My SIMPLE Day Trading Strategy Makes Me $30k/Month (Full Guide)

Summary

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Q & A

What is the main goal of the trading strategies discussed in the video?

The main goal is to use specific trading strategies that allow the trader to manage risk effectively while maximizing potential profits. The strategies focus on identifying key levels in the market and deploying a risk-reward ratio of at least 1:3.

How does the trader minimize risk when entering a trade?

The trader minimizes risk by entering trades at critical levels, using stop-loss strategies, and adjusting risk to break-even once the trade moves in their favor. This reduces the chance of a large loss and locks in profits or mitigates potential losses.

What is the significance of the 1:3 risk-reward ratio mentioned in the video?

The 1:3 risk-reward ratio is crucial for the trader to manage risk while maximizing profit potential. For every $1 risked, the trader aims to make $3 in profit, ensuring that even if only 30% of trades are successful, they can still be profitable in the long term.

What is the concept of 'fair value gap' and how does it affect trade entries?

A fair value gap refers to a market imbalance, often visible as a gap between price movements. The trader uses this gap to identify entry points, aiming for price reactions that push the market toward an expected direction. This helps pinpoint favorable trade opportunities.

How does the trader decide when to exit a trade or adjust their take-profit?

The trader typically sets take-profit levels based on the 1:4 risk-reward ratio. If the price moves in their favor, they might adjust their take-profit levels or exit early if they see signs of reversal or strong resistance. The goal is to let profits run while maintaining control over risk.

What role does trend-following play in the trader’s strategy?

Trend-following plays a key role by helping the trader stay in profitable positions for longer. Once the market shows signs of a strong trend, the trader aims to ride it out, adjusting the position to secure profits while letting the trade continue in the direction of the trend.

Can you explain how the trader reduced risk on a trade that was about to hit the stop loss?

The trader reduced risk by adjusting their stop-loss to break-even once the price started to push in their favor, even though they were close to being stopped out. This allowed them to protect their capital and avoid a loss on that trade.

What does the term 'holding runners' refer to in trading?

Holding runners refers to letting profitable trades continue to run, without closing them prematurely. The goal is to maximize profit on trades that show strong momentum, and only exit when the market shows signs of reversal or exhaustion.

How did the trader's private team members perform using the strategies discussed?

Members of the private trading team achieved significant success, such as 4x account growth in 20 days, passing funded trader combines, and achieving risk-reward ratios of 21:1. This demonstrates the effectiveness of the strategies when applied properly.

What is the 'smog strategy' mentioned in the video?

The 'smog strategy' is an advanced version of the basic trading framework, offering more detailed and nuanced methods for identifying profitable trade opportunities. It was developed for advanced traders within the private team and is a key aspect of their trading education.