I Found The SIMPLEST Way To Become Profitable

Summary

The speaker shares their journey from a struggling trader to profitability by focusing on a single strategy. They emphasize the importance of identifying key support and resistance areas, utilizing a five-step entry checklist, and reading candlestick charts to predict market movements. The strategy involves risk management, waiting for confirmation of market reversals, and adjusting trades based on market momentum. The talk aims to save traders from common pitfalls and guide them to profitable trading.

Takeaways

• 📈 Focusing on a single, simple trading strategy can lead to profitability, as opposed to trying to master multiple strategies.
• 💡 Identifying key support and resistance areas in the market is crucial for high profitability and managing risk.
• 🚫 Avoid the common pitfall of attempting to master every trading pattern, which can hinder becoming a profitable trader.
• 🕯️ Mastering candlestick reading allows for effective analysis across all markets and time frames.
• 📊 Trading the futures market is highlighted for its simplicity and leverage, but the strategy can be applied to any market.
• ⏱️ The speaker trades for only 90 minutes a day, emphasizing efficiency over time spent.
• 📋 A five-step entry checklist is used for consistent trading strategy application.
• 📉 The importance of recognizing when a trend is losing momentum and potentially reversing is underscored.
• 📈 Counter-trend trading can be profitable due to the potential for low-risk, high-reward scenarios.
• 📌 The use of trend lines and the concept of a 'reversal catalyst' or climactic move are key technical analysis tools in the strategy.
• 💡 The necessity of waiting for confirmation in the form of a strong reversal candlestick before entering a trade is highlighted.

Q & A

What is the main pitfall that traders fall into according to the speaker?

The main pitfall is the belief that traders can master multiple strategies and patterns and become profitable with all of them, which is likely what's holding them back from becoming profitable.

What simple strategy did the speaker adopt that turned their trading from losing to profitable?

The speaker focused on key areas of support and resistance in the market, which allowed them to concentrate on high areas of profitability.

How much money did the speaker risk and make in one of the trades mentioned?

The speaker risked about $600 and made almost $3,000 in that one trade.

What is the speaker's current trading duration per day?

The speaker currently trades for 90 minutes a day.

What is the speaker's entry strategy based on?

The speaker's entry strategy is based on a five-step entry checklist that they have developed over the years, which includes analyzing the market's trend, looking for a reversal catalyst, and confirming the reversal with a strong reversal candle.

What is the significance of focusing on support and resistance zones in trading?

Focusing on support and resistance zones is significant because these are areas where the market is more likely to bounce due to supply and demand dynamics, providing opportunities for profitable trades.

What is the speaker's preferred market to trade and why?

The speaker prefers trading the Futures Market because of the simplicity and leverage it provides.

What is the importance of not moving the stop loss once a trade is initiated?

Not moving the stop loss is important because it ensures that the risk on the trade does not increase, maintaining the initial risk-reward ratio set by the trader.

How does the speaker manage trades once they are initiated?

The speaker manages trades by moving the trade to break even once it moves in their favor, then moving with the market swings, adjusting the stop loss, and exiting when the market shows signs of not favoring the trade.

What is the concept of a 'reversal catalyst' in trading?

A 'reversal catalyst' is a climactic move where the market makes an attempt to continue in the direction of the trend but loses steam, becoming overextended and exhausted, which can signal an upcoming reversal.

What are the two crucial concepts that the speaker mentions at the end of the script?

The two crucial concepts mentioned are the importance of having risk-reward potential in every trade and the concept of a failed breakout, where the market fails to continue in the direction of the breakout, potentially signaling a reversal.

Outlines

00:00

📊 Overcoming Trading Pitfalls with a Simple Strategy

The speaker reflects on their trading journey, emphasizing the common mistake of attempting to master multiple strategies. They advocate for focusing on a single, effective strategy instead. The strategy revolves around identifying key support and resistance areas in the market, which allows for high-reward, low-risk trades. The speaker shares their experience of growing a small trading account by following this method, highlighting a specific trade where a $600 risk yielded nearly $3,000 in profit. They also mention their use of candlestick charts for market analysis and their preference for trading in the Futures Market due to its simplicity and leverage. The speaker concludes by offering to guide viewers through the five-step entry checklist they use for daily trading.

05:00

📈 Mastering the Art of Counter-Trend Trading

This paragraph delves into the intricacies of counter-trend trading, which involves identifying when a market trend is likely to reverse. The speaker discusses the importance of not rushing into trades upon the first sign of a broken trend line, but instead waiting for a strong 'reversal catalyst'—a significant market movement that loses momentum, indicating potential exhaustion of the current trend. They describe the process of zooming into smaller time frame charts to find entry points based on a five-step checklist. The checklist includes identifying slowing trends with trend lines, waiting for a failed breakout or a climactic move, and looking for higher highs and higher lows to confirm a trend reversal. The speaker stresses the importance of waiting for a strong bullish or bearish candlestick to confirm the reversal before entering a trade.

10:02

🚫 Avoiding Impulsive Trading Decisions

The speaker shares insights on the importance of making conscious trading decisions rather than impulsive ones, especially when faced with the fear of missing out (FOMO). They discuss the need to identify a reversal catalyst and to wait for market confirmation before entering a trade. The paragraph also covers the speaker's approach to managing trades, including setting a stop loss and never moving it to avoid increasing risk. The speaker emphasizes the importance of cutting losses and moving on when a trade does not go as planned, and highlights the need for discipline in trade management, such as moving the trade to break even once it starts moving in favor and then adjusting the stop loss with market swings.

15:03

📉 Trading in Volatile Markets with a Reversal Strategy

The speaker discusses the application of their reversal strategy in volatile markets, using the NASDAQ as an example. They explain how to identify key areas of support and resistance and how to trade in both directions, depending on market conditions. The paragraph also touches on the importance of having a good risk-reward ratio and the need for volatility in the market to make the strategy effective. The speaker shares an example of a trade where they waited for a failed breakout before entering a short position, emphasizing the importance of patience and waiting for all elements of the checklist to align before making a trade.

20:04

📈 Adapting to Market Conditions for Successful Trades

In this paragraph, the speaker talks about the importance of adapting to current market conditions when trading. They discuss the need for volatility and the risk of trading in a range-bound market where there is little movement. The speaker uses oil futures as an example, explaining how they look for key resistance levels and wait for a failed breakout or a head and shoulders pattern to confirm a potential trade. They also highlight the importance of having a good risk-reward potential and not entering trades without proper confirmation, even if the market appears to be moving in a favorable direction.

25:06

📊 The Importance of Confirmation in Trading Decisions

The speaker concludes by emphasizing the importance of confirmation in trading decisions, using a specific trade in oil futures as an example. They discuss the concept of a head and shoulders pattern and the need to wait for a solid break of a low before entering a trade. The paragraph also covers the speaker's approach to managing the risk of a trade, including being cautious in a bullish market trend and being prepared to exit a trade at a small loss if the market shows signs of reversing the trade's direction. The speaker reiterates the importance of not being married to a trade and being ready to cut losses if necessary.

Keywords

💡Profitable Trader

A 'Profitable Trader' refers to an individual who consistently earns money from trading activities. In the video's context, it emphasizes the importance of mastering a single strategy rather than trying to juggle multiple ones, which is a common pitfall that prevents traders from becoming profitable. The speaker shares their personal journey of transitioning from a losing trader to a profitable one by focusing on a specific strategy.

💡Support and Resistance

In trading, 'support and resistance' are levels on a price chart where the price of an asset tends to stop falling (support) or rising (resistance). These levels are considered key areas to focus on for potential trades. The speaker in the video uses these concepts to identify high areas of profitability, demonstrating how they can lead to profitable trades with a small risk, as exemplified by the $600 risk leading to a $3,000 profit.

💡Candlesticks

Candlesticks are a method used in a price chart to represent the high, low, opening, and closing prices of a financial instrument over a specific time period. They are essential for the speaker's trading strategy, as they are used to read market movements and identify potential trading opportunities. The script mentions mastering the reading of candlestick charts as a crucial skill for applying the discussed strategy across different markets and time frames.

💡Futures Market

The 'Futures Market' is a financial market where participants trade standardized contracts for the future delivery of an asset. The speaker mentions trading in the futures market due to its simplicity and the leverage it provides, which allows traders to control a large amount of the asset with a relatively small amount of capital, enhancing the potential for profit but also increasing risk.

💡Entry Checklist

An 'Entry Checklist' is a set of criteria or steps that a trader follows to determine when to enter a trade. The speaker outlines a five-step entry checklist that they have developed over the years, which includes identifying key areas of support and resistance, analyzing smaller time frame charts, and looking for trend reversal catalysts, among others. This checklist is integral to the speaker's strategy for executing trades.

💡Trend Line

A 'Trend Line' is a straight line drawn on a price chart to represent the trend direction, connecting at least two significant low points in an uptrend or high points in a downtrend. The speaker uses trend lines to identify when the overall market trend is slowing down and potentially breaking, which is a signal for a potential market reversal, as seen in the examples provided from the NASDAQ futures trade.

💡Reversal Catalyst

A 'Reversal Catalyst' in the context of the video refers to a market movement that shows a lot of momentum in one direction but then loses steam, indicating a potential reversal. The speaker describes this as a climactic move where the market attempts to continue a trend but ultimately becomes overextended and exhausted, leading to a reversal. This concept is key in identifying entry points for counter-trend trades.

💡Risk Management

Risk management in trading involves the process of identifying, analyzing, and accepting or mitigating the risks associated with investments. The speaker emphasizes the importance of risk management by setting a stop loss on every trade and never moving it, ensuring that the risk on each trade is controlled. The speaker's strategy includes starting with a small account and increasing trade risk as the account grows.

💡Stop Loss

A 'Stop Loss' is an order placed with a broker to sell a security when it reaches a certain price, aiming to limit an investor's loss on a position. The speaker discusses the importance of setting a stop loss on every trade and not moving it to avoid increasing risk. The stop loss is placed based on the market structure and potential reversal points, ensuring that if the market moves against the trade, the loss is limited.

💡Breakout

A 'Breakout' in trading occurs when the price of a security or index moves above a defined support or below a defined resistance level after a period of consolidation. The speaker mentions waiting for a failed breakout, where the market attempts to break out of a resistance level but fails to sustain the move, indicating a potential reversal. This is a key concept in the speaker's strategy for identifying short trades.

💡Head and Shoulders Pattern

The 'Head and Shoulders Pattern' is a technical analysis chart pattern that resembles a human head and shoulders and is considered a reversal pattern, signaling that the asset has reached a peak and may decline. The speaker discusses the importance of recognizing this pattern as a potential entry point for a trade, as it suggests a shift from bullish to bearish momentum.

Highlights

The importance of abandoning complex strategies for a single, profitable one to achieve success in trading.

The common pitfall of traders trying to master multiple strategies, which often hinders profitability.

A personal trading strategy focusing on key support and resistance areas for high profitability.

How a single trade leveraging a simple strategy resulted in a significant profit.

Growth of a trading account from a small risk per trade to larger stakes while maintaining profitability.

Trading for only 90 minutes a day and using a five-step entry checklist for consistent results.

Mastering candlestick reading as a fundamental skill for trading any market or time frame.

Trading the Futures Market for its simplicity and leverage, but acknowledging the strategy's applicability to other markets.

The significance of identifying key areas of support and resistance and the use of zones in trading.

The concept of a reversal catalyst and its role in indicating a potential trend reversal.

The importance of not entering a trade impulsively and waiting for confirmation of a reversal.

The method of using trend lines to identify a slowing down or potential break in the market trend.

The strategy's emphasis on risk management, including setting and not moving the stop loss.

The psychological aspect of trading, such as overcoming the fear of missing out on trades.

The concept of failed breakouts as an entry signal for counter-trend trades.

The use of head and shoulders patterns as a confirmation for trade entries.

The necessity of volatility for successful trading and the impact of market conditions on strategy effectiveness.

The approach to trade management, including moving the stop loss and taking profits at key levels.

The importance of not being married to a trade and exiting when the market indicates a lack of favorable movement.

A step-by-step guide on the speaker's journey from a small account to significant success, illustrating the strategy's scalability.

Transcripts

I spent years and years going in circles

trying to become a profitable Trader but

when I threw everything out the window

and focus on one simple strategy my

trading turned from losing me money to

actually making me money this is the

biggest Pitfall that every Trader falls

into when they come to trading is

thinking you can Master multiple

strategies and patterns and become

profitable with them all but this is

probably what's holding you back from

becoming a profitable Trader so let me

try and fix that for you and save you

from the headache of wasting potential

years and walk you through the strategy

that saves my trading career I found it

way more profitable to focus on key

areas of support and resistance in the

market and allows you to focus on high

areas of profitability and in this trade

where I risked about $600 and made

almost

$3,000 in that one trade you were able

to risk a small amount and get a high

reward with this strategy I have been

able to grow a small account starting

with a risk of about $50 per trade to

now risking over $600 per trade and

still growing some of my biggest wins at

the moment are close to $3,000 in profit

and I only trade for 90 minutes a day I

don't spend hours and hours at the

computer I open up my charts look for

key areas in the markets to trade and

wait for a five-step entry checklist I

have made over the years trading this

strategy all I use to read what the

market is doing is is the candlesticks

of the chart and once you master reading

candlesticks you can honestly read any

chart or time frame you want so you can

use this strategy on any Market or time

frame personally I trade the Futures

Market because of the Simplicity and

leverage it gives me but you can trade

on whatever you want and I also day

trade this strategy but if you want you

can take trades over multiple days just

change the time frame you're trading now

let me walk you through the mult

multiple trades I've taken over the last

month and show you the fstep entry

checklist I use every day and how you

can exactly execute this strategy

yourself so the first thing I do every

day in my checklist is I want to find

the key areas of support and resistance

in the market and so with the market

currently trading going into this trade

right here well looking at the over the

last few days you know it's couple weeks

here you can see that the NASDAQ futures

here on a 15-minute chart well there's a

pretty clear resistance Zone up here I

use zones because the market never

bounces in the exact same area price

exactly every time you know what think

of it as supply and demand the Market's

more likely to bounce off of this area

because that's where the buyers are and

so as the market comes down here again

I'm going to assume that we might get a

bounce here again because the markets

bounce off this area really multiple

times it's likely to do that again and

so what I then do is I zoom in to a

smaller time frame chart and analyze

what the chart is doing on a smaller

time frame and get in when I see the

rest of my five-step entry checklist

show up the bigger picture is telling us

that there is a likely good chance to

bounce here and then the smaller time

frame shows us when the downtrend into

that area is starting to reverse because

the hardest part about trading reversals

is knowing when the trend is going to

reverse counter Trend trading can be

very very profitable because of that you

know lowrisk High reward potential but

it's very very easy to think you've

reached the bottom because you know

right here it's starting to bounce and

then the market keeps going lower it's

all about reading the trend if you think

about when a trend makes lower lows and

lower highs that's kind of what a trend

looks like and then at some point it

makes an extreme low and starts to

reverse that Trend and start making

higher highs and so we want to try and

get in I try and basically get in right

here after it's started to show okay now

it's starting to the swings are starting

to shift and there's indicator showing

that it's shifting and so the first

thing that I like to do is just make

sure that this overall trend that I'm

seeing into that area is slowing down

and potentially breaking the simplest

way to do that is with a trend line and

so right here the market Market had a

very clear trend line formed off of

these two bounces and so I drew a trend

line off that and just extended it lower

and so the market tried to continue

lower and bounce off of it right here

but it ended up failing and and broke

right here for me that's my first signal

that okay I have two things checked off

in my checklist and I think that the

market might start to slow and I can

look for a reversal and so you can see

that even though we broke this trend

line that doesn't necessarily mean the

Market's just going to all of a sudden

just shoot up from there that's

something I've done in the past where I

think oh the trend Line's broken that

means it's going to reverse all of a

sudden that's not true what I found is

you don't want to get in right there

that is sometimes works out of course

anything in the market can work out at

any time but over time that's not a

profitable thing to do what I've

realized is wait for the market to make

some kind of pullback and here you can

see it made another push lower and that

push lower was very very strong look at

how big these three candlesticks right

here are really this big one in here in

the middle is a very very strong bearish

Candlestick there's a lot of momentum

pushing that comparing the size of it to

you know some of these over here it's

massive and so what that does is it

shows a lot of momentum all of a sudden

and what I've realized over time is I

call this a reversal Catalyst or

climactic move is all of a sudden the

market is making an attempt to keep to

keep the trend going lower but what

happens in reality is that it loses

steam because of that and essentially

it's becomes OV exhausted and all the

sellers dry up and what this does is it

gives a chance for buyers to come in and

start to gain strength and of course

coupling that with the fact that we're

already at that major support Zone that

we know buyers are more likely to come

in that's really what gives us the power

of increasing our likelihood that there

is a larger move higher and so that's

what I want to see as my third step is

really the catalyst is showing you that

this has a lot more reversal opportunity

and likelihood because it's made this

essential fake lower some people will

see this and think wow the trend is

going to break this support level look

at all this momentum and then in reality

what happens is if you look at actually

the swings here we had a big swing down

here and made a little pullback big

swing down here it made a little bit

bigger of a pullback and then we had a

big swing down but if you look and

compare the lows here is this new low

down here was very very wasn't much

farther lower than this one comparing to

this low in here and so that shows you

the trend is starting to lose momentum

and so the third step that I like to do

is if we go back to just thinking about

our simple downtrend is the market is

going to eventually start making higher

highs and higher lows compared to before

when it was making lower lows and lower

highs and so this is a very simple but

very very crucial thing in the market to

show you that it's starting to reverse

is you know just the overall it's

showing you the overall structure of the

trend is changing and you can see that

as it makes this new extreme low and I'm

you know going through this and checking

off my checklist as I'm watching the

charts and trading every day I'm

thinking okay look right here it looks

like it's starting to make that higher

low and you can see looking at this okay

if this shoots up here I would confirm

that this is a higher low for that

fourth step that we're looking for in

our checklist and so the last thing that

I want to look for in my checklist is a

strong reversal candle that really

confirms that this higher low is

happening essentially I want to see a

very bullish candle happened right here

because what that does is it shows me

that okay the Market's come down here

it's started to make this move down here

and you know you don't know this could

just keep going down and so that's why

you can't just randomly buy that's why I

wait for this confirmation to happen and

so when this confirmation happens and a

big green candle happens here that to me

shows that okay the market has moved up

here and it's showing that higher Lev

low and that change in structure and so

that's the confirmation you have to wait

for I always wait for a Candlestick to

finish forming cuz if we go back in the

recording here and you see this

Candlestick right here it looked very

bullish and so right here this would be

essentially confirmed if the Candlestick

finished forming right there but you can

see I have this little indicator that

says there's 2 minutes left in the

Candlestick and you can if I you know

Zoom back forwards again you can see

that changed a lot in that those 2

minutes and so that is the really really

crucial thing about waiting for the

Candlestick to finish forming and so as

the market started to reverse that

really quickly is I did jump in here

about 30 to seconds 30 seconds earlier

before the market closed so I am going

against that rle tiny bit but with 30

seconds left in the Candlestick it's

almost there and I was also watching

this on a one minute chart and so it was

showing a ton of momentum in that way

and so I'm okay

jumping in a little early I made a

conscious decision of doing that that's

the key thing is not making an impulsive

decision of whereing you're going to M

miss out making a conscious decision of

okay it made this kind of this bearish

Candlestick right here if you kind of

read into what these candlesticks say is

the market made an attempt to go lower

and then it moved up and then made

another attempt to go lower that's kind

of what this Candlestick is showing that

reversed and went up here and so you

know it's making kind of a double bottom

on a really small time frame scale and

so I jumped in on that trade and just

let the thing play out from there and so

for my trades once you get in you know

the trade's not over right that's half

the battle and so for me where I put my

stop loss every trade and I never move

it because you can never move your stop

loss because you do not want to increase

your risk on the trade and so this trade

I think I was risking about $600 in the

trade and so I put it below because the

whole idea of why we're getting into

this trade is the structure of the

market right and so if the idea if if I

get in here and the market you know

starts to go sideways or it breaks this

key new higher low that's in place I get

out of the trade because I found over

time is you know the idea is not working

and you just got to move on you're not

always going to be right when it comes

to trading what I found over time is

important to just cut your losses and

move on and the best trades usually work

out pretty quickly in your favor and so

just to kind of Zoom through how I

manage these trades once they kind of

get going is once it kind of breaks out

in my favor is I will move the trade to

break even the idea is well it's moved

in my favor a little bit but it could

you know come back against me and then

as the market kind of moves up more more

in my favor I like to move with the

swings cuz again I like to just move

with the structure of the market that's

how I found to be most successful at

reading and moving with the swings now

when you are first starting out I I

would suggest not doing a kind of more

fluid management style like this it's

hard to read what the market is doing

and make the correct decision because

you're making a ton of decisions as you

see the market start to really move in

your favor here and so that's taking me

years and years to get better and better

at and I'm still getting better but when

I first started out I started with just

going for a fixed profit Target of just

going for 2X and so this trade would

have probably got out if you were going

for a two two times profit Target

probably would have got out somewhere

right here right and so sometimes you do

Miss if an amazing swing happens like

this but again of course not all my

trades happen like this these don't

happen very often this is just an

amazing example of what can happen and

so we'll get into a couple more examples

here in a minute where to show you a a

couple more key steps in this strategy

there's a really better climactic move

kind of example and the big thing to

remember is the market does not show up

the exact same every time this trade is

probably one of the more clear ones I've

had recently and so I want to show you

kind of when you're actually trading

what some of those weirder looking ones

can look like because those are just as

important to know how to trade and so

closed up that trade for about $2,800 I

think at the end so to show you another

example is here we are on the NASDAQ

honestly just a couple weeks later and

the market is still kind of in this

range now one thing though is so we're

still looking at the NASDAQ here and

check this out right here and so we're

currently at the highs and so this

strategy you can bet the Market's going

to go down or you can bet the Market's

going to go up so you can make money

both directions and so here the market

has been bouncing up in this area for

quite some time and so when I open the

charts on this day the market was

trading right here and so we're kind of

a little bit away from this Zone but

again remember zones are subjective you

can come up to the Zone like here and

reverse a little bit before it you know

because maybe the zone is a little bit

further and it it is all the way down

here and so I'm okay with trading away

from the zones a little bit but again

don't go too crazy with that and a big

thing that really helped me with this

trade right here was seeing that there

is also this downtrend line right here

based off of these two swings that the

market was buding into right here I saw

that the market was likely going to

potentially bounce there and again this

is only if all of my other checklists

line up that's the whole thing the

market can reverse anywhere but the big

thing is to have it at these levels and

so have it as all these things line up

and so going through a lot more quicker

now is you know the first thing is

here's our uptrend that is very very

clearly broken the Market's been going

sideways The Market opens up at 6:30 my

time and so you can see right here the

market kind of went sideways for a while

opened up and then started to move and

so just like we were talking about last

time is I want to see is seeing this

loss of a momentum right here is great

where the market starts to go sideways

like this a lot of the time that can

show that okay well the Market's going

to lose momentum and start moving lower

but the key is when I see something like

that is not to just short and bet the

Market's going to go down with my stop

above here because what I found again

just like we talked about before is the

market needs to make some kind of

reversal Catalyst something that where

it essentially makes an attempt to go

the other direction than you want which

gets people excited you know a lot of

people might see this as okay well the

Market's gone up here it's started to go

sideways it's kind of sitting there

gaining more momentum and then it's

going to break out here and you know the

trend's just going to continue higher

and I'll make a ton of money buying on

this breakout right here and that can

totally happen and maybe that does

happen right here but what confirms it

for me is when you see this massive move

back lower is when it gives that back up

really quickly with momentum and that

shows me that sellers are coming in here

there's a lot of strength on the seller

side and this strength of the buyers

that they apparently had here for a

couple minutes was given up really

quickly and so that's kind of the third

thing checked off on my list is seen

that happen so when I'm trading and I

see this reversal happen in real time it

gets really exciting and you start to

think when it started to go this fast

fomo sets in and you think oh my God I

have to get in here right now what I've

noticed over time is these kind of moves

right here is if the market makes a big

move like this and it goes sideways and

it does end up giving starting to go

lower it's going to give that whole move

back up and so a lot of the time for a

trade like this is my targets down here

and so if I'm risking something like

this and you know the target's down here

that's amazing risk reward like we won

right and so the hard part is though

when you see this happen is not foming

which what I mean is fear of missing out

of jumping into the trade because it's

so easy to think oh my God it's moving

so quickly I'm going to miss out I have

to jump in and what happens a lot of

time is you'll get a really bad entry

the market actually will pull back here

and you can see the market is pulling

back here and again going through that

checklist is is this reversal is not

confirmed yet it's looking really really

good but the market I have seen plenty

of times where the market will do this

come down and then just shoot back up

and make a new high and so the whole

idea is waiting for this lower high

right here to happen and I remember it

wasn't that many days ago I was in this

trade and I'm waiting for the market to

show me that reversal and so it's

started to make it right there and so

here I'm starting to put orders in

thinking that okay I think it's going to

I want to get in when it breaks lower

it's kind of made this break here and I

want to get in on the break of this move

that it's made and so I I'm feeling a

little nervous because well the Market's

really choppy and so I don't want to get

in based on a little bit of chop but

once this Candlestick formed really

bearish I thought that's a great signal

I have to just push through that

nervousness because you're always going

to be nervous getting a trade I've done

this for years I've practiced this

practiced this strategy and been

successful with it and I'm still nervous

every trade I get into and so no matter

how confident you're in there's always

going to be that uncertainty because

looking at this you still don't know

what direction the Market's going to do

you don't know what it's going to do and

so it can just take forever to you know

play out sometimes and in reality the

market over the last couple weeks going

into this trade has been insanely choppy

it's just been really back and forth and

just a crappy Market to trade in I've

only taken a couple trades over the last

few weeks it makes it really unlikely

for the market to just work out really

nicely and just shoot lower it's more

likely to you know see what it's doing

here and just sit there and chop and so

what I found is I still try and just

give it some room but when I see the

market make you know kind of a move

lower and a pullback like this and a

start attempt to keep going lower I then

you can see I moved my stop loss below

there and then it's made another push

lower here and so I'm starting to see

okay is there a trend line that I can

look at to see where the Market's with

and so once I see this trend line start

to you know hold here I'm thinking okay

this is another little pullback here I

want to you know close out my profits if

it looks like it's going to start to

bounce there and so you know anytime the

market makes kind of a double bottom

like this you know it it might just

start to knock me out and so that's the

biggest thing when it comes to managing

trades is get out when the market is

kind of telling you that it's not great

do not get married to the trade because

at the end of the day my always my best

trades like you saw in the last one you

know there might be a little bit of chop

in the beginning be but that's when the

Market's you know switching that

momentum versus now that momentum should

be moving in my favor really well the

the trend should be shifting and if the

Market's just going to kind of sit here

and go sideways I don't want to be in it

because I want to be smart with my stop

loss and get out when it looks like it's

going to go again me or just sit around

and not really give good profits and so

you can see here it's kind of just sit

around and eventually just kind of

knocks me out there and I believe it

just chopped around there for quite a

while let me show you two more crucial

Concepts that I have not gone over that

are crucial to this strategy and so what

we're looking at here is now oil Futures

and on the left here we have a 15minute

chart and so again like always I'm

looking for the key areas of support or

resistance and right here going into to

this day which was just a couple of days

ago the market has come up to this level

and started to you know make a couple

swings off of here and so my thinking is

hey you know this looks great for a

potential reversal we have a chance for

a you know move lower even if it's just

a move from here to here that's going to

be with entering on a smaller time frame

chart that's going to be a 3X trade and

of course if it gets moving lower down

here boom we have a home run those kind

of Trades can make your year you do not

need many of go to have a crazy crazy

profit and so going into a smaller time

frame chart just like I always do we

want to analyze the chart and so one

thing to look at here zooming back is

look at this chart again talking about

the last couple weeks is the market has

been terrible honestly look at the Kel 6

here is they're just chopping they're

all on top of each other there's very

very little movement and volatility and

to trade really any strategy you need

volatility and even with this strategy

or reversal strategy you really really

need volatility and so one thing is with

this strategy is you have to have that

risk reward potential every trade just

like we talked about with all these

trades is you need that potential for

the market to move and give you that

risk reward potential and some of that

is you know okay are you far enough away

from where the market has room to move

to the nearest other end of the range

like here we want to make sure we have

room to move to you know kind of a a

smaller support level or is the movement

in the market likely going to give you a

clean trade that you can profit from

because you know if you think about that

last trade we just did is it was all

over the place and just kind of sitting

there and not really moving and so

because of that it's unlikely for you to

make a really good profitable trade and

so what that does is it increases es

your risk on the trade because every

trade you know let's say you have a 50

50% chance to win or lose but some

trades you have a good chance to make a

really high profit like in our first

trade and other trades the chance to

make a high profit is lower and so your

risk reward there is not as good making

the trade not as profitable in the long

run and so right now we are budding into

this resistance level up here and

actually looking at the check list is

you know there's kind of a climactic

move right here there's a lower high

made there's a nice bearish bar and so

you know the only thing is that's not

broken is this uptrend I would say but

it looked pretty close to making a trade

and getting on a potential trade and I

actually thought about it in real time

of like hey you know I see it I could

jump in right here and there's good risk

reward and the only thing holding me

back from that well one was you know the

trend wasn't broken and so every time I

want to have all five of those those

things checked off there's a reason why

they're there don't skip out on one but

the other thing was is you know looking

at the bigger picture is even if we go

to a f minute chart of this is the

Market's just kind of sitting up here

it's going back and forth and chopping

and and on a 15-minute it shows that

really well and here on a 1 minute you

know the swings are bigger but again

looking at the candlesticks is that it's

it's really really crappy honestly and

so what I did is I thought I want to

wait for the concept that we haven't

talked about to show up and what that is

is a failed breakout and so what that

does is it's very similar to kind of

what we talked about especially in the

last trade but what it does is we have

our resistance level up here and looking

at this is It's the highs you know the

highs of the range or the resistance

zone are right here or the top of the

zone and so what I want to wait for is I

want to wait for it to break out of that

because again like with the last last

one is breakout Traders will think okay

it's breaking out I'm going to buy which

of course it works sometimes I'm not

saying it doesn't and they'll get in

long you know maybe with not as much

confirmation and then they'll go higher

and so what I'm doing is I want to wait

for that to fail and so you can see here

it's starting to do that and again you

can see here I have an uptrend drawn now

I'm trying to see okay where's the

uptrend what am I looking for here and I

want to see that fail and so what I

looked for is well this looked really

good good right here and so the next

thing in our checklist is you know wait

for that pullback wait for it to make a

lower high right here and so I'm

watching this I'm like okay where's the

big red candle I'm waiting for a big red

Candlestick to show up here and I'm

going to bet lower and and get in short

bet the Mark's going to move down but

that never happens and so there's no

trade and so again just waiting okay it

makes another high part of me is

starting to think you know maybe this is

just going to break out and I'll move on

with my day but I do want to see that

maybe this sets up a Head and Shoulders

pattern and so what that is is

essentially just reading the structure

of what we're looking is a head and

shoulders pattern is just taking into

account this swing this swing and then

this swing that's a head and shoulders

pattern and that's what I want to get in

on and so you can see here I put in an

order because I saw that this

Candlestick right here made that move

higher it made that attempt to go higher

made a nice lower high and so you can

see here it kind of did that as well

with this smaller one but the re the key

I've realized over time is to not go

with these small ones it needs to be a

solid amount of movement and so what

this here is reading into these kind of

candlesticks right here this one makes a

good break lower there's some reversing

right here happening some strength lower

and then we see com in the buyers this

is the attempt to keep breaking higher

and then I say okay I don't want to get

in right here I want to get in at the

break of the low because that's when

it's you know I I I've started to like

that as a confirmation of it making a

new low and and breaking that and

showing that shows even more weakness

and strength to the downside and so I

put in my order there it filled and

moved really quickly in my favor which

was great when you ever see that it

gives you a lot of confidence cuz

sometimes there's there's there's a lot

of worry when you just jump into a trade

and and at this point I'm thinking you

know what it's still bullish I have to

give it room it's choppy I have to let

it move around and you can see that I'm

looking at okay well there is actually

this uptrend right here that we just

bounced off of and so maybe that'll ruin

my trade and I haven't moved to break

even yet because I want to see it start

to move lower and so there it starts to

move lower a little bit and I'm thinking

if it does a double bottom right here

and comes up here I'm okay getting out

of the trade at a scratch or a small

loss because the trend is overall up oil

is overall bullish at the moment if I

bring up the overall chart it's been in

in an uptrend for the last month and so

I haven't even been trading it recently

and so this is my first trade in

honestly the last month in it and so I'm

being cautious with that of realizing

that it's unlikely that it reverses here

but everything showed up and I still

want to take a stab at it but I want to

cut my losses if it just does a double

bottom here and knocks me on and so it

it does knock me out here at a small

loss but again that's okay you know I'm

looking for those spots where it shows

up really well so if you really liked

this strategy this video right here will

walk you through the exact steps I took

from starting with a small account

risking $50 per trade to where I am now