How I Made $93,800 Day Trading with This ONE strategy | Full Breakdown

Summary

In this video, the trader shares insights from a highly profitable three-day trading session, making over $90,000. He emphasizes the importance of having a clear game plan, risk management, and understanding market scenarios before executing trades. The video details his specific trades, the strategies behind them, and the mistakes he made, especially when letting emotions drive biased decisions. Ultimately, the trader stresses the value of consistency, risk control, and staying patient, while offering tips on improving decision-making and reading market order flow for better trade execution.

Takeaways

• 😀 Focus on the game plan, not just the profit. The goal is to understand the strategy behind the success.
• 😀 A trading day should always begin with a well-thought-out game plan, based on pre-market analysis and scenarios.
• 😀 Pre-market action, such as price levels and sell-offs, provides important clues for anticipating market behavior.
• 😀 Traders should develop a few potential scenarios and wait for price action to confirm which one is unfolding.
• 😀 It's crucial to identify and understand risk levels on each trade—how much you risked directly impacts how good the trade is.
• 😀 Use risk-to-reward ratios to evaluate trades: in this case, a 4:1 reward-to-risk ratio means making four times what was risked.
• 😀 A good trade comes from following a consistent approach to entries and exits, without emotional bias.
• 😀 Avoid chasing the market. Emotional bias, like trying to catch the bottom after a good trade, can lead to unnecessary losses.
• 😀 It's important to stick to your strategy and reset after a couple of bad trades to avoid a spiral of poor decisions.
• 😀 Always watch for shifts in volume and order flow to confirm whether buyers or sellers are in control of the market.
• 😀 Keep the bigger picture in mind and avoid getting fixated on short-term fluctuations or the thrill of hitting 'home runs' in trades.

Q & A

What was the total amount of profit made in the past three trading days?

The total profit made over the past three trading days was just over ninety thousand dollars.

What is the main takeaway the speaker wants viewers to get from the video?

The main takeaway is to understand the game plan, how to identify setups, and how to manage risk. The speaker emphasizes learning the process, not just focusing on the profit.

How does the speaker prepare for each trading day?

The speaker prepares for each trading day by taking mental notes of what they think the market is doing, noting the pre-market action, and setting up different potential scenarios for the market's movements.

What were the scenarios the speaker considered before the market opened?

The three scenarios were: 1) Market overreacts and reclaims a key level with new buyers stepping in, 2) Market sells off hard from the open, and 3) Market pauses before taking the next leg down.

What is the speaker's approach to risk management during trades?

The speaker emphasizes the importance of understanding risk by focusing on the risk levels of each trade. They use risk-to-reward ratios, such as making 4.2 times what they risked, to evaluate the quality of trades.

What was the main trade the speaker made on the day they made $42,000?

The main trade was a short position that resulted in a 4.2 times return on the risk taken, with the speaker risking about $11,000 to make $48,000.

How did the speaker handle their emotions and biases during trading?

After a successful trade, the speaker became overconfident and started trying to catch market bottoms repeatedly, which led to mistakes. They recognize that emotional bias, like chasing a bottom, can lead to poor decisions.

What strategy did the speaker use to scale into positions?

The speaker scaled into positions by initially entering with a smaller number of contracts and adding more as confirmation of the market direction was established.

What mistakes did the speaker make during the trading day?

The speaker made the mistake of becoming biased and overly focused on catching market bottoms, which led to a series of unsuccessful trades. They also failed to follow their rule of walking away after one or two bad trades.

What is the speaker's overall philosophy on trading success?

The speaker's philosophy is based on consistency rather than aiming for huge profits from one trade. They focus on following a well-defined game plan, understanding risk, and managing trades based on order flow and market confirmation.