$396K profit in ONE MONTH Day Trading… full breakdown

Summary

In this trading recap video, the speaker details their $396,000 earnings from day trading in October, emphasizing the importance of focusing on 'R multiples' to measure performance relative to risk rather than just profits. They review their trading strategies, discuss their best and worst trades, and share insights on market themes, win-loss ratios, and the significance of having a process-driven approach to trading for consistent improvement.

Takeaways

• 📈 The trader made $396,000 in October through day trading, emphasizing that the absolute profit figure is less important than the risk-adjusted performance measured by R multiples.
• 📊 The focus should be on R multiples, which represent the ratio of profit to risk in a trade, rather than just the profit amount, as it accounts for different account sizes and risk tolerances.
• 🎯 The trader achieved an R multiple of 61 for the month, indicating a strong performance relative to the risk taken, which is a key metric for evaluating trading success.
• 🤔 The trader had a win-to-loss ratio of 2.11, suggesting that for every dollar lost, two dollars were made, but acknowledges that this ratio needs improvement for better consistency.
• 📉 Despite a high win percentage, the trader experienced a significant loss on one day, highlighting the importance of not being biased and being able to adapt to market conditions.
• 📝 The trader's best setups were identified as continuation selloffs, which were particularly effective during the bearish market theme in October.
• 🗓️ The trader was selective with trades, allowing the market to come to them and not rushing into positions, which contributed to the high win percentage.
• 🕒 The trader increased their time horizon, allowing trades to develop beyond the market open and capitalize on opportunities that presented themselves later in the day.
• 📉 The trader's largest loss came from being biased on market direction and not adapting when the market moved against their position, resulting in a loss of nearly $30,000.
• 📝 The importance of having a pre-market game plan and being able to read market cues is stressed, as it helps in executing trades effectively and avoiding potential pitfalls.
• 🔑 The trader advises focusing on the trading process rather than just the P&L, as a disciplined approach to the process will naturally lead to better P&L outcomes over time.

Q & A

What was the speaker's total earnings from day trading in October?

The speaker made $396,000 from day trading in the month of October.

What is the significance of the 'R multiple' in trading performance according to the speaker?

The 'R multiple' is significant as it measures the performance in terms of the risk taken. It represents the ratio of the profit made to the amount risked on a trade, which is a more relevant measure of performance regardless of different account sizes and risk tolerances.

What does the speaker emphasize as the only number that matters in terms of performance?

The speaker emphasizes that the 'R multiple' is the only number that matters in terms of performance, rather than the absolute profit figures.

What was the speaker's R multiple for the month of October?

The speaker's R multiple for October was 61, meaning they made 61 times what they risked during the month.

What is the speaker's view on the importance of win-to-loss ratio for traders?

The speaker believes that the win-to-loss ratio is important for traders to understand how much each winning trade makes compared to each losing trade, and it should be a focus for improvement.

What was the speaker's win-to-loss ratio for October?

The speaker had a win-to-loss ratio of 2.11 for October, indicating that for every $1 lost, they made $2.11 on average.

How did the speaker's win percentage in October compare to their typical performance?

The speaker's win percentage in October was one of their best of the year, typically ranging between 40-60%, and in October, they were green every day except for one, where they had a significant loss.

What trading strategy did the speaker find particularly successful during October?

The speaker found the 'continuation selloff' strategy particularly successful during October, capitalizing on the bearish market theme.

What was the speaker's biggest trading loss in October, and what led to it?

The speaker's biggest trading loss in October was close to $30,000, which occurred because they were biased and did not adapt to the market's strong rally on the 23rd.

What advice does the speaker give for traders to improve their performance?

The speaker advises traders to focus on their trading process rather than their P&L, to recap trades regularly, and to have a process-driven system that they follow each day.

What does the speaker suggest as the last metric to review in one's trading performance?

The speaker suggests that P&L should be the last metric to review in one's trading performance, emphasizing the importance of focusing on the process and execution of trades.