Trading with $10 to Prove it's Not Luck...

Summary

The speaker emphasizes the importance of skill over luck in trading, showcasing how they turned $10 into over $1,300 in a month. They advocate for a simple trading approach, focusing on a single strategy, pair, and time. The key is understanding risk management, win rates, and using a trading journal to track performance. The speaker highlights the significance of a high win rate, managing risk aggressively, and trading consistently at the same time daily. They also discuss the role of technical analysis, market structure, and the correlation between gold and the US Dollar Index (DXY) in enhancing trading decisions. The video concludes with a call to action to join their Discord community for daily trading sessions.

Takeaways

• 💡 **Skill Over Luck**: The speaker emphasizes that skill in trading is more important than luck, and that good returns can be achieved with a small starting capital.
• 📈 **Simple Strategy**: They advocate for a single, straightforward trading strategy, focusing on one pair at a time, which simplifies the trading process.
• 📊 **Risk Management**: The importance of understanding risk management, including risk percentage, lot size, and risk-to-reward ratio, is highlighted.
• 🗒️ **Trading Journal**: Keeping a trading journal is stressed as essential for tracking performance and improving trading strategies.
• 🏆 **High Win Rate**: The speaker shares their focus on achieving a high win rate, which they find more profitable than chasing high risk-to-reward ratios.
• 🔄 **Consistent Trading**: Consistency in trading actions, times, and strategies is key to profitability and is emphasized throughout the script.
• 📉 **Managing Losses**: Aggressively managing losses by closing trades early and avoiding letting them reach stop loss is a strategy the speaker uses.
• 📊 **Market Analysis**: The speaker uses a three-step approach involving direction, area of interest, and entry model based on price action and market structure.
• 🔗 **Correlation Trading**: They mention the use of DXY correlation with gold to increase win rates, showcasing the effectiveness of trading correlations.
• 🔍 **Continuous Learning**: The value of learning from every trade, especially losses, and the importance of continuous improvement in trading strategies are underlined.

Q & A

What was the trader's initial capital and how much did they grow it to?

The trader started with $10 and grew it to over $1,300 in about a month.

What is the trader's philosophy on trading success?

The trader believes that success in trading is not about luck but skill, and that one doesn't need a large amount of money to make good returns.

What does the trader emphasize as the key to their trading strategy?

The trader emphasizes the importance of a high win rate, focusing on probabilities, and trading with a consistent strategy.

How does the trader manage risk in their trades?

The trader manages risk aggressively by closing losses early and using a high leverage on small accounts, risking 30% to 50% of the account size due to their high win rate.

What is the trader's win rate and how does it influence their trading decisions?

The trader has an 80% plus win rate, which allows them to risk more per trade and focus on smaller, more consistent moves.

Why does the trader prefer to focus on win rate over risk-reward ratio?

The trader finds confidence in a higher win rate, which leads to better trading decisions and performance, rather than focusing on the risk-reward ratio.

What is the significance of the 'second hour of Asia' in the trader's strategy?

The trader trades at the same time every day, specifically during the second hour of the Asia session, to maintain consistency and take advantage of predictable market behavior.

How does the trader use the correlation between gold and the US Dollar Index (DXY) in their strategy?

The trader uses the inverse relationship between gold and DXY to confirm trades and increase their win rate, which has contributed to a 16% improvement in their win rate.

What is the trader's approach to technical analysis?

The trader uses a three-step approach to technical analysis, focusing on direction, area of interest, and entry model, using price action, candle behavior, and market structure.

Why is maintaining a trading journal important to the trader?

The trader emphasizes that maintaining a trading journal is crucial for tracking performance, understanding win rates, and refining strategies to improve trading outcomes.

What advice does the trader give for achieving profitability in trading?

The trader advises to keep the trading approach simple, consistent, and focused on probabilities. They also stress the importance of continuous learning, managing risk, and embracing a probabilistic mindset.

Outlines

00:00

💹 Trading Skills and Risk Management

The speaker emphasizes that trading success relies on skill rather than luck, highlighting the potential to achieve significant returns with a small starting capital. They propose a simplified trading approach focusing on one strategy, one trading pair, and one trading time to demonstrate the accessibility of trading. The speaker stresses the importance of risk management, including determining the risk percentage per trade, lot size, and understanding the relationship between risk-reward and win rate. They advocate for maintaining a trading journal to track performance metrics like win rate and risk-reward ratio. The speaker shares their personal preference for a high win rate strategy over a high risk-reward ratio, explaining their comfort with taking more frequent smaller losses due to a higher chance of winning trades. They also discuss the psychological aspect of trading, suggesting that confidence in winning trades can improve overall trading performance.

05:02

📈 Consistent Trading Strategy and Correlation

The speaker outlines a consistent trading strategy that involves trading at the same time every day, focusing on the same pair, and using the same strategy to increase the chances of success. They discuss the importance of understanding market behavior through candlestick patterns and market structure, using these to identify trading opportunities. The speaker introduces the concept of 'direction,' 'area of interest,' and 'entry model' as part of their three-step trading approach. They also explore the use of the DXY (US Dollar Index) correlation with gold to enhance trading decisions, demonstrating how similar trading setups can lead to successful outcomes over consecutive days. The speaker encourages viewers to refine their trading strategies by journaling and analyzing their trades to improve their win rates and overall trading performance.

10:02

📊 Journaling and Refining Trading Approach

The speaker underscores the value of journaling trades as a tool for improvement, allowing traders to identify patterns and strategies that work best for them. They share their personal experience of increasing their win rate from 56% to 73% by incorporating DXY correlation and further to 83% by adding a one-minute type 3 shift. The speaker advises traders to focus on probabilities and to stack confidences in their favor by aligning different factors that contribute to a positive expectancy. They also stress the importance of embracing a probabilistic mindset, acknowledging that no trade is certain and that losses are part of the trading process. The speaker concludes by advocating for a simple, consistent approach to trading, emphasizing the need for continuous learning and refinement of trading strategies.

15:03

🚀 Achieving Profitability Through Simplicity and Consistency

The speaker shares their 'aha' moment in trading, which is the realization that simplicity and consistency are key to profitability. They discuss defining clear approaches to identifying direction and areas of interest, and then testing these through journaling to see what works best. The speaker also talks about the importance of embracing uncertainty and focusing on the trading process rather than the outcome. They highlight the significance of managing risk aggressively, closing losing trades early, and learning from each trade. The speaker concludes by encouraging traders to use a simple, consistent approach, to focus on continuous learning, and to embrace a probabilistic mindset to achieve profitability in trading.

Keywords

💡Risk Management

Risk management in the context of the video refers to the process of identifying, analyzing, and accepting or mitigating uncertainties in investment decisions. It is crucial for traders to determine how much they should risk on each trade to maintain the stability of their trading account. The video emphasizes that risk management is not just about setting a risk percentage or lot size, but also understanding the relationship between risk, reward, and win rate. For instance, the speaker mentions risking 30% to 50% on a small account due to a high win rate, which illustrates a calculated approach to risk based on personal trading statistics.

💡Win Rate

The win rate is the percentage of successful trades out of the total number of trades made. In the video, the speaker highlights the importance of having a high win rate, which is stated to be over 80%. This metric is significant because it influences the amount one can afford to risk on each trade. The speaker suggests that focusing on increasing the win rate can lead to more confidence in trading decisions, thereby improving overall performance.

💡Risk Reward

Risk reward in trading is the potential gain or loss on an investment, expressed as a ratio comparing the potential gain (reward) to the potential loss (risk). The video discusses the common advice of risking one to have two times the reward, but the speaker argues for a different approach, targeting a 1.5 risk reward ratio with a higher win rate. This strategy is based on the belief that smaller, more consistent wins are easier to manage and lead to profitability.

💡Leverage

Leverage in trading allows traders to control a larger position in the market with a smaller amount of capital. The video mentions a leverage of 1 to 500, which means that for every $1 in the trader's account, they can control $500 worth of assets. This can amplify gains but also losses, hence the importance of proper risk management when using high leverage.

💡Trading Journal

A trading journal is a record of all trades made, including the reasons for entering and exiting trades, and the outcomes. In the video, the speaker stresses the importance of maintaining a trading journal to track performance metrics like win rate, risk reward, and drawdown. It is used to refine trading strategies and improve decision-making by providing objective data on past trades.

💡Price Action

Price action refers to the study of price movements and the resulting chart patterns of an asset, which some traders use to make trading decisions. The video speaker uses a three-step price action approach, focusing on candle behavior and market structure to determine the direction of trades. This method is part of a strategy to stack probabilities in their favor and make consistent trading decisions.

💡Candle Behavior

Candle behavior in the video is described as the movement of an individual candlestick on a price chart over its life cycle. The speaker uses this to predict the direction of price movement, expecting bullish candles to create a bottom wick before continuing to rise, and bearish candles to create a top wick before falling. This understanding helps in timing entries and exits in trades.

💡Market Structure

Market structure in the context of the video relates to the overall trend or pattern that the market is following. The speaker discusses using market structure to identify potential reversal points, such as looking for a break of a low or high, which can signal a shift in the market's direction. This is part of the three-step approach used to determine entry and exit points in trades.

💡Correlation

Correlation in trading refers to the statistical relationship between two assets, indicating how they move in relation to each other. The video speaker mentions using the correlation between gold and the US Dollar Index (DXY) to confirm trade entries. A positive correlation means that when one asset moves up, the other tends to move up as well, and vice versa for an inverse relationship.

💡Type 3 Shift

A Type 3 shift, as mentioned in the video, is a specific market structure pattern where the market breaks a recent low and then a recent high, indicating a potential reversal and continuation in the direction of the second break. The speaker uses this pattern to identify high-probability trade setups, particularly in conjunction with the gold and DXY correlation.

Highlights

Turned $10 into over $1,300 in a month, proving trading success is based on skill, not initial capital.

Trading can be simple: focus on one strategy, trade one pair at a time.

Risk management is crucial: determine risk percentage, lot size, and understand risk-reward ratio and win rate.

Maintain a trading journal to track and understand your win rate, risk-reward, and drawdown.

Target a high win rate for profitability; the speaker has an 80%+ win rate.

Focus on win rate over risk-reward; it builds confidence and improves trading.

Risk one to two for a 97% chance of avoiding six losses in a row; higher win rate systems can risk more.

Leverage can be high on small accounts due to higher win rates, allowing for larger risks.

Close losses early and manage risk aggressively to prevent large drawdowns.

Consistency is key to profitability; trade the same way every day.

Embrace uncertainty; accept the possibility of account loss as part of trading.

Risk management should be tied to your technical analysis and strategy.

Use a three-step approach: direction, area of interest, and entry model.

Trade at the same time every day to see consistent market behavior.

Use price action to determine direction and market structure.

Correlate gold with the US Dollar Index (DXY) for a higher win rate.

Journaling trades is essential for improvement and understanding what strategies work best.

Refine your trading approach by focusing on what works and stacking probabilities in your favor.

Keep trading simple and consistent to achieve profitability.

Learn from each trade, especially losses, to continuously improve your strategy.

Transcripts

so I turned to $10 into over 1,300 in

about a month prove it's not luck and

that the only thing that matters is your

skill in trading you don't need a large

amount of money to make good returns so

I want to show you the full process I

use to flip this small account and I

also just wanted to prove that trading

can be simpler than you think you just

need one strategy trade one pair at one

time and it's easy like it doesn't have

to be overly complicated okay first

we're just going to cover risk

management so how much should I risk

each trade what is the risk percentage

lot size all that sort of stuff risk

reward vers win rate you have to

understand this you need to have a

trading journal to track everything to

understand um your win rate your risk

award your average Max draw down of your

own unique system I have it all tracked

down so I know my run rate is 80% plus

so I Target around 1.5 I have an 80% win

rate so it's very

profitable the thing is here I focus

mainly on win ratees a lot of people say

to focus on RIS reward all that sort of

stuff but I've never found it helped me

um I'm more confident when I'm winning

more often

and I trade better when I'm more

confident so that's just what I focus on

smaller more consistent moves I trade in

a way that consistently get more wins

every single day but still having a

positive risk reward it's just focusing

more on those probabilities why is

that a lot of people say to risk one to

two so have two times the reward of your

risk yes but likely everyone that I've

coached and mentored they have around a

50% win rate if they're succeeding

really well with that

but with a one to two you have a 97%

chance of six losses in a

row are you comfortable with taking six

losses in a

row for a smaller risk award a higher

win rate system like mine higher

probability

scalping it's a 80 plus% win rate I have

a 86% chance of two losses in a row I'm

okay really comfortable taking two

losses in a row so I just focus on small

consist scaps with a high win rate it's

easier to execute on um and it's easy to

be confident and trade well when when

it's unlikely that i' take more than

three losses in a row so understanding

your win rates it will help you

understand how many losing trades in a

row you can expect and then and once you

know that you can then decide on how

much to risk so my risk on a small

account is always going to be higher my

leverage was 1 to 500 so I had a good

amount of Leverage um but I don't care

if I blow $10 so I can treat this small

account like a big account and risk

50% or 30% mainly so it was around 30 to

50% um because I have a really high win

rate I can risk a lot higher um I can

risk 30% pretty comfortably if you watch

any of my Instagram reels you know I

closed my losses early so it's never

actually that 50 30% loss it's a little

bit less so I always close my losses

early I always manage risk aggressively

and I always look to add to win if you

have a lower win rate around 60

50% your percentage should decrease

maybe around

10% or

20% depending on your win rate so the

amount you risk should always be based

off your win rate you can only know your

win rate um if you Journal your trades

so you better Journal your trades I've

never cared about RIS to WS I think this

kind of overrated to Target one to twos

one to 3es so my average rward is around

1 to 1.5 but sometimes I take one to1

sometimes negative um but I focus on the

probability of each move and I always

look to manage my losses more

aggressively at my winners so still

gives me a positive risk reward it gives

me a lot higher of a win rate because

I'm trading Bas of probabilities I'm not

trying to force a risk reward on a

market on conditions that actually might

not be the right way it's all about

probabilities and it's consistent if you

want to be consistently profitable you

first need to be consistent that means

doing the same actions every single day

if you're trading multiple different

pairs at multiple different times using

multiple different strategies you're not

going to be consistent and you're not

probably not going to make money and

also Embrace uncertainty like this

account flip I've blown multiple

accounts before this um and if you're

going to do this as well accept the

likelihood that you might blow the

account nothing is certain in trading

and you have to accept that and so risk

management is closely tied to your Tech

IAL analysis or your strategy because if

you have a higher win rate you can risk

more if it's lower you can risk less

it's all about understanding your

approach uh the pros and cons of it and

then adjusting your risk accordingly so

I use pure price action a three-step

approach and always trying to stack

those conferences um to put

probabilities in my favor so I trade at

the same time every single day on gold

using the same strategy so that is the

second hour of Asia that's 11:00 a.m.

Australian Eastern Standard Time and I

trade it the exact same way every single

day and aim to take the same type of

Trades so I trade live with my Discord

every single day at the exact same time

that second hour of Asia and catch the

same sort of moves so sales on gold

using some dxy correlation which we'll

go over as well exact same trades exact

same time 1052 11 a.m. it's always going

to be around 11:00 a.m. because I

guarantee you if you just trade at the

exact same time every single day and

trade on the same pair you're going to

see the same things happening I'm going

to go through some examples of how the

exact same thing happened every single

day for the past 3 days in a row so I

took the same trade pretty much 3 days

in a row and it's really easy to be

consistent when you're just doing the

same things so this is how you like get

a really high win rate you just Niche

down into one small thing um and you get

really good at that it's simply this

it's a three-step

approach you have your direction you

have an error of interest and then you

have an entry model this can be a shift

a type three or could be like a break

and retest uh volume shifting in your

direction could be like a break of a low

volume shifting in your direction I just

use that simple three-step approach

Direction a of Interest entry model

stacking probability stacking

confidences in my favor so I break price

action down into candle behavior and

Market structure so and candle behavior

is how an individual candle moves

throughout the life cycle of a candle so

this is a good example here um when

we're moving bullish and we have a

bullish candle close above a recent high

and low um I'm expecting that to

continue moving bullish but I first

expected to create a bottom Wick in that

first half of the candle so if this is a

day I expect it to be bearish

first to create a bottom Wick fill in

this body and then push

bullish if it's bearish I expected to

create a top Wick

and then flip and push bearish so in

this Scara here since it's bullish it

should open create a bottom we first and

then push bullish um that's just because

price tends to fill its moves it's a

push and pull between buyers and sellers

so I'm trading at that second hour here

that second hour of Asia so at that new

4-Hour candle that's what I'm trading so

we had this 4-Hour close bearish so I

was expecting it to create a top Wick

first first on that for candle then

drive down to create that bottom wick on

that daily candle so using that candle

behavior on different time frames to

find Direction so that first step

finding direction I'm using candle

Behavior bit of Market structure um

because when we're overall bullish on

high time frame especially for Asia

session will be bearish first to create

a bond Wick and then push bullish if I'm

looking for a sell I'm looking for the 4

Hour to First create a top Wick a

reaction to some highs Maybe after it

takes out a high looking for a reversal

off that so low time frame bearish High

time frame bullish something like

this and this is what explained to my

Discord when I was trading with them

live this

morning and then I use dxy correlation

as well this is what it was looking like

you had a break of a low a break of a

high the reaction to of a interest but

this would be a type three so type three

is just a shift in Market structure

where you're breaking a low then

breaking high volume coming in so just

looking for a continuation of that there

so we're currently pulling back reacting

to this

high so I was just waiting for that

there so I'm not taking a trade in these

conditions because it's kind of low time

frame range bound I'm waiting for it to

create a top wick on that 4-Hour candle

first here creating a top wick on that

four

candle you had a break of high a strong

re action to that era there really

strong reaction and what was dxy looking

like

here you are having a bit of a reaction

to R A of

interest and then as soon as we broke

this High here this little high

there to the next one you have a break

of that high there that's looking pretty

bullish for continuation of this overall

shift so a break of a low break of a

high a type three continue

with gold looking bearish you had volume

coming in this is looking pretty nice we

also had the 4H hour looking like it was

going to flip bearish so this is the

4our candle flipping bearish there so

really nice quick little

scalp stop behind the high targeting

previous low of the range for a nice

pretty clear clean trade there

and so that was the second hour of Asia

using using that direction air of

Interest using Market structure using C

of behavior then an entry model such as

volume coming in for a reversal and a

dxy Type 3 pushing

bullish

on and and a dxy type three pushing

bullish so you can look at entry models

on dxy and use them to take trades on

gold this is why I love um trading

correlation

so at the exact same time or around the

exact same time the day before this you

had pretty much the exact same thing

happen you had the 4 Hour open

immediately go

bullish I took a little buy to forward

to the top work react to this previous a

of

interest and then we had a pullback a

type three shift here type three shift

entering on that pullback reaction for a

nice little out that continued further

on and that looks like

that and then and then the day before

that act the exact same time as well

that second hour of Asia around that 4H

hour open took the exact same type of

trade you first opened immediately

created a top Wick there then it flipped

took a sell on that candle flip for a

nice little Scout so three days in a row

I took the exact same win and this is

what consistency means this is what I

say when if you want to make money from

Trading you shouldn't focus on trying to

win you should just focus on doing the

exact same thing every single day it's

like really easy simple um this is what

trading is like I see what's happening

and then I trade it just going back to

technical analysis it's that purely

price action counter Behavior Market

structure that three step approach

Direction air of Interest entry model

and then looking to stack align

different competences in your favor

really simple easy and then using that

gold and dxy correlation so I it hasn't

so I love trading that gold and dxy

correlation it has a really big increase

to my win rate around 16% um and it has

an inverse relationship it's really nice

for confirming um as well um if you

actually want to be able to do this for

yourself you need to be Jing your trades

so as some as I said recently um the

easiest way to improve your system to

improve your strategy is just to joural

your trades do more of what works unless

of what doesn't so I've Jed around 300

trades uh this is the most recent

iteration of that if I just go to using

dxy correlation that 56% win rate goes

into a 73% win rate such a simple way to

improve my system just using dxy

correlation using to stack that

compliment and then if I just look to

take a one minute type 3 a shift that

73% win rate goes into an 83% win rate

so this is how you get a high win rate

you Jour your trades you focus on what

works taking a trade with dxy

correlation one minute type 3 shift of

structure that gives me an 83% win rate

you can keep refining this focusing on

what works if you want to be profitable

you need to be doing this having a

journal that's having objective data

also tracking the trades as well taking

screenshots um to trade your subjective

data able to review those trades look at

what worked so this is nice type three

shift you make a high break a low

entering on the pullback pretty much

exact same trade as um yesterday and

then and then this is how you do the

exact same thing get consistent um make

consistent money from Trading you can

get a really high win range just through

refining this like I have a setup here

so I have a setup here that has a 93%

win rate just on two little small

variables so it's um really important

that you refine your approach refine

your system using a journal uh there's a

link to this journal in the description

below as well um that you can check out

um

but yeah so if you take anything from

this uh I focus on probabilities a

smaller risk

reward using that three step approach

stacking

confidences um

and trading at the same time every

single day so I could only flip this

account using this trading journal like

I couldn't I wouldn't have understood my

win rate my risk to reward what actually

what confidences actually resulted in a

high win rate such just dxy the type

three shift um so this is why you need

to be journaling your trades record it

analyze the confluences um see how they

affect the outcome of a trading journal

see how they affect the outcome of each

individual trade track the outcomes View

and then reflect that refine and this is

how you become profitable this exact

process here is how you become

profitable no strategy really is going

to get around this like you're not just

going to pick up a strategy show away

and make it profitable like you have to

put in the work you have to journal the

trades you have to understand and slowly

improve that win rate through taking 100

hundreds of Trades refining it slowly

all that sort of

stuff so keep it consistent keep it

simple biggest learning I found in my

trading the biggest aha moment was just

to keep it simple Define what your

approaches it can be how do you define

Direction how do you define an a of

Interest make it as simple and as easy

to replicate as

possible and then test them using your

journal and see just what works see what

works not everything is going to work

and then the main basis of my approach

is s to I've identified all the factors

that result in a positive expectancy so

always looking to take a trade with

correlation with a market structure

shift all that sort of stuff I can

assign weights to those and I can just

look to stack as many of those

probabilities those confidences in my

favor stacking time frames using timing

trading at the same time using the same

pair using the same strategy keeping it

as simple and as easy as possible to

execute that is the key if you just do

that I guarantee you when you put in the

work you will be profitable and then F

and then focusing on embracing a

probabilistic uh mindset that means

acknowledging that no trade is 100%

certain you can take the best trade set

up in the world and it can still lose

and that's okay just focusing on your

process I didn't focus on trying to flip

$10 into $1,000 as quickly as possible I

just focused on taking the best trades

and that was a happy accident that I

made money because I could have easily

blown the account if I got unlucky or if

just or the conditions weren't great but

the conditions on gold have been amazing

the past month be trading the exact same

way the whole month and it's been paying

off so I'm still managing risk

aggressively I'm closing my losing

trades before the hit stop loss because

I know like if it's going to hit stop

loss the volume is moving against you

I'm always looking to manage risk and

lose Le less than I initially risked so

what do 95% of Traders do um or they

fail but they also lose more than they

initially risk through adding two loses

through moving their stop loss I just

simp do the opposite to be a winning

Trader it's really that simple and then

always focusing on continuous learning

learning from each loss you take because

I did take losses I didn't let them

affect me um I see value in them if not

more than wins because I learn more from

losing trades and learning is more

valuable than a couple dollars so if you

just use a simple approach can be parts

of my strategy it can be this psychology

it can be the journal which I think is

the most important it's actually

possible to then have these big flips

taking a small amount of money into a

bigger amount of money um and be

profitable it could be using this to

pass prop firms using it to grow your or

compound your personal account you don't

have to go for big percentage gains

because it is high risk um but yeah

hopefully this helped if you liked this

video like the video um and if you want

to see more subscribe because I will be

posting more content in the future as

well and if you want to trade with us

every single day every single morning

there's a link in the description below

to join the Discord where we trade at

the exact same time every single day

take wins I'm kind of on win trick at

the moment we'll see how long it lasts

but we all catch wins lots of nice

profits around there as well so yeah see

you