mindset for the next
Monday right because I feel like a lot
of Traders they just lock themselves in
a room and they try to cram as much
information as possible in their head
but what happens is first they're not
going to retain any of that information
and B if they're in a losing streak
they're most likely going to lose even
more because they're not thinking
straight their head is so focused on
winning that they simply cannot see the
mistakes that they're making so when you
take some time off and come back with
the fresh mindset you'll be able to see
the exact mistakes that you're making
and be able to fix them for the future
so make sure you're actually taking time
off now these are the four main tips
that I personally think you'll see much
more consistency in your trading but
you'll also be able to not have those
big red days anymore and your green days
will outweigh your red days most likely
if you actually follow these tips now
following that you need to understand
your data is everything as a Trader your
data is the most valuable thing you have
because this is what's going to create
your Edge this is what's going to help
you learn everything about yourself and
your trading so in terms of data you
need to journal your trades every single
day as a new Trader this is one of the
most important things for you because
what this will show you is number one
what are you doing wrong in your trades
that you may not have noticed in real
time right because when we're trading
there's a lot of different emotions
going on in your head especially as a
new Trader a lot of different emotions
you're trying to focus on where to enter
you're looking at the price action
you're trying to combine all this
information that you've learned right
into the markets in real time so your
head's not thinking as fast on the
mistakes that you're making therefore
when you're able to sit back and reflect
on what you did in real time it'll show
you your mistakes so everything that you
did wrong and it'll also number two show
you your strengths what did you do right
so you may have entered an A+ trade but
you may have sold out too early so what
does that show you it shows you that
your strength is that you're able to
identify A+ setups and execute in real
time but mistake is that you weren't
able to hold to your profit Target and
therefore now you can focus on the
mistake how can you fix the mistake you
can fix the mistake by maybe back
testing or you can fix the mistake of
not holding to your profit Target by
understanding your emotions a little bit
more learn about yourself and your
psychology a little bit more
understanding your mistakes and
strengths through your journaling will
take you really really far as a Trader
number three over a long period of time
you'll see Market Cycles so for me I
have years of data like so many years of
just Excel spreadsheets of data that
nobody else could probably understand
but me because it's just so random but
it all makes sense in my head but what I
can see is different Market Cycles it
helps me identify now when I should be
more aggressive with my size or more
conservative with my size so in terms of
Market Cycles when you have your data
over a long period of time we're talking
about many years 3 four 5 years what
you're going to notice is the market
comes in Cycles you have your bull
market you have your bare market and
then you obviously have the
consolidation Market as well well right
so if you're able to see that when
you're journaling your trades every
single day you'll see that oh for the
last week the market I've been losing a
lot of my trades why and then you're
going to look at the chart and you're
going to see oh you're actually trending
sideways on the higher time frame then
you can look back at your data that you
had maybe a year ago or two years ago
when the last time we were trending
sideways was and you'll notice that yeah
in these weeks I usually lose money and
therefore maybe this time because based
off the historical data I have maybe I
should just take a break from Trading
one or two weeks maybe go on vacation do
something that doesn't involve the
charts because I know historically based
off of my data that this is not a good
time to trade and then vice versa when
it's a bullish market and you're like oh
I'm making a lot of money in the last
one or two weeks you go back to your
data and you're like yeah usually when
this happens I have one or two months of
really solid trading and that's when you
want to focus on pushing in your trading
and sizing more aggressively right so
that data will tell you everything you
need to know about the market Cycles so
make sure you're journaling your trades
every single day number four notice
discrepancies in your strategy so what
happens is based off of the market
Cycles like I said sometimes you have to
adapt your strategy so with my system
the break and retest maybe in one market
the pre-market high and low strategy
works really really well and in other
markets the 5 minute opening range works
really well well based off of that I
know these small discrepancies and
whenever I'm trading and I'm journaling
my trades afterwards I can see oh this
is a market where I should focus on my
premarket strategy or this is a market I
should focus on my 5-minute opening
range strategy so knowing when to focus
on which setup is a very crucial aspect
of trading and you will see that much
more clearly and the discrepancies
within your trading by journaling your
trades make sure every single day you
are journaling every trade that you took
you're journaling the emotions you're
journaling the market sentiment and over
a long period of time you'll be able to
see how your trading improves
but most importantly you'll be able to
see thousands of Trades of data so as a
new Trader I just gave you the full road
map to profitability is it simple Yes is
it easy no I never said that this was
easy however using these simple steps
you should be able to get to a position
where you're seeing more consistency in
your trades now with this being said if
you're able to follow this road map
trading success is possible for you you
are not alone in your journey here you
can see a real trading success story so
this is Stone he's one of the members in
the Mastermind and he said started June
1st look at what you've done to help me
thank you Tony must keep it simple and
slowly keep following the rules so you
can see that this is a one Monon
difference on his account you can see he
was losing much more he had a $700 red
day he was just losing much more and his
green trades were much smaller than
overall his red days right $400 red day
$480 red day but now in one month you
can see this difference right you can
see that he's sizing much smaller now
because he understands he should only be
looking at 1 to three contracts but you
can also see at the same time look at
his green days $200 $300 and his red
days two red days only for the whole
month and it was a $26 red day and an
$87 red day which is the smallest red
days compared to his previous month and
here we have another student in Neato
you can of course read what he said but
he made
$5,000 in one single day and he's
consistently been able to make these
type of profits and of course here we
have Paul he showed his one week of
trading a plus setups only and you can
see he made $14,000 on one account and
$9,000 on the other account so based off
of his two accounts he made a little bit
over
$25,000 in one week now the reason I'm
showing you this is to help you
understand that it is possible to have
real trading success but you need to
focus on the process of trading and have
those process Focus goals rather than
mon goals and you can see results like
this but trading is a very long-term
game it's not a get-rich quick type of
business it will take you years to get
to this type of level but with the right
mindset work ethic and the road map that
I gave you in this video I have no doubt
that you'll be able to see real trading
success so with that being said I hope
you guys got some value from this video
I try to eliminate all the fluff and
give you steps that you can actually
Implement today to become a profitable
Trader and of course if you like the
simplified trading concept make sure to
subscribe to the channel leave a like on
this video and if you have any questions
put them in the comments down below and
I will see you guys next week with the
best trading content
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