How to START Day Trading For Beginners 2024 (FULL COURSE)
Summary
TLDRThis video script offers a comprehensive guide for aspiring traders, emphasizing the importance of a solid foundation in trading to avoid years of confusion and losses. The speaker, a self-taught trader with over seven years of experience, shares a simple process for trading success, including mindset exercises, essential software tools, understanding market movements, and leveraging capital efficiently. The script also highlights the significance of risk management, systematic trading strategies, and the value of practice and journaling to refine trading skills and achieve consistent profits.
Takeaways
- 💰 Trading can be a powerful tool to create a significant income if mastered correctly, but without a solid foundation, it can lead to years of losses and confusion.
- 📈 The presenter emphasizes the importance of having a simple and clear process for trading, which they wish they had known earlier in their 7-year self-taught trading journey.
- 🧠 Rewinding one's mindset to think like a trader is crucial, focusing on the average outcomes over time rather than getting emotionally attached to individual trades.
- 🪙 Understanding the basic principles of trading, such as the importance of maintaining consistent conditions and tracking average gains, is key to developing a trader's mindset.
- 📊 The script introduces three foundational tools for trading: TradingView for charting, Excel or Google Sheets for calculations, and an exchange platform for buying and selling assets.
- 📝 Keeping a trading journal is essential for tracking decisions, entries, exits, profits, and losses, which helps in understanding one's trading performance over time.
- 📉 The script explains that the market's movement is a reflection of mass human psychology, with supply and demand dynamics driving price changes.
- 🔢 Risk management is critical in trading, with the presenter advising against entering trades without a stop-loss and using random position sizes.
- 📉 The concept of trends and trend lines is introduced as a method to anticipate where supply and demand imbalances may occur, providing opportunities for profitable trades.
- 💹 The importance of using leverage wisely is highlighted, as it allows trading with less capital while still managing risk effectively.
- 🚫 The script warns against making trading decisions based on emotions or confidence levels in a trade, advocating for a systematic and consistent approach.
Q & A
What is the main message of the video regarding trading?
-The main message is that trading can be a powerful tool for generating income if done with the right foundation and understanding. Without it, one might spend years losing money and getting confused by the complexity of the trading world.
What is the speaker's experience with trading?
-The speaker has been trading for over 7 years and is completely self-taught, which gives them a unique perspective on the learning process for new traders.
What is the significance of the coin flip exercise presented in the video?
-The coin flip exercise illustrates the concept of probability and emotional detachment in trading. It emphasizes the importance of focusing on the process and maintaining consistent conditions rather than getting attached to individual outcomes.
What are the three foundational softwares mentioned for starting with trading?
-The three foundational softwares mentioned are TradingView, Excel or Google Sheets, and an exchange platform, which are essential tools for charting, analysis, and executing trades.
Why is it important to start with a simple chart in trading?
-Starting with a simple chart helps traders to understand the fundamentals of market movements without getting overwhelmed by too many indicators. It allows for a clearer focus on what moves the markets and how to trade effectively.
What does the speaker mean by 'paralysis by over analysis'?
-'Paralysis by over analysis' refers to the state where traders become so overwhelmed by the amount of information and indicators on their charts that they struggle to make decisions and ultimately fail to understand how to trade effectively.
How does the speaker explain the concept of supply and demand in trading?
-The speaker explains that supply and demand are represented by the buyers and sellers on the order book. The price movement is a result of the balance between these two forces, and successful trading involves predicting where these imbalances will occur.
What is the role of trend lines in trading according to the video?
-Trend lines are used to identify and anticipate potential changes in market direction. They help traders to visualize and predict where demand may outweigh supply or vice versa, providing opportunities for profitable trades.
Why is it a mistake for beginners to enter trades without a stop-loss?
-Entering trades without a stop-loss exposes traders to uncontrolled risk. A stop-loss acts as a risk management tool, ensuring that losses are contained and do not spiral out of control.
What is the purpose of using leverage in trading as mentioned in the video?
-Leverage allows traders to take larger positions with a smaller amount of capital. When used correctly, it can amplify potential profits but also requires careful management to avoid excessive risk.
How does journaling and practicing trades help traders to improve?
-Journaling and practicing trades help traders to track their decisions, outcomes, and progress over time. This record-keeping allows them to analyze their performance, refine their strategies, and ultimately become more consistent and profitable.
What is the importance of having a proof of concept before trading with real money?
-Having a proof of concept ensures that a trader's strategies have been tested and proven to work before risking real capital. It's a crucial step to validate the effectiveness of trading methods and to avoid unnecessary losses.
Outlines
📈 Trading Mastery and Mindset
The speaker emphasizes the importance of having a solid foundation in trading to create a successful income-generating system. They highlight the confusion that can arise from the myriad of opinions in the trading world and offer their self-taught experience as a guide. The speaker introduces a simple process for trading, including mindset, necessary software, charting, trading math, and tools they've developed. They also discuss the importance of starting with a small amount of capital and conducting an exercise with a coin flip to illustrate the concept of probability and emotional detachment in trading.
📊 Charting and Trading Software Basics
The speaker delves into the fundamentals of charting and the essential software for trading, recommending Trading View, Excel or Google Sheets, and an exchange platform. They share personal insights from trading cryptocurrency and stress the importance of starting with a simple chart to understand market movements without overcomplicating with indicators. The explanation includes how to read candlestick charts and the concept of supply and demand, as well as the significance of volume in market interaction. The speaker also introduces the idea of trend lines to predict supply and demand imbalances for trading opportunities.
🚫 Avoiding Trading Pitfalls and Risk Management
The speaker warns against common beginner mistakes in trading, such as entering trades without a stop-loss and using random position sizes, which can lead to significant losses. They advocate for a systematic approach, using a set strategy to determine position size and risk, and explain the importance of maintaining consistent conditions to track average profits. The speaker also discusses the use of leverage to minimize capital requirements while managing risk, and the necessity of journaling and practicing trades to refine strategies and scale accounts effectively.
💼 Capital Access, Leverage, and Journaling
The speaker explains how to access capital and the role of leverage in trading, allowing for larger position sizes with less capital while still managing risk. They provide an example using Matic tokens and demonstrate how leverage can reduce the capital requirement for a trade. The speaker also underscores the importance of journaling each trade, including details like entry and exit points, profit or loss, and notes on the setup, to track performance and improve strategies over time. They mention a custom spreadsheet tool for this purpose and encourage traders to practice and prove their strategies before risking real money in the market.
🎓 Trading Education and Community Support
The speaker concludes by discussing the value of trading education and the support of a community, offering resources and tools for traders to learn and practice effectively. They mention a Discord community where traders can access trade ideas, indicators, and other learning materials. The speaker also discusses the importance of transitioning from simulated trading to real markets and the difference in experience. They encourage viewers to engage with the content, subscribe for more educational videos, and share their experiences or epiphanies from the video in the comments.
Mindmap
Keywords
💡Trading
💡Foundation
💡Self-taught
💡Income Generating Machine
💡Charting
💡Software
💡Supply and Demand
💡Trend Lines
💡Position Sizing
💡Stop-Loss
💡Leverage
💡Journaling
💡Risk Management
💡Proof of Concept
Highlights
Trading mastery can lead to creating a significant income-generating machine but requires the right foundation to avoid confusion and losses.
The speaker has been self-taught in trading for over 7 years and aims to share a simplified process for effective trading.
The importance of understanding the statistical nature of trading, likened to a coin flip, to avoid emotional investment in individual outcomes.
The necessity of keeping trading conditions consistent and focusing on average outcomes rather than individual results.
The foundation of trading is based on probability and understanding this can give a significant advantage over other traders.
Three essential softwares for starting in trading: TradingView, Excel or Google Sheets, and an exchange platform.
The speaker's personal preference for trading cryptocurrency due to 24/7 market availability and the use of high leverage.
The significance of starting with a simple chart and building upon it as fundamental trading skills develop.
The concept of supply and demand as the driving force behind market movements and the importance of predicting imbalances for trading success.
The use of trend lines to anticipate where demand will outweigh supply or vice versa, providing potential trading opportunities.
The critical mistake of trading without a stop-loss and using random position sizes, which can lead to significant losses.
The importance of systematic trading and avoiding decisions based on emotions or confidence levels in trades.
The concept of risk factors in trading and how they relate to win rates and potential profits.
The speaker's emphasis on the importance of journaling and practicing trades to understand win rates and risk factors.
The introduction of leverage as a tool to trade with less capital while managing risk effectively.
The speaker's custom spreadsheet tool for tracking trades and analyzing trading performance over time.
The final emphasis on the importance of proof of concept through practice before trading with real money in the market.
Transcripts
if you start trading and master it you
can create a massive income generating
machine for yourself but if you don't
have the right foundation you can spend
years losing money trying different
things to figure it out only to find
yourself more confused because the
trading world is confusing with millions
of people saying millions of different
things okay I've been trading for over 7
years now and I'm completely self-taught
so whether you have some trading
experience or you're brand spanking new
what I'm going to show you today is a
simple process that I wish I took from
the jump to start doing things properly
I'll show you how to rewind your mind to
think like a Trader all the softwares
you're going to need how to do simple
charting understanding trading math all
the custom tools that I've built over
the past several years and how to gain
access to Capital starting with a small
amount of money so that by the end of
this video you'll have a clear path to
master trading and hopefully create that
income generating machine for yourself
all right so before we start I want to
do an exercise so I have a coin right
here heads is going to equal $300 in
tails is going to equal $100 if we flip
the coin 10 times in a row under the
same conditions we'll know that roughly
will'll get five heads in five tails and
that average will still statistically
hold true even if we get three taals in
a row now knowing this it wouldn't
really be logical to get emotionally
invested in the outcome of each coin
flip and we know that we'll get
approximately five tails for $100 each
which will leave us with a net gain of
$11,000 now the losing Trader mindset is
to put importance into the outcome of
each individual coin flip whereas the
prot trader mindset instead will focus
all of their effort on keeping the same
conditions for the coin flip and
tracking on average how much they make
after 10 coin flips now in trading this
coin flip is going to be equivalent to
our strategies and practices it's all
going to come down to winning
probability if you go into trading
understanding this exact principle
you're going to be ahead of 80% of other
Traders when they get started but that
only takes us so far now we have to
learn how to actually implement this
into a trading Market all right let's
get into lesson number two where we're
going to talk about charting in software
so today I'm going to talk about three
foundational softwares where basically
you can get started trading using these
things first thing is going to be
trading view second thing is going to be
Excel or Google Sheets and then the
third thing is going to be an exchange
okay so personally I trade
cryptocurrency so I'm using either buit
or femx as an exchange but depending on
if you're trading Forex or whatever we
just need a means to actually buy and
sell we don't really need to focus on
this until more towards the end of the
video all right so let's hop over into
trading view you'll notice my chart just
has candlesticks on it with nothing else
okay this is a big big thing for you to
understand and this is something that
I've noticed throughout my trading
Journey watching people who haven't
succeeded and who have succeeded and
what's really helped me personally okay
there's so much that you can add to your
charts just been it's been a long fight
it's been a long fight and I just had to
have a warrior spe okay there's so many
indicators that we do use once we get
more advanced but you have to understand
most people start with a process that
doesn't work and then they add extra
stuff to their chart in order to try to
make it work whereas the successful
people in the right way to do this is to
have a very very simple chart understand
what moves the markets how to actually
trade that and then as you're starting
to see success with the fundamentals of
trading you're adding more to it to
complement what already works
simplistically if you're doing the
opposite you're already wrong you're
going to confuse yourself with something
called paralysis by over analysis and
this is how people run themselves down a
rabbit hole of never actually being able
to understand how to trade do not do
that start simp simple I'm going to walk
you through the entire process to
understand exactly how markets move how
we're going to read these charts and
then we can add stuff as we go promise
me that you're not going to do that if
you have a crazy chart with indicators
all over it wipe it clean and follow
along with this all right so right here
I have my chart pulled up this is on
madic so I personally trade
cryptocurrency the reason I trade
cryptocurrency is because the market is
open 24/7 and it allows me to use high
leverage so I don't have to use a lot of
my Capital to take really large
positions when I'm trading okay I'm
going to explain this in way more detail
in Lesson Four so hang in there all
right so here we have our chart
frequencies I'm going to go over really
quickly what these candlesticks mean the
bottom of this box is where the candle
opened this Wick is the lowest point
that the price moved in the past 5
minutes this is where the candle closed
and this is the highest the price went
in this 5minute increment same thing
with the orange candles price opened
here closed here and then the highs and
lows are still the same this is a simple
standard way for us to see where the
price is moving all right but I still
think that most Traders on honestly even
if they are trading don't really fully
understand what moves the markets so and
what moves these candles are buyers and
sellers on the order book so we can see
up here these are all sellers in red and
down here this is the bid side where the
buyers are and in order for this candle
to move up these buyers who want to buy
into the market have to take orders from
these sellers up here so if I wanted to
enter the market right here and the
first available order for me to sell is
going to be down here so if there's more
buy pressure in the market it's going to
start clearing out all the orders at
this level and then the new current
price that you can enter is going to be
somewhere up here as the candle
increases in price and the same thing
goes in the opposite direction and the
quantity of orders at each price slot
here is something called volume this is
people quite literally interacting with
the market now something that you have
to keep in mind is when we're looking at
charts we're seeing the visual
representation of mass human psychology
so all those people making Buy sell
decisions institutions algorithms that
are all involved with the market okay
we're able to see those actions
collectively and start to use patterns
to make sense of it and so all we're
really seeing is a battle of supply and
demand on our chart as the supply
increases if the demand for that at
higher and higher prices starts to slow
down the price will retrace until the
demand starts to outweigh the supply and
then once the demand is back the price
will continue to move up so all we're
seeing is a big increase of supply and
no demand and then the demand coming
back all right and one of the key
premises of trading is predicting where
those supply and demand imbalances will
happen before they happen so we can
enter the market and benefit off of
those changes so if we can figure out
that say this area is going to be a
potential reversal area where the demand
will start outweigh the supply we can
buy in here wait for the price to
continue moving and then sell it for a
higher price and that's how you make
money as a Trader You're basically
trading in the supply and demand and
trying to outsmart an entire ocean of
other people who also want to buy and
sell these instruments for different
reasons so predicting these levels is
obviously the golden answer of trading
if you figure out a way to do that and
you figure out how to position yourself
in the market then you can make
consistent profits one of the most
effective ways to do this is by using
Trends so okay we can start to
anticipate where the demand will be
higher than the supply or the supply
will be higher than Demand by using
trend lines so a trend constitutes of a
high a low and then a higher high this
is what's required for an uptrend okay
same thing for a downtrend if we have a
move with a lower low a lower high a
secondary lower low and a lower high
that constitutes as a confirmed
downtrend all right and we can use trend
lines to start to look at these
important levels so if I click a line
from this low all the way up to here you
can see the price is bouncing off of
that demand outweighing the supply zone
until all of a sudden the demand is no
longer there and the price drops through
this level and now we have that Trend
broken which is going to lead to a new
potential poal Trend all right so here's
another example so we have Supply
outweighing demand here as well as
Supply outweighing demand at this level
so if we drag draw a line from here and
then we take a parallel line and we go
to this lowest point on the other side
of this move if we go ahead and play
this chart forward we can predict
roughly where this price will end up
going through before the demand
outweighs the supply we get a response
off of that Trend and then we end up
making a move higher so just like our
coin flip we understand that we could
get tails and this would keep moving or
we can get heads and we can be right
about predicting that Supply demand Zone
and have an opportunity to take a trade
so if we decided to buy say 1,000 units
at this level and then allow this to
play forward okay we can end up selling
it up here to make a nice profit on the
trade however one of the biggest
mistakes you can make as a beginner is
entering your trades number one without
a stop- loss to manage risk and number
two with a random amount of units okay
because 2,000 units of madic that we got
for 83 done on something like ethereum
which cost
$2,400 per token you can see the
position size is going to be vastly
different okay we just lost
theoretically $23,000 so instead of
potentially risking $10 on madic we just
lost $23,000 theoretically on ethereum
so every time you're entering a position
you need to know where exactly you're
entering where you're going to be taking
profit and where you're going to be
selling and leaving the trade if we end
up landing on Tails if the trade ends up
going against against us so that we can
contain those losses so say for example
we wanted to buy here we wanted to take
profit here and we wanted our stop loss
to be placed here say we wanted to risk
$50 on this trade we need to enter at
this specific level with this exact
amount of units in order to risk $50 in
attempt to make
$210 once again our heads and tails the
$300 on heads and the $50 on taals is
only going to be possible if we're
setting our trades up this way from the
jump and here's another big stupid one
that I hear a lot of times from other
trading influencers where they say yeah
you know I was really confident about
this trade so I took more size on this
one and I wasn't so confident on this
trade so I took a little bit less size
if you start deciding which setups
you're going to put more size into
you're going to directly start making
decisions based on your emotions okay
instead of following a process and
following your simple strategy where
it's either I'm taking the trade or I'm
not you're deciding I like this one
better so I'm going to put more money
into it okay if that one goes against
you you're going to start thinking well
oh the time that I thought the one was
going to work out I put more money into
and I lost so I'm going to find the ones
I don't like so much and I'm going to
put more money into those and you'll
start running yourself into this stupid
Rabbit Hole okay don't listen to people
that are saying things like this trading
is supposed to be very systematic the
less emotional decision- making that you
need to make the more effective of a
Trader you're going to be and the way
you do that is by following your exact
strategy every time I can't hone in
enough on that okay because the closer
you can follow your process the closer
you can figure out out of 10 trades how
often does my trade hit this full
stoploss value all right because then it
simply comes down to a combination of
win rate and the risk factors on your
trade so when I say risk factors if we
consider your risk which is in this case
$50 one risk factor if this moves up by
3x your risk that is three risk factors
we' make $150 on this trade because then
it just comes down to different
combinations of your winning percentage
or the amount of times that that you are
right versus those risk factors that
you're making and you can see even if
you're only right 30% of the time if you
have a 1 to three risk reward where
you're risking $50 to make $150 you can
still come out of that profitable okay
so the goal of trading is to use your
practice use your journaling to take
more winning trades so you can be more
at say a 50 60% win rate at a 1 to 2 1:
3 and you can be sitting right in this
pocket here and that's with most
traditional trading systems how you
could hit that sweet spot and be able to
make consistent profits over time get
this whole notion out of your head that
trading is about being right or being
able to predict what's going to happen
okay any Trader that's saying oh I lost
a trade so that's automatically bad
don't listen to those people there are
good trades and there are bad trades if
you make a whole bunch of money on a
trade that was really really risky even
though you made money on it that's still
a really stupid bad trade if you lose
money on a really good setup where
you're putting yourself in a position
for one of those coin flips that is a
good trade whether you make money or
don't make sure you get that through
your head and and don't listen to these
other idiots online that are going to
say things like this all right let's
move into Lesson Four and I'm going to
explain to you access to Capital in
using leverage which is going to allow
you to start trading with a lot less
money but also if you know how to do it
properly it's also no more implied risk
so let's go back to our Matic example
here by the way if you want to use this
position size calculator go into the
description and join our Discord all
right we have a whole free section of
our Discord where you can chat with
other Traders okay we put out trade
ideas from the private side of our
trading team that you can follow along
with to get yourself started but if you
go into this resources and learning
section here you can click on this link
and not only are you going to get all my
trading view indicators but you're also
going to get a ton of other resources
that we put together in a One-Stop shop
so you have everything that we talk
about in other videos and to get
yourself started trading the right way
so let's go back to our madic example
say we wanted to buy here take profit
here and sell here say we're beginners
we want to risk a really modest amount
of money so $25 on that trade okay even
only risking $25 on this trade trade
we're required to enter still with
1,831 maic tokens at a price of 83 which
is going to cost us
$1,519 so once again risking $25
requires us to have $1,500 worth of
capital without the use of Leverage but
say we add 10x leverage to this that
will drop the capital requirement for
the trade down to
$152 all right so for example if I go
over to madic and put in my 1831 units
you can see without leverage this is
going to cost me about $1,400 if I
increase the leverage say to that 10x
leverage now the cost of this position
is going to be
$145 but this is also going to increase
the amount of fees that you need to pay
on the trade so if you're paying a 2%
commission that 2% commission is still
going to be coming off of the total
actual cost of the position not just the
cash requirement to enter it so that's
something to keep in mind for moving
forward okay but Leverage is going to
allow you to take really normal siiz
trades and it's really no more risky so
long as you're still calculating your
positions to risk a certain amount of
money all right but you shouldn't even
be using an exchange or leverage until
you complete lesson five which is what
we're going to talk about next which is
going to be journaling practicing your
trades so that we're able to scale our
accounts okay so say we've taken our
trade risking $50 we make a 1 to three
so we made $150 on this trade you should
immediately be screenshotting this trade
to track it taking a screenshot of that
chart in journaling the date of Entry
the ticker whether it was a long or
short how much money you made or lost on
the trade and any notes that you want to
take on the setup that way you have a
log of all of the decisions that you've
made all the trades that you've taken
and you know over a certain amount of
Trades over a certain amount of coin
flips how much money you actually made
what percentage of the time did you make
or lose money and how many total trades
did you take okay so I built this custom
spreadsheet as something very simple
that you guys will get access to if you
get this inevit trade Trader Suite of
tools this is the only way that you'll
be able to have the proof of concept and
know that your trading is actually
working out because until you have the
proof of concept until you know that
your trading is working it doesn't
really make sense to hop onto an
exchange and start using real money if
you don't have the proof of concept that
you're trading works if you're not
practicing and being profitable with
your strategies then you shouldn't be
putting money into the market at all
that should be the last step that you do
okay what I will say once you are
proficient and you are starting to see
some results don't hang out on the Sim
account too long because it's going to
make you complacent and it's not going
to get you set up for a success trading
the real markets trading real money with
real money on the line is much different
than trading with practice accounts and
a good way you can do this a lot faster
than just waiting for the market to set
up with real trades is something that
you've seen me doing throughout this
whole video which is this bar replay
button right here so what I like to do
is regardless of the system I'm trading
I can click on a random coin I can go
back say to where I don't even remember
like I'm not really looking at the chart
and I can just click in a random area
all right and once I've clicked in a
random area I can just be doing doing my
simple analysis right so you can be
following your strategy here you can
play this trade forward seeing what
would have happened so say we drew our
analysis here if I wanted to use my
position size calculator I can put my
entry here my take profit here my stop-
loss outside here put $100 of risk hit
apply this will show me my quantity 3.5
so then I can go in here and type in 3.5
and hit sell all right so say we're up
$266 we take profit off of there okay so
now you take a screenshot of that so
then you go over to your Journal you put
in the 266 over here and I designed this
so that this will auto update the total
for everything you also have a trading
stat sheet so you'll see on all your
Longs and all your shorts how you're
doing on each thing and then once you
have that proof concept like I said you
can head over into the exchange all
right and these principles are exactly
what we do in the private side of our
Discord Community okay we have people
mastering all these systems that me and
my team have put together all right and
we make sure that they keep their
framework focus on these principles you
can see crew with a nice TC Max win I
need a Max win okay another really nice
win here Landon's absolutely crushing it
making wins left and right really really
high winning percentage okay four out of
four right here okay Connor says massive
shout out to the neit trade team in 10
short Days Seven trading days I've
officially doubled my trading account
thanks to the TCL Max system which is
one of our trading systems that we teach
so shout out to you Conor and shout out
to the inevit trade team for all the
system development we have so many crazy
things I mean this is just us scratching
the surface of the basics of trading
this is why I have a passion for trading
because you can get so deep it's so
interesting and if you master this
process then you quite literally can
create an income generating machine for
yourself where you can travel the world
you can live wherever you want you have
time location and income freedom and you
can scale your income to basically
however much you want okay if you're
still here and you found value in this
video make sure you hit the like button
subscribe to the channel if you like
trading and investing all right and you
want some no BS trading education all
right and if you had an epiphany moment
in this video where something really
really helped you let me know in the
comments it feels good to be able to
read that I'm helping people out and I'm
helping people learn along their trading
Journey but anyways guys that's really
all I have for today until next time
guys I will see you all in the next
[Music]
video
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