How To Start Day Trading For Beginners In 2025 (6 Hours)

Category: Day Trading

Tags: ForexFuturesRiskStrategiesTrading

Entities: CryptoForexFuturesJuvierNASDAQOsprey FXS&P 500Trade LockerTrade of EightVWAP

Transcript

00:00

By the end of this video, you're going to know everything you need to know to become a profitable day trader, even if you're starting as a complete beginner. This full six-hour course is going to be packed with more value than what most people charge hundreds, if not thousands of dollars for.

I'm going to take you

00:15

step by step for you to actually understand exactly what it is that day trading is. How to read charts, understanding candlesticks, choosing the right platforms, mastering the right strategies, how to manage your trades, how to properly journal all of your trades, and how to actually use other people's money to trade with so you

00:32

don't have to risk your own. I'm going to literally hand you everything you need within the next 6 hours for you to become a profitable day trader.

But first of all, who am I? My name is Juvier and I've been day trading for over 8 years.

And honestly, day trading has completely changed my life. I was

00:48

able to buy my first home for over a million dollars. I bought my wife her dream car.

I bought myself my dream car. And most importantly, I gained financial freedom, time freedom, and location freedom.

I can live wherever I want to. I can buy whatever I want to.

And I can not only just take care of myself, but I

01:05

can take care of my entire family and all of my friends. And over the past 8 years, I've been able to consistently make over six figures every single month with day trading.

And that's exactly why I believe that everybody should learn how to trade and why I'm honestly making this entire course 100% free because you

01:22

and every other person watching this deserve to learn a skill that could not just set you free but set your entire family free as well. Now honestly I remember when I first started off day trading and everybody made it just way too complicated.

Like the first video I ever watched it was by this old guy on

01:38

YouTube. It just happened to pop up on my YouTube feed at that time.

I watched it. The title was like how to make $100 a day with trading or something like that.

And me being super young, I'm like, "Bro, $100 a day? That's absolutely amazing." So, I watched the video and basically I understood

01:53

absolutely nothing. But I still continue to watch this guy's videos just in case I catch on to it.

But every single thing he was saying, no matter what video I watched, I watched like 10 15 of his videos and it just all sound like Chinese. Like no matter what, I just could not understand it because he

02:09

overco complicated it way too much. so much to the point where I never actually stuck with it.

I ended up actually trying drop shipping. I tried Amazon FBA.

I tried affiliate marketing. I was making workout videos on YouTube at that time.

I got so turned off from day

02:24

trading and how complicated it was just from that one guy that I was watching that it made me go into all these other avenues that made me waste time, made me lose money, and that I never saw success in. But for my 8 years of mastering this craft and teaching tens of thousands of

02:40

people how to actually day trade, I found a way to give you all the information that you need to become a successful day trader in the simplest form possible. So simple that even a 10-year-old could actually learn how to trade.

And the reason I know that is because I've actually taught a 10-year-old how to trade. So if you're

02:56

watching this and you're over the age of 10, you stand a pretty good chance. So, with that being said, grab a notebook, grab a pen, grab some water, grab your favorite snack, and let's learn a skill that could literally change your life.

So, let's jump into it. So, what is day trading?

In simple terms, it is the act

03:12

of being able to predict whether a stock or a crypto or forex or futures if the price of those things are going to go up or if they go down. That's really what it is.

And that's just all based off of patterns. Now, you've probably heard your parents or your grandparents, your aunts, uncles, whatever it is, talk

03:29

about buying stocks and holding stocks for years and making money on it. That's cool and all, but that's not what we're talking about.

We're talking about day trading and being able to make money in a short amount of time without having to hold it for days or weeks or months to make money. And we're also talking about

03:45

being able to make a lot more money and actually have better risk. So, we're not risking as much money.

Now, the cool thing about day trading as well is if you just buy a stock and the price goes down, you're going to lose money. But with day trading, if we predict that price is going to go down, we can

04:01

actually make money while price is going down. And vice versa, we can also make money if we predict that price is going to go up.

And that's one of the huge benefits when it comes to day trading because it puts you in more control of your money and you can actually make

04:16

profits no matter if we're in a bare market, which means the market is just going down, or we're in a bull market, which simply means that the market is going up. Now, that's what day trading is.

But why should you learn day trading? And the answer to that is because it's one of the few skills that once you learn it, it never goes away.

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It's one of the most valuable skills that you can learn because it doesn't only give you financial freedom. You can literally make any amounts of money that you could ever want to make with day trading, but also gives you time freedom because you can do it whenever you want to.

And it gives you location freedom because you could do it from literally anywhere in the world. It does not

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matter where you live. It does not matter where you stay or what time you want to do it.

You can day trade. Me and my wife live in Dubai for 4 months out of the year.

And while I'm in Dubai, I'm in a completely different time zone and I'm halfway across the world, yet I'm still able to make just as much money

05:06

day trading. Now, let's burst some myths that you might have about day trading.

The first one being, is day trading actually legit? And can you actually make money?

And the answer to that is heck yes. Because not only have I proven that, but hundreds, if not millions of

05:22

other people have proven that you can actually make money with day trading. And it's real money that you're making.

The $1,000 that you see that you make in day trading, you can withdraw that thousand dollar and pay your rent, buy sneakers, buy food, take a vacation, it's real money. Myth number two is that

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most people believe that you need hundreds of thousands of dollars to start day trading. And that's not true.

You can get started with as little as $10, honestly. And using other people's money to day trade and make money with it is very, very easy.

And we're going to get into that later on inside this video. But like I said, you can get

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started with $10, $50, $100. It does not matter.

Day trading is not for the ultra rich or the rich at all. Myth number three is that people think you need to spend hours a day trading.

And that's simply not true. How I trade and how I teach other people to trade is by

06:12

literally spending 30 minutes a day on the charts and making my money and then going about with the rest of my day. As I just mentioned, trading gives us time freedom.

And what's the point of us having this time freedom if we're spending hours glued to our desk? That's not how I trade and that's not how I

06:27

teach people or how I will teach you to trade. As long as you have 30 minutes to 2 hours every single day, you can start making money with day trading.

The next myth is that people think that it's going to take you 10 years to be able to start making money day trading. And that's honestly not true.

It really

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ranges and depends on the person, but you can start consistently making profits from three months all the way up to maybe a year or two years. I've had students of mine that knew absolutely nothing about day trading and after 3 months were able to make $40,000 in just one month.

So, that proves to you, and

07:00

I've seen it proved time and time again, that you don't need years to be able to get good at this skill. The next myth that people think is that you need some expensive computer, you need 30 million screens, you need a super crazy setup, when in reality, you really don't.

You

07:15

can literally trade right from your phone. You can trade with a a laptop.

You can trade with a desktop computer. As long as you have internet and a screen that you can see, you can start trading.

You do not need any expensive gaming ultra computer or anything like

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that. With that being said, let's get into the different types of day trading.

So, there are five major markets that we can trade. There's the forex market, there's the futures market, there's the stock market, there's an options market, and there's the crypto market.

The forex

07:46

market is trading currency versus currency. And what I mean by that, it's like trading the British pound versus the US dollar.

It's like when you go to a different country. If you ever went to a different country and you exchanged, let's say US dollar for, let's say, the British pound, you'll put in one US

08:02

dollar, you'll get $1.5 British pound. You're trading that price discrepancy because there's sometimes where you'll go one month and you'll get $1.5.

There's another time you'll go and you'll get $1.4. So, the price is constantly changing and you're trading that discrepancy.

You're trading the

08:18

change between those two. Now futures trading you are trading contracts of commodities, indices or energies.

And all that basically means is that you can trade gold, you can trade the price of gold, you can trade the price of silver, you can trade the price of corn, you can trade the price of a group of stocks,

08:34

you could basically trade a lot of different things. And as I mentioned, you're betting on the price of those things going up or down.

Now, the options market is similar to futures, but it's also very different. But with options, you can trade stocks, you can trade indices, once again, which is

08:51

basically just a group of stocks put together. It's just a bundle of stocks.

You can trade um penny stocks, you can trade a bunch of different things when it comes to options. And keep in mind with futures trading and options trading, you're trading it leveraged, which basically means that let's say you

09:08

have $100 in your account, you're allowed to buy, let's say, $10,000 worth of a stock versus with regular stock trading, you need to have that amount of money in your account. Let's say you want to buy $10,000 worth of Tesla, you need to have $10,000.

But you can get around that by

09:24

trading futures and options. But going on to crypto now, you can actually trade specific prices of cryptocurrencies.

So you've probably heard of Bitcoin, you've probably heard of Ethereum or Salana. You can actually trade if that price if

09:40

you believe that price will go up or go down depending on what instrument or what cryptocurrency you are looking at. That is the crypto market.

Now, for this video, we're going to focus mainly on Forex and futures because that's the things that I mainly trade. And we'll

09:56

dive into the difference of both futures and forex. But keep in mind 90% of the information that is in this video can be applied across the board.

It can be applied to stocks. It can be applied to crypto, forex, futures, options.

It's the same information. A lot of it just

10:12

has different terminology and different platforms. But like I said, we're going to mainly focus on forex and futures.

So let's get into the differences between those two. So, as I mentioned, we're going to focus mainly in this video on futures and forex.

So, I'm going to go into a simple comparison of both of

10:29

them, give you guys the pros and the cons so you guys can make uh educated decisions on which one you're going to choose. So, first of all, what is forex?

Forex is short for the for the foreign exchange. It's where people trade different currencies like the US dollar, uh euro, or the Japanese yen.

It's

10:45

actually the biggest market in the world, and it runs 24 hours a day. Now, what is futures trading?

Futures trading is buying and selling contracts that say that you'll buy or sell something like gold or oil at a later date at a specific price. So, in simple terms, how

11:02

I explain to people is imagine you have this phone right here and you bought this phone or you bought a contract that said that you can buy this phone for $1,000 no matter how much this phone cost. Now, let's say a year down the line, Apple is selling this phone for $10,000, but you have a contract that

11:19

says that you can buy this phone for $1,000. So, obviously, you buying something that cost $10,000 for $1,000 is a great option to have.

So, that contract that you hold to sell it for $1,000, that contract is worth a lot. So, you don't even have to buy this phone for $1,000.

You can just sell the

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contract for someone else to buy the phone. That's basically what futures trading is.

Um, but you can do that with things as I explained like gold, oil, corn, wheat, livestock, um, stocks and indexes like the NAS 100, the NASDAQ, or

11:52

the S&P 500. You can do that with futures trading.

Now, some of the pros when it comes to Forex is that it's open 24 hours, like I said, and it's open 5 days a week. It's very liquid, which simply means that a lot of people are trading it because, as I mentioned, it's the biggest market in the world.

Now,

12:09

Forex is also great for small account sizes. You can trade Forex with $10 in your account, $5 in your account.

So, it's great for people that don't have a lot of money. Um, and there's also a lot of things that you can trade in the Forex market.

Um, you can trade EuroUSD,

12:27

and we'll get into all these a little bit later on. Um, you can trade GBP JPY, which is simply just trading currencies versus currencies.

The price of one currency versus the price of another currency. That's all that means.

Now, some of the cons when it comes to Forex is that it can be very volatile, which means that since it's a lot of people

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trading it, it moves very fast, which for new traders can be very scary and very daunting. So, you have to be aware of that.

Another thing is that it's not as regulated in some countries. Most of the brokers or the the platforms that you're going to use, broker simply the

13:00

thing that holds your money. And like I said, we're going to get very ind depth into all these things in a second here.

But um those those platforms sometimes aren't regulated, which isn't always a bad thing. It's just something that you have to be cautious about.

Um also, brokers may have hidden fees that you

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have to be wary of and big moves can be hard to catch because like I said, it is very volatile because there are a lot of people trading it. So it moves very fast and it's always moving.

Now, some of the pros when it comes to futures trading is that it is highly regulated. So, um

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there are laws and things making sure that everything's on the up and up, right? It's also clear pricing and low fees.

They have to be since it's regulated, they have to be super upfront with all of their fees and all their pricing, so you know what you're getting into beforehand. Um pro, another pro is

13:48

that futures is great for fast trades. You can get in and out of trades very, very fast when it comes to trading futures, and it's great for technical strategies.

It's actually to me easier to trade futures than it is to trade forex. And that's my personal opinion.

Now, some of the cons of futures. Um, so

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not all futures markets you can trade 24 hours a day, 5 days a week. It's just there's some that you can, there's some that you just can't.

Um, another con is that it could be risky because you can have high leverage. Another thing when it comes to futures, you don't need a bunch of money to trade futures.

You can

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start trading futures with $50. Um, but because you have so much leverage, and all leverage means is that if you have $10, a lot of these platforms or websites will let you trade as if you have like $20,000.

Um, so that's basically what

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leverage means. And obviously, if you have that amount of leverage or if you're trading as if you have that much money, you can lose a lot of money fast as well.

So, it's just something to be aware of, but I'm going to show you guys how to avoid that completely. Um, and then also it requires a bit of knowledge at the start.

both futures and forex do,

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but this video is going to completely obliterate that con of futures. Now, which one should you choose?

Uh, realistically, both forex and futures can be great. I started off my trading career 8 years ago trading forex, but about 3 years ago, I transitioned to

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trading all futures. Maybe 10% of the time, I'll trade forex.

Um, it's just personal preference for me. But honestly, if you want to trade currencies and be more flexible with your time, you can try out forex.

If you love more so structure charts, um, clean

15:23

setups and low spreads, all spreads means is that if you buy something right here, it gets you in right here. Sometimes with these unregulated forex brokers, if you press buy right here, it'll get you in up here, which obviously starts you off in the negative, which is not a good thing.

Um,

15:39

so that's another reason why I love futures. So, like I said, it depends um on your personality, but we're going to dive into both Forex and futures inside this entire 6-hour guide, so you'll be fully fully equipped to be able to handle any of these markets or options

15:56

or stocks or crypto if you wanted to get into those as well. Next, I want to show you guys the most popular things that most Forex or futures traders actually trade so you guys are just aware of them.

So when it comes to Forex, the main thing that most people trade, the top five things that most people trade

16:12

is EuroUSD, which simply means you're trading the price difference between the Euro dollar and the US dollar. Um, or they trade USD JPY, which is the price difference between the US dollar and the Japanese yen.

They trade GBPUSD, they'll

16:27

trade USD chief, they'll trade AUDUSD. Um, those are all just the main things that people trade.

We'll actually show you these on the chart so you know exactly what I'm referring to. It might all seem like Chinese to you, but I promise you it's super super simple.

But when it comes to trading futures, the

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most popular ones that most people trade and the ones that I trade most of the time is ES, which is just a futures version of the S&P 500, which is a comp compilation of a bunch of stocks put of 500 stocks put together. You can trade NQ, which is the same thing as the

17:00

NASDAQ, which is a compilation of a 100 stocks put together. 100 of the top stocks put together.

You can trade CL, which is crude oil. It's the price of crude oil.

Um, there's GC, which you're trading the price of gold. Then there's

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ZB, which you're trading the price of 30-year bonds. Um, and these are all just things that you can trade.

Realistically, it doesn't matter what you trade. All of them are going to be able to uh you're going to be able to apply the information in this video to anything, no matter if it's on this list

17:32

or if it's not on the list. I just wanted to make you guys aware of the top five things that most people trade in both these markets.

Now, in trading, there's something called trading sessions. And it's important that you understand what these are because these periods of time is when specific

17:48

instruments, no matter if you're trading from that list of five that I showed you guys or outside of that list, some of them will move more during certain times of the day. And you want to be aware of that and that's simply because of the trading sessions.

So all of these times that I'm going to go through with you guys are in Eastern Standard Time. So if

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you're in a different time zone, just convert it to that time zone. But the Asian session, which is the least amount of volume, when I say volume, that means that there's the least people trading it, which means it moves the slowest and um it doesn't have as much movement.

It still does move and you still can trade

18:20

during this time, but the Asian session starts at 700 p.m. and it ends at 4:00 a.m.

Eastern Standard Time. Now, the London session is the second most volatile as far as it has the second highest amount of volume uh during this session.

So, it's the second most amount

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of people trading during this this period, which is from 3:00 a.m. all the way up to 12:00 p.m.

Eastern Standard Time. And then the New York session starts at 8:00 a.m.

and it ends at 5:00 p.m. Eastern Standard Time.

And this session is where most traders trade and

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it has the most volume. Now, the best trading times if you're looking for a lot of volume, if you're looking for a lot of movement, is the overlap.

Because you can see here the London session is from 3:00 a.m. to 12:00 p.m.

But the New York session is from 8:00 a.m. to 5:00 p.m.

So there's a period in here between

19:10

8:00 a.m. and 12:00 p.m.

when London session and New York session are happening. So when that period is happening, there is an overlap.

So now both of the volume from London session and New York session is combined together. So that's when there's the

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most movement in the market and that's honestly when most people trade. Now, like I said, you can trade outside of this time.

You can trade during the Asian session. That's perfectly fine.

But just be aware that most things are just going to move slower. The the price of things are just going to move slower,

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which in turn could just mean that you might have to be in a trade a little bit longer versus in New York session. For example, a trade that you take in New York session, you could be in and out of a trade within 5, 10, 15 minutes.

that that same trade if you took it during

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Asian session you could have to wait an hour or an hour and a half for that trade to actually be complete. So it's just important that you are aware of what trading sessions are and see the times for when they are so you know for yourself which session you're trading

20:13

versus which session you wouldn't really pay attention to. So now that we've went over the different types of trading and the different type of markets, let's go over analysis.

Now, market analysis. This is the bread and butter of us as traders.

We actually use different types of analysis. There's two main types of

20:29

analysis. We use those two types of analyzing the market to help us predict whether price is going to go up or down, which obviously in turn helps us to actually make money.

This part is extremely crucial to understand and really really go in depth in. So, we're going to take our time here to really

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really dive into it to make sure you guys completely understand everything that's going on. So starting off there are two different types of analysis.

There's fundamental analysis and there's technical analysis. Starting off with fundamental analysis.

Fundamental analysis is simply in simple terms

21:02

looking at news and how news affects the markets or how news will affect the market. And we're able to use a couple tools to see exactly what news will affect the market and when that news will come out.

Then there's also other news that comes out. Like for instance, god forbid a Tesla like blows up.

That's

21:20

news event that happens which if we use our brains, a Tesla blowing up looks bad for the stock or the company Tesla. So that can make the price of Tesla drop.

Now obviously that's not something that we can control or we can predict. But there are news events using specific

21:36

websites where we can calculate and see exactly what time certain news events are going to come out, how impactful it will be to the market as in how much it'll move it, whether we should maybe not trade today or not trade for an hour or um not trade a specific pair for an hour or 15 minutes or 5 minutes,

21:53

whatever it is depending on the news that comes out. It helps us be able to gauge that using the tools that we have.

So that's fundamental analysis. If you just think of it in simple terms, it's news.

anything that the world comes out and does or say, the president, um the

22:08

governor, the SEC guy, which is the guy that's kind of over part of the financial markets, um anything that these people say or do will affect the market, and we want to be as knowledgeable about it as possible. That's fundamental analysis.

Now, technical analysis is what you probably

22:23

see most traders go over, which is using this website right here called Trading View. We're going to go in depth about this in a second from now, but Trading View is where you see your charts.

And the charts are basically graphs that help us see patterns that allow for us to predict where price is going. That's what technical analysis is.

We're using

22:39

previous data, previous um market structure. Market structure is simply what the market is showing us.

We're using previous things that price has done before and using that to predict what price will do next. That's technical analysis.

So, there's two main

22:55

types. Just to recap, fundamental analysis was which is extremely important but cannot always be predicted as in we don't know when another uh catastrophic event might happen.

We don't know when um a plane might fall out of the sky,

23:12

god forbid, or anything crazy like that that could affect a specific thing that we are trading. We don't know when that's going to happen.

Technical analysis is a little bit safer as in we're able to predict it a little bit more. We can't be 100% with it, but it does allow us to see what price has done before and be able to use that to make

23:28

educated decisions on what price might do next. So, let's actually start off and figure out how we're going to analyze fundamental analysis.

So, there's a website that I love and I've used this for my entire trading career. It's called forexfactory.com.

And the reason I love this website is because it

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breaks down basically all that we need to know. We know we need to know exactly when something's going to happen.

We need to know what it's going to affect and we need to see how strong that news is because not all news that comes out will actually do anything to the markets. There's a lot of time when news

24:01

comes out and nothing happens. But then there'll be certain times where other news comes out and it completely tanks the market or the market completely shoots up randomly and you don't really want to be in trades around that time just because it's so uncertain.

We don't know what news is going to come out. And

24:16

then sometimes also good news can come out in the market but price will drop down. So I found over the past eight years it's really just not smart to trade when news is coming out.

I mainly use this website specifically here to give me periods of time where I will not

24:32

enter into trades or I'll I'll be watching my trades a little bit more closely just to see if anything crazy will happen. But here's this website right here.

You'll just go to forexfactory.com like it shows right here and it breaks it down. This might all look a little bit too confusing, but trust me, it's super super simple.

All

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you have to look at is this box over here where it says today. Today is April the 11th when I'm recording this.

It's Friday. It tells you the date um what day of the week it is.

And then it has these times right here next to each um event that happens. Keep in mind, you do

25:03

not need an account. All the eight years I've been using this website, I've never created an account on here.

Honestly, um, clicking on this or whatever button I just clicked made me realize that I was never signed in. And I don't think I've ever signed in.

But it's very simple. You come on here, you see the time that price or that these news

25:19

events will come out. You'll see all these different news events.

Keep in mind, you do not have to know what these news events are. Realistically, like most of the time, I don't know what this stuff.

I don't know what index of services. I don't know what industrial production is.

I don't know what some of these stuff are. The things I do know

25:35

and the things I do pay attention to are when these folders right here are red. So the under impact you'll see different color folders.

You have yellow, you have red, and you have orange. If we skip forward, we can use this arrow to skip forward to a couple more days.

So this is uh the 14th of April. You see this is

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orange folder. And all this means is that yellow folder news is really not going to affect the market at all.

Red folder news is going to heavily affect the market. So that's news events I like to stay away from.

orange photo newses will sometimes affect the market or it'll slightly affect the market. Now,

26:09

some big news events for you to um look out for. Core PPI, this comes out at 7:30 uh a.m.

Keep them on Central Standard Time. 7:30 a.m.

This came out today and this heavily affects the market. You don't really have to pay attention to the numbers right here.

It

26:24

shows you the actual shows you what news was forecasted to basically come out as and it shows you the previous um what it came out previously as. You really don't need to pay too much attention to that, especially in the beginning of your trading journey.

You need to just pay attention to the red folder when it's happening and what it's going to affect.

26:40

So here under currency, you can see you have euro, you have GBP, you have chief, you have uh euro again USD. So all this is showing you is that this is European news, right?

This is US dollar news or news that will affect the US dollar.

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majority of the times only USD news will affect what you are trading. Now the exception to that is if you're trading forex and if you're trading forex and it has any of these pairs in it.

Let's say you're trading GBPUSD and it has GBP news coming out

27:13

and let's say that news is red, you want to stay away from trading that specific pair at that time. Or if you're trading EuroUSD, you see we have European news right here.

This isn't red folder, but if this was red folder, you would want to watch out for it. But if you're trading futures, most of the time, if

27:30

you're trading like NQ or ES or YM, some of the pairs that we went over in the futures section, the main ones, any USD news will affect those markets. And even if you're trading anything else, if you're trading GBP, JPY, any USD news,

27:46

especially red folder, will affect the markets. Yellow folder news, I'm not too concerned about like when we have yellow folder news like this.

This isn't anything crazy at all, but any red folder USD USD news you need to be aware of. And I would avoid trading around

28:01

that time. And people kind of ask me what like what is what do I mean by avoid trading around that time?

So, let's say this comes out at 9:00 a.m. I don't want to enter a trade 15 minutes before 9:00 a.m.

or 15 minutes after 9:00 a.m. After that little period of

28:17

time, that buffer I kind of give myself, I can start looking for trades again. But I do not want to enter a trade in that time.

Now, let's say I'm holding a swing position. Let's say I've been in a trade since 4:00 a.m.

already and the news is coming up. I'm not necessarily going to close out my trade, but I am

28:36

going to be watching my trade just in case price has a huge spike against me. And you do not want that to happen.

But like I said, if you've been holding a trade for a while, I don't necessarily close it out just cuz news is coming out. But if I'm considering entering a trade or if I just entered a trade and

28:51

news is about to come out, I will most likely close it because the risk is honestly not worth the reward. Now, for the most part, this is all the only website you're going to need to check.

As you can see, there's multiple days. Yesterday, we had CPI red folder news, very, very strong news.

Unemployment

29:07

games is very, very strong news as well, as in it will affect the markets very heavily. FRMC minutes, very, very strong news.

Like I said, a good rule of thumb simply and basically inside the beginning is if it's USD and it's red folder, avoid it. Do not trade around

29:23

that time. Now, obviously, there's other fundamental news events that could happen and just being aware of kind of what's happening in the world, like if there's any type of potential war about to happen or if um the president tweets something crazy or um if Elon tweets

29:39

something crazy that could affect the market. So you kind of just being aware of what's happening in the world is good as well, but you can kind of get that information on your news station.

You can get that on Twitter, which is where I get a lot of my news if I'm being honest. Um like world news.

Uh you get

29:55

on Twitter, you can get it on MSN.com. But you don't really have to focus too much on that because those news events are things that we that aren't planned.

Those aren't things that we could predict. So, we don't know if something bad is going to happen to a specific company randomly, but we do know when

30:11

unemployment claims is going to come out, and that's what we want to focus on. We want to focus on news that we can um pinpoint when it's going to happen.

We know it's probably going to affect the markets pretty heavily, and we want to avoid it. Now that we understand fundamental analysis, let's go into technical analysis, which is honestly

30:26

the bread and butter of us as traders. This is where we spend most of our time.

So, this website is called Trading View. This is where 95% of your traders are using to draw up their charts, plan out their trades.

When you come to tradingview.com, you can create an account. You can create an account for

30:42

free here. Um I I'll leave a link for inside the description down below.

But once you're on this page, let's say you create an account or you didn't create an account. Hover over products right here and press supercharts.

Once you're on super charts, you'll then see this graph pop up. You'll see a bunch of numbers, a

30:59

bunch of symbols, and everything like that. Let's get you to understand how to use Trading View first and then we'll dive into what all this stuff is on your charts.

If you've never seen this before, this is called a chart. This is what we use to predict where price is going to go, what price is going to do,

31:14

plan out our trades, exactly when we're going to enter a buy or enter a sell. We're also using this to look at what we're going to do if we're holding any long-term stocks or anything like that.

This is where we spend most of our time. But let's get into exactly how we use

31:31

this first. So up here in the top left corner, you'll see symbol search.

Now, this could be anything. Most of the time, I think it starts off on Tesla, but you'll click this, and this is where you'll type in anything, any chart that you want to pull up.

So, let's say you want to pull up a Bitcoin chart. You'll

31:47

type in Bitcoin and you'll click any one of these. You see, we now have Bitcoin charts.

We see the price of Bitcoin right now is at $83,917. you'll see a little timer under it as far as that's the timer for when each

32:02

candlestick will end. I know you don't understand what a candlestick is.

We're going to dive into that in just a second after we finish going through what um how to use Trading View. But continuing on the top here, we'll see different symbols and different letters.

So, this one M simply means we're on the one

32:19

minute time frame. So, each of these candlesticks, like I said, don't worry if you don't understand what all this is.

These are all candlesticks. Um, and all of them basically represent what happened in one minute because we're on the one minute time frame.

We can click this and

32:35

we can switch this to 5 minutes. You'll see it says 5 M.

Now all of these candlesticks represent what happened in 5 minutes. Again, we can click this.

We can go to 1 hour. It'll say 1 H.

Now all these candlesticks represent what happened in one hour. And so on and so

32:53

on and so on. You can keep doing this as to whatever time frame you want.

Remember, time frame simply means what each candlestick that you see on your chart represents. Like I said, we'll get into candlesticks, what they mean, how to um be able to understand them, and

33:08

read their language, basically. But next to our time frame selector, we have a chart selector.

There are multiple different types of charts. Right now, we're on our candlestick chart.

This is what these uh green and red things that we see on our chart here. If we press this, we can actually go to a line

33:24

chart, which then just turns this into a line graph. Um, you can come on here and go to a bunch of different things.

Columns, you can go to uh high, lows, there's a bunch of different things. High kanashi, you can go to a bunch of different types of charts.

This is where

33:40

you choose it. But right now, we'll just stay on candle chart.

Next to that, we have indicators. Now, indicators, think of indicators in a simple way of kind of like um sidekicks.

They kind of help you out. They kind of show you what you can already see on the charts, but it kind

33:55

of simplifies it for you. There are a bunch of different indicators, literally thousands of indicators.

If you press this, you'll be able to search up literally any indicator, and all of them do a bunch of different things. Later on inside this video, we're going to dive into my favorite indicators, really, the only indicators that I believe you

34:11

personally need to succeed in trading. Because a lot of times new traders and what I don't want you guys to do is get stuck in the cycle of having a million indicators on your screen thinking that it's going to help you when in reality it's only going to confuse you.

So that's why later on in this video I'm going to give you guys the exact

34:26

indicators that you guys need, the only ones that I use and really everybody should use. Um so you don't get lost looking through all of these hundreds of thousands of indicators and things here.

But this is where you choose whatever indicator you want. Now here um we have

34:44

indicator templates. So if you always use the same three indicators, you can just create a template so it always pops up when you open up your chart.

We have alerts where you can set alerts on your chart. I believe you need an account for this.

Um you also have replay feature which you need an account for as well. We'll get into why this is so important

35:00

later on inside of this video. Over here you have some uh just miscellaneous things.

So you can actually press this and have two charts open at the same time if you create an account. Um, if you wanted to do that, you can have make this full screen.

You can do a bunch of

35:15

things. Take pictures of your chart.

That's all up here. Now, this left side is probably where you're going to be a little bit more frequently.

Remember, we're using Trading View to mark up our charts, plan out our trades. This is where you have all of your drawings that allow you to do that.

So, right now, as

35:31

you see, we have this cross um selected. We can select the dot, and as you see, my mouse kind of turns into a dot, or it could turn into an arrow.

Most of the time I keep it on cross. Very easy to use.

Next, under here, we can actually hit this uh next to the trend line, which is this line right here. We can

35:47

hit this arrow and a bunch of other options will pop out. These are all just tools that you can use when drawing on your charts.

And a cool thing that you can do once you have created an account is if you hover over, let's say, the trend line, if you use the trend line a lot, you can hover over it and click

36:04

this star and it'll actually be added to your favorites. You'll see it'll pop up here.

So you don't always have to go and look for it each and every time. Um, but you'll get used to that.

You'll know what tools you use most of the time or more than others and add it to your favorite list. A lot of times I use a trend line.

If you press a trend line, you could just click and click again and

36:21

that creates your trend line. You can move it around.

This is just drawings that you'll use. Keep in mind, we'll go into different strategies on how to use these drawings and the best way to actually use them.

So you're not just randomly drawing lines on your screen. We're going to go into that a little bit later on inside this video.

But we have

36:36

drop downs for here. We have drop downs up here as well.

A bunch of different tools as well that you can use. A bunch of tools here.

We have a brush where we can draw on the screen if we want to. Um, these are all just a bunch of different tools that we use as traders to help us plan out our trades.

We have rectangle, which is something that I use

36:52

a lot um to draw things on my chart and plan out my trades and things like that. Um, you have text here as well that you could use.

You have uh emojis, which if I'm being honest, out of the eight years of me trading, I've never in my life placed an emoji on a chart. I have seen

37:10

some traders, just for laughs, put like a a magnet um indicator. I don't even know where it is, but they'll put a magnet, not indicator, magnet emoji, like where they want price to go so that they can make money.

That is not an actual strategy. That does not work.

Um

37:26

but you can put um emojis here if you want to. We have this ruler where you can basically see how um how much price moved basically.

Uh magnifying glass where you can zoom in. You have a bunch of other tools under here.

I'll show you what all these

37:41

do. So this magnifying glass basically makes price snap where or not price makes your drawing snap where um like the closest part where it should go.

As you see, if I just even though I'm up here, but I'm drawing my uh chart or

37:57

drawing my drawing here, it's moving it because it's just snapping it into kind of the closest place where price could go. I don't use that too often at all if I'm being honest.

We have the keep drawing tool. The reason why that's good is if let's say you want to draw this line.

Once I click off off of it, I have

38:14

to then go and click this again to draw another line. You don't want to always have to do that.

So, you can press this keep drawing icon. And once you click on something, you can just keep drawing.

Um, which is useful sometimes when you are marking up your charts or drawing on

38:30

your charts, playing out your trades, and you want to do it a little bit faster. We have lock all drawings, which basically means if we draw something on there, if we press lock, we can't move this drawing again.

So, it keeps things in place. If I'm being honest, I do not use that.

Um, but you can use it if you

38:46

want to. And then here, this eye icon, it basically just hides all your drawings.

So, let's say you have a bunch of different drawings on your screen. Um, all these things on your screen and you just want to see the the the chart.

You just want to see the candles without all the drawings that you have. You can press this button to temporarily hide

39:02

it. You'll press it again and it'll all come back.

Now, um you'll see on the bottom panel right here on Trading View, you'll see times. So, you see 12:00 right here, 32 412.

This is just the time of where price is. If you see under where my mouse is hovering in the black,

39:19

you'll see what day uh what day of the week it is. You see it's the 4th of April exactly where my mouse is.

It's showing me this candlestick right here was on the 4th of April um 2025 at 7 a.m. Now, if I move over here and we

39:34

look to the bottom of the screen right here, we can see this is on Friday, the 4th of April at 200 p.m. It's always in military time.

I'm pretty sure there's a setting that you can change to um change that, but all my eight years never done that. Um but that's basically what that

39:51

is. You can see the time right here.

I think this is actually in I guess it changes the time zone here. That's better.

Now we're actually in the right time. This is the time of where time what time it actually is right now.

And then over here on this side of the scale, this is where price

40:09

is actually at. This is where the stock, the crypto, the futures, the indicy, the pair you are trading, that's where it's actually at.

Right? So, right now, as you see, the price of one Bitcoin is at 83,920.

You'll see it switch to 916.

40:25

You'll see it switch up and down as this video is going. But then, as I mentioned before, the timer under this is simply until the next candle, that's the the countdown until the next candle prints.

Because as I told you guys right now, for instance, we're on the 1 hour time

40:41

frame. So each of these candlesticks represents I have to refresh my screen to get rid of this.

It's trying to force me to sign up. But um each one of these candlesticks represents what happened in one hour.

Like I said, I know you guys don't understand what candlesticks are just yet. We're going to go super in-depth into it so that you can fully

40:57

understand it in just a second here. But just quickly going through it, just showing you guys right now we're on the 1 hour time frame.

This red candlestick, if we look to the bottom of our screen in the black, it says Friday, 11 April 2025, and this is at 10:00 a.m. Now, if

41:14

we go to the candlestick next to it, you see it's Friday um the same day, but instead of 10:00 a.m., it says we're at 11:00 a.m. because this is a whole new candlestick, and that's the 11:00 a.m.

candlestick. This is the 12:00 p.m.

candlestick. The 1:00 p.m.

2 p.m. time goes on.

Well, sorry. And it goes on and

41:30

on and on. But um this candlestick before the next one comes is 45 seconds, 45 minutes and 55 seconds until the next candlestick comes.

But um yeah, that's ultimately how you kind of use Trading

41:46

View. There's a bunch of other things over here that you can use.

This is actually a watch list if you click this. So, if you always use a certain um or always look at, let's say, NQ or always look at ES or whatever, you can actually add that to a watch list without so that you can press it and click onto that

42:02

chart without you having to type it in right here each and every time. Um, we have alerts, we have object tree, which I don't use too much.

Chats, I've never used that. Screeners, I don't use that too much.

calendars. You have all these tools over here that you can play around with, but for the most part, that is

42:19

actually how we use Trading View and how you understand exactly what you're looking at outside of this chart on Trading View. All right, so I've logged into my actual Trading View account here so I can show you guys my actual charts because I want to deep dive into what candlesticks are.

You guys heard me

42:34

mention candlesticks, candlesticks, candlesticks, but you probably have no idea what they are. And trust me, I had no idea what they were looking at this right here.

When I first started off trading, I thought this was Chinese. I did ne I never thought I'd be able to understand it.

But honestly, it's not as

42:50

complicated as it seems. As I told you guys, these are all candlesticks.

All these you see different shapes, different sizes. You see the the fuller part.

Now, you see these small skinny lines. You see that they're different shapes.

Some have long lines, some have

43:05

short lines, some have big um bodies, some have small bodies like this. Each and every one of these candlesticks tell us a story.

And we're going to break down exactly what that story means. But first, we have to understand, as I mentioned before, each story is depending on what time frame we're on.

43:22

If you look up here, right now, we're on the one minute time frame. I can go to the 15-minute time frame and each each candlestick that I see represents or tells me the story of what happened during a 15-minute time window.

Um, I go to the 1 hour, the 4 hour, the daily, it

43:37

all does the same thing. But what's important is that we understand exactly the story that price is trying to tell us.

Now, I've made a nice drawing over here for you guys to uh for us to break through this pretty or go through this very simply because I literally when I

43:53

first started off, everybody explained it way too complicated. It just didn't make sense.

I'm going to break it down so that even a 10-year-old will understand this. As I mentioned before, I've literally been able to teach a 10-year-old how to read the charts and how to actually start day trading.

So, um if you see here, we have all these

44:09

candlesticks. Now, the this big part is called the body of the candlestick.

the lines at the top or the bottom. That's called the wicks of the candlestick.

Now, a bullish candlestick means price went up versus where price was at the

44:24

minute before or whatever time frame we're on. We're going to this we're on the one minute time frame.

So, this example here, we're going to be each and every candlestick represents one minute or what happened during one minute. So, a bullish candlestick, as I mentioned, means price went up.

And those by default on your Trading View account, unless you change the color, is going to

44:41

be green. A bearish candlestick means price went down.

So if you hear somebody say bullish candlestick, that means price went up. Or if you hear somebody say, "I'm bullish on the markets." That just means that they think the market's going to go up.

If you hear somebody say, "I'm bearish on the market," that just means they think price is going to go down. Or if they say, "This is a

44:58

bearish candlestick," that just means that it's a candlestick that went down. So this is a red candlestick, it's bearish.

This is a green candlestick, it's bullish. This is a green candlestick, it's bullish.

Now you see we have the body right here and I mentioned that we have these skinny lines at the bottom. Those are called the wicks.

Now what's important about

45:14

this is that both of these tell a different story. So imagine you see we have times under this.

This is 10:00. This is 10:01.

This is 10:02. Because like I said in this example, we're on the 1 minute time frame.

This works the same if you're on the 15-minut time frame, the hourly or the daily. It doesn't matter what time frame you're

45:30

on. It'll still show you a story and it's your job to be able to understand what that story is.

So the body of a bullish candlestick or a green candlestick, the bottom of it tells us that's where price started at. So this is at 10:00.

So right at 10:00,

45:47

price started right here. Wherever this is on your chart, price started right here.

At the end of 10:00, so technically at 10:01 or 10:00 and 59 seconds and 99 milliseconds or whatever, price was ended up here. So on a bullish

46:03

candlestick, the bottom is where the bottom of the body is where price started and the top of the body is where price ended. Vice versa with a bearish candlestick, the top of the a bearish candlestick or a red candlestick is where price started at.

So this is 101.

46:19

So at 10:01 price started up here and at the end of 101 price ended down here. And then obviously like I said with the green candlestick, the body the bottom of the body is where price started at.

The top is where price ended. Red candlestick, the top is where price started at and the bottom is where price

46:36

ended. Now, you might be asking what these wicks are or what they represent.

All the wicks represent is telling us where price was all throughout that time. So, even though price started right here and ended right here, all

46:52

throughout 10:00, price had went all the way up here. It was up here.

It have went down here. It went all the way down here at one point during 10:00.

That's all what the wicks are that's all the wicks are telling us. So, same thing on a bearish candlestick.

Even though price

47:09

started here and ended right here, all throughout. So, let's say at 10:01 and 13 seconds it was down here, 10:01 and 15 seconds it was up here.

The wicks just tell us where price went throughout that time period. Now, that's extremely

47:26

important because it tells us where price went and I like to put in these type of terms, but it tells us where price went and where price was scared of. And we'll get into uh candlestick patterns and look being able to look at a specific candlestick and how it looks

47:42

depending on how big the body is and how long the wick is, if it's a long wick on the top, if it's a long wick on the bottom. We'll go into my favorite candlestick patterns in just a second here, but that's why it's so important because obviously we can see where price started at.

We can see where price ended at. But it's showing us where price

47:59

went. Let's say in this example, went all the way down to and just was scared of being down there and went up and ended up staying higher than it was.

That tells us that most likely price is going to continue to go up because price

48:15

already tried to go down and it didn't work. So, it's probably going to try and go up.

Same thing with a bearish candlestick. Let's say um price uh started right here, ended right here.

It tried to go down here. It tried to go up here, but it just couldn't it couldn't

48:30

stay up here. So, it ended up ending on this candlestick down here.

These are all tales that tell us a story as I mentioned, and we need to be able to read those stories when they are presented to us. So, um that's basically what candlesticks are.

We can actually

48:46

see them right here on our charts. As you see, there's multiple different color.

I mean, not colors. There's two different colors.

There's multiple different shapes, sizes. As we see this one right here, we have a small body.

Price started right here. Price ended up here.

We have wicks. This wick is

49:03

obviously huge. So, price tried to come all the way up here.

And this is a perfect example actually. Price tried to come all the way up here.

And as you see, it it tried to come all the way up here. Then the next candlesticks just continued to go down because it was scared of this area and it just ended up going in the opposite direction.

Same

49:20

thing with this candlestick. We see price tried to come all the way down here cuz we see we have this huge wick right down here.

But then you see the next candlestick because price tried to come all the way down here but couldn't stay down there. Was scared of down there.

Um it actually ended up going up.

49:36

Right now, we're going to go into a bunch of different examples of this, but I hopefully after going through and going through this example right here, you guys understand exactly what each and every one of these candlesticks are telling you. Now, there is u something else you have to be aware of.

So, right

49:52

now on the one minute time frame, if we go to the hourly time frame, this is a good example for you guys. If we go to the hourly time frame, this is telling us the same exact story, but each of these periods represent what's happened within 1 hour.

So, let's say this is at 12:00. This 12:00 candlestick started

50:08

down here. It ended up here.

The highest point it went during this 12:00 candlestick all the way until 1:00 was up here. The lowest point it went was down here.

Now, in this 1 hour candlestick, there are a bunch of one minute candlesticks. So, what I what I

50:24

mean is if we draw like a box around here, just so you guys can see, we'll draw a green box around just this one minute candlestick so you guys can see everything that's happened within this hour. We're going to see technically 60 um one minute candlesticks because we're

50:40

on we were on the 1 hour time frame. So, there's one candlestick for the 1 hour time frame, but if we're on the one minute time frame, we're going to see everything that's happened during that candlestick more in depth.

So, the reason why that's important is because a lot of times us as traders, and we'll get into these strategies a little bit

50:57

uh later on inside this video, a lot of um we we'll use bigger time frames because bigger time frames tell us the overall picture of what's happening. And then when we go down to more smaller time frames, like let's say if we start on the daily time frame and we go down

51:13

to 1 hour time frame, we'll be able to see more in detailed what actually happened during this time. So let's say I go to a let's go to a Bitcoin chart here just so we have something clean and this is a hourly time frame.

51:29

If we draw a box around this just so you guys can see it and then we go to the let's say the five minute time frame. These are all the 5-minute candlesticks that happened within just this 1h hour candlestick

51:45

because obviously we can see that during this 1 hour price this is still going on. So that's why you see the body of it moving.

But you see price started up here and it's going to end somewhere down here or depending when this timer is up it'll uh show us exactly where it's going to end. But all throughout

52:00

this 1 hour it's been all the way up here and it's been all the way down here. If we go to the 5minut time frame we can actually see everything that happened.

we can see more in detail. We can see okay at um on this 1 hour time frame I believe this is at this is the

52:17

4:00 candlestick I believe all at 4:00 this has been happening. So this is 405 410 4:15 cuz we're on the 5minut time frame right now.

So all these candlesticks represent 5 minutes or 5 minute periods. So at 5 or sorry 435

52:33

this is where price was at um 455 this is where price was right here so on and so on and so on. We can go even more in depth and see a more detailed picture on one minute time frame we can see everything that happened in 1 minute.

52:49

Now, um, like I mentioned before, we'll go into how we use this. Like a lot of times we'll start on a higher time frame and then we'll go down for a more detailed and precise picture of the market to let us know when we should buy or sell or actually enter into a trade.

53:06

But I just wanted to clarify so you guys all understand what candlesticks are. That way when you're looking at these charts, when you see a chart pop up on YouTube, Instagram, you see your random unemployed best friend posting a screenshot of Dogecoin or something, you can understand what you're looking at.

You understand that these are

53:22

candlesticks. You understand exactly what each candlestick, the story that each candlestick is trying to tell you.

Now, just because we have the candlestick and we understand the story is trying to tell us, it's not the whole picture. We need to be able to understand technical analysis as a

53:37

whole. And technical analysis as a whole really um is about understanding patterns because the market makes patterns and it's our job to identify those patterns and make decisions based off of what those patterns are telling us.

We're making educated decisions

53:52

based off of previous performance or previous things that uh the stock or the the the crypto or whatever it is that we're trading. We're making educated decisions based off of what these things have done before.

And that's what technical analysis is. So, let's hop

54:09

into how do we actually do technical analysis outside of just looking at these candlesticks. All right, let's get into some basics of technical analysis.

Keep in mind, we're going to go extremely in depth when I run you guys through my top three favorite strategies for new traders and advanced traders to

54:27

use. We're going to go super super in depth into technical analysis, but I want to show you guys basically the the foundation of technical analysis.

I showed you guys how you guys go to Forex Factory and see the foundation of fundamental analysis. I showed you guys what candlesticks are.

I showed you guys

54:42

how to use Trading View. Now, let's go into the actual part that helps us predict price and what that looks like.

So, you guys have to understand price never will go straight up. So, you'll never see a stock or a crypto or anything just go straight up.

Like,

54:58

that's not what happens. What actually happens is price goes up, down, up, down, up, down.

up, down, up, down. It It just goes in a bunch of different directions um based off of certain price levels.

You have to

55:13

understand what moves the market are people that have a lot of money. So, when someone that has a lot of money buys something, that makes the price go up.

When someone has a lot of money and they sell something, that makes the price go down. By a lot of money, I'm

55:29

talking about hundreds of millions of dollars. I'm not talking about me and you putting $ 20 $30 into the market.

That's not moving anything. If you right now put $100,000 in Bitcoin and Bitcoin's at $60,000, Bitcoin is not going to go to

55:45

$6,01, right? It's not going to move.

We need you need a lot of money. That's why banks, institutions, and funds move the market.

And they're strategic. And technical analysis helps us to get in their minds to know when they're going to buy and when they're going to sell.

And we want to move in the direction

56:01

that they're going in. We don't want to try and make our own path.

We don't want to try and do any of that. We want to trade in the direction that people that have these hundreds of millions and billions of dollars, we want to trade in whatever direction they're going in.

We want to ride the wave. You've probably

56:17

heard this um term before. You want to ride the trend.

The trend is simply where price is going. So, if you see price, like I said, price never just go straight up.

Price will go up, down a little bit, up, down a little bit, up, down a little bit. Same thing vice versa.

Price doesn't just go straight

56:34

down. It'll go down, up a little bit, down, up a little bit, down, up a little bit.

These little periods where price goes down, when prices went up a lot, these little periods where we see um we went down a little bit, that's called a retracement. It's simply price retracing

56:52

in the opposite direction before continuing in the overall direction that price is going. Same thing right here.

We was going up, we came down a little bit. This is a retracement.

We're going down. We came up a little bit.

This is a retracement. We're going down a bunch.

Up a little bit. This is a retracement.

57:10

So, obviously looking at this on when we're during this period, we'd want to look for buy opportunities because we want to go in the direction of where price is going. Um, same thing here.

When we see prices selling off a lot or prices going down a lot, we want to be

57:25

looking for sell opportunities. So, um, how this works and what technical analysis does, it allows us to get inside the minds of these people that have a bunch of money to know when they're going to end up buying something or when they're going to end up selling something.

That way we can get in before they have that huge

57:41

buy or that huge sell that causes the market to go either down if they sold off a a lot of money worth of something or bought up a lot of money worth of something. Um, and it's actually very simple when you think about it logically.

So what I mean by that is

57:58

this is a Bitcoin chart and right here as you can see right now we're on the 1 hour time frame. So each one of these candlesticks represents one hour.

So just remember that as we're going through this example. Um, as you see, Bitcoin at this point, if we look to the right over here, the price scale when I'm hovering over here, you see we're at

58:14

roughly the $74,877 price per Bitcoin all the way ranging down to kind of the $74,44045 range. So, um, we see price

58:30

was just Bitcoin was just selling down, right? It just kept going down.

Then it got to that range that we were just talking about and we see price went back up. So what this tells us is that at this area right here when price started going back up, this is a place where

58:46

people with a lot of money are buying. So us as traders, we're waiting for price to then come back down into the same area, the same range.

We're looking to get in a buy position because most likely if

59:01

people bought down here, people that had a lot of money bought when when Bitcoin is at 74,800 whatever dollars, most likely next time it comes down to that same price, they're going to do the same thing. And if we're able to get in there before they do, we can ride the wave of it going up.

This is a perfect example.

59:18

As you see, when we scroll over, we see price came back down into that same range and shot up. It's very very simple when you think about it.

There are multiple different examples of this. Same thing right here.

We see price was going up. It got in this area right here which is

59:35

$84,655 all the way to about $84,372. It got in this range right here.

Sold down very heavily. All this is all within one hour.

This is a really this a huge candlestick um for to happen

59:50

in one hour. So, it dropped down a bunch.

Then, when it came back up into that same price point, as you see, price sold back down. Um, we can see a bunch of examples of this.

You see right here as well, price got down inside this

00:06

range right here, the 81,600s to 81,300 area. And then we see when price came back into that area, what is this?

uh like 3 days later it came back down into that area and price bought up off of it. So our whole thing

00:22

when it comes to technical analysis is looking at what price did previously, what a stock, crypto, futures, whatever you're trading, what it did previously at certain price points or price areas and we are using that data to then try

00:37

and orchestrate or plan out to ride the wave the next time it does that at that same area. Now there are multiple ways that it does this.

So, what we're talking about right here is called support and resistance. So, when price is below, this is a support.

An easy way

00:53

to think about it is when price gets to an area, you guys see I'll draw these boxes. We mentioned how to use the tools before.

I'll draw these boxes. And how I like to draw them, um, is that I like to go from the bottom of the lowest wick.

So, the bottom of the lowest wick is

01:08

right here on this green candlestick. And I'll just like to go roughly to around the body of the um that candlestick.

So, as you see right here, I'm starting it at the wick of this. Move this out the way.

I need another

01:24

one. I'm starting at the bottom of the wick of this one and going to the uh the bottom of the body of it.

And I'm drawing my zone like that because you have to understand price doesn't stop at the exact amount. So, like let's say right here, price stopped at

01:40

$74,428. It's not going to stop at the exact amount.

It's going to stop around that area. So, that's why I like using boxes.

You'll see some people use lines. I don't like using lines because I like to see the area or kind of give a buffer for where price will then reverse again.

01:56

So, in this instance, it didn't come all the way down to that same point that it reversed at last time. If you see right here, it wicked down just into this range.

So that's how I like to draw my boxes. From the bottom of the wick to the body, this is a support.

This is on the bottom of where price is at. Meaning

02:12

at support, we're looking for buys off of support. Resistance is the opposite.

Resistance is what we saw here. Resistance, I would draw it the same.

Most of the time, keep in mind, this is kind of averaging out. I don't always draw it as cleanly as this, but I'll

02:28

draw it from the body of the highest wick or the body of the highest candlestick to the wick of the highest candlestick. And that's how I draw it.

And this is a resistance zone because we are above where price is at. And we're looking for sells off of resistance zones because we know price came up here

02:43

first, sold down. We are just waiting for price to tap back into that range that we created.

As you see, it tapped back into it right here just slightly. Then it sold back down.

So, we're looking for sells off of resistance. Think of resistance um being above as in

02:59

like you're resisting to break above something. That's what a resistance is.

And support is supporting something up that's on the bottom. It's the easy way to think about it.

But, um that's one way that we look at the markets with support and resistance. That tells us that last time price was down here, it

03:15

went up. People bought it when it was this low.

That means next time price gets that low price the um people are most likely going to buy it up again. So us as traders, we'd be able to see, okay, it's back inside of our area where

03:32

it rejected last time. So let's enter a buy and ride the way back up because most likely it's going to go up again.

Now, um there's multiple ways for us to see this because it's not just these straight boxes that we'll see. You've probably seen these things called trend

03:48

lines. And trend lines are simply like uh um slanted support and resistance zones.

They're they're like they're that's the easiest way to put it honestly. They're they're basically just like slanted support or resistance zones.

And what that looks like I can

04:03

show you guys an example right here is we use our trend line u drawing tool right here. And we just draw it from the wicks to the wicks.

Right? So, what I mean by that is you see we drew it right here.

And you see price obviously didn't stop directly at the

04:20

same price um right here. It never tapped back into this area right here, but it's been respecting it in more so of a trend to the upside.

Like I said, price doesn't just go up all the way. It goes up, down a little bit, up down a

04:36

little bit, up down a little bit. And a lot of times on these retracements, if you guys remember, we talked about retracements.

A lot of times on these retracements, I can draw it again right here. It'll create a trend as in each point is stopping roughly at the

04:53

same exact area. We we write these trend lines or draw these trend lines because we can see it got to this trend line.

This time it bounced up. We got to this trend line again, it bounced up.

We got to this trend line again and it bounced up. We can see this live inside of the charts right here where we started the

05:10

trend right here. Price touched that trend again.

And you see it went up. We touched it again on this red candlestick.

You see we have a long wick to the bottom. It was scared scared of this trend line.

That's how I like to put it um when I'm

05:25

teaching people. Um it was scared of this trend line and then went up again.

So this is the second time it touched this trend line. This is the third time it touched this trend line.

And then the fourth time would be right here where it touched it again and you see it went up.

05:42

Now that's a trend line that helps us see the trend. Obviously when we have a trend line that's um ascending as in it's slanted going up that means price is going up and we should really only be looking for buys.

Now we can see this on the downside as well. We can see right here.

Here's a good example of

06:00

it where price was respecting this trend line to the downside. So, we had a touch right here.

We had touch again right here on this wick. Another touch right here.

Another touch right here on this trend line. Um, so obviously this is

06:15

telling us that the market is trending downward. So, we should really only be looking for sells.

Now, keep in mind, trend lines and support and resistance are never going to be completely clean. And what I mean by that is that you're never going to have price stop right at

06:33

your zone. That's why I like drawing boxes versus lines, as I mentioned before, because as you see in this example, we drew our zone right here, but this candlestick, as you see, we had a small wick out of it.

That doesn't mean that our support zone is invalid or

06:49

that it's not a good place to buy off of. That just means or that just shows us that easting is not definite.

It's not going to stop directly at your zone. So, please don't get in that mindset thinking that when you draw your zone, if price comes out of it a little bit, you drew your zone wrong, you suck at

07:04

trading. You don't understand what you're doing.

You have to understand it comes in an area. It comes around an area of where um price was at last time.

that way. That's why I explain to you guys this is how I like to draw my zones.

There are some people who draw their zones or their boxes bigger like this. There's

07:22

some people who just use lines like I said for something like this. But that's how I like to draw my zones cuz I feel like it makes it the area not too big, but it also gives breathing room around the area where price previously bought off of or sold off of if we're looking

07:37

at a resistance zone. um it gives breathing room around the area of where price might buy off of that area again.

Now, there are times when it does get invalidated and we'll go over that in a second, but I will show you guys examples of the trend lines. So, as I

07:53

mentioned, the trend lines aren't going to be completely clean. How I like to draw them, as I explained to you guys, is from the bottom wick of the first time when I start seeing this pattern to the second one, right?

Then to the third one. You want to include as many of them as possible without it looking crazy.

08:09

What I mean by it looking crazy is that if you draw it like up here, right? And then we see we have it touching here.

We have it touching right here. Even though it wicked a little bit out of it, that's not too crazy.

But we wouldn't count this third time as it

08:26

rejecting off of here because we didn't draw our trend line correctly. This line is going straight through all these candlesticks.

It's putting these candlesticks on a freaking shish kebab or whatever those things are called. um we want it we want the wicks to be tapping into it.

I don't care if the wicks come slightly outside of my um

08:42

trend line here as long as the the wicks or the body of the candlesticks don't come all the way out here and completely invalidate my zones. Same thing when it comes to my boxes.

Let's say waiting for price to come uh price went up and waiting for price to come back down and price comes like all the way down here

08:58

and then goes up. I wouldn't count that as it respecting my support zone.

That means it broke through my support zone. Broke through as in it went below where I thought it would stop at.

So, I wouldn't really be looking for buys at this area because it already went so far below it where it's just not in my eyes

09:16

not valid anymore. Um, so I just wouldn't take a trade or anything like that.

But as long as it's not going that far out, I don't mind if it comes up comes a little bit out like this and then goes up. That's perfectly fine.

Like I said, it's never going to be perfect. It's never going to be um directly on the dot.

So keep that in

09:32

mind when you are drawing your zones, but you don't want it to completely invalidate it or completely disrespect it by going completely out of it. So like I said, this is a good example of uh trend lines where you have one touch here.

As you see the touch, this this wick came slightly out of the trend

09:48

line. That's not invalidating at all.

It's just slightly came out of the trend line, which is perfectly fine. Um we have some other examples that we can look at.

Let's say something like sorry something like this. This is fine as

10:03

well. We had one rejection right here, another rejection right here and another rejection right here.

Even though we had the body of the candlestick come slightly out of it as I mentioned that is perfectly fine. It's just we do not want um it to have came all the way down

10:20

here or something like that. That would invalidate our trend line or our support zone.

um when it comes to actually um our drawings that we are drawing. Now when you see this and keep in mind I like to draw my support or my resistance zones or my trend lines on higher time frames.

10:38

I don't like to do it more so on the one minute time frame only with certain strategies and we'll go into the strategies that I use on the lower time frames. Will I draw my um drawings on the lower time frames?

I personally like to draw them on the 4 hour, the hourly, and sometimes the 15 minute, but more

10:53

most of the time I'll draw them on the 4 hour and the hourly. What I would suggest for you guys if you guys are beginners or just getting started being able to uh mark up your charts.

Um what I mean by marking up your charts is just like drawing your support and resistance zones and your trend lines, which are the basics of what you need on your

11:09

charts. I would suggest you doing this on the higher time frames cuz it's a little bit easier to see.

Like if we look at uh we're now on the hourly time frame, but if we go to the one minute time frame, you see it can look a little bit more cluttered, like a little bit more is going on. It's a little bit harder to

11:24

read the price action. When I say price action, I mean the action of what price is doing as far as what where the candlesticks are going, if they're going up, if they're going down.

Um that's when I say price action, that's literally all that means. It just means what the chart is showing us.

Uh so it's

11:40

a little bit harder to tell us or to tell what the uh charts are showing us on the lower time frames. That's why for beginners, drawing your um zones or your support or resistance zones or trend lines on the 4 hour or the hourly is just a lot easier.

It's a lot cleaner.

11:55

We can obviously see right here that this is a support zone. We can see right here that this would be a resistance zone.

And what we're looking for on these resistance or support zones when we're drawing our box, let's say in this example where we had uh price come here, but we never we haven't had price come

12:12

back up in here. We want to see strong rejections or strong movements away from areas.

So this for instance is a strong movement away from an area. A strong movement looks like a lot of let's say red candlesticks.

If we're drawing a

12:27

resistance zones, a lot of red candlesticks or big red candlesticks. If we're drawing a support, we want to see big green candlesticks or a lot of green candlesticks.

So, for in for in this um example, this would be a resistance zone. Now, all we're waiting for, we're

12:44

on Bitcoin right now. All we're waiting for Bitcoin to do is come back up into this range.

Then, I'd look for sells and I'd make money when price sells down. Now, we're going to go super in-depth about support and resistance and how I draw my support or resistance zones.

How to draw the perfect support or

12:59

resistance zones. But first, I want to give you guys a secret to kind of technical analysis.

A secret that a lot of people don't talk about, but I'm extremely uh I use all the time. It's really drastically changed my trading and that's called hyanashi candlesticks.

13:15

Now, hyenashi candlesticks are a bit different. When you go over here on the top of your trading view and hit the drop down, you'll look at hyenashi.

So you'll be able to see hyanashi candlesticks and choose hyanashi candlesticks. If you look um when you first look at it, they probably look very very similar, but they're actually

13:31

a little bit different. Actually, a lot different than regular candlesticks.

Let me break them down. I personally love hyenashi candlesticks.

I think they make trading so much easier. A lot of my strategies that I use and I teach are used with hyenashi candlesticks.

But as

13:48

a beginner, it's very very important that you understand regular candlesticks first and master regular candlesticks first so you completely understand what those candlesticks are telling you before you venture into hyanashi candlesticks. But I do want to give you guys kind of my secret and my my prize

14:03

possession which is hyenashi candlesticks. You won't see a lot of people talk about this.

These are actually candlesticks that are used widely in uh Japan and Japanese traders use them. They are absolutely amazing.

And this is why. So, as you see, they

14:19

look a little bit different. This is hyenashi candlestick.

This is regular candlestick 6. This is the same time period.

So, let's let's just put a box around here. This is regular candlestick.

This is hyenashi candlestick. You can see you can you can see just a slight change in them.

And

14:34

basically, the point of hyenashi candlestick, it's used to smooth out price or smooth out your charts. So, so you can really focus on what matters and um not be too emotional when it comes to you looking at each chart.

There are a

14:51

bunch of benefits to hyenashi, but let me show you guys exactly what the candlesticks mean because as you see, they look different. They also act much different than regular candlesticks.

So what I mean by that? So in regular candlesticks, the body, as I mentioned to you guys, the bottom of a bullish

15:07

candlestick is where price started at and the top of a bullish candlestick is where price ended at. Uh vice versa, the top of a um bearish candlestick is where price started at and the bottom of a bearish candlestick is where price ended at.

And then obviously the wicks is where price has been throughout that

15:22

time. With hyenashi candlesticks, it's different, right?

So the bottom of hyanashi candlesticks, it always starts in the middle of the previous candlestick before it. So if you look at

15:37

all these candlesticks, the body of this one started in the middle of this one. The bottom of the body of this candlestick started in the middle of this one.

That necessarily doesn't really tell us anything. What we're really looking at is the top of bullish candlesticks and the wicks.

And also on

15:53

bearish candlesticks, we're looking at the bottom of the bearish candlestick and the wicks because the top of a bullish candlestick when it comes to hyenashi candlesticks, that's the average of where price has been throughout this entire time period. So on the 4hour time frame, so for instance, with this

16:09

candlestick right here, the average of where price has been throughout this entire 4hour candlestick is right here at the top of the body of this hyenashi candlestick. Um the wicks work the exact same.

The only thing is that we can't see the

16:24

bottom wick unless it breaks through the body of the hyenashi candlestick. I'll tell you why that's important.

So um obviously like I told you guys, the top of the hyenashi candlestick is the average of where price has been throughout this candlestick. The wick is where price has been throughout this candlestick.

So obviously we can see

16:41

price has went all the way up here during this hakashi hakinashi candlestick. It could have also been all the way down here and things like that.

Price could close down here and the candlestick won't still look like this because no matter where price closed, this is the average of where price has been throughout this 4hour candlestick.

16:58

But you'll see examples right here where we have um the body is little and we have wicks on the top and the bottom candlestick like this. Like I told you guys, the wicks work the exact same.

Um so price was all the way up here during this 4hour period and price was all the way down here during this 4hour period.

17:16

price uh started in the middle of this candlestick. That's not where price started.

Sorry. The candlestick, this candlestick started in the middle of the body of the candlestick before it.

And the average of where price has been throughout this entire candlestick is right here. Now, this candlestick could

17:32

have price could have closed this 4-hour candlestick up here. It could have closed it down here.

Could have closed it wherever. We won't really know.

Like I said, hyonashi candlesticks is made to smooth out the price and see the average of where price has been. And there are a lot of benefits for this because it

17:48

tells us the story not just on um irrational movements because sometimes with regular candlesticks price could be down here the entire time. This is a 4-hour candlestick.

So price could be down here the entire time and then randomly at the

18:04

last second or the last five minutes price could have shot all the way up here. It shows us this on regular candlesticks, but if we were just looking at regular candlesticks, we would think that price was up here the entire time and that this was super bullish and price is just going to

18:20

continue to go up. But with hyenashi candlesticks, we could have saw that the average of where price was, and this is just an example, that the average of where price was was down here.

So that would tell us that really price stayed down here majority of the time and it just so happened at the last second to

18:36

go up here. Sometimes that can trick people because we can just see the close of the candlestick.

We can't see the average of what price has done. If you're not watching your charts, you won't know that this just happened at last the last minute.

But using hyenashi candlesticks, we can see the average

18:52

where price has been. This is that same candlestick.

The average where price has been is down here. Um, so that's really great for breakout trades because instead of us just randomly uh hopping into trades, we can see the average of where price was.

And we'll get into this

19:08

in the the examples of the strategies that I'm going to show you guys, but I just wanted to break down hyanashi candlesticks so you guys understand it and you guys see the benefit of it. Uh, because it shows us the average of where price has been.

Now, like I said, the wicks work the exact same. You'll see

19:25

instances right here, like on this candlestick where we have a small wick to the downside, a bigger wick to the upside. That means price was up here and it had went all the way down here.

All throughout this candlestick, we see another one right here. Price had went all the way down here, all the way up here.

Same thing with this one. Price was up here.

It came all the way down

19:41

here. This is a red candlestick.

So, the bottom of the body is the average of where price was at. If we're on hyanashi candlesticks, remember that.

And this is why I explained and said that it's very important that you understand regular candlesticks first before moving into hyenashi candlesticks because I don't

19:58

want you guys to get confused. I don't want you guys to look at hyenashi candlesticks and think this is where price closed at.

That's not what it is. So what I would suggest for you guys is to master like I said regular candlesticks first.

master regular candlesticks and then start playing and

20:14

understanding hyonashi candlesticks because not only does it show us the average price, but it also cleans up your chart a lot. It makes the chart a lot easier to see.

It cuts out a lot of the noise because if we look right here, this whole tear to the downside where

20:30

price sold down as you see on hyenashi candlesticks, these are all red candlesticks. If you go on regular candlesticks, we can see we had a bunch of red candlesticks.

We did have some green candlesticks. We did see price had went up, but price ultimately was going

20:46

down. And that's the benefit of using hyanashi candlesticks in this instance because it shows us that ultimately price is going down.

Yeah, we had a little bit of a hiccup where it went up and some people, especially newer traders, would get scared when they see one green candlestick or they see price

21:01

going against the direction. Let's say they were in a sell position.

Um, meaning they were betting on price going down. they would see price go up a little bit and they would get scared and exit out the trade without real realizing that price was still going to continue to go down.

So, it smooths out your charts a lot using hyenashi

21:18

candlesticks. In my personal opinion, it also makes it much easier to find good support or resistance zones.

And keep in mind, I'll draw the support resistance zones the exact same way I drew them on regular candlesticks. So, for instance, on this example, I draw it from the body

21:34

of the lowest wick. um a body of the lowest candle, sorry, to the wick of the lowest candle.

So, just like this, I draw it the same exact way and I draw drag it across. Um, but I feel like it helps you see the charts and the price action um the action or

21:49

the movement of the charts. I I feel like it helps you see it a lot clearer.

Um, versus regular candlesticks can sometimes be a little bit more confusing, a little more daunting because you have so many different colors. You see every little small pullback.

you're not seeing the average of where price is going and things like

22:06

that. So that's one of the benefits of hyenashi.

But I want to reiterate this again. Please master regular candlesticks first.

Understand regular candlesticks because they both have their pros and they both have their cons. Obviously we see a lot more detail with regular candlesticks.

But we don't

22:24

get to see the average of what price has done, the average price action that each candle has had. Um and that's the benefit of hyenashi.

It just smooths out your charts, makes things a lot clearer to see, but like I said, regular candlesticks are still important. So,

22:39

make sure you master regular candlesticks along with your hyonashi candlesticks. So, in order for us to actually master candlesticks, we need to be able to understand the story that each candlestick is telling us.

Now, here on the screen is four uh candlestick patterns that I use a lot to

22:56

actually enter into my trades because as we mentioned, candlesticks come in all shapes and sizes. But specific shapes and sizes actually give us a good idea of what the next candlestick is going to do.

And that's important because when we're drawing up our support or

23:12

resistance zones, we're going to go more in depth about support and resistance a little bit later on, but when we're drawing up those zones, we don't just enter as soon as it touches our areas. We need to find some type of confirmation.

We need to see a candlestick pattern that tells us that

23:27

price is going to do the same exact thing that it did last time. It was in that area.

And these candlestick patterns help us do that. These are the same candlestick patterns that I use every day to help me enter and exit trades.

So, starting off here first, uh, we're just going to go through this quick

23:42

little diagram. Then I'll show you guys them on the charts and show you how they actually do work.

And just mastering candlesticks can really, really make or break you when it comes to this trading stuff. So, here, this pattern is called the shooting star.

I personally like to call it the inverse hammer. Um, but it's basically no matter what color this

23:59

candlestick is, it's basically we have a long wick at the top and the body is small on the bottom and it might have a little wick on the bottom, but it's not a huge wick on the bottom. It's usually a long wick on the top um with a small body and maybe a small or no uh wick on

24:17

the bottom of that candlestick. and shooting star candlesticks often mean that price is going to reverse in um the it's going to continue to go down.

So in this instance if we saw a shooting star most likely the next candlestick is going to go down. Now this hammer candle

24:33

candlestick is the uh basically opposite of a shooting star. If we see this candlestick as I mentioned to you guys before when I see long wicks in an area that tells me that price is basically scared of wherever that wick is.

So here when we have long wicks on the the bottom and a small body and no wick on

24:50

the top or a small wick, keep in mind this is on regular candlesticks. I'll give you guys some examples for hyenashi but um on regular candlesticks if we have a long wick on the bottom, small body um with the body at the top of the uh kind of stick then maybe a little

25:06

wick on the top or no wick on the top. That's basically telling us that price was scared to come down here and price probably going to continue to go up.

Then we have these dogey candlesticks, which is what I use a lot because a dogey candlestick signals that price is about to reverse. So, if we were going

25:23

down really strong and then we got a dogey candlestick, we're probably going to start going up. Uh, and vice versa, if we've been going up for a while, then got a dogey candlestick, we're probably going to start going down.

And a dogey candlestick is wicks on the top or the bottom. They don't have to be completely like exactly equal, but you kind of want

25:40

them to be very similar in lengths as far as the wick size. And then the body is usually very very skinny.

It's very small. The dogey candlestick basically signifies indecisiveness in the markets, which basically means that if we've been selling down for a long time and we get an indecisive candle, that basically

25:56

means that all the sellers are kind of out of there right now. It's it's it's indecided, right?

We don't know. Um or the sellers, the people who keep selling, they're kind of done selling.

So, uh realistically, we're probably going to start buying and that's where buyers would step in and start buying a

26:11

lot. So, dogey candlesticks basically show us what um when we're about to have a reversal.

And I'll show you guys real examples of this on the charts. And then a bullish engulfing.

There's also bearish engulfing. But all that means is that the candlestick before it, the candlestick after that one is bigger

26:28

than the candlestick before it. And that basically means that this candlestick um let's say in this example, we had a red candlestick and then a bullish candlestick or a green candlestick after that that's bigger than the previous one.

that basically signifies that the next candlestick is probably going to continue to go up. Now, vice versa, if

26:44

this was a big or if this was a small green candlestick and we had a bigger red candlestick, that's called a bearish engulfing. Um, all that really means is that the current candlestick engulfed or kind of how I like to think about it, y'all bear with me.

I have I have the

27:00

learning capabilities, not learning capabilities, but I like teaching in ways that kids can understand. So what engulfing means is like the current candlestick can basically eat the other candlestick.

So in this example, the green candlestick is bigger than this one. So this one it can engulf it can eat this candlestick, which tells us

27:17

that this candlestick wins and the next candlestick is probably going to be um bullish. Then vice versa, if this candlestick was green and then this candlestick was red, that's a bearish engulfing.

So, the bearish candlestick can technically eat the previous bullish candlestick, which means that we're

27:32

probably going to get another bearish candlestick to the downside. So, these are the main ones that I look for.

Um, shooting stars, hammers, like I said, I like to call shooting stars inverted hammers. Personal preference.

Uh, but shooting star, hammer, dogee, bullish engulfing, and bearish engulfing. Now,

27:48

let's let me show you guys some examples of these. So, perfect example with these support zones that we had previously drawn out.

As you see, we originally drew our support zone right here. We had gotten a hammer.

This is a hammer. Long wick on the bottom, small body at the

28:03

top, and a small wick at the top. And price rejected to the upside.

Then we drew a support zone. And when price tapped back into this area, what do we get?

We got another hammer here. Long wick at the bottom, small body at the top, and a small wick, which signified,

28:19

if you guys look at right after this hammer candlestick, price went up. Right after this hammer candlestick, price went up.

Um there's a bunch of examples of um other things that we just went over. We just went over a bullish engulfing.

We see we had small red candlestick that was engulfed by this

28:36

green uh bullish and candlestick. And you see price continued to go up.

We can see a bunch of examples of this. We see this one right here.

We had a small green candlestick. We had a bearish engulfing.

This candlestick was bigger than this candlestick. Bearish

28:52

engulfing. and the next candlesticks ended up going down.

We can see a bunch of examples of dogeis. So you see we have here a inverted hammer or a shooting star long wick at the top, the body at the bottom.

Let me turn this off. Uh the body at the bottom and then

29:09

a small wick at the bottom. You see that is a resistance zone and it sold down.

And then you see we were continuously selling down, selling down. And look what we have here.

We have a dogee candlestick. Remember, Ad Doia is wicks at the top or the bottom.

They don't have to be the exact same length, but

29:25

you don't want one where it's super small on the bottom and big on the top. You want it where they're close enough in um length as far as the wick wise.

Then obviously the body is super uh small. So you see we were going down, we continuously were going down, down,

29:41

down, down. We got this dogee, we got that dogee, and as soon as we got that dogee, we started going up.

That's a perfect example of a dogee. Now, we can see a bunch of these examples all over the chart.

We can see another dogee right here where for a short period,

29:57

we're going down. We got a dogee right here.

We start going up for a short period. And then we got another dogee right here.

Remember, dogee means that that's the end of that trend. We're now going to start flipping in the other direction.

So, we were going uh down. We got this big dogee right here.

Price

30:13

started going up. We got another dogee right here.

And as you see after this dogee, price started going down. We can see, like I said, a million of these examples all over.

Price is going down. We got a dogee right here.

Price started

30:28

going up. Um, we can see a shooting star, sorry, a hammer right here where we have long wick on the bottom, small body and small wick at the top.

Next candlestick was bullish. As you see, price continued to go up for a while.

We see we have a shooting star right here

30:46

and a dogee. So, we had a dogey first right here and then we had a shooting star.

Both of these are telling us that price is going to reverse. We had a shooting star, long wicks at the top as I showed you guys.

Small body at the bottom with wick on the bottom, a small wick on the bottom. And after that

31:01

candlestick, what do we see? Price continued to go down.

Now, keep in mind, we're on the 4hour time frame, right? Right now, this works on any time frame.

We can go to the 15-minut time frame. Um, right here, we can see a bullish engulfing.

Price was going down. This

31:18

bullish candlestick engulfed this candlestick. And you see the next candlesticks started going up.

Um, another one right here. We were going down.

This bullish candlestick engulfed this one. Price started going up.

Let's see if we can find some uh dogeis, which I'm sure will be fairly easy. Price was

31:35

going up right here. We had a dogee.

Remember, dogeis have small bodies, wicks on the top or the bottom. The top and the bottom, sorry.

And those wicks are as close to equal as length as possible. We're going up.

We got our dogee. Price started going down.

Price

31:51

started going down. We got another dogee right here.

And you see price started going up. This is on the 15-minut time frame.

As I mentioned, you can do this on literally any time frame. The same patterns will apply.

You'll see the same exact things happening. You see, we have a hammer right here.

Hammer candlestick

32:08

right here to the upside and price started going up. we have a bearish engulfing.

We had uh bullish candlesticks going up. We had a huge bearish engulfing and price started going down.

Um there's a 100 million of these

32:24

examples. If you just learn these four patterns that I just showed you, well, technically five patterns if we um if we include the bearish engulfing and the bullish engulfing.

If you learn those patterns, that's how we understand the story that price is trying to tell us. That's how we're able to predict what is

32:41

probably going to happen next. We were going down, got a dogee, started going up.

These are the patterns that you need to memorize because these are the things that is going to help you feel confident about entering your trades cuz it makes no sense or there's no point in us

32:58

drawing our support or resistance zones if we don't know exactly when we should enter each trade. Now this is all done on regular candlesticks but I told you guys you can look for the same exact thing on hyonashi candlestick but it's there's a difference.

So when we go to

33:13

hyanashi candlesticks we're not going to see bearish engulfings. We're not going to see bullish engulfings.

We're also not going to see hammers and we're also not going to see shooting stars. What we are going to see are dogeis and dogei candlesticks on hyenashi are absolutely

33:31

amazing. They are my biggest tail as in when I'm gonna hop into a trade.

So, what I mean by that is you see price was coming down here. We got a dogee.

It's the same. The dogey looks the exact same.

We have wicks on the top of the

33:47

bottom. Remember, we want them to be as equal as possible.

Um, but they don't have to be exactly the same size. We just don't want them uh what's the word?

Um word lopsided, I guess, is the word. Uh we don't want them lopsided.

Um but then we also have the small body. This

34:03

is a dogee. You see we're going down.

We got our dogee and started going up. We can see multiple different examples of this.

Um we're going down here. We got a dogee started going up.

We were going down

34:18

here going down. We got a dogee right here.

Started going up. So you can look for those candlestick patterns, but all of them you're not going to be able to see on hyanashi candlesticks.

But you can see dogeis on hyanashi candlesticks. But all the other ones, the all the

34:34

other um examples and patterns that we went over as far as the hammers, let me pull them up again for you guys so you guys can see them clearly. Um the hammers, the shooting stars, the dogeis, the bullish engulfings, and the bearish engulfings.

That's what you'll be able to see on regular candlesticks. But

34:50

hyenashi candlesticks, don't try and look for bearish engulfings. Don't try and look for hammerheads.

Don't try and look for um shooting stars cuz they're not going to work the same. The only thing that'll work the same on hyenashi as it does on regular candlesticks are going to be your dogey candlesticks.

And

35:07

that's why it's super super important that you master both of them. Not just regular candlesticks and not just hyonashi candlesticks.

Master both of them and master the uh candlestick pattern so you know exactly what price is telling you. That way you can be able to make a educated guess on what the

35:23

next candlestick is going to do or where price is going to go next. All right, so let's have a deep dive into support and resistance because honestly support and resistance is the backbone of us as traders.

It's honestly the foundation of any profitable trader. If you don't know

35:39

support or resistance, you cannot trade. So, we're going to dive into this uh more in depth.

I want to show you guys how I draw my zones in depth. What I look for, what I'm not looking for, valid support or resistance zones, and also some tips and tricks.

The first one is the fact that we obviously uh have

35:56

this is our resistance. Say this is our support zone.

Um price obviously goes up and down in support and resistance. But what a lot of people don't know is that when price breaks out of a support or resistance zone and breaks out all that

36:11

means is that it goes above our in this case resistance zone. Price most of the time comes back and we call it retesting.

Price comes back down to retest a previous resistance zone and actually ends up treating that as if it's a support zone. So that previous

36:27

resistance zone actually flips and changes into a resistance zone. Sorry, into a support zone.

Same thing vice versa. If price sells below our support zone, a lot of times price will come back up to retest the previous support zone and that then acts as a resistance

36:43

zone and we can sell off of that area. That's something that a lot of people don't know and that's actually one of the main strategies that I use.

Like I said, we're going to go in depth in the strategies that I use in a second here, but I want to I want to make sure that you guys understand uh support or resistance, how I draw it, what I look

36:59

for. So, like I said, most of the time I stay on the 4 hour time frame or the hourly time frame to draw out my zones.

And all I'm looking for is strong rejections from an area. I'm looking for either strong rejections from an area or strong movements away from an area or

37:15

multiple smaller rejections from an area. So, there's a couple zones I can plot out here.

We see price was going down and we got here and price shot up. So, if I saw this, I draw my zone around here and wait for price to tap back into

37:31

this same area. As you see, price came back into this same area right here and bought up.

This is a valid support zone. So, I could have made money on the bounce up off of here.

I see another zone here where price got here and you

37:46

see price sold off very heavily. So, I draw my box just like I explained to you guys.

We're drawing it from the top of the wick to the bottom of the body on the highest candlestick. Sorry, to the top of the body on the highest candlestick.

So, just like this. Now, it

38:02

doesn't have to be completely completely exact, but that's my rule of thumb when I'm drawing my zones. So, I draw it like that cuz I had that huge uh rejection off when price got here.

Obviously, I can scroll to the side and see that when price came back into my zone, we sold

38:17

off yet again. I can find a couple other examples of um times where price actually rejected multiple times at an area.

We can see right here where we had three rejections at this

38:34

area. This is multiple rejections.

We didn't have any strong rejections just yet, but we had multiple rejections at this area, which shows me that this is a strong resistance zone. We can see a bunch of different examples here.

Honestly, we can see another example

38:50

right here where price sold down very strongly right here, tap back into it and sold back down. And um honestly, it goes on and on and on.

Another example right here where we have multiple rejections and price bought up

39:07

in this situation. We would have drawn our zone right here.

Price would have went up. We actually could have bought right here and made money when it went up right here.

We also could have bought right here and made money when it went up again right there. Um, like I said, I most of the time do this on the 4hour

39:23

time frame. You can see them as well on the hourly time frame and be able to see support or resistance zones.

Just one key and thing to keep in mind, the higher the time frame, the more respectable your support or your resistance zone is actually going to be. Now you can actually see a very very

39:39

good example of that breaking retest that I was showing to you guys where we have this support zone right here. Multiple smaller rejections at this support zone.

If we draw our box or area around here and as you see when price broke below it we came back up, tapped

39:55

into it. We actually got a dogey candlestick.

So we could have entered on the dogey candlestick like I just told you guys. That's a reversal candlestick.

And we could have made money when price went back down. That's just one example of a break and retest.

There's another example right here. Actually, this zone

40:12

right here is a break and retest from before. So, if we drag this across, we can see price bought up into this area, sold down, broke above it, and price came all the way back down to retest that same area and bought off of it.

So, you'll see this a lot with trading.

40:27

You'll notice that your zones are um I don't I don't want to say evergreen, but if you have your zones and your areas on your charts, you can most of the time they're going to be respected later. And we'll talk about this when we go over key levels in a second from now.

But um

40:44

support or resistance a lot of times are respected in um the future as well. So even in this example, multiple small rejections here, very very nice support zone right here.

We could have took entries on any of these buys up. Actually, if we I'm going to use this

41:00

replay feature. We're going to go over what the replay feature actually does later on in this video, but I just want to use this for an illustration.

Um, we're going to go to the 5m minute time frame. Remember, we're on the hourly time frame.

Um, we'll go to the 15-minut time frame, actually, and we'll see if

41:15

we see any of our entry candlesticks here. So, we see we made our support zone right here.

We waited for price to come back down. We actually saw a dogee right here and we saw a hammer candlestick.

After we saw both of those, we could have entered into the trade right here, right before price bought up

41:32

and had a really really big bullish candlestick and made money as price went up. So that's that's honestly how I trade support and resistance.

Now, there's a couple other things and I'll go over that in my support or resistance strategy section of this video, but that's how I do it. We go we start on the 4hour time frame.

We're looking for

41:50

our strong support or resistance zones. And this works with every pair.

I could type in a random. This is a Forex pair, Euro USD.

Um, I could type in a random pair here. We can see automatically I see a resistance zone right here.

Rejected

42:06

multiple times. Came back up into that zone.

We could have sold when it uh rejected here. We could have sold when it rejected here.

We could have sold when it rejected here. We could have sold when it rejected here.

Now, obviously, we broke above it. Now, now honestly, I can keep this on my chart if I did want to trade EuroUSD, which is a

42:23

forex pair. Um, I just brought up this this pair just to prove to you guys that this support and resistance is universal.

It works. Forex, futures, stocks, options, crypto, it works in all industries.

Um, so now I could wait for

42:38

price to then price is obviously up here. I could wait for price to come down here and most likely it's going to bounce off of here and I can make money when it bounces off of here.

um we can find a bunch more support or resistance zones. So we have a support zone right down here.

This is a good example of we

42:54

see price broke below it but didn't stay below it. Now this in my personal opinion is too it came too far out of my support zone.

So I wouldn't have bought when it came and bought up here. Even though it did end up buying and ultimately respecting this zone, it came

43:10

too far out of my zone for me to still trust it. Um, but as you see, it came again this second time and bought off of it.

And that's why I say your zones are not evergreen, but you can keep them on your chart because a lot of times price will come back to those same areas and

43:26

respect it the same way it did before, even if it didn't respect it one time before. Um, we can find a bunch more examples.

This is another example where we have multiple rejections at this area. We have one rejection, sold down, tapped

43:42

into it again, sold down, tapped into it again on this candlestick, sold down, tapped into it again right here, sold down, tapped to it into it again right here, and so down. So, this this is my um analogy of multiple projections.

Yes,

43:58

I told you guys I want to see um big changes as far as uh big movements away from areas. So something like this where we see price sold down very heavily.

We can drag our box over here and as you see this resistance zone was respected

44:14

right here and price sold down. Um we can go to a crypto chart as well.

Let's go to ETH USD just so I can show you guys that this is universal and we we we look for the same exact things. So here I can easily spot that we had uh a huge

44:31

selloff right here. We could put our uh resistance zone right here if it lets me draw my box.

Put our resistance zone right here. And when price came and tapped back into that resistance zone, we could have sold off right here.

And all we would have

44:47

had to do is go down to let's say like a 15minute uh time frame. Let me see where we were at.

Right here. We have went down to our 15-minut time frame and just looked for any of

45:02

our candlesticks. As you see, we got a dogee right here.

So, as soon as we know, as soon as we saw a dogee in our area of interest or our resistance or support zone, um we could have entered on this because the dogee is showing that there's indecisiveness that there's

45:17

going to be a change of trend or change of direction. Obviously, we're going up and we're betting that because it's tapping into our resistance zone that we're going to end up going down.

So, we could have literally hopped in as soon as you saw this dogee and made money to the downside very, very easily. I just

45:32

want to show you guys a bunch of examples as far as being able to spot good support or resistance zones. And I mentioned to you guys that it's very very I personally like doing it on hyenashi candlesticks just a little bit more because it's just a little bit uh clearer to see.

So, if we switch over here to hyenashi candlesticks, we we're

45:49

looking at the same candlesticks. We're looking at the same chart.

We had a huge, let me zoom in a little bit for you guys. We had a huge drop down into this area and then we had nice price action to the upside or we had uh price moving up to the upside.

So, we could

46:05

have drawn our zone right here, dragged it along, waited for price to tap back into it. We had price tap back into it right here.

Bought We could have bought and made money right there. We had price tap back into that zone again right here and it bought up.

We had price tap back into our zone right here and it bought

46:21

up again. Right here it bought up right here and it bought up.

So multiple different obviously opportunities for entries here um or to be able to trade using just this one support zone that we drew. And obviously it broke through it, but we know we can drag this along and

46:37

wait for price to come back into that previous support zone to then use that as a resistance zone and sell off of that once again. So, that's realistically how I draw my support and resistance zones.

Like I said, I start from the 4hour time frame

46:53

or maybe the uh hourly time frame and I'll draw my support or resistance zones. They're all based off of um strong movements away from areas or multiple rejections at areas.

Once I draw those zones, it's a game of being patient and waiting for price to come

47:09

back into your zone for you then to make money on it uh or off the reversals of those zones. So uh like for example right here huge rejection sold down into this area sold up.

We would have drawn my zone right here. We would have

47:25

waited. So all I would have all I would have seen I wouldn't have seen anything past here.

All I would have seen was this huge drop down. I would have drawn my support zone.

All this is happening over here. I'm not paying attention.

Obviously we have like smaller support zones right here. Um and it was

47:42

respected three times. So this is where I would have drawn it.

Possibly would have bought off of here the first time it rejected or yeah rejected off this area or bounced off of this area or the third time it bounced off this area or technically second time that I would have known that it bounced off this

47:57

area. I could have taken that but keep in mind I'm waiting for price to come back down into this support zone.

Waiting, waiting, waiting, waiting, waiting. Price came back to tap into my support zone.

I would have went to my 15minut or my 30 minute time frame and

48:14

entered for buys off of here. And as you see, we would have been able to make good money because price instantly went up.

And if we held it even longer, price went up very, very far. Um, so that's how I draw my support and resistance zones.

Like I said, we're looking for

48:30

either multiple rejections at an area or one strong rejection at an area. So, this would be a support.

This would be a support down here. This would also be a resistance up

48:47

here. Strong movement away from here.

Resistance right here. Multiple small rejections at this area.

and uh we would just wait for price to then tap back into either one of these levels and then reject off of it. That's how I draw my support and resistance zones.

It's

49:03

super super vital that you guys understand support or resistance, understand why it works, understand why we as traders need it. It's basically a cheat code to be able to know what will happen because we know what happened last time price got at a certain area.

Um, so it allows us to easily capitalize

49:20

on that movement and make money based off of recent price action. Now, key levels for me are a little bit different than support or resistance, but they're basically like the cousin of support and resistance, maybe even like the brother or sister or support resistance.

They're

49:36

very, very similar. But for me, key levels are evergreen.

I mentioned support and resistance levels are not evergreen. Most of the time, I'm redrawing my support and resistance zones really like every 2 to 3 days.

Um, but key levels, I'm kind of keeping them on for weeks, if not months at a time.

49:52

And key levels for me are something a little bit stronger. So, what I mean by that is we all know that price doesn't just go straight up.

We've talked about this in this video multiple times. Price does not just go straight up or straight down.

Price goes up, down a little bit, up down a little bit, up down a little bit, up down, up a little bit, down a

50:09

little, down a lot, up a little bit, down a lot, and vice versa, vice versa, vice versa. So what we see here is we were in a uptrend and uptrend simply means we are trending up and then we went into a downtrend.

Downtrend simply means we were trending down and then we

50:26

went back into an uptrend. Now there's a couple pivotal points here.

The first pivotal point is right here. We were in an uptrend and price got here and went into a downtrend.

So to me this level is very very strong. These are my key

50:44

levels. This is what I plot on my charts as my change of direction zones or my key levels.

Now, we were in a downtrend here and then as you see, we got here and went back into an uptrend. This is another key level.

Obviously, throughout

50:59

here, we can see some support zones or sorry, resistance zones right here. We can see a resistance zone right here.

We can see a support zone right here. Support zone here, here, here.

We can see support zones and resistance zones all over. Support, support, support,

51:16

support, support, resistance, resistance, resistance, resistance, more resistance, more more resistance. We can see all these levels.

These are good support and resistance zones, but my key levels are a lot stronger. They're my change of direction

51:31

zones, which means we were in an uptrend, price got to a certain area, it changed directions and went in the opposite area. That's my key levels.

And that's what I look for when I'm drawing my key levels. And what I do when I'm drawing my key levels, let me delete all these drawings.

What I do when I'm

51:47

drawing my key levels, I don't do zones how I do a support and resistance zones. I draw specific lines and I'm looking for price to reject at or near those areas.

Now, we can plot out some zones here, and I'll show you guys what I mean. Um, I do this on the 4hour time

52:04

frame. Same exact thing.

So, if we plot this out, we can look at this chart. We're zoomed out uh very far uh very wide.

We can't really see much uh detail versus if we were zoomed in. But all I'm looking for is when price changed directions and started making lower lows

52:21

and higher low or sorry, lower lows and lower highs. And all that means is price came right here, went low, it made a new high right here, then it made a new low.

And this low is lower than this low. So it made a new low.

Then it made a high

52:38

which is a lower high because this high right here is higher than this low or then this high. Sorry.

So it made a a lower high. Then another lower low, a lower high, another lower low, lower high until it starts making higher highs

52:53

and higher lows. Higher highs, higher lows.

So those are our change of direction zones. So like I said, we're in a downtrend.

We're making lower lows and lower highs cuz each low that we're making is lower than the previous one. And she each high that we're making is

53:09

lower than the previous high. When we're in an uptrend here, we're making higher highs and higher lows because this high is lower than this high.

So our next high right here is a higher high than this one. Our high our low right here is

53:25

a higher low than this one. Same thing right here.

This high right here is a higher high than this high. And this uh lower uh higher low right here is higher than this low.

So that's how we determine in ter in the terminology that

53:42

traders use, those are higher highs and higher lows. Uh but when I broke it down first and how I like to simply put it is that we're going down a lot, up a little bit, down a lot, up a little bit, down a lot, up a little bit until we're going up a lot, down a little bit, up a lot, down a little bit.

And you can see this on the charts fairly easily. So you'll

54:00

see we're high, then we go low, then we go high, then we go low, then we go high again, then we go low, and then we get here and start going high. This high is now above this high.

We make a low right here. We go high again up here.

Then we

54:19

go low. Then we go high again.

And we go low. So you see, we were going in a downtrend here.

we got to this point right here and started going in an uptrend. Uh that's just me drawing it out.

The more time you spend on the charts, the uh you'll be able to see it a lot clearer. Like to me, I can spot

54:34

all these um basically really fast. So like right here, it's a key level.

Um up here is a key level cuz we were going up. We got here and started going down.

Um there's another key level

54:49

right up here. We have another key level right here because we were going up, then we started going down right here as you guys can see.

And I didn't mean to move my

55:05

drawing. Uh, and you can keep doing this very very far back.

Obviously, it doesn't make sense to draw your key levels all the way over here. Um, most of the time when I'm drawing my support or resistance zones, I'm drawing my support or resistance zones based off of what price has done within the last week

55:20

or two weeks max. my key levels.

I'm drawing it as far back as makes sense. And what I mean by as far back as makes sense right now, we're all the way up here.

It doesn't make sense for me to be drawing key levels all the way down here because we're the likelihood. This is a

55:36

stock right now. We're we're now we're on an Apple stock.

It's it works the exact same no matter what you're trading. Um stocks, crypto, options, futures, doesn't matter.

Um, but right now this is Apple and it doesn't make sense for me to draw my key level all the way down here when we're all the way up here. And the likelihood of it coming

55:53

down to my key level all the way down here is very low. And if it does happen, it's going to take a long time and I'll draw my key level at that point.

Um, but I do keep my key levels on no matter what. And the reason why is because you see we have this key level right here.

And key levels work the exact same as

56:09

support or resistance. Meaning when price when we make our key level.

So we draw our key level right here. I do this on hikinashi.

You can draw this on regular candlesticks. Um when we make our key level right here.

All we're doing is waiting for price to come back

56:25

to that key level. So you see we're waiting.

We're waiting. We're waiting.

Price tap back into our key level. Actually gave us a shooting star candlestick right here.

We could have entered right here if we wanted to for sells to the downside. As you see, it rejected off of it and sold all the way

56:41

down. Um, but we also broke above it over here.

And can you guys see exactly what happened when we came and tapped back into it? It treated this previous key level that was a resistance key level as now a support key level and

56:56

bounced off of that key level. And as you see, we're actually coming back into that key level right here where we tapped into right here and then price sold down.

If we go to like a a lower time frame, we can see it tapped into it on this key level and sold down. And

57:12

then it actually came and tapped into or tapped around our other key level that we had and bought off of it. Now, keep in mind, I told you guys, I draw my lines for my key levels.

And I mentioned to you guys that in trading, it's never going to go exactly to the point. It's

57:27

not going to stop directly on my key level. It sometimes won't even go all the way up to my key level.

But with my key levels, I'm looking for price action or I'm looking for those candlesticks that tell me that price is about to reverse off of it around that area. So,

57:42

when I see this candlestick right here, this um hammer, it's it's not a super super clear hammer, but just for example wise, I see a hammer right here. It got close to my key level here, and we had a

57:59

bullish engulfing candlestick. That's a good sign that it's now rejecting off of my key level.

Even though it didn't exactly touch my key level, remember it's always a range around our key levels. No matter if it's a key level or support or resistance zone.

So, um that's how I draw my key

58:17

levels. You can do this literally on any pair.

If you want to do this on a a crypto pair, you could do it on crypto as well. Uh we were just on this chart.

We go to our 4hour time frame. We zoom out.

We're looking for our change of direction zones. Technically, this zone right here is a key level because you

58:34

see we were going up and then we got to this level and sold down. And as you see what ended up happening when price tapped back into that key level, we sold down.

Price tapped that key level, we sold down. Um, we can look for more key levels here.

So, we

58:50

[Music] have these two down. This is a key level right here because we're in a downtrend.

We got to this low right here and went to an uptrend. Keep in mind when it comes to key levels, you're looking for the lowest point.

So these both of these got pretty low, but this is the lowest

59:08

point. This is the lowest point.

This candlestick came down the furthest. This one did not come down the furthest.

So that's where I'm drawing my key level. I'm then waiting for price to either come back to that area.

As you see, it came back to that area and gave me a dogee on my key level. And what did it do?

It bought up. We could have made

59:24

money when it bought up. um it came broke through it, retested it right here, gave us a bearish engulfing candlestick and sold down.

And that's why I say my key levels are universal because I'm keeping them on really

59:39

forever because these key levels are super super strong. Even right here, you see we were in a downtrend and then we made the lowest point which is right here.

This is the lowest point. We made this lowest point as our key level and then we started going in a uptrend

59:56

again. We price started going up.

Now we see price came back to this exact key level, bought off of it. We could have made money when it bought off of it.

It came back to it again. We would could have made money when it bought off of it again.

We broke through this key level. And what happened when price tapped back

00:13

into that key level? We now could have sold off that key level.

So that's how I draw my key levels. I do it on the 4hour time frame.

Uh, some people do it on the daily time frame. I just rather do it on the 4 hour time frame.

You can do it on um I wouldn't suggest going lower than the 4 hour time frame to draw your key

00:29

levels. Remember, you're not drawing key levels based off random places.

So, you're not drawing your key level right here. This is a support.

This is a resistance zone. Sorry, this is not a change direction zone.

Remember, we're only looking for those change of direction

00:45

zones. Let me draw this.

This is getting bad. We're only looking for those change of direction zones.

This is a change of direction because we're going up. This is a change of direction zone because we started going um we started going down

01:00

here. We started going up here again.

We had a change of direction zone up here. That's a change of direction zone.

Usually my key levels I won't draw two key levels at this point. Let's just imagine this was up here.

This is a key level up here because we got here and started going down. So, we're not

01:16

drawing key levels at these points, right? You need to um make sure that you're not getting confused with your support and your resistance versus your key levels.

Um so, this is not a key level. This is just a resistance zone right here.

This is a support. This is a

01:32

resistance. This is a support.

These are key levels where market shifted the direction that it was actually going in. Uh, so that's how I draw my key levels and how I plot them out and what I look for based off of those key levels as far

01:48

as when I should enter into trades. Um, what I expect for price to do when it gets near my key levels.

Now, it's important to understand that the market goes through these different phases, right? The market has really three different phases.

We have consolidating phases, we have trending markets, and we

02:04

have breakout markets. I'm going to show you guys examples of all these, but it's important that we be that we're aware of these because certain strategies and looking for our support or resistance or key levels in specific type of markets could alter the way that we enter into our trades.

And obviously, when we get

02:19

into the strategy section of this video, I'll break down which strategies are best in which markets. But we need to be aware of these markets and know what they are.

So, let's say we have our support zone right down here. And let's say we have a resistance zone right up here.

Consolidating market. All it means

02:35

is that price is just staying within a specific range. It's not really going in any direction and staying within a specific range.

Even though it's not going from support to resistance to support to resistance, it's staying within this whole range. That's what we call consolidating markets.

And a lot of

02:51

other traders will call it more so choppier markets. It's a little bit harder to trade if you are looking for breakouts all the time or if your strategy uh forces you to have to wait for breakouts.

But it's great if you're trading support and resistance. And like I said, we'll dive deeper into this and the exact strategies that's best to use

03:08

in different market conditions, but this is what we call consolidating markets. Um, and this is more so what it looks like.

We're just consolidating within a range. Now, we have something called trending markets.

So, obviously, I mentioned to you guys before that

03:23

markets never just go straight up or straight down. Markets go up, down a little bit, up, down a little, up, down a little bit.

This is considered a trending market. the market is just trending to the upside or the market could be trending to the downside.

It

03:38

works the exact same. This is a trending market and these markets are absolutely amazing when it comes to any type of breakout traders.

This can be a little bit harder if you are trading or you won't get as many opportunities. I won't say it's harder.

You just won't get as many opportunities if you're only looking for regular support and

03:53

resistance trades specifically for the reason that the market is just on a tear. It's it's it could have been that some huge fundamental news came out.

It could have been that um we just had a lot of volume randomly. Volume as in we've had a lot of people buying

04:08

something or a lot of people selling something so it's making the market move really really fast in a specific direction. Um that's really what trending markets are and they work like I said really good with any type of breakout strategy.

Now breakout breakout um sessions or broke breakout markets

04:24

are very very similar to trending markets. But what you'll see a lot is in breakout markets is that we'll have a bit of consolidation and then a huge breakout, then a bit of consolidation and a huge breakout.

Bit of consolidation and a huge breakout. That's typically how breakout markets

04:41

work. And these are great for anybody that's trading any type of breakout strategies or someone that is trading support and resistance because a lot of times on that pullback, it'll consolidate.

So, it's kind of trending markets and consolidating markets put together. You can find really, really good opportunities during these type of

04:58

markets. Um, but you can find good opportunities in all type of markets.

It's just you have to be aware of the type of market that you're in because you cannot trade the exact same that you were trading in a consolidating market when we're now in a trending market. Same way you can't trade the same when we're in a breakout market as you were

05:14

as you would trade if we were in a consolidating market. So, it's very very important that you understand what type of market we are in.

Now, there's actually a bunch of secret tools that we can use. They're called they're not secret tools, but they're they're just things that help us compile the information that we see on our charts that can basically tell us if it is a

05:31

consolidating market, a ranging market, what direction the market's been going in overall. Um, and just things like that.

They're really what I like to call sidekicks when it comes to trading. They're not completely necessary.

Batman really doesn't need Robin, but sometimes Robin comes in comes in handy. I think

05:46

that's the terminology. But that's basically how I treat indicators.

Indicators are basically just compiling the information like I said that we see on a chart here and putting it into a giving a different type of visualization. It helps a lot of people that can't really understand the

06:02

markets very easily. It helps them see if we're in a downtrend, if we're in a uptrend.

Um, it helps us see if there's a lot of volume. It just helps compile the information that we're seeing on these candlesticks into a more digestible thing.

Now, me personally,

06:17

when I first started off trading, I thought indicators were the holy grail. I thought that you need a whole bunch of indicators to trade with, and that if you don't use indicators, you're never going to know what the heck's going on.

Now, that I'm 8 years into this, I rarely use I really use only uh one or

06:33

two indicators, and we'll get into that in a second here. I really only use one to two indicators, but I like being able to just read the charts myself.

As I mentioned to you guys, the indicators aren't really showing you anything different that you can see on the charts. It's really just compiling that

06:48

information to make it a little bit more digestible. But the more time you spend on the charts, the more time you spend looking at these candlesticks, the more time you put into um day trading, the more you're going to be able to see everything that those indicators would show you.

But I must admit that they are

07:04

extremely helpful in a couple different aspects. So they're they're really great for beginners.

So, if you're a beginner trader, lean on these indicators. Like I said, they're sidekicks.

Use them. They are very, very helpful to help you determine what direction the market's going in and things like that.

Also,

07:20

giving you indications when sometimes you should buy or sometimes you should sell. They're great for things like that.

They're also great just to give you more confidence in your trades because when you're trading and you you see, okay, this is a resistance zone up

07:36

here, right? There are indicators that could also point out resistance zones.

So if you see you drew your resistance zone, then you also see that indicator that you used also put a resistance zone at that same spot. It just boosts your confidence in your trading, which ultimately is what we need.

We need to

07:51

be confident in our trading. We don't want to be overly confident, but we need to be confident that we are drawing the right support or resistance zones, drawing our right key levels, that the market is actually in a downtrend when we think the market's in a downtrend, or that the market is actually in an uptrend when we think the market's in an

08:07

uptrend. So, things like that.

Now, let's get into the indicators that I use and indicators that I recommend, especially for beginner traders. So, how you'll see them, as we went over in the how to use Trading View uh section of this video, right here on the top part

08:22

of your screen, you'll press this word named indicators. And under your favorites, you're not going to see anything at all.

It's going to start you off, I believe, looking at technicals or financials or whatever it is. It doesn't really matter.

This search bar right here is really what we're going to use to type in any indicator that we want to find.

08:38

Now, if you press on technicals, you can actually just see a bunch of different ones that are native in Trading View. as far as like it's already integrated in Trading View.

But the cool thing about Trading View is that it actually lets other people like if I wanted if I knew how to code, I could code my own

08:53

indicator and actually put it in here for other people to use. Uh, so that's super super cool.

And I believe you can see that under community here. And you'll see who the author is.

And this is just like their Trading View um username. Bunch of different indicators.

You can search through them. There are literally thousands and thousands of

09:09

indicators. But if you use too many indicators, I promise you, you'll be more confused than you are clear.

So, the ones that I suggest for most people, first of all, is starting off with an indicator called Killzones. It's by It's actually one created by somebody else.

This is not native inside Trading View. Um, but it's

09:26

by this person named Oscar VS. So, if you type in Killzones, you'll see it right here by Oscar vs.

If you click that, you'll see it will come onto your chart, and you'll actually see this yellow line come onto your chart. Now, depending if you have a white background, like your chart background is white or a different color, you'll

09:42

see other colors come on. But if you notice, as soon as I press that indicator right here, it popped up.

So, right under the chart that we're on right now, under this sell and buy button, you see kill zones popped up right here. You can press this I button to actually turn it off or turn it back

09:58

on. You can go to your settings right here.

You can go to source code. I've never pressed that button in my life.

You can go to remove. This will just take it off your chart.

and then go to more and that just kind of opens things up for you to see it. If you hover over it right here and press the settings gear, what I like to do is come over

10:15

here. Default it'll have a couple other things um on here.

Have basically everything on here. You'll see it pop up in a second.

I think I changed the colors on it though. Oh, here we go.

Yeah. So, you'll see kind of all this come on your chart here automatically.

10:30

As I mentioned to you guys, I don't like having too many things on my chart because it confuses me and I don't really care too much about this. What the kill zones are showing me is the sessions that we are in.

We already went over that there are three main sessions when it comes to trading. We have our New York session, we have our London

10:46

session, we have our Tokyo session. The Killzones indicator is just showing me on the chart when each of those sessions actually started.

So, for instance, if we come here, let's say I make this red like this. Um, and then I have the

11:03

background color. I don't really need the background color.

Um, but right now it's showing me the New York kill zone, the entire session, the Tokyo kill zone, the the entire session, the London kill zone, the entire session. What I mean by the kill zone, the kill zone simply just means that's when it started.

Then you'll see the highlighted area over

11:19

here, like the yellow is where London session started. And throughout this entire uh shaded yellow part, that's the duration of London session.

I know we went through it already in this, but this just helps you visualize it. And the reason I like it is specifically I

11:35

know I'm only trading New York session. So when when I'm actually looking at my charts, I want to know what happened during New York session.

And this indicator helps me do that very very fast without me having to hover my mouse over here and look at the bottom of my

11:51

screen and see it says, "Oh, this is 7:10. This is during London session." If I turn this off, I don't know where I am unless I look down right here.

If you look on the bottom of my screen where it says 18:50 and I see what time that is. I'd rather it just automatically be uh

12:06

visible to me so I can easily see exactly where I am. Now, you can play around with these settings.

For the most part, I don't care about Tokyo session. I don't actually like these shaded parts at all.

I just want to see when these sessions actually start. So, I usually just have this yellow line right here and this red line.

This yellow line

12:22

tells me when London session started. This red line tells me when New York session started.

That way I know red line is when New York session started. So, for the majority of this area right here, this is all New York session.

So, I know this is the candlesticks that

12:39

printed or the candlesticks that shown um during New York session. And that's very very valuable to me and I think it's great for new traders as well.

Now other indicators that I personally like. If you come back over here to indicators and type in volume weighted average price right

12:54

here, this indicator, this is native to Trading View. If you press that, you'll see it come onto your screen.

You have a bunch of different lines and and colors and things like that. I don't like all these, but basically what the indicator does, and I'll show you guys how to clarify this, cuz I don't like the three

13:09

lines. only really need the VWAP line.

So, under um you can actually go into your settings. You see it was added over here on the bottom left corner.

If you hover over it, same way we did with Killzones. If you hover over it and press the settings icon, it pulls up the settings for it.

Now, what I do as soon

13:26

as I put this VWAP on my chart is I come over here under style and I'llclick the upper band, the lower band, and the bands fill. All I want to see is this blue line.

Now, obviously, if you want to, you can change the color of this line to

13:41

whatever color you want. It really does not matter.

It's going to do the same exact thing. Then, you'll just press okay.

But basically, what this volume weighted or this VWOP does, the volume weighted average price does, it just shows you the average price of where price has been um according to the

13:57

volume that has been coming in. Now, the reason I know that sounds all complicated and things like that, but the reason why that's important is that shows us if we should be really looking for sells or if we should really be looking for buys.

When the VWOP is above where the candlesticks are. So, in this

14:12

instance right here, you see my black line, which is my VWOP, which is that indicate I just put on. Um, when price is under my VWOP, I'm only looking for sell opportunities because that means that majority of the day the price has

14:27

been going down. And as I mentioned to you guys, we always want to trade in the direction that everybody else is trading.

You're not here to stand out. I know your parents probably told you as a kid, makes you always stand out in life and all these things.

When it comes to trading, you do not want to do that. You're not going to stand out in the

14:44

markets and win. You need to trade with everybody else.

You need to trade with the people who are putting a lot of money behind their positions or or selling out of things or buying a lot of things. Those are the people that are actually pushing the price in the direction that it's going.

So, the VWAP shows us overall where the direction of

15:01

whatever we're looking at is going right now. We're looking at gold um gold futures actually.

So, we're under the the VWAP. So, we'd only look for sell opportunities.

And as you see, we're selling off very hard. We're selling off very hard.

So, being co um being

15:17

conscious of that, it allows us to make better trading decisions. Like I said, we can zoom out and see that we're going down, but the VWAP just helps it be more digestible.

It helps show it to us a little bit clearer. So, automatically, we don't have to think.

We don't have to do any of that. We can just see, okay,

15:32

the VWAP is above where our candlesticks are right now. So, we should probably only be looking for sell opportunities if we want to trade in the direction that everybody else is trading.

Now, we can go to multiple other days here where you see price is above where we're at on

15:48

um above where our VWAP is. So, we should be looking for buy opportunities.

As you see, we're buying up very strong. We're buying up very strong.

So, it just helps you be on the right side of trading most of the time. Now, with VWAPS, it's not 100% certain.

Like, I'm never going

16:04

to completely ignore a buy setup if we're under the VWAP. It's just it's an it gives me extra confidence in my trade when I'm looking for sales knowing that we're below the VWAP.

So, as a beginner, and this is what I did in the beginning of my trading. Obviously, I've been

16:20

doing this a little bit longer, but in the beginning of my trading, I used to only take sales when we're below the VWOP. And that's perfectly fine as a beginner.

This helps you simplify your trading decisions. you can take one decision out of your um to-do list, I guess, if you want to put it that way,

16:36

by just realizing that if you're below the VWAP, just look for sells. Ignore any buy opportunities.

Only look for sells. And that will ensure that you are on the right side of trading in the direction that everybody else is trading in.

Now, there are a bunch more indicators that a lot of people like,

16:53

but for the most part, those are the ma these are the main two ones that I use, the kill zone and the VWOP. There's another indicator called uh the moving average.

Um a lot of people use the moving average exponential. If you press that, you'll see it'll come onto your chart.

It's this blue line. Now, the

17:09

moving average exponential is very much the same as the VWOP. The only difference is that it's not going based off of volume.

It's just strictly going based off the price of whatever it is that we're looking at here. Now, you can make this a lot more you can customize this a lot more than you can the VWOP.

17:25

So, if we hover over the the EMA right here, which is the moving average that we just put on our chart, and press the settings, obviously, we can change the color of it if we want, just like we did with the other thing. Let's say we want it to be purple.

Um, but under inputs, you can actually change this length

17:41

number. Now, what this length number does on an EMA, I told you guys that EMAs are basically showing you the average of where price has been.

This number tells you is basically um clarifying how what what average is it taking from. So right here in this

17:58

instance this nine is basically saying the line is the average the line the the where the line is at on the chart is the average of where price has been for the last nine candlesticks. Now this will change depending on what time frame you're on.

So, if you're on the

18:13

five-minute time frame, the EMA will show you the average where price has been throughout the last last nine five minute candlesticks. Now, obviously, if I go to the hourly time frame, you'll see this EMA, which is this purple line right here, is showing me the average price of where price has been throughout

18:29

the last nine hourly candlesticks. You can do it on the 4 hour, the 1 minute, the 15 minute, it does not matter.

But what I personally like doing, because you can actually play around with this, you don't have to keep it on the nine. A lot of people use the 50 EMA, which all that's changing is showing you the

18:46

average where price has been throughout the last 50 candlesticks versus the last nine candlesticks. Now, you can play around with this, but the main settings that most people use is the 100 length EMA and the 50 length EMA.

There's a small amount of people that also use the

19:02

30 length EMA, but as I mentioned, I don't really use the EMA much. I just use the moving average for the most part.

But this is another one to be aware of because this is one that is used very very frequently by a lot of traders. Now, we mentioned volume.

I

19:17

mentioned to you guys that the view app is based off volume and things like that. There is an indicator that we can use here called volume.

Um, you just type in volume and it's one that's literally just titled volume. A lot of times when you first create your Trading View account, you'll see this on the bottom of your screen.

This is that volume indicator and what

19:34

this is showing you is how much volume is actually in each candlestick. So, we know that in order for anything to go up or anything to go down, there have to be people buying or people selling.

Now, the more people that buy, that's the more volume that's created. The more people that sell, that's the more volume

19:50

that's created. But there's also going to be times where less people buy and sell, and that's opportunities of lower volume.

Now, you want to be aware of this cuz but depending on the strategy that you're using or how you're trading, you have to know that if you don't have volume at a time where you're

20:06

considering entering or throughout a trade, um it can really throw off your trading overall because we have to know we're entering at times where there are high volume. This indicator helps us to actually do that by showing us in detail

20:22

the volume on each candlestick and how much of it is positive volume and how much of it is selling volume. So if we look right here, let me actually turn off these other indicators so it's not too much.

If we look right here, we can see the size of this candlestick is

20:37

obviously a lot bigger than the size of this candlestick. If we look on our volume chart here, it's these volume bars are lined corresponding with the candlesticks that are right on top of it.

So this candlestick right here, we have low volume. You see price, not price, but we have uh volume where it's

20:54

continuously at this uh level right here. Um and then we have this huge volume bar or the huge candlestick bar, sorry.

And then we look at the volume bar. It's much bigger than this volume bar.

This is showing us the underlying amount of volume. And obviously, we can

21:09

see it on our charts here. As I told you guys, indicators are just showing you the same thing that you can technically see on a chart, but it's breaking it down into more digestible um into something that's more digestible to be able to view and see and understand.

So,

21:25

obviously, we have the huge green bar and the volume is really really high on it. But then you see this next candlestick where we have a big wick at the top.

You see, we have a huge wick at the top, but the body is very little. But as you see, the volume bar is still very high.

This volume bar is a lot

21:41

higher than this one. Even though the body of this candlestick is bigger than the body of this candlestick, this whole candlestick still has much more volume than this smaller candlestick right here.

And like I said, that's important to know because the more volume that's in a candlestick or throughout a

21:56

duration of time, that's the faster that price is going to move. the faster that these candlesticks are going to either go up or go down.

So, you need to be aware of the volume. And this helps you see the volume visually, not having to rely on just looking at the candlestick.

Because if we just look at the candlestick, we can

22:13

get very, very kind of confused because this candlestick right here, you see the volume bar is right up here. And looking at this candlestick, this candlestick is not much bigger than this candlestick, right?

These are basically the same size

22:29

candlesticks. But if we look at the volume bar, this volume bar is low.

This volume bar is this volume bar right here. This one is higher than this one.

This just um just shows you that sometimes there's underlying volume that we can't see specifically on the

22:45

candlestick. So that's why it's important to also be aware of volume.

There are multiple different ways that we can see volume. There's things uh that get super super complicated.

I don't get too much into those things. a volume indicator is enough for me.

And looking at the size of the candlesticks and how it's actually moving because

23:02

when you're actually looking at the markets, this is the live markets right now. We can see that this candlestick is live.

We have a countdown right here. You'll probably be able to see it moving.

Um, right now it's a little bit later on inside the day, so the volume is not as high, but looking at

23:17

candlesticks, you'll just be able to see how fast that they go up or how fast they go down. And that's telling me when I'm looking at the candlestick that there's a lot of volume happening at that time without me even having to use this indicator.

But as I told you guys, this indicator is very helpful, not even just for beginners, but for everyone

23:34

because it's it it visualizes and shows you the um volume in each candlestick to be able to compare it to candlesticks before it and see if there's volume in the direction that you're trading in, if there's volume going against you, and things like that. Because as you see these volume bars change depending on

23:51

who's in control. What I mean by who's in control is on these red volume candlesticks u or red volume bars, sorry.

It could be a mixture of people that are buying and a mixture of people that are selling and that's creating

24:08

higher volume. But we see ultimately this bar closed red.

So that's telling me that there was volume from buyers and volume from sellers, but the sellers had more volume and the sellers ended up winning for lack of better terms on this

24:24

candlestick itself. As you see, it did the same thing here on this candlestick.

The same thing here on this candlestick, the same thing here on this candlestick. You're able to see who's actually winning.

And that's very very beneficial when you get into your trading and the type of strategies that you use

24:40

depending on like I said which strategy you are actually using. So definitely use volume indicators and be able to understand volume and exactly what it means, how it benefits you, how it can go against you, what you can do to um be on the side of volume because just like

24:56

we want to be on the side of where the market's going and has been going and where everybody else is going, the volume shows us who's winning and we want to stay on that side. Okay, so now that we understand indicators, we understand how to use Trading View, Volume, all that things.

We're going to start hopping into my top three

25:12

strategies for beginners or even advanced traders. These are the same strategies that I use every day to literally print money inside the market.

But before we do that, we have to figure out, well, you have to figure out what type of trader you are. Now, there's no better type of trader.

There's no worse type of trader. It's all depending on

25:27

your goals. It's all depending on your uh risk tolerance as far as how risky of a person you are overall or and and also more so the amount of time you have to give to the markets.

So there's three different type of traders. There's scalpers, there's intraday traders, and

25:43

then there's swing traders. Let's hop into exactly what each and every one of them are so you can figure out for yourself what type of trader you are and uh just based off of your personality.

So scalpers is a trading style that specializes in profiting off of small price changes and making a fast profits.

26:00

They're usually in trades for a few seconds all the way to about 10 minutes max. Now scalping is really really it's it's it's really really fast-paced.

So what I mean by that is that you have to be able to catch these small quick moves

26:17

using um whatever you want to trade. You can literally trade anything.

If you want to trade NQ, you want to trade ES, you want to trade YM, it doesn't matter. Um, you're just trying to find perfect entries and hopping out very, very fast.

Like I said, a lot of times scalpers are

26:32

in trades for a few seconds, maybe up to 10 minutes, but most of the time scalpers are in there. They're they're just in and out.

I'm not going to lie. In the beginning, I used to scalp.

Right now, I still do scalp sometimes. We're actually going to go through one of my favorite scalping strategies in a second from now.

But,

26:49

um, these are for people who are more so fast-paced and kind of just want to be in and out the market. This is perfect for someone who doesn't have much time to dedicate to being on the charts.

Um, but then this is also for somebody that just wants to be able to be done with their trading day within 30 minutes

27:07

throughout the day and they don't have to check back or worry about it for the rest of the day. That's what scalping is.

Now, the next thing or the next type of trader is intraday trading. That's what I am considered.

Intraday trading is another word basically for day trading. Usually a intraday trader will hold their trades for anywhere between

27:24

like 1 to 24 hours, not usually going over a day or two. Now that's what us intraday traders plan on doing.

Sometimes we can hop in a trade and we can actually get out of trades within 15 minutes, 20 minutes. Sometimes I've gotten out of trades, intraday trades where I planned on holding it for an

27:41

hour, two hours, but the trade ended up going in my direction within 20 minutes. And that just all goes back to the volume that was in the market at that time.

And I ended up making the money that I wanted to make within a shorter amount of time. But we plan to be in trades roughly for about 30 minutes to

27:57

like 4 hours each and every day. It's technically considered an intraday trader if you um even if you hold it up to 24 hours.

But other than that, after you it gets to that um then you become a swing trader, which is the next thing that we're going to go over. Um, swing

28:13

trader is simply a trader that likes to hold their trades for a long period of time. These traders tend to hold trades for days, weeks, or even months.

Now, going back to intraday trading, it's really for people who kind of want a little bit more hands-off approach to trading, but they also want to check the

28:30

charts every day. You'll learn as you start trading that trading is it can get very, very fun.

And swing traders, they don't really have this um they they most of the time will enter a trade and not check on it for days or months. Me as an

28:45

intraday trader, I enter my trade, I walk away, I'll check on it every 20, 30 minutes, and I'm just going about my day, but I still like to be aware of what my trades are doing. And I don't want to go to sleep with my trades.

Um, just this is just based off of my

29:01

personal uh I guess personality. I feel like I sleep better if all my trades are closed and I'm not holding or in profit a couple hundred or a couple thousand dollars depending on the trade obviously.

But in day trading is great for people who, let's say, work a job,

29:17

who uh go to school, people who can't really sit on their charts. They're just people who just want to be able to wait for their setup, enter their trade, and be able to walk away, check back every couple minutes or so.

Um, swing trading is really for people who just want like completely hands-off. They want to look at the charts, get in a trade, and that

29:35

trade is going to hit in five days or a couple weeks or a couple months. Now, I will swing trade stocks or crypto.

And basically, I'm just buying it and I'm playing on holding it for a long period of time. It's the same thing when it comes to swing traders.

They can plan on holding it for a couple days, but if

29:51

there's a lot of volume in the market, they can actually end up getting in and out their trade within a couple of hours. Uh, but it's just depending on the the volume of the market at that time when they're actually entering their trade.

But like I said, swing traders are planning to hold their trade for a couple days, a couple weeks, or

30:08

sometimes even a couple of months. Now, like I said, swing trading is really, really good for more of a super passive approach when it comes to trading.

So, you just want to be aware of that if you are that type of person that doesn't want to sit here and be on the charts every day or checking their trades every

30:24

single day. you kind of just want to set your trade, let it play out.

Um, check on it every couple days or so, see if it's going in your direction, manage it that way. It's for people who don't want to have to um stress too much while they're in trades because with scalping,

30:39

it can be a little bit more stressful because you are looking for such small price movements that the price can move in an opposite direction from you very very fast. So, you have to be able to react very fast.

So, as a new trader, when I was uh scalping as a new trader, it was a little bit challenging to scalp

30:55

because I'm still kind of new to trading, but then I'm also trying to do the fastest version of trading, which I feel like a lot of new traders gravitate towards. I personally suggest and recommend for new traders to start as intraday traders.

Once you get more confident in your trading, then you can

31:11

get into scalping and consider scalping. Um, but you have to be aware and and understand how to use the different platforms, how to be able to read the chart and see what the language of each candlestick is telling you each and every time at a very fast pace.

So, if

31:26

you're still kind of in the learning phase, I'd suggest you stick to around the intraday part of trading versus trying to scalp. Um, but like I said, it's all depending on your personality.

If you want more hands-off approach, swing trading is absolutely amazing. is the most least stressful type of

31:42

trading. Um, with scalping being the most stressful type and the intraday kind of being in the middle.

But like I said, it's completely up to you and your personality. Now, let's hop into a couple different strategies.

My personal favorite strategies that I like to use each and every day. I'm going to break them down for you guys so you guys can

31:58

completely understand them and be able to start implementing them. I've made my strategies and my trading over the past eight years very very copyable because I've been able to teach literally tens if not 20s of thousands of people how to

32:14

trade and obviously I've gotten very good at simplifying it. So we're going to go through my strategies, the same strategies that you guys can start using and looking for today.

As you guys can probably tell, I'm very excited for this part because this is the part where we actually start learning how to make money. This is the part where you guys

32:30

actually get to dive into the same things to look for that I look for that allow me to actually make money in the markets. Now, this first strategy I'm going to go over, it is absolutely amazing for anyone that wants to be an intraday trader or a swing trader.

I really wouldn't suggest scalping this

32:46

because it's not really the type of strategy you'd look for to scalp. Um, but I am going to be going over my favorite scalping strategy uh in a second now.

But I want to go over this strategy. I call it my ultimate support and resistance strategy.

Now, we obviously went over what support or resistance is, but I didn't really go

33:02

into depth when I actually enter or what do I look for to actually enter a trade, where do I put my stop-loss, which is basically the max amount of money I'm risking on that trade, or where do I put my takerit, which is where I'm going to exit my trade at in profit. Um, I didn't

33:18

really go into any of that inside the support or resistance. So, I'm going to dive into my full um ultimate support and resistance strategy right now, but let me just plot it out for you guys so you guys can see it.

So, let's imagine that price came down here. Then we had a huge rejection away from from it.

As

33:35

I've told you guys multiple times, that's what I consider a uh support zone. So, let's say this is my support zone.

Keep in mind, I'm doing all this on the hourly time frame. I do this strategy.

I draw my zones as in my support and my resistance zones on the hourly time frame or the 4hour time frame as I explained to you guys. So

33:52

imagine this is price. It's going down.

It made this zone right here. This is my support zone.

Now I'm waiting for price to actually come back down to this area. So let's say price then comes back down to my area.

What am I doing to actually enter this trade? I don't just enter the

34:08

trade as soon as it taps my support zone or my resistance zone. I need confirmation that we're going to reject off of here.

I told you that there are multiple different candlestick that candlestick variations and patterns that we can look for, but I like seeing something more something that just gives

34:24

me even more confidence that we're actually going to reject off of whatever area we're at. So, let's say price comes down into here.

What I'm looking for is obviously price doesn't just go straight down into it. it'll it'll start going um higher and lower high making high or

34:40

sorry lower lows lower highs lower lows lower highs. What I'm looking for is price to come tap into my support or my resistance zone and break a previous high point if we're looking for buys off support zone or low point if we're looking for sells off of a resistance

34:56

zone. In this example, we're looking for buys off this support zone.

So, I'm waiting for it to tap into my support zone and break above go above that recent high point. So, I'll show you guys right now.

So, once it comes over

35:13

here, once it taps into my support zone, we're going to go live on the charts and I'm going to show you guys this. But once it taps into my support zone here, I'm going to the one minute time frame because that's the time frame that I enter on.

And that's where I want to see it break above a recent high point if

35:29

I'm looking for buys. So what I mean by that is we made our support zone here.

We came up. We sold down.

We made a high. We have a couple high points.

So we have this high point right here. We have this high point right here.

Price tapped into my zone here.

35:47

and made this high point right here. What I would then be looking for to enter this trade for a buy is for price to break above the recent high point.

This is the recent high point right here. So, as soon as it breaks above, I see price start going above it.

I'm going to enter into my trade. And what I

36:04

do, remember this is our long and short position. This just helps us plan out our trades.

What I do is I'll put my stop-loss, meaning the max amount of money I'm willing to lose on this trade. I put my stop loss below the lowest point that it went right before I

36:21

entered into my trade. So, I entered into my trade here.

The lowest point I went is right here. I put my stop loss right below that.

That way, if price, let's say I get into the trade and then it reverses all the way back down. I'm this would take me out the trade and I

36:38

would lose this trade, but I'm fine with that because if I lose this trade, it's probably going to keep going down. and I'm glad I saved myself money and got out right here versus getting out down here.

So, that's how I enter the trade. That's how I put my stop loss.

Now, how do I know when to exit and profit? So,

36:53

it's the same thing when it comes to my stop loss. I'm looking at recent high points if I'm looking for buys and recent um I'm looking for high recent high points as my targets.

So, what I'll do a lot of times is I'll either target the first recent high, which in this instance would be right here, or the

37:10

second recent high, which would be right here, or even the third recent high. It just depends on how much volume is in the market at that time.

If I'm seeing that price is moving fast towards my takerit targets, but that's how I do it. I enter into my trade, stop loss is

37:26

below the recent swing low. And I'm my take profit, as in where I'm actually going to take myself out the trade and profit at and close my trade out in profit, is at recent swing highs.

Now, I can illustrate this example for you guys when it comes to a um position where I'm

37:43

selling. So, let's say we had price come into my zone here.

It made my support zone. So, now I'm waiting, sorry, it made my resistance zone.

So, now I'm waiting for price to come back up to it. We have price coming into it.

Now, we made a recent low point

38:00

right here. So, now I'd be waiting for price to break below this recent low point.

After tapping into my my resistance zone here, I would have entered into my position, stop-loss above the swing high, the most recent

38:16

swing high, which is right up here, stop loss above that, and I can target anywhere, any one of these recent swing lows. This is a short position.

So, I could target here. I could target here.

I could target here. And which one I target depends on how much volume is in

38:33

the market. Like I said before, that's basically what the strategy is.

And let me show you guys it on the actual charts so you guys can see it in real time. So, this right here, we have a resistance zone.

We see price sold down very

38:49

heavily here. So, we draw our box same way I showed you guys from the top of the wick to the highest body, which is right here.

We drag it across, and all we're doing is waiting for price to come back up to our resistance zone. We're not doing anything.

We're waiting for price to come back up. Wait for price to

39:04

come back up. You see, it came back up right here, but we're not entering in just yet.

We drew this on the hourly time frame. So, now that we saw it tapped into our zone, we go to the one minute time frame.

Let me go back to where it's at on my chart over

39:20

here. This is the first time it tapped into here.

As you see, there was multiple opportunities for me to actually enter into this trade. But let's go with this first opportunity.

The first time it tapped into my trade here. Let me draw this out for you guys.

So, we see we were going up. We made a

39:36

high then a low. A higher high.

A higher low. A higher high.

A higher low. A higher high.

Then this is our low right here that we would wait for a break below. So because we have this price tapped into our resistance zone, it

39:53

broke below our recent swing low, enter into the trade right here. Stop loss above that recent swing high point right here.

And we could target any of these recent swing lows. So like I said, we could target this one.

We

40:10

could target this one. We could target this one.

We could target this one if we wanted to. It just depends on how much volume is there.

So, in this instance, let's say we targeted right here. If we look on our long or sorry, our short

40:25

position tool, this breaks down exactly what the trade looks like or uh the numbers behind it. So, this 13 up here is the amount of ticks.

We've went over what ticks mean already inside of this video. Um, but the middle number is the amount of ticks.

The middle number on the top is the amount of ticks. The

40:41

minimum on the bottom is the amount of ticks. So on this trade, I'm risking 13 ticks to make 20 ticks.

And this risk/reward ratio is very very important. This shows us how much we're risking um compared to how much we're actually going to make.

So to put this into simple numbers, let's say my stop

40:57

loss is 10 ticks and I'm looking to make 30 ticks. As you see, my risk ratio is a 3:1.

That means I'm risking one or 10 to make 30. So in this instance, if I was risking $500, I'd be risking $500 to

41:15

make $1,500. Or if I was risking $1,000, I'd be risking $1,000 to make $3,000.

So um that's basically how the ultimate support and resistance strategy works. Now, I can show you guys more examples of this.

Uh keep in mind this

41:31

strategy works on any pair, any futures port pair at all at all, any uh stock, any crypto and it does work on the break and retest. So you guys remember we talked about in this support or resistance section that a lot of times when actually we'll use this example

41:46

right here. A lot of times when support is broken, price comes back up to it and treats it as if it's resistance.

Once it does that, I'm treating this same point the same way I would treat a sell opportunity. So, I'd wait for price to come back into this

42:03

area, wait for a lower high, sorry, a lower low, and then wait for a break of below that lower low to the downside. And same thing vice versa with buys.

Um, I believe there's an example right here. Yeah.

So, we have this on the hourly time frame where we have this resistance

42:19

zone that was created. Price bought up as in price went up strongly away from it.

We waited for price to come back to it, which price came back to it right here. We go to our one minute time frame, we see price tapped into our

42:37

previous resistance zone or support zone that now turned into a resistance zone. If we draw out our highs and our lows.

So, we have a high point right here, a low point right here, a high point right here, a low point right here, a high point right here, a low, a high, a low,

42:53

a high. So, the next low we'd have to wait for price to break below is this right here.

So, we draw, let's say, our line right here. We can enter our trade as soon as it breaks below that stop loss above the recent high point, which is right here.

And we could target any

43:10

of these low points. Now, keep in mind with this strategy, I would never take anything that's less than a 1:1 risk-to-reward ratio.

Majority of the time, I'm aiming for a 2:1 risk-to-reward ratio. The reason why that's so important is because us as traders, you do not have to have have a

43:25

high win rate. I want you guys to get that out of your mind.

We're going to go into this later on inside the video, but you do not need a high win rate. People think that you need to win all the time or even win more than you're losing.

You don't. You just need to win more money than you're risking each trade on average.

So, the reason I go for 2 to1's

43:42

at least is because if I lose a trade, let's say I lose two trades, I just have to win one trade to make all of my money back. If I have a 3 to1 riskreward ratio on average, if I lose two trades, I just need to win one trade and I'm actually I have more money than I had before I lost

43:59

those two trades. So, the reason I brought that up is because I wouldn't target this first um level because if I have my TP here, as you see, this risk-to-reward ratio is a 0.44.

I need it to be at least a one

44:14

one. So, I'd probably target this recent swing low right here.

Or if I was really if I was seeing a lot of volume in the market, I could target this recent swing low right here and bring this down. And as you see, this brings it to about a

44:30

2:1 risk-to-reward ratio, and this trade would have won. Um, so that's basically how you do the strategy.

This can be done, like I said, on any pair. We start on the hourly time frame.

We're looking for um strong moves away from areas to

44:45

draw a support zone. This can be also this can also be done with our key levels that we've drawn.

Um, but in this example, we're using uh support or resistance. Let's say right here, we had a strong move away from here.

We draw our support zone. Wait for price to tap back into it.

Tap back into it right here. This is for a buy opportunity.

So

45:03

I can show you guys an example of the buy opportunity. It was right here.

So tapped into it. As you see, price came slightly outside of it.

This is actually a good example to show you guys because none of these times did we create a new high. So you see we have a

45:20

high point right here. We have another one up here.

We have another one up here. We have another one right here.

This is the first time we created a new high. But what I won't do is actually enter into a trade outside of my box.

So what I'll do is I'll wait for it to come back into my resistance or my support

45:37

zone and wait for another high point to be broken. So it came back into here and then we sold back down.

It didn't break any of these high points as you see. But then we came back in here.

It made a high point. If we look right here, it came up back into my zone.

It made a

45:54

high point, sold off, and then it came and broke above that high point. So, we would do the same thing.

We'd enter as soon as it breaks above that high point. Stop loss below the recent swing low, which would be right here.

This is the recent swing low. And then we would target any recent swing high.

Now, this

46:12

is a diff peculiar situation because we didn't really have any swing highs. Price just completely tanked to the downside here.

Um, so the most recent one would kind of be up here. So, we would target all the way up here.

And as you see, this trade would

46:27

have actually won. And this is a 5.3 to one risk-toreward ratio, which is a great risk-toreward ratio to have.

But I wanted to show you guys a buy example of it. And I'm glad we came and saw an example of it actually breaking out of your support, your resistance zone.

That way, I can show you guys that if it

46:43

breaks out of that zone, we wait for it to come back into that zone and then create that market structure. that market structure as in making its highs and its lows and then breaking above that high or that low to the direction that we want to enter the trade in.

So

46:59

that is my ultimate support and resistance strategy. Like I said, this is absolutely amazing when it comes to um anybody that wants to be intraday traders or um swing traders.

What you can do, and this is a tip for everybody, if you created a Trading View account for

47:14

yourself, what I like to do so that I don't have to sit here and have my eyes glued to the screen, waiting for price to come back into my support or my resistance zones. Let's say you have a resistance zone up here.

Let's say it was created right now, then price sold off of it. Now, you're just waiting for

47:30

it to come back up into it. You can actually right click on um the screen anywhere you want.

What I like to do is right click, let's say right below my resistance zone or right above if I had a support zone right here. You can right click and press um there will be a um

47:47

button here to press add alert. Uh I think it's cuz I'm not signed into my account here, but it'll say a button here called add alert.

You'll press add alert and it'll actually put an alert right here where a notification will go off on your computer or on your phone and that'll

48:03

notify you to be like, "Okay, we're getting close to your resistance zone." You should probably go and look at your phone or your computer and um see if you're going to enter into that trade. See if it gives you that that swing low and wait for that break of that swing low and enter into it.

So, that's a

48:19

little tip for everybody that um doesn't want to just sit here and look at the charts. I don't sit here and look at the charts.

I set alerts. I utilize alerts.

I have a million alerts waiting in my phone a 100 times a day just waiting to tell me that it's almost time to enter into a trade. And that's how I trade.

More of a passive approach. That's my

48:36

ultimate support and resistance strategy, which is honestly the strategy that made me the most money back in 2024. Um, it's the one I use majority of the time.

But let's hop into another extremely powerful strategy for you guys. All right.

So, this next strategy is absolutely amazing for my breakout

48:54

traders. This is the strategy that I like to call the that I like to call the squeeze strategy.

So, if you're someone who likes to be kind of in and out of trades or um trade based off of high volume, this strategy is absolutely perfect for you. Again, this strategy will work with any pair that you're

49:10

going to trade. You can use it on NQM, NG, you can use it on forex pairs, crypto stocks.

You can literally use it on anything and you can mark this trade up on hyenashi candlesticks, but I'm going to show you guys it on regular

49:25

candlesticks because as I explained to you guys, you guys should learn how to use regular candlesticks before trying to venture off into hyenashi candlesticks. So, just keep that in mind.

This strategy, like I said, is called the squeeze strategy. And the reason it's called the squeeze strategy is because we're looking for price to squeeze out of a uh kind of area.

So

49:44

what I mean by that is a lot of times price will actually go up and then start going down up down up down up down and making a little bit of this kind of squeeze. What I mean by that is that if we draw trend lines, you guys remember

49:59

we talked about trend lines. If we draw trend lines, it's respecting the top of it multiple times and it's also respecting the bottom of it multiple times.

Now, if we look at this green line, it's as if we're drawing a triangle and squeezing price. As price is getting closer inside of this

50:14

triangle, it's squeezing and going, making less volatile movement. So, of course, when we first started off, it was going down, up a lot, down, up a lot.

And as it's getting closer inside of this squeeze, it's moving slower, smaller movements, smaller movements

50:29

until one point it breaks very strong to the upside or to the downside. And that's what I call the squeeze.

We're waiting for that squeeze to happen, but in order for that squeeze to happen, we have to be patient enough to wait for our setup to occur. Now, what does that look like?

I'm going to show you guys it obviously on the real charts, but I want

50:45

to just show you it plainly on this uh screen right here. So, as we see here, we created highs right here.

Sorry, we created high right here, a lower high while creating a low right here, and a higher low. You know, we've talked about creating higher highs and higher lows,

51:01

right? and lower lows and lower highs.

But this is an instance where we're looking for higher lows and lower highs at the same exact time, which is forming this squeeze pattern where we're seeing price build and respect these trend

51:16

lines. Obviously, I didn't draw this perfectly, so it's not going to um all the points aren't going to connect, but uh we're waiting for price to touch all of these, touch the trend line, and then we're waiting for price to squeeze out of here and break out of here, um with a lot of volume.

Now, think about this as

51:32

a rubber band, right? The further price gets in this squeeze, the further it's going to break out.

So, what I like to see for my squeeze setups is at least two rejections on the top trend line and the bottom trend line. This is done on

51:47

the hourly time frame. So, two rejections looks like this is the first one.

In this instance, this one didn't touch or this one didn't touch, but this would theoretically be the the second one, the third one, the fourth one, this would be the first one on the bottom, the second one, the third one, and

52:02

possibly the fourth one right here, unless it dumps down. So, I want to see at least two rejections on the top and two rejections on the bottom trend line for me to feel comfortable looking for a breakout of this squeeze.

Now, once we have at least two rejections on the upper trend line and two rejections on

52:18

the lower trend line, I'm not just entering as soon as price breaks above the trend line. I am waiting for it to break a recent swing high or a recent swing low.

Same way we did it with the support of resistance. So in this instance, if I see price is coming up

52:33

here, I'm not entering when price breaks out of this trend line. I'm entering when it breaks above here.

So once it breaks above this recent swing high, I enter my trade. Most of the time, I'm putting my stop loss below recent swing lows or recent swing highs if we enter

52:49

for sells. Same way we did with the ultimate support and resistance strategy.

And I'm targeting recent swing highs, recent swing highs, recent swing highs, or if we're selling down, recent swing lows, recent swing lows. Um, and I'll show you guys, like I said, a real example of this on the charts.

But

53:04

that's basically what I'm looking at. Keep in mind, we're going to enter this on either the one minute time frame or the fiveinut time frame.

And that's where we're going to get our swing lows or swing highs. Cuz remember, we're going down to the fiveminut time frame and waiting for breaks of that recent swing low or that recent swing high.

and

53:21

then we are going to enter into the trade. So that's simply how it works.

Now, as I mentioned before when we talked about trend lines when we went over the basic technical analysis, trend lines don't always stop directly or price doesn't always stop directly at the trend lines. It's never going to be

53:37

well not never. It's very rarely going to be this clean where we have it stop directly at the trend line.

Sometimes it'll wick outside the trend line a little bit and then come back up. Sometimes it'll stop just shy of the trend line like this and go back up.

53:52

That's all fine because as we know price isn't exact. Price doesn't go exactly to the points that we have plotted.

So we want that general area. Um so don't be nervous if you see it wick a little bit outside of it.

The only time you should this kind of gets invalidated is if it

54:07

wicks out of it and goes below a recent swing low. So, in this instance, this was the recent swing low and price wicked outside of it.

As in just the wick came outside of it. Price just wicked outside of it.

And I'll show you guys examples of that. And it broke a recent swing low.

So, this is not valid

54:25

anymore cuz it broke outside of our squeeze. So, um, let me show you guys real examples of this on the chart.

I have one right here. So, if we look at this, we're getting exactly what I wanted to see.

We're getting one rejection here. We had two rejections

54:41

here because you see we came down. Then we came back up to this trend line.

Came down again. We came up.

This time it didn't go all the way up to the trend line. So I don't count that as another rejection.

Right now we just have two rejections. We then have three rejections right here cuz we sold down

54:57

again right here. Our fourth rejection is right here.

We sold down and then we broke out above it right here. We're going to go down to the fiveminut time frame to see what this entry would have looked like.

But you see we have our four rejections right here already on

55:13

the lower trend line. We actually have one rejection right here and two rejections right here.

These two times didn't actually come to touch our trend line. But that's fine.

Like I said, I want at least two rejections. The more rejections, the better because as I explained to you guys, the more times it

55:28

goes up and down inside of our squeeze, the further the breakout's going to be, no matter what direction it goes in. You can do this with buying or selling.

But let's go into this the five minute time frame and let's see exactly what this looked like as far as an entry. So press five minute time frame right here.

55:45

You'll notice that we had a um a swing high was respected right here on the five minute time frame. So we tapped the trend line right here and then you see we had this big red candlestick and it sold down.

This created a new swing high for us. So once it's sold down right

56:03

here, this is um assuming we enter on the fivem minute. I can go to the one minute as well in a second and show you guys what I would do there as well.

But it's basically going to be the same exact thing. Um but on the fiveminut time frame here, we had it respect our trend line, touched our trend line.

As you see it wicked outside of it. We wouldn't have

56:19

entered this because it just wicked outside of our trend line before this high um higher tapped onto our trend line. This was the most recent high that tapped into our trend line.

We're not looking for the most recent swing high. We're looking for the most recent swing

56:34

high that tapped our trend line. This did not tap our trend line.

So, this is not our most recent swing high. We're looking for the most recent swing high again that chap tapped on our trend line.

So, this would have been it. So, if we waited for this to happen, we would have entered above here, stop loss

56:50

below the recent swing low and target a high. But because when we came down to the five-minut time frame, you saw price respected it here on this fivem minute time frame and sold down off of it.

We can actually just wait for price to break above this new recent swing high, enter

57:08

into the trade, stop loss below the recent swing low. This is the recent swing low.

So, we put our stop loss below here. And we could target this swing high right here.

We could target this swing high up here. We could target more swing highs up

57:23

here. We could target any of these areas depending on what risk-to-reward ratio we want to have and how long we want to hold the trade and also how much volume's in the market um and things like that.

So if we held to this swing high up here, we would have had a 2.9 basically a 3:1 risk-to-reward ratio

57:39

which is uh really good. So that's exactly how I would have entered it on the five minute time frame.

Now if I I can actually keep these on. If I went to the one minute time frame and I wanted to see the same exact thing, we basically see it right here.

Just a little bit more noise for the most part.

57:56

So, we had this is that same point that we wanted to swing high above. We got that rejection down.

We would have just entered on the break of this swing high right here. Entered on it.

We could have put our stop loss. This is the recent swing high that we took on the 5minut time frame.

But you see we had a little

58:12

bit of a sorry, the recent swing low that we took on the five-minut time frame. But you see that we had this little swing low right here on the one minute time frame.

If we wanted to um not risk as much money, we could. But realistically, in my personal opinion, if I was trading this strategy, I would

58:28

use this one right here. Just giving my trade a little bit of breathing room.

For the most part, I would have put my stop loss right below here, take profit right above here, and targeted any of those areas that I was trying to target. So, it's the same thing that we're seeing here, except that was on the uh

58:44

one minute time frame versus looking on the five minute time frame. Now, you can use this strategy on the 15-minut time frame as far as look um looking for your uh squeeze setups on the 15-minut time frame.

It's just that your win percentage, which basically means how

59:01

many um wins or what's your winning percentage, the amount of trades that you take, how many of them actually win. Your win percentage would drop if you use the 15-minute time frame.

You will get more trade opportunities, but your win percentage will drop. And um to me, it's not really worth the risk for the

59:18

most part. I'd rather just do it on the hourly time frame.

This is a good example of a squeeze strategy right here. You see we have multiple rejections on the up uh on the upper side right here on the five 15-minut time frame sorry.

And then on our lower trend line we have multiple rejections

59:34

right here. We have one rejection on top two three four five and on the bottom we have one two three.

It kind of just consolidated or um just went up and down up and down up and down on our trend line right here. So this would be our third one.

And then all we would wait

59:50

for at this point is for price to break above this swing high or break below this swing low because this is our most recent swing low. As you see, it broke below it.

We could have entered for a sell right here. Stop loss above the

00:06

recent swing high which is right here and targeted any of the recent swing lows. So we could have targeted right here which I probably wouldn't have targeted because the riskreward ratio is a 0.51.

So, I'd probably target somewhere over here where we have some recent swing

00:21

lows right here or a recent swing low right here. If you guys can see it right here.

So, I probably would have targeted there and that would have given me a much better risk-to-reward ratio. If I went for the first spot, it would be a 1.7 to1 risk-to-reward ratio.

If I went for the second one, it would be a 2.8

00:38

to1 risk-to-reward ratio. Um, and obviously, as you see, it continued to sell down, but this is all in hindsight.

I wouldn't have known that it would have continued to sell down. So, I probably just would have closed my position here and been perfectly happy with a 2:1 riskto-reward ratio.

Now, like I said,

00:53

this strategy is great for really any pair to trade on or um any futures contract or forex pair or stock or crypto that you want to trade this on. It's great for people who want to trade intraday.

Uh like I said, it's not too good for scalpers. I wouldn't really try

01:10

and um scalp this because it does need time to run to all these takerit levels or whatever take-profit levels you have. Uh so this is great for swing traders or scalpers that don't mind holding these trades a little bit longer.

Like this trade would have won completely in a

01:26

matter of 6 hours and 45 minutes. Um the first trade we took, let me find it.

The first trade we took would have won within a matter of 1 hour. So, it really just depends on

01:42

obviously how much volume is inside the market and how big your trade is. Now, the next strategy that we're about to go over is a perfect sculping strategy.

It's very, very simple, but you have to use hyenashi candlesticks. Now, this strategy is still really, really great for beginners, even though it does

01:58

require you to use hyenashi because I've systemized it so well where it's really just basically a checklist that if you follow this checklist, you'll be fine. You really don't have to understand hyenashi candlesticks much at all.

You just have to look for this specific pattern that I'm about to show you guys and enter on a specific candlestick. You

02:15

hold it for a specific amount of time and that's it. It's it's very simple.

was very easy to replicate. And that's why a lot of people I've been able to teach, regardless of they're complete beginners or they're super super advanced, have been able to use this strategy and start making hundreds if not thousands of dollars every single

02:31

day with it. Now, I'm going over my top three strategies, but I have multiple strategies that are proven to be profitable.

I'll leave a link for it inside the description down below so you guys can get my entire package of profitable strategies. I'm talking about the things that if you follow it systematically exactly how I show it

02:48

inside of the package that you would be able to get, you can start benefiting from it instantly. I have people who just started trading a week ago now implementing the strategies that I'm teaching inside of the strategies course that I have and they're able to consistently make hundreds like if not

03:03

thousands of dollars every single week as complete beginners. And obviously people who are more advanced traders are taking these strategies and are able to start making 20 30 if not $40,000 trading each and every month.

So um obviously I have many more

03:20

strategies. Like I said I'll leave that link for it inside the description down below of this video so you guys can get that for yourself.

But the main thing that I want you guys to understand with this strategy is that it's super super replicable. I believe replicable is the word.

Replicable is the word. It's super repeatable I should say.

And all we're

03:36

looking for is those pullbacks. So, you know that we we've talked about and I've said this probably like a hundred times during this video that the markets never just go straight up.

The markets go up, down a little bit, up down a little bit. It'll go down, up a little bit, down, up

03:52

a little bit. We are capitalizing when we see markets are going up and it's pulling back a little bit.

We're capitalizing when it pull back pulls back to capitalize and make money on the price going back up because we obviously see the market's going up and we know

04:08

we're just going down for a little bit of time before we're continuing to the upside. Same thing on a downtrend where we know price is going down and we had a small pullback up.

We're capitalizing on that small pull up pullback up and we're making money when we go to the downside.

04:24

So that's pretty much it. Now, how do we actually see that?

Like I said, this strategy is very, very, very simple. And what you do, the first step is go to the one minute time frame.

We're going to stay on this one minute time frame. We're not switching from this one minute time frame.

We're not doing this on a 5m minute, the 15, the hour, any of that.

04:39

We're going to the one minute time frame. We're coming to this dropped down over here to turn on our hyonashi candlesticks.

So, you'll click it to make sure you're on hyenashi candlesticks. And we're looking for pullbacks.

Uh, one more thing. Sorry, I forgot.

I don't even know how I forgot this. We have to have this indicator.

We

04:55

talked about this indicator already, the VWOP. The VWAP shows us where the market's going.

Remember I say we want to be on the right side of the market. So the VWAP is telling us if the market's going down or if the market's going up overall.

So the reason why the

05:11

VWAP is so important is because, and that's this blue line right here. I'm going make this um let's make it black.

Um, the reason why this this the VWAP is so important is because we need to know which direction the market is going in because we're only going to take buys

05:26

when mark the market is above the VWOP and we're only going to take sells when the market is below the VWOP. So, if I see a pattern that's telling me I should sell, but we're above the VWOP, I'm not taking it because we know that ultimately we're in a uptrend.

We're going up. Uh, same thing vice versa with

05:43

sells. I'm not going to take any buy opportunities if we're below the VWAP.

I'm only looking for sell opportunities because the market is going down. Now, we also need to see market structure above the the VWOP or below the VWOP before we make any decision.

And what I

05:58

mean by that is let's say we're trading below the VWAP and we break above the VWOP and we get that pullback. I would not take this first pullback up.

This first pullback up is creating market structure above the VWOP. It's creating a new high above the

06:15

VWOP, which is telling me that we're probably going to stay above the VWOP because what can happen sometimes is let's say we're below the VWOP and we go above it, we can pull back all the way below the VWOP and that would make us lose on our trade. So, we want to see that market structure letting us know

06:31

that price is most likely going to stay above the VWOP and then vice versa with sells. We want to see it come below the VWOP, make market structure, go down, and then have that pull back and we'd enter on that second pullback below or above the VWOP.

So that is very, very,

06:47

very important. We need to see market structure above the VWOP for buys and market structure below the VWAP for sells.

So what are we looking for? We're looking on highashi candlesticks.

We want to see at least two clean

07:03

pullbacks. So right here, we're obviously in a downtrend.

We created market structure, multiple market structures, as you see, below the VWAP. Even though we broke above the VWOP here, we still did not stay above the VWAP.

So we're still below the VWAP. We created multiple market structures below

07:18

the VWOP. We're on our one minute time frame.

We're on highashi candlesticks. Now we're waiting for that pullback.

So remember, we're we went up a little bit, down a lot, up a little bit. Now we're waiting for it to go down a lot.

And we're entering on that period when it's about to go down a lot. So we need this

07:35

pullback. And what signifies a clean pullback for me is at least two hyonashi candlesticks.

These are all hyenashi candlesticks. At least two clean hyenashi candlesticks that have no wicks on the bottom.

They are going to have wicks on the top, but they have they can

07:52

have no wicks on the bottom. Now, this is vice versa if we're looking for sells cuz we look for candlesticks.

If we're above the VWAP, we want to pull back uh because we're going up. So, we want to pull back a bearish hyenashi candlesticks, which will look like this.

We want two clean at least two clean

08:08

bearish hyanashi candlesticks, which have no wicks on the top. That's we're looking for buys.

But since we're looking for sells, we want a pullback that has at least two clean, which is no wick on the bottom hyanashi candlesticks. As you see here, we have one, we have two, we have three, we have

08:26

four, we have five, we have six, and we have seven. They do not have to be consecutive two in a row.

I'd rather them to be consecutive, like we have here, two clean candlesticks, I'd rather see that. But if it's not consecutive, as long as that pullback has at least two clean candlesticks, I will take the

08:43

trade. So, once we have at least two clean candlesticks, our RS are open.

Ours are open because we're looking for our entry candlestick. We're looking to see that price is going to reverse.

And how do we know that price is going to reverse? We went over this earlier inside this video.

We look for sign of

08:59

hesitation or a reverse candlestick. And what that candlestick looks like is a dogee right here on the highashi candlesticks.

We have our long wicks on the top, long wick on the bottom, and small body. This is the entry candlestick.

So, as soon as we have our clean pullback and then we get a dogey

09:16

candlestick, we enter into the trade. Now, we cannot enter into a regular dogey candlestick.

We need a high volume dogee candlestick. Now, what that looks like, you can put on your volume indicator like we talked about before, or you can just look at the candlestick.

If the size of the

09:33

candlestick is bigger or equal to the candlesticks before it, I'd like to say the last two or three candlesticks before it, then that is high volume in comparison to the candlesticks before. That's what we look for.

So, this dogey candlestick is bigger than the

09:49

candlestick before it. It's bigger than the candlestick before that one, before that one, before that one, and it's about the same size of the candlestick before that one.

But as long as the dogee candlestick that we see is bigger than the last two or three candlesticks as far as the size of it, that is

10:05

considered high volume and we would enter on that dogee candlestick. Now, one thing to keep in mind, if it's a small dogee candlestick, we do not enter.

I don't care if everything else lines up perfectly. We're below the VWAP.

We're above the VWAP. We have the clean candlestick pullbacks, but then we

10:21

get a small dogey candlestick. We ignore it.

We're not trading that. That is not the strategy.

You will most likely lose. This strategy has a very, very, very, very high win rate.

It's because you have to follow the exact steps that I give you. So, um, like I said, we're

10:36

going to enter on that high volume dogey candlestick right here. Our entry would be right here.

as soon as this candlestick closes. So, as soon as this one minute timer is up, as soon as that one minute candlestick closes, we enter into the trade, we always put our stop loss above the dogee candlestick that we

10:52

entered into just like this one above. If we're looking for sells and obviously if we're looking for buys, we put it below.

And we're always going for a one:1 risk-to-reward ratio. As you see, we're not at a 1:1 risk-to-reward ratio.

So, we're not targeting recent lows. We're not doing any of that.

We're

11:08

always going for a one:1 risk-to-reward ratio with this strategy. As you see, this trade would have won.

And this is a scalping trade. This trade ended in 3 minutes, and we could have made a good amount of money with that.

We had other opportunities here. So, you see, we didn't enter on

11:23

this pullback because we did not get our two clean candlesticks to the upside. Same thing here.

We did not get our dogee candlestick. This is not a dogee.

We had our two clean candlesticks. In this example, we have three, but we did not get a dogee as our next candlestick.

11:39

If we get a candlestick that looks like this and then we get a dogee, I'm still not taking it. I need it to go from being clean candlesticks into a high volume dogee.

I don't want to see a little dogee and then a high volume dogee and I'll enter on the high volume. I want to see the

11:54

clean pullback and then our high volume dogee just like this one. Um, same thing with this example right here.

We had our pullback, clean candlesticks to the upside. We got a small dogee right here.

Some people if they did not follow the strategy, possibly could have entered on this small dogee right here and

12:10

instantly ended up losing that trade. But we know to wait for a high volume dogee.

We had price come up here, give us our two clean candlestick pullback minimum, and then we had our high volume dogee would have entered right here, stops right above here. Price got close

12:26

to taking us out the trade, but it reversed. we would have went for our 1:1 um risk-toreward ratio and that trade would have won.

You can find a lot of these examples or a lot of these opportunities every single day while you're trading. As I mentioned before,

12:42

this strategy can be traded on any pair similar to every single strategy we went over so far. This could be traded on any pair.

I just suggest for you to use it on high volume pairs. Now, some examples of high volume pairs are going to be NQ, ES, YM, gold, which is GC, that's the

12:59

futures version of gold. Um, you can also trade it on forex if you like GBP, JPY, um, GBPUSD, uh, USD, JPY, just high volume pairs because this is a scalping strategy.

You don't want to have to hold this for 20,

13:15

30 minutes because there's no volume in the market or it's something that moves slow. NG, which is a futures pair that we've went over before.

Natural gas. It's a very slowmoving um instrument.

I don't use this strategy on NG. I have a couple students that use this strategy on NG.

I personally just don't do it

13:31

because it just moves too slow for me. Like this trade, we were in and out this trade in 5 minutes.

Um this other trade that we took in and out of it in 1 minute. Um with NG, sometimes you'll be in it longer, like 7, 8, 9 minutes.

I personally just don't really want to do

13:47

that. um specifically because I am scalping.

So um yeah, we have another example right here. We had our clean pullback to the upside.

We had this dogey candlestick. Now this dogey candlestick was high volume.

It's bigger than the candlestick before it. It's

14:03

bigger than the candlestick before that one. It's smaller than the candlestick before that one, but it's bigger than the the most recent two, which is perfectly fine for me.

Enter into the trade. Stop loss right above that dogee.

Going for a 1:1 risk forward ratio. and the trade hit.

Now, you see we have

14:19

another example right here. Beautiful, clean pullback to the upside.

Keep in mind, if I see this candlestick, this is good that this actually showed up. If I see this candlestick, if you see it has a super super small wick on the bottom, if I see this candlestick right before we have our high volume dogee, I'll

14:34

still take the trade. As long as this doesn't as long as the wick on the bottom isn't bigger, something like this, and it's looking a little bit more like a dogee, I I will still take it.

So, as long as it's like a small wick on the bottom or something like that, I'll

14:49

take it. But we wouldn't have taken this trade right here.

We had our clean pullback. We're below the VWOP, obviously.

But we wouldn't have taken this because this Dogee candlestick is not high volume. This Dogee candlestick is smaller than all the candlesticks before it except for this third one,

15:05

which it's basically the same size of. So, I would not have taken this one.

And um I just not would not have taken it because it's not a high volume Dogey. It's very important even though this one, it's still very important to wait for everything to align perfectly because even though this one won one, there's it's going to drastically bring

15:22

down your win rate if you go for these low volume risk-to-reward ratio trades. Now, this is all bearish examples here.

We can find some bullish examples where we're looking for buy opportunities. Um, let me see if I can find some really quickly.

All right, so we're above the moving average right here. Obviously,

15:39

we've created market structure above it. Now, we would just look for two clean pullbacks to the downside before getting our high volume dogey candlestick to the upside.

Here is a perfect example of one right here. So, we had um price come up, then we had our two clean candlesticks

15:55

to the downside cuz remember we're looking for buys now. So, we had our two clean candlesticks to the downside.

Then we had our high volume dogee right here. As you see, this dogee is bigger than the candlesticks before it, which is good sign.

would have entered on that

16:12

stop loss right below that dogey candlestick going for a oneto one risk-to-reward ratio and this trade would have won. Um there's a bunch more examples.

This strategy setup happens so many times throughout the day. This is one of the strategies that is absolutely

16:28

amazing for new traders. A lot of new traders love it because it's so systematic.

You don't even have to really understand candlesticks. As long as you have eyes and you can look for the clean pullbacks, you can know that you're above the moving average or below the moving average.

As long as you can

16:43

use your eyes to see that this dogey candlestick is bigger than the other candlesticks before it, it's very systematic. It's very easy to use and it is it is extremely profitable.

This is one of my favorite strategies to use if I do want to scalp. It's literally the only strategy that I use if I do want to

16:59

scalp and it's an absolute killer. So, for the most part, that was my top three strategies.

Like I said, I have a whole catalog of tested and proven profitable strategies that depending on your personality, might fit you more than the strategies that I went over um or treat

17:17

fit your trading style more. If you guys want access to those strategies, I'll leave a link for it inside the description down below.

But with this these three strategies, it is a great starting point to be able to start literally printing money from the markets. Now, these strategies are

17:33

great, but you have to understand how to use them. And as new traders, it's important that you test them.

Now, the best way to test any strategy or get used to trading is with back testing. We're going to talk about what back testing is, how to actually do it.

I'm going to show you guys how to do it the

17:49

most efficient way. So, first of all, what is back testing?

Back testing allows us as traders to basically test our strategies, get good at drawing support or resistance without having to wait each and every day to do it. Get good at entering trades, get good at

18:05

looking for those dois, looking for those um trend line breaks, looking for all these things without actually having to wait in the markets to do it. Because realistically, as a day trader, you're with whatever strategy you're using, let's say with the ultimate support or resistance strategy, maybe you'll get three stra three setups a day.

That

18:23

means you get three practice attempts a day. It's going to take a while for you to get comfortable with the markets.

If you're just looking at three setups every single day versus if there's a way to look at a hundred setups in one day, that's how you're able to beat that

18:39

learning curve and get much more comfortable inside the markets as traders. Now, how do we actually do that?

So, on Trading View here, there's this replay feature. I told you guys when I'd be going over it, there's this replay feature.

you I believe is for the paid version of trading trading view but

18:55

there is another website that you can go to which you do have to pay for it's called fxreplay right here fxreplay.com it's a good website for back testing as well it basically does the same exact thing I'm not uh sponsored by them or anything like that just putting this out there um but it

19:13

does the same thing as this replay feature but what this replay feature does on Trading View when you press it allows you to go back in time so let's say I press right here. It deletes everything that was before then.

That way I can't see it because yeah, you can scroll back and be like, "Yeah, this is

19:29

an easy support zone, right? Or easy resistance zone.

I would have just sold right here as soon as I saw this candlestick and it would have just dropped all the way down and I would have made $100 million." But this goes back to the saying that I said uh a little while ago that hindsight is always 2020. It's very easy to to know

19:46

what the market's going to do when you can see what the market's going to do. Versus if you use this replay feature and you're back here, then you're really testing to see, okay, I'm actually going to try and see what's going to happen when it taps into my zone here.

Would I

20:01

really have sold here? Would I really have done anything at this area?

And things like that. So, how do we actually do this and use this replay feature?

Let me run through that really quickly and then I'll show you guys how I back test it. And uh you can do this on any pair, any strategy.

Um but you'll hit this replay feature.

20:18

You'll see this blue line will be your corser now. It's like a snippet tool.

You'll press anywhere on the chart. And what I like to do, honestly, I like to close my eyes or scroll up where I can't see any of the candlesticks.

And just go back to a random spot. So I'm I'm clicking on my wheel.

I'm clicking on my

20:34

mouse and dragging. So it's dragging the screen over.

So it's something I can't see. Then I'm just going to click somewhere random.

Right once I click that place random, what I'll do, I'll hover over here and press this reset chart view or I'll right click and press reset chart view. And that'll bring me

20:51

to where the candlesticks are. It or show me where the candlesticks are.

Now here, what I do is I go to my indicators and I'll throw on that kill zones because I only want to back test during the time frame that I'm actually going to trade. And you guys remember the indicator that we went over.

The kill

21:07

zones indicator tells us exactly what time we're at, what session we're in. So, let's make my kill zone uh red here.

Let me just edit these settings because it's um a little bit off. Actually, let me make my let me go to my usual template

21:22

that I use. Uh this one.

Boom. All right.

So, this is usually how my charts look. I like my candlesticks.

You can edit all this if you right click on your trading view screen and go to settings. Under symbol, you can change

21:38

the color of your candlesticks to whatever you want them to be. Um, for me, I have my bullish candlesticks, as in what would usually be my green candlesticks.

I have them as white, and I have my bearish candlesticks red, which is how they usually are. Uh,

21:53

that's just the color preference I like. I like red and I like a black background, so I had to make my my other candlesticks white.

But anyways, um, so let's let me let me scroll back here and plus this replay feature again. If you

22:09

do, if it's already blued out and you don't have that blue cursor over, if you look on the bottom of your screen right here and press select bar, it'll bring it back up. So then you could just drag and scroll anywhere.

I know for me using my kill zone indicator that this red line is when New York session starts.

22:25

And I know that I trade New York session. So, what I'll do is I'll go a little bit before that red line starts and I'll click.

I don't know what this there is on the chart right here. It's just a bunch of candlesticks right now.

Um, and then at this point, I'm going to

22:41

start practicing drawing my support or my resistance zones. So, what do we do first?

We'll go to our 1 hour time frame. This just gets you practice at marking up your charts.

So, let's say this is a this is really not a good spot to be. This is a previous support zone that we see price broke below.

We could

22:57

wait for it to tap back into that. We see we have a support zone right here.

We where we have two rejections off of right here and right here. We see that we we don't really have a squeeze or anything going on.

This is really the main two zones that's

23:12

in front of us. And this is how I'm back testing.

I'm just going back in time and doing this. So then I'll go down to maybe my 15minut time frame or my 5m minute time frame and just see what the candlesticks are looking like.

Um, back here on my hourly, we have this little uh station under here. Same where we

23:28

press select bar. We we can actually press play right here and you'll see it'll move the ca it'll play the candlesticks automatically.

Um, go select bar and reverse back. It's right here.

Um, it'll play the candlesticks automatically. Or what I like to do, I'll press this

23:45

little skip forward uh button and it'll just print one candlestick. It'll just put one candlestick.

This moves a little bit too fast for me when I press play. So, I don't really do that.

Um, you can adjust it over here where it moves a little bit slower. So, I can actually make it go um 1x, which if I press play, it'll then

24:02

do one candlestick a second. Um, and things like that.

But, I'd rather just press this uh the skip forward button. And over here on the replay interval, right now, we're obviously on the 1 hour time frame.

So, right now, if I press this skip button, it's going to re re

24:19

it's going to load a one hour candlestick. Let me show you guys.

It's going to load a the next 1 hour candlestick. But if I wanted to, let's say, load the next five minutes or go forward another five minutes instead of a whole hour, I can press that and

24:34

you'll see these candlesticks start changing. So you see this one.

Then I'll press it again. This is the same hourly candlestick, but we're just moving forward five minutes instead of by a whole hour.

So we're not seeing a whole new candlestick. We're just seeing the movements on the candlestick as I click and click.

Now, if we go to the fi

24:51

15-minut time frame, we can do the same thing. We can change this so it goes up um 15 minutes, 3 minutes, 1 minute, or we could just press same as chart.

That way, whenever we switch, it's like the 5 minute, the 30 minute, the 1 hour, um

25:06

every single time we press this skip button, it'll skip forward whatever time frame we're on. So, let's say this is the um we're waiting for price.

Let's go back to where we were on the hourly time frame. Let's go back here.

Let's say I'm waiting for price to tap into my zone

25:22

right here or my zone up here and I'm going to make an action based off of that. We know we're going to enter on the one minute time frame.

And this is this is assuming I'm back testing my ultimate support and resistance strategy that we just went over. We have our zones drawn out.

We have our supports.

25:38

We have our resistance. So then we know we go down to the one minute time frame and we wait for entries.

So let's fast forward here a little bit. See if we get price to tap into either one of our zones here.

Let me just skip forward a bit. I believe it's going to tap into

25:54

this low point right here, probably close to market open, which is at 8:30 Central Standard Time. All right.

So, tapped into my zone here. So, I could be like, okay, according to this strategy, I'm supposed to enter on a recent swing high, on a

26:11

break of a recent swing high, or a recent swing low. So, these right now are our recent swing highs.

So this is the candlestick. Technically, I would have gotten I would have entered into the trade right here.

So this is me practicing it. I would practice drawing my uh support zone right under here.

I

26:27

mean, sorry, my stop loss right under here. And let's say I want to target a recent high.

There's a recent high up here. There's a recent high right here.

Let's say I target this one right here. And let's see what happens.

We skip forward. Skip forward.

We can skip forward faster. And

26:44

this trade would have hit. This is how we back test.

We didn't know that this was going to happen. We didn't know that price was going to bounce off of here.

So, we can't say we knew that was going to happen. Um, this is how you correctly back test because you don't know what's going to happen beforehand.

Now, I can do this again and we'll scroll back

26:59

again to a random time right before market open. We'll go to the hourly time frame.

And I'll let me mark up my charts again. So, I see I see a resistance zone up here.

Obviously, I see we actually have a trend line down here. Multiple

27:16

touches at this trend line. Actually, if we were here a little bit earlier, we could have seen this squeeze play out cuz you see we have one rejection here, two rejections, three rejections on the bottom trend line.

We have wrong rejection here, two rejections here, three rejections here at the top upper trend line. And you know, according to

27:33

the strategy, we would have waited for a break of this swing high, which is up here. But I don't trade.

This is at 2:00 in the morning. I'm sleeping at 2:00 in the morning.

So, I know I wouldn't trade that and that's why I use the kill zones because I don't want to back test my strategy during the London session when I know I don't trade. So, um now that we

27:50

have all this on our chart, now we'd wait for market open to happen. So, this is market open happening right here.

Let's go down to our fivem minute time frame. So, we have this as our uh resistance zone right now.

Now, we can actually wait for price to tap back into this area to see if it does. Fast

28:07

forward. It tap back into this area.

Now we can see if it can break any of our recent swing highs. So right now we don't really have any recent swing highs.

Let's see if it creates some. Nope.

It's just selling down below it. So I just this is I just wouldn't

28:23

have traded this because according to my strategy, I I needed to break a recent swing high. And right now it broke out of my zone, which means it's not respecting my zone anymore, which means I just have to wait for another setup to happen later on.

Um let's see. Right now, it's breaking to the bottom of this

28:38

trend line. Let's say I was practicing to take a break out of the trend line.

I could have been like, okay, when it comes to break below this recent swing low, which was right here, and the back testing is going to work the same no matter what strategy you're back testing. I'm just showing you guys examples of any strategy.

So, let's say

28:55

I'm waiting for it to break below here. Let's see if it comes down here.

All right, it broke below it. This would have entered me into the trade.

Let's say I put my stop loss above the recent swing high. Recent swing high is right here.

I'm now in the trade because

29:10

it broke below here. And let's see if it goes to my stop loss or it goes further down.

And now it's just consolidating and this would have lost. So what I'll do is I have to journal my

29:26

trades. I have to journal what time I took them.

We're going to actually dive in um in depth exactly what you want to journal, but I want to get it out the way so you guys or get this part out the way so you guys understand how to actually do the action itself as far as using the replay as far as knowing you're coming into this trading at the

29:42

time that you would actually trade. Um marking up your charts, practicing drawing out your support and your resistance zones and things like that.

And then what happens is let's say you have a rule where every single day you only take one trade. No matter if you win or lose, you only have one trade.

29:57

That's perfectly fine because then you'll come over here to the hourly time frame. And what you're going to do, let's say after you took this trade here, let's say we lost this trade right here.

I'm just going to skip forward. I'm going to skip forward until I see my yellow line or until I see the candlestick that we're on is getting close to market open or sorry, getting

30:14

close to New York session, which is the session I trade. And then we restart.

So then we draw our support zone or sorry, we draw our resistance zone right here. We draw that we have a support zone right down here.

Um, we go forward. Let's see.

This is 7

30:32

o'clock candlestick. So, let's fast forward just a little bit.

All right. Now, we're at 8:00.

So, now we have these two zones. We'll watch and see.

Go to the one minute time frame. So, we're making these higher highs in here.

Never made a new high. Now, we had

30:49

price come back into our zone after breaking out of it. We made a high right here.

Let's say we're trading the ultimate support and resistance strategy or we're back testing it. We would have entered right here.

We would have put our stop loss below here. Let's say we targeted here.

I personally probably wouldn't have taken this trade. Um just

31:05

cuz this is close um to it breaking out of this zone at market open, but that's fine. Let's say we did take this trade and price is going up up up down down up.

Let's see if it hits the full take profit area.

31:22

This is taking a hundred years and it's reversing back down. But um let's say that this was our takeprofit up here or let's say we targeted this recent swing high.

I don't even know why I targeted up here. I should have targeted a recent swing high which was here.

That trade would have

31:37

hit. That trade would have won.

We would have um written that down and all the different things would hopp in exactly. We're going to hop in.

I'm going to show you exactly what you guys need to um track every single time or write down every time. But this is how I back test.

I start off with, like I said, closing

31:54

my eyes, clicking a random time. I'm only trading during my session.

If I know I'm only going to take one or two trades a day, after I take those one or two trades a day, I'm just going to fast forward until I get to my

32:09

um until I get to London session again or I start getting close to uh my red line, which is my red line starts at 8:00. Um, but let's say when I get to 7:30 because I know that's usually the time when I wake up and start marking up my charts, that's what I will do.

Now,

32:25

if you want to back test highashis, um, Trading View actually doesn't let you do this. It will block you.

Like, if you press it, it says bar replay isn't available for this chart type. Do you want to exit bar replay?

Um, so it won't actually let you back test hyenashi candlesticks. But there is a workaround

32:42

for it because if you wanted to back test any of the strategies with hyenashi like let's say the um the scalping strategy that we just went over or any of the other strategies that's inside my strategies course that I told you guys about before. Um a lot of them use hyenashi candlesticks just cuz it they work so well with hyenashi candlesticks.

33:00

Um but if you want to back test it training view really doesn't let you do it. So you have to do the workaround and this is the workaround.

It's very very easy actually. So on regular candlesticks here, go to indicators and type in

33:15

Hiken Ashi candle overlay just like this. It's by this person named B Jorgum.

You'll press it right here and you'll see look at the candlesticks. You'll see their change cuz it put it put an indicator that looks and acts

33:31

just like hyenashi candlesticks. It put that over your regular candlesticks.

Now as you see this looks a little bit weird. It's kind of messed up a little bit.

You'll see different colors. So, what we do to fix that, we'll right click on our charts right here.

We'll go to settings. We want to basically hide

33:47

the regular candlesticks so that we only see the hyenashi candle overlay indicator that we just put on. So, how do we hide the regular candlesticks next to when we're on the symbol tab?

Make sure the body the borders and the wick are

34:02

unchecked and that'll hide them. So then as you see now all we see is hyenashi candlesticks but the trading view we are on regular candlesticks so we can use the bar replay and we can back test with it.

So that's the workaround to be able to use hyenashi

34:19

candlesticks. Um on trading view on FX replay you don't really need to do that that workaround.

They let you back test with hyenashi candlesticks. But if you wanted to use trading view to back test that's simply how you do it.

You put on that indicator. You don't have to change any of the settings in the indicator

34:34

unless you want to change the color of the candles or anything like that, then you could do that, but you really don't have to. Um, and then obviously just to turn back on your regular candlesticks, you'll right click, press settings under a symbol, just turn back on your body, your border, and your wick.

And then um

34:52

if you don't want this indicator on anymore, you can either press the I thing so it's hidden or you can just press the trash can and delete it and read it back on um later if you want to. Now, let's hop into the things to track when it comes to back testing because yeah, doing all this is cool.

Practicing

35:07

drawing your support, your resistance zones is all cool, but you need to be able to track it. Trading is all about data.

We need to see the data. We need to know what chances, what's the likelihood of us winning this trade every single time we enter a trade.

What's the likelihood of us losing this trade? When's the best time to trade

35:24

this strategy? Um, what's the best day to trade this strategy?

How long should I hold this strategy? Should I always hold it to a one:1?

Should I always hold it to a two to two? So, we need the data to be able to do that.

Let's hop into the data that we track and how we actually track that. So, I made a nice

35:40

spreadsheet here for you guys. Not spreadsheet, what is it called?

PowerPoint. Yeah, I made a nice PowerPoint for you guys here.

Um, how to find, test, and optimize a profitable strategy. Obviously, I've given you guys proven profitable strategies, but if you're testing your own strategy or if you're using any of the other strategies

35:55

that's inside my strategies course that I mentioned to you guys, um this is how you would do it, right? So, the first thing to finding a profitable strategy, almost any strategy can be profitable with the right risk management.

So, find your favorite type of strategy, whether it comes to support and resistance,

36:11

supply and demand, which we'll get into a little bit later on, or breakouts, etc. Look for patterns on the chart that you notice from back testing or using someone else's strategy.

If you found your own strategy from doing your back test and you've noticed patterns that seem to play out a lot, um you can use that and start back testing it or

36:28

somebody else's strategies. If you found a strategy on YouTube, if you found one of my strategies or wanted to use one of my strategies, things like that.

And then once you do that, you need to set clear rules for your strategy as far as what are your risk-to-reward ratio. Are you always going to go for 1:1?

Because you want to track all this. Are you

36:44

always going to go for one to one? What do you need to see to enter a trade?

What do you need to see to exit a trade? Etc.

Things like that. So once you have that downp packed, how do you test the strategy?

The first step is to back test, back test, back test, back test, and keep back testing. There's so many

37:01

people that come to me and try and get inside my inner circle, which is uh like my personal coaching program where I trade live with people every day. They can follow my trades.

They have one-on-one access to me to ask me questions, things like that. A lot of people come to me in my inner circle that want to be profitable, that want to

37:16

make 10, 20, 50k a month with trading, and I ask them how much time they put into back testing, and they say, "I don't back test." When I hear that, I know the person's not serious. And the reason why I know they're not serious is it's because, picture this.

Imagine a basketball player where the only time

37:33

they play basketball is when they had a basketball game. They never went to practice.

They never practiced shooting except when they were in a game. they are going to suck compared to someone who plays basketball and practices basketball every single day regardless if they have a game or not.

It's the

37:48

same when it comes to trading. If you're not back testing, if you're not putting the time into back testing, you're only relying on getting those reps in when you're actually trading in the live markets, you're not getting enough reps in.

You're getting, like I mentioned before, three, four, maybe five trades a

38:04

day. Versus with back testing, if you spend an hour back testing, you can go through 20, 30, even maybe 50 days worth of data.

You know how many trades that is? You know how much confidence that builds in you?

How much practice you get into actually trading and drawing support or

38:20

resistance, practicing your entries, seeing trend lines, seeing breakouts, seeing your strategy play out, seeing your trade lose, seeing your trades win. You get so much more confidence in your trades simply by back testing and putting the time to back test.

So, you have to back test. And when you back

38:36

test, you need to keep track of the metrics. How I like to keep track of them, you can have this on a notepad.

You can create yourself a spreadsheet. Um, there are apps that you can use to track your back testing data.

But in simplest terms, you can write it on a on a piece of paper, but you want to write

38:51

what date you started back testing as far as if you when you closed your eyes and did that bar replay, it was June 3rd, 2024, right? Write the strategy that you're also going to be back testing that time.

So, you're going to be writing, okay, from June 3rd,

39:08

whatever. I'm writing I'm back testing the um ultimate support or resistance strategy.

You have that data. That's your headline at the top of your paper or the top of your document or whatever.

And you want to track every trade you take, the wins, the losses, the days where you have no setups as far as there

39:24

was no trades that happened um because you just didn't see the opportunity. You also want to track small key points for each trade.

So, like this trade had the perfect setup. everything aligned perfectly.

It did everything. It It did exactly what I wanted to do as far as it

39:40

touched my support zone. It gave me my breakout of a swing high or swing low, whatever it is.

Um or writing things like it was low volume, like the trade moved super super slow, or on this day we had a lot of fundamental news come out. You want to write all that because

39:56

that's extremely important. It's kind of like adding tags to your trades.

Now, the next thing you want to do is back test at least 50 days of trades on each strategy. So, if you're trading this this the ultimate support and resistance strategy, back test at least 50 days worth of trades, not 50 trades, 50 days

40:14

worth of trades because there'll be times when you are when you have a a trading day and three times your setup popped up. Um, when I mean 50 days of trades, I'm not talking about you sitting at your chart, your computer for 50 days.

I'm talking about if you started on June 1st, 2024, you'd end it

40:31

on whatever 50 days of that is, whatever that that date um is. 50 days of that, right?

Um and then you want to calculate the results at the end of your session. So, calculate how many wins you lo had.

Um calculate how many losses you had,

40:46

calculate how many trades you took total. Then you want to get use that data to get your win percentage.

So, did you have a 60% win rate? Did you have a 3% win rate, a 30% win rate, whatever it is, you want to also calculate and track your no trade days.

How many days were

41:01

did your setup just not show up? So, you want to track that as well.

You also want to track your RR profit. And basically, all an RR profit is is your risk-to-reward profit.

So, we went over on the chart showing you guys drawing out your long or your short positions. And you saw that little thing that said

41:18

risk-to-reward ratio. Um, like for instance with the the scalping strategy that we went over, you're always going for a one one, but with the ultimate support and resistance strategy or the the squeeze strategy, you could be going for a 2:1, 3 to one, 4:1, 5:1.

So, you want to track not just your your um your

41:36

wins and your losses, but track your RR profit. So, and the reason why that's important is because a lot of times if you're using if you're risking the same amount of money on every single trade, let's say out of the 50 days you took a 100 trades, right?

And you know, every single trade you're risking $100 on it,

41:53

right? You took a 100 trades and you had a 50% win rate, but every single trade was a 2 to1 reward ratio.

So, every loss is a negative one RR because it's always going to be a negative one RR on a loss because that's how much you're risking.

42:09

And every win could be, let's say you went for a 1:1 risk ratio, that's a positive one. Or you went for a 2:1 risk- ratio, that's a positive two.

So, every win could be like a plus two plus three plus one plus two depending on the risk-to-reward ratio. So then you would

42:24

take that number, you take how many losses you had and the amount of RR as far as your risk-toreward that you profited at the end of it and you want to see that number. So in that instance where out of the 50 days you took 100 trades and let's say you always went for a 2 to1 risk-to-reward ratio.

So you had

42:40

out of 50 out of 100 trades you won half of them. So it's 50 times 2 because you had a two RR.

You always went for a 2 to1 risk-toreward ratio every single time you won. So then you're at a 100 RR, but then you have to subtract all your losses, which is a one RR each

42:58

loss, and you had 50 losses. So at the end of the day, you'd have a 50 RR positive.

And the reason that number is important is because no matter what you risked, let's say during that period, starting June 1st all the way to May 20th or whatever it is, um, all the way

43:14

up to that period, if you risked $100, you know, you would have profited a 50 RR, which 100 times 50 is 5,000. Hopefully I didn't lose you guys in that.

Um, a simpler way of tracking it as well if you don't want to track the RR profit is if you just say every

43:30

single trade I risk $100 and every single trade I'm planning on making $200, something like that. And you can just track that profit at the end of the day.

But you want to have that just so you can see for yourself what is the profitability of that strategy outside of just looking at the win rate itself.

43:46

Um, another thing you do want to track though is the amount of ticks that you won or lost on that trade. So I mentioned to you guys showing you guys that long or that short position.

You can see that middle number is going to be the amount of ticks. So if every single like on each trade, right, I

44:03

think I go over it here. No, on each trade, you're going to see the amount of ticks here, right?

So if we come here and let's say this is the trade you risked 29 ticks to make 127

44:21

ticks. This is an example obviously.

Um if you lost this trade, you'd write in your journal. Um let's say what day is this?

March 24th. I took this trade

44:37

at 100 p.m. Um and let's say I lost.

I put this all on one line. Sorry.

March 1st, 1 p.m. loss, right?

And then I lost. So, I'd be negative on this example, I lost

44:52

29 ticks. Negative 29 ticks, right?

And then let's say I'm typing it out and I'm saying my key t my tag on it was low volume, right? That let's just say that was my tag for example.

This is

45:09

a quick simple way of how I would actually um journal my trade. Now, let's say I took another trade on this day.

So, I say March 24th. Let's see.

I took this at 2 30 43 uh p.m. I

45:26

won. Let's say 253 ticks.

Perfect setup. This is what I write.

Now, keep in mind, I wouldn't really write this on the chart itself. I really have it on a notepad or like on

45:42

my phone or something like that or some other application uh because I want to be able to compile that information and see it without it being on my chart itself. But this is literally how I'd write it.

And once we do that um that's how we're that's how we're tracking it. That's how we're op going

45:58

to optimize our strategy. But coming over to the next thing is to actually optimize it because that was testing it and that's getting the data to test it.

But remember I told you guys the data is important but we need to be able to optimize that data and having that data um that we just went over and tracking that data allows us to optimize it. So

46:16

once we have went through those 50 days we're going to look over back testing written results and determine patterns from the small key points you noted. So if I noticed 50 out of my 100 losses I had a key point that noted it

46:32

was low volume because it was late in the day. that means I should probably not trade that strategy late in the day when there's no volume.

So, I can cut out those losses by not trading those things. And that's just small key points that you'll see.

And that's why we have we have we add those little key tags to

46:49

um each and every one of the strategies or each and every one of the trades that we take. Next, you're going to look over your back testing trades on the chart to see similarities between winners and losers.

What I mean by that is even if we didn't write a key point for a loser or a winner, we can look back on the chart. So, let's say we go back to our

47:06

chart here and see, okay, this trade we took right here, we won it. Um, but if we held it longer, it would have keep kept going up.

Well, this instance didn't keep going up, but let's just imagine that it kept going up, right? So, we could be like, okay, instead of

47:23

us always going for a one to one, we could probably always go for a 2:1 and that would make us way more money, right? Or we could be like, okay, we entered into the trade right here.

Our stop loss was right here and our take

47:38

profit was up here. And it's like, okay, I'm seeing and looking back on all my trades and I'm like, okay, 10 out of my 30 losses that I had, I got taken out of the trade.

It hit my stop loss and then it instantly went to my takerit. So maybe I should try making my stop loss a little bit bigger, giving my trades room

47:54

to breathe. That way, I don't lose as many trades.

So that's what I mean by looking over your back testing trades on the chart because we want to see the price action of each trade on the chart itself, not just the notes that we took. So once we do that, then we're going to look for patterns in our wins

48:10

that could allow for us to capitalize on our wins more. That's what I went over, which is holding our trades longer, scaling in, which means as price is going up, let's say we're in a buy and as price is going up, we're buying more contracts, more contracts, more contracts, the more we're believing in the in the um the trade or trailing our

48:29

stop-loss. Trailing our stop loss simply means, let's say we're in a trade right here, and as price is going up, we're moving our stop-loss up.

So, let's say price is going up here. Then, as it's going up, we're moving our stop loss up the same amount.

as price is

48:44

going I can't grab my line here. As price is going up, we're moving our stop loss up even more.

That's what trailing our stop loss means. It's just uh trailing it as price is going up.

It just helps you to minimize your risk. Um but then also we're going to look for

49:00

patterns in our losses. Um that could allow for us to lower our risk amount.

So patterns that we could look for is maybe moving our stop loss to break even once our trade goes halfway to our TP or maybe closing partials or trailing our

49:15

stop loss again. How I mentioned now this is a tactic I lo I use a lot as far as moving our stop loss to break even.

Um what we do what that looks like and the reason why that's so good is because it then makes the trade risk-free. So let's say I entered for a buy, right?

49:33

Let's say I entered for a buy right here, right? And originally my stop loss is right down here and my takeprofit is up here.

Halfway to my TP is somewhere probably over here. So, as soon as price hits this area, I'll move my stop loss

49:49

to break even. Basically, moving my stop loss to break even just means moving my stop loss to my entry point.

So, if I entered here, I'm just going to move my stop loss to here. That way, if price comes back down here, I'm not going to lose money.

it's just going to take me out of my trade basically where I entered at, which in turn makes me not

50:07

make any money, but I also didn't lose any money. That helps us protect our trades.

So, if you've noticed patterns in your back testing over the past 50 days of you back testing or however many days you trade, remember it's 50 days minimum that I suggest so you so you can get enough data compiled. Um, if you've

50:24

noticed patterns, that's like, okay, if it hits halfway to my takerit and then it reverses, majority of the time, if it reverses after going halfway, it goes all the way down to my stop loss. And our our job as traders is to protect our risk.

It's not to make money. It's to

50:41

protect our risk. So, if we realize we can protect our risk by when price moves to take take profit or not take profit, halfway to take profit, we can move our stop loss to take to break even.

That way we can protect us from losing any money on that trade at all. So that's

50:59

just an example obviously of ways that you can practice um or things that you can see from looking for your patterns in your losses on the charts that could help you make better decisions moving forward to optimize your strategy. Now getting into further optimizing your

51:14

strategy. Um back test with the new optimized versions of your original strategy for at least a 100 days.

Now, what I mean by that is let's say during that first optimization period, you said, "Okay, boom." Instead of only holding my trade for a one, I'm going to hold it for a 2:1 and then I'm going to

51:32

move my stop loss to break even when it hits halfway to my takerit. Let's say that's your new rules that you have for your strategy.

Now, go back test that new strategy doing those same steps, not on the same days. Do completely different days.

You can do those same days as well, but make sure you include

51:47

different days in there as well and see how it changes. see if your win percent went down versus what it was before.

See if your R um RR profit went up or down based off of what it was before. See if your overall total tick amount profit

52:04

went up or went down. See that type of data and if you're happy with the results, then start trading the new optimized version of the strategy um versus the other one.

Now, I how I suggest for you guys to take this to the live markets. Let's say you're back testing your a new strategy, one that

52:20

hasn't been proven versus one that I've given you guys or um one that you guys have gotten from my strategies course. Um is to take the strategy live in the markets with the smallest positions possible.

So instead of you trading NQ, trade MNQ. Instead of you trading ES, trade MES and only do one

52:37

contract. Do the smallest amount because you're just testing this.

Um and I suggest for people to test it for at least a month before going to normal position size. And while you're in this testing phase, continue to track all the same metrics from the testing phase.

We're going to get into this a little bit later on inside this video about

52:53

journaling and journaling on live um when you're trading live because it's very similar to when you're journaling your back testing. U but you need to track all this data and keep all this data tracked.

Um, so yeah, so with if you're happy with the results after you

53:09

fully optimized it, you went through the first optimization and then you back tested with that optimized version and then reoptimized it or you kept that reoptimized version. Take it to the live markets with very small positions.

Do that for about a month. Move over to

53:24

then trading on normal position size and continue to track the data from there. Now, if you're not happy with the results of your optimized versions, then repeat the optimization process.

go back, look at what things you could have made better um with the reoptimized version. Um let's say instead of you

53:39

jumping from a one to one risk-to-reward ratio every time, instead of you jumping from that to a 2:1, maybe try going to a 1.5 to one risk-to-reward ratio, maybe not moving your stop loss to break even. Um things like that.

Also, I forgot to mention this. So, if you do decide to do

53:55

anything where you move your stop loss to break even, make sure you track in every every single one of your trades that did go back to break even. Um, so the same way we were tracking our trades before with the um like the wins, losses, and things like that, track break evens as well.

54:11

Um, but yeah, that is how you back test. We went through exactly how to do it on charts, but the biggest part of it, I see a lot of people back test and they have no results to show for it.

they make no progress with their back testing because they're not journaling and optimizing their back testing. This is the most important part of back testing.

54:28

You don't just want to go in there and click random spots and draw random lines and boxes and all this stuff. You need to track the results.

That way, when you're trading live, you have the data. You have you you know every single time you click buy or sell that you have a 70% chance of winning this trade because

54:44

you back tested 200 days of this strategy. And over the course of those 200 days, 70% of the trades you took one.

That way you in your live trades, you're confident knowing that you can actually make or win 70% of these trades

54:59

or that if you follow every single thing that you did in your back testing results, you're going to win 70% of your trades most of the time. So that's how you back test, which is probably one of the most beneficial things that a lot of people skip past.

Um, another thing that

55:16

a lot of people skip past and we're about to dive right into right now is creating and having a trading plan, which you need to have this to be able to back test correctly or be able to even just be a professional or sorry, a consistently profitable trader. Now,

55:31

before we hop into how to actually create a trading plan, why is a trading plan so important? Here I am again with my perfect uh slideshows.

A trading plan allows you to have uh risk management. and it helps you have a defined riskmanagement strategy that will help ensuring that you don't expose yourself

55:47

to extreme risk on a single trade or over time. So risk management al risk management means in simple terms is managing your risk, making sure that you're not losing more than you're supposed to.

You're risking a consistent amount. You're risking a known amount.

A lot of people will come into this and

56:03

just they don't know how much they're risking per trade and somehow they're down $100 million. Having a trading plan stops that from happening.

Um, it helps with consistency. So, it promotes consistency in trading decisions, which is very crucial for measuring performance and success over time.

You

56:19

really have to trade like a robot. That's why I make systematic approaches.

That's why all my strategies in this video and the strategies that's in my strategies course are all systematic. So, it's not thinking.

You do exactly what the strategy says and the strategy works. It helps with logical decision-m.

56:36

Having a well ststructured plan reduces emotional and impulsive decisions which helps you make reasonable and logical decisions in trading. The biggest downfall as that traders have a lot of traders have is being too emotional and being impulsive.

Emotional and impulsive

56:52

decisions will cost you the majority of your money inside of your trading career. So you need to make logical decisions and how you do that is with having a solid trading plan.

Now it also lets you uh or helps you with goal setting. So, it allows traders to set clear and achievable goals and work

57:08

consistently towards achieving them. Um, having a plan streamlines the trading process, makes it way more efficient, less timeconuming, and more stressfree because you're not thinking about what you're doing.

You're following your trade plan. You're following that checklist.

You're following the thing that is um the system that has been

57:26

proven to work. It helps with your confidence as well because traders with a solid plan often have more confidence in their decisions which can lead to better trading outcomes.

Now, I told you guys that confidence is a huge thing to have. And you get confidence by having

57:41

the data. That's why we talked about back testing just now because when you have the data that tells you that 70 out of the 100 trades you take, you're going to win.

You have a certain level of confidence. Now, you don't know when that other 30 is going to happen.

You don't know when your losses are going to happen. you just know over a long period

57:58

of time you're going to be profitable and you're going to be winning more trades than you lose. Um it helps with discipline.

So following a plan requires discipline. A key attribute to trading um is helping to avoid rash decisions based on market noise.

So we need to be extremely

58:14

disciplined. If you're not a disciplined person, trust me, trading will make you very very disciplined because you need to have discipline to succeed in trading.

Now let's get into how to actually build your trading plan. What do you need to have in your trading plan so that you personally can make your own?

Because my trading plan is not

58:30

going to be the same as your trading plan. My rules are not going to be the same as your rules, but we need to have rules because another big part of it, another big part of having a trading plan, benefit, I should say, is and I want you guys to think for this for yourself.

I don't know if you're you're in school. I don't know if you have a

58:46

job. Um, but if you're in school or you're or you have a job, you have somebody holding you accountable.

You have a boss saying you have to do this, this, and this. If I see you doing this, you're fired.

You have a a a coach um or you have a school teacher that's like, if you're if you don't do this, this,

59:02

and this, you're out of here, right? You have somebody holding you accountable.

When it's trading, it's you and a computer. Like, if you don't have the discipline to follow your trading plan and not risk your rent money and not make stupid decisions, there's no one that holds you accountable.

The only thing that's holding you accountable is

59:18

you running out of money. Um, but having a training plan forces yourself to hold you accountable.

It's like having your own personal coach. It's like having your own teacher.

It's like having giving yourself a boss because you have to follow this trading plan. And I'll show you guys how you actually make sure

59:33

you follow it regardless if you're a disciplined person or you're not a disciplined person. So, um, let's get into building your trading plan.

So, the first thing you need to have in your trading plan is you need to identify the kind of trader you are. So, you need to identify if you're a scalper, a swing trader, or intraday trader.

We went over

59:50

all three of those are. Identify for yourself.

Um, based on your personality, your trading goals, how much time you have during the day. Define what type of trader you are, cuz you need to be aware of that.

Next, you need to give yourself a time frame. Just like with the job,

00:05

you're there from 9:00 to 5:00. You're at school from I don't even know what kids are in school.

7 to 3 maybe. I don't know what time kids are in school.

Um, but whatever. Give yourself a time frame for when you're allowed to trade.

And the reason why it's so important to give yourself a

00:20

time window is even when we go back to our back testing, how we just talked about back testing, we're using the kill zone indicator to stop us from trading at 4:00 in the morning because we don't trade at 4:00 in the morning. We're using the kill zone indicator to tell us or to show us to not trade or to show us

00:36

that it's 9:00 at night. We know we don't trade at 9:00 at night.

We're usually eating dinner with our family or whatever it is, right? So, we know we don't have any data tested for that period.

So, it doesn't make sense to trade that period. So, having a a rule or in your trading plan, having a set of

00:53

rules that's like, I'm only able to take trades from 8:00 a.m. to 1:00 p.m.

It stops you from taking trades outside of your window that you don't know. you never tested 5:00 p.m.

You never tested 6 p.m. It stops you from taking those trades.

Um, when you're just bored playing video games and it's 7:00 p.m.

01:10

and you just see a chart open and you just want to press buy or sell. It stops you from doing that, having that.

So, make sure you put the time frame that you're allowed to trade from. Now, that doesn't mean if you put 8 to 2 p.m.

that you're sitting in front of your charts for 8 from 8 to 2 p.m. That just means if a trade happens between 8 and 2, you

01:27

can take that trade. If you're sitting at your desk and the perfect setup happens at 4 pm, but your rule says you stop at two, you stop at two.

You do not take that next one. Next thing is what instruments you're allowed to trade.

So, as beginners, right, we can get very very overwhelmed. We think if we have a

01:43

100 million charts open that that's what makes us successful. We have NQM, gold, Ethereum, Bitcoin, Tesla, Nvidia.

Um we have all these things open and we get super confused. I do not suggest doing that for beginners.

I

01:59

suggest to focus on two to three instruments max. And the reason why is because each instrument or each pair as we've talked about has their own personality.

And if you're trying to learn I got analogies for days. My analogy for this and what I tell a lot

02:15

of of my students and people in my inner circle. Um my analogy for instruments is imagine you're a guy or you're a girl and you're trying to date 20 different people.

You're going to forget the name of this person. You're going to forget the favorite color of this person.

02:30

You're going to forget what you did on one night with this girl versus what you did on one night with that girl. You're going to it's going to get all confused because you don't understand.

You don't remember their personalities cuz it's too many of them. Versus if you were a nice loyal person and you only with one person, you would know that person in and out.

Same way when it comes to

02:46

trading. You don't want to have a million things on your watch list.

um because you'll never learn the personality of that one or that two or that three max that you should uh trade. So when creating your trading plan, decide what pair you're going to be

03:02

allowed to trade. What pairs?

Like I said, I'd suggest max three, but if you can focus on just one, you're going to be set. You do not need multiple pairs to trade.

I promise you, if you can just focus on one and master one, you will be rich beyond your wildest belief. But I

03:18

understand people want to try out other things. So three max.

One to two is the sweet spot though and have that in there. You cannot trade anything else.

If you say you only trade NQ and and and NG, don't open up a ES chart. Don't open up a YM chart.

Don't open up a a Forex

03:35

chart. Stick with that.

Next, you want to define what strategies you're allowed to trade. So there's a million different strategies that you can trade.

Um we went over three in this video. There's a bunch more in my strategies course.

You could probably find a hundred million on YouTube and you'll get extremely confused if you try and trade all of

03:51

those strategies. So, in your trading plan, clearly define which strategies you're allowed to trade.

Max two. Do not go over two strategies or two setups.

Um, choose which one fits your personality. You can test all them out.

Test all them out and see which one performs best for you, the one that you

04:07

understand the most, and choose two out of those. Right?

You have to define those strategies. That way, if you only trade the ultimate support or resistance strategy and the scalping strategy, I don't care if the squeeze strategy shows up perfectly.

That's not your strategy. It's not in your trading plan.

It's

04:23

against your trading rules to trade that. So, you don't trade that.

Set risk management rules. So, what that looks like is set a risk uh a max risk per day or per trade.

So, you can be like, "Okay, I'm only going to risk $1,000 per day or I'm only going to

04:38

risk $300 per trade." You cannot go over that number. If you lo if you lose over $1,000, you have to stop for the day.

If you risk, you cannot when you're setting up your trades and choosing how many contracts you're going to trade. Um, you have to keep in mind that you cannot

04:54

risk more than whatever that amount is. Let's say your number is $300 per trade.

Have that in mind because you need to have a solid risk management strategy and set of rules. You also want to define the max amount of trades you're allowed to take per day.

Now, the reason that that is so important is

05:11

because um us as traders, we think the more trades we take, the more money we make. In reality, the more trades we take, the less quality trades we take, the more money we get back to the markets.

We'll get into this deeper later on inside this video, but we need

05:27

to um you need to understand that you should have a small amount of trades, small pool of trades that you're allowed to take per day in per day, sorry. And this will vary depending if you're a scalper, swing trader, intraday trader.

Scalpers, usually what I like to say is no more than four trades per day. Um,

05:44

four or five trades per day. Intraday traders, no more than three trades a day.

Um, and swing traders, honestly, I say about three a week, honestly. No more than max three a week.

Um because what ends up happening is if you don't have a max amount of trades you're allowed to take per day, you can easily

06:01

go on tilt, especially as a scalper, and take 30 trades in one day and you were taking super not quality trades. You were taking trades that didn't line up with the checklist that didn't that weren't perfect setups and you're giving money back to the market.

So have a clear defined max amount of trades that

06:17

when you hit that max amount of trades, you're done for the day and stop. Um clearly set your entry criteria for entering trades.

So you want to have a um clear entry criteria. So we explained for the hybrid, not the hybrid, for the

06:32

um ultimate support and resistance strategy that we need it to break above a swing high or swing low. Clearly define that.

Whatever yours is, if that is yours, good. If you have something else, clearly define that.

That way that stops you from just randomly entering trades just cuz you felt like it, right?

06:48

Clearly define what you need to see to enter a trade and stick to it. Next, you want to set rules for trading during the news/high volume events.

So, if you have if you know the fundamentals, we went over the website that you go to see when news is going to come out. Are you allowed to trade news?

If you are, are

07:04

you allowed to trade all throughout it? If you're not, what is the buffer that you give news to play out?

Is it like there's heavy new, there's red news coming out at 8 a.m.? Do I have to wait until after 8:30 to start trading?

Just clearly define that so you have that inside of your trading rules so you

07:20

don't mess yourself up. And then also create mental rules for before, during, and after trades.

Um, so what I mean by that is like I mentioned, impulsive decisions and emotions really, really

07:36

um, mess us up as traders. So if you just got broken up by the love of your life, I promise you, you're not at the mental state that you should be to be able to make clear decisions in the market and make money.

So, give yourself rules for if you had a long day at work

07:52

and you're too tired, don't trade. Give yourself rules.

That's like if your girlfriend just left you, don't trade because you're going to end up taking out your pain on the markets and the markets are going to beat you up, beat you up, steal your money, and you're still going to be sad, but you're just

08:08

going to be sadder and broker. If you're angry, if you just got in a fight with your dad about something, you should not be trading.

You need to be at the most neutral state of emotions possible when it comes to trading so that your emotions do not affect how you trade or how you see the

08:24

markets. So have rules for that.

Um next you want to have clear defined exit strategies. So is it whenever you um get to a recent swing high or a recent swing low, you're going to exit the trade or whenever you

08:40

um make this profit, you're going to exit the trade. I don't really suggest going for profit targets like dollar amounts um because I feel like you leave so much money on the table when you do that.

But if that's your thing, that's your thing. I just personally don't suggest that.

But just create a clear defined exit strategy for when you're

08:55

trading. Then lastly, this is the most important part.

I promise you this is the most important part. If you don't do this, everything I said for the last freaking 13 minutes, if not the last couple hours, pointless.

You need to create a consequence for

09:11

breaking your trading rules and plan. Take it from me.

Like I said, I've helped tens of thousands of people learn how to day trade. The biggest thing that people have or lack is the discipline to be

09:27

able to trade consistently and make money. The reason being is because losing money is not enough pain for people.

I don't know what you would think it would be enough. I guarantee you're saying in your mind right now, if I lost $1,000, I would stop doing the stupid mistakes that I keep making.

09:43

Promise you, you're not going to. It happens to every single person.

Losing money in trading is not a big enough slap in the face to stop you from breaking your rules. If you know your rule says you cannot trade more than five times a day, and you take 10 trades and those 10 trades cost you

10:01

$400, you're going to wake up the next day and probably still going to take another 10 trades. It's It's not enough.

You need to create a real life consequence. And I'll say this and this I I try and say this in the soft way possible.

This is how I explain it to my uh mentorship students. Give yourself a

10:16

consequence that will give you a soft version of PTSD. Now um what I mean by that is something that you will remember when your finger let's say you your max trades is three per day and your finger's hovering over that button to

10:32

enter your fourth trade. You get a flashback in your mind of the consequence that you have to do when you break your trading plan and it snatches your hand away.

This is how you hold yourself accountable to your training plan. This is how that trading plan becomes your boss.

This is how that training plan becomes the teacher that's

10:48

holding you accountable. This is how that training plan becomes the one thing that allows you to not just become profitable, but to stay consistently profitable.

You need to have a real life consequence, something that you feel, something that you will remember. I can't give you one, but what I suggest

11:03

for most people, and it seems to work well, unless you're like a crazy person, every single time you break any of your rules, I'm talking about the smallest of rules. If it says you can't trade after 2 p.m., you made the rules.

You can't get mad at me. You made the rules.

If it says you can't trade after 2 p.m. and

11:19

you open a trade at 2:01, broke a rule. You got to do the consequence.

If it says you can't risk more than $300 per trade and you close a trade out and it's $31, you broke the rule. If it says you can't do whatever and you break the

11:35

rule, you have to do the consequence. Now, the consequence that I suggest for most people is to take a ice bath.

Um, I know few people that like ice baths. I've had one-on- ones with a lot of students and some of them are like, "Yeah, I do that every morning." That's nothing.

Kudos to you, um, David

11:52

Gogggins. But it's not for me.

It's not for most people. But you know you more than I know you.

You know something that you would hate. I have people that have to run four miles.

I have people who have to give their sisters money. I have people who have to um there's someone that has to take some type of concoction

12:07

where he has it's like some oil that has horseradish. And it's just super super nasty.

So every time he breaks the training um any of his training rules in his plan, he has to do that nastiness or you have to do whatever your consequence is. If you know you're a person that

12:24

absolutely hates running, every time you break one of your training rules, tell yourself you have to run two miles instantly. I'm talking about as soon as you break the rule, you have to do the consequence.

I'm not saying you play you you build up all your rules and then you go do it on a Saturday. As soon as you

12:40

break that rule, as soon as you lose more than that $300 or whatever your number is, you go do that consequence because it needs to get ingrained in your mind. And I told you guys soft PTSD, not real PTSD, soft PTSD where when you're hovering over that button to break that trading rule, you remember

12:57

that 4hour bike ride that you had to take and you hate riding bikes, right? So for yourself, write that down.

Write down whatever that consequences. What I would do if you have friends, um, and I suggest if you have friends that are trading, let's say you sent them this

13:12

video and now they're interested in trading, which I would suggest for people to get a friend of theirs or a family member interested in trading, this is the perfect video that you can send them because it'll get them completely up to speed. So, you can share it with them.

But if you have someone that's interested in trading, share your trading rules with them. That

13:29

way, they can also hold you accountable where when you're talking to them, you're like, "Man, I took about five trades today." and they they remember they're like, "Wait, your plan says you can only take three ice bath." You know what I'm saying? They might even drive the ice to you.

I don't know. But just

13:46

keep that in mind. And having somebody else that sees your trading plan helps you be more accountable.

Like with with my mentorship students in my inner circle, I make them send me their trading plans and send me each and every trade that they take per day. That way, I'm like, "Wait a minute.

You lost more

14:01

than $500. You weren't supposed to lose more than $500.

Did you do your jumping jacks or did you um do your ice bath? Did you do your push-ups today?

Things like that. So, having someone that holds you accountable is super super super important.

But if not, you hold yourself

14:16

accountable with that consequence. Make it something what I say to all my students is make it something that you won't want to do more than two times.

I promise you, you're going to mess up. You're going to do it the first time.

You're going to break your trading rules. It's guaranteed.

Every single one of my students have done it. And like I said, I've helped over I've helped tens

14:32

of thousands of people and every single one of them has had to do their consequence at least one. I can't remember the last time I've had someone had to do it more than three times.

So if it takes you three times to have to do your consequence, that's bad. You didn't make your consequence bad enough.

So um yeah, that's how you create a

14:49

trading plan and how you hold yourself accountable to that trading plan. It's very very very important that you go through all this, answer each and every one of these questions and put your consequence for breaking any of these trading plans or trading rules.

Okay, so

15:06

now that we've talked about what trading is, types of traders, the type of markets, strategies, we went over back testing, trading plan, everything. Now it's time we put it all together.

How do we actually enter these trades? How do what what platforms we use to enter these trades?

um what are all the

15:22

different things that we need to be able to calculate our risk properly. Uh all the things that actually make us money.

We can make all these drawings on the charts. We can have this all this information, but how do we execute on it?

How do we make money? So this we're going to start talking about brokers,

15:37

the platforms that we use to actually enter trades, how to use each and every platform to make sure that you guys are completely familiar with each and every platform that we are going to use. But first we need to talk about what brokers are.

Brokers are extremely important, but in simple terms, brokers are where

15:53

we place our trades. They hold the money.

So, we deposit money into a broker. We use that money to trade with.

So, we don't trade directly from our bank accounts, right? We would transfer money from our bank accounts into a brokerage account and the brokerage account would then um that's where we

16:08

would be trading from and making money from. Then we could withdraw that money from the brokerage account to our bank account and go buy that Lamborghini or whatever you want to buy.

Now, there are some brokers that are also platforms. So, the difference between a broker and a platform is that the broker just holds

16:23

the money. That allows and that's that's like I said, it holds the money and that's where you're trading out of.

That's the money you're trading out of. Platforms actually let us execute our trades as far as that's where we press buy and sell on.

That's um where we're actually entering into the trade. Now,

16:39

some brokers are also platforms. So, it's a twoin one kind of thing, but some brokers are separate.

Then you connect that broker to a platform. So if you we talked about these different markets.

So we have the forex market, futures, stocks, crypto, we have these different

16:54

markets. If you want to trade futures, sorry, if you want to trade forex, this is the broker that I suggest.

I'll leave a link for it inside description down below. You'll get much better rates if you use the link for it inside the description that I give you guys.

So I have a partnership with them and I've literally used them for the my entire

17:11

trading career. Like if you go back to the first video I ever made or if you go back to a post on my Instagram eight years ago when I first started off trading, this is the first and only broker I've ever used.

So I recommend them because I've used them literally my entire career and they are absolutely amazing. I've never had problems with

17:28

them. They're called Osprey FX.

Like I said, I'll leave a link for it that'll give you better rates inside the description down below next to my broker or the broker I recommend. Now Osprey is for Forex trading.

If you want to trade futures, this is not the the broker that you would use. We're going to go into

17:43

that in a second, but if you want to trade forex, Osprey is what I recommend. It gives you um everything you need.

I've never had any problems with this platform withdrawing money. I've withdrawn multiple six figures from this platform or sorry, from this broker

17:58

because this is not a platform. Now, this is a standalone broker.

This is not a broker and a platform. You have to connect it to a platform and we're about to get into that platform right now.

That platform is called Trade Locker. So once you sign up for Osprey, they're going to send you all you do is sign up

18:14

to sign up. It's completely free.

Um you sign up for Osprey. They're going to send you an email with login instructions.

And that's going to walk you through to login and connect your brokerage account to this platform called Trade Locker. We're going to do a full walkthrough of it so you guys understand how to use Trade Locker.

But it's first signing up for Osprey. If you

18:31

want to trade forex, sign up for Osprey. Create your account.

It'll send you login instructions which you would then plug into your Trade Locker account right here. Now, if you want to trade futures, I told you guys we're mainly going to focus on Forex and futures.

If you want to trade futures, the broker

18:47

and platform that I use is Trade of Now, this is a twoin-one thing where this is a broker as far as this is where what's your money is going to be held in and this is also where you're going to trade off of. So unlike Osprey where you have to create an Osprey account and then

19:02

connect it to Trade Locker, you'll create a trade locker account and you'll trade off of tra sorry you'll create a trade trade of account and you'll trade off of Trade of itself. This is this is the broker that I've used um since I started trading futures which was I want to say three years ago.

Um this is the

19:20

broker I've used the entire time. I've never had problems with them or issues with them.

I'll leave a link for them inside the description down below as well. Great platform, super super simple to set up, and we're going to dive into how to actually use this platform in a second here.

But this is the broker that I use for trading futures. Now, let's

19:37

start off with how to actually use Trade Locker. So, what you're going to do after you get that email, you sign up for Osprey, you're going to get an email with a link to come here, or you can type in here live.tradelocker.com and hit or input your login instructions that's in that email that you got from Osprey.

Your

19:54

chart's going to look like this, or your screen's going to look like this. It's a bunch going on right now.

This is just um a smaller account that I don't really use right now. I have about $12,000 in here.

I'll show you guys some examples of opening up trades and things like that and how to use this platform overall. So, if you notice this screen right here looks very similar to Trading

20:11

View. Um this is very very similar to Trading View.

You have your one minute time frame up here. You can change it to whatever time frame you want.

You can press this button right here and switch it to hyenashi candles, line charts, bars. You can press your indicators

20:26

here. Type in your VWAP if you want your VWAP.

You can press this right here to actually have multiple um different templates saved. If you have a bunch of different uh usually indicators on here, you can save it as a template.

This just tells you that trading is open, which means you can actually trade right

20:42

now. Um over here, you can take a picture full screen.

Same thing over here. You have a bunch of different This works the exact same as trader bait.

I mean, sorry, as Trading View. It's the same as Trading View.

It looks very very similar to it. Now, this panel over here allows you to see what instruments you

20:58

want to trade. So, let's say you want to trade gold.

You can type in XUSD and you'll see the chart will change and now you're on a gold chart. You'll have the price of where it's at, um the high of that that candlestick, where price is at, the spread, and everything like that.

Let's say you want

21:14

to type in and the spread is simply just where price is at versus where you get entered at. So, let's say price is right here.

If I press buy right now, I'm probably going to get entered somewhere up here. Now, if you use a bad broker, um, that's why I suggest the one that I suggested to you guys is the spreads are

21:31

very tight, which is a good thing because sometimes price could be right here and if you press buy, it'll get you in up here, which automatically starts you super in the negative, and you don't want that. Uh, so you want to make sure you have a good broker and make sure you're using the right broker.

Um, so

21:46

that that's what these numbers are. And then over here is your trading panel.

You can actually press this up arrow and it'll actually expand it, make it uh bring a little more options in here. We'll go over this in a second.

Down here, you'll have your positions. If you have a position open, it'll show you it and the information on it.

I'll open up

22:03

a trade here in a second to show you guys. You can see your B your pending orders, which are just orders that haven't happened yet.

Um like a limit order. A limit order simply means that you are waiting for price.

Well, you'll put an order in right here. Let's say you put a limit buy order right here.

22:19

that if price comes down here, even though we're up here, if price comes down here, it'll enter you into the trade. So, you don't really have to sit here and watch it.

Um, you can set that. That's a pending order or a limit order or a stop order.

Um, that's what that means. So, that'll show you your orders

22:35

that you have pending or waiting. You can see your close position, your balance, your trades, your order history, your alerts.

You can see all that right here. Um, and then over here is just more information about um just different panels that you can add and things like that you can add to your chart.

This is the main thing that we're

22:51

going to worry about though, this this trading bar because as you see on our chart here, markets open. We can be under market order.

Market simply means this is the same for trade of eight when we go over that. Market order simply means we're getting in right where price is at.

So, as soon as we press buy,

23:06

we're going to get into the trade here. As you see, it enters me into the trade.

You see my um I bought a buy, which means I'm betting on price going up. This is where I entered at.

This is the margin as far as how much I needed in my account to open up this trade. Um the fee that it took, which is

23:24

7 cents, and my profit and loss. Right now, I'm down 19 cents on this position.

I have uh options over here to uh edit my position. I have options to close it partial close or um you can exit it out.

23:40

So it all that information is over here or you can do it straight from the bar itself. So if I um actually let's say enter a buy position right here.

I can hover over this number which is my P&L my profit and loss currently and I can just press this X and it ex me out the

23:57

trade. Now as you see I have multiple different um it shows me where I took each trade at.

I bought right here and I sold right here. I bought right here.

I sold right here. Um, so that's how that works.

But there are cool things inside here that make trading a lot easier. So, let me actually go to a different chart here.

Let's go to a NAS

24:15

100 just so there's no arrows on it. Um, under market, let's say I'm entering for a buy.

Buy means I'm betting on price going up. Sell means I'm betting on price going down.

So, let's say I'm going to enter for a buy. I'll press buy.

And let's say I want to risk a uh

24:33

certain amount, right? When it comes to Forex, they're called lot sizes.

Futures is called contract sizes. And all those mean is that's how big the position is that you're entering into the trade.

So, um right here, and depending on the pair

24:48

that you're trading or the instrument that you're trading, each lot size represents something else. But we'll go into that and we'll show you examples of that right now actually.

Um, and why this platform is so good because it calculates all the risk for you. So, let's say this is your trade.

Let's say

25:03

you draw out your long position. You enter the trade right here.

Let's say your stop loss is below here. And let's say your takerit is right up here.

Let's say this is the trade that we're going to take. We have our uh tick amount or our pips amount.

Pips is the t is forex version of ticks. Um, we have our

25:21

risk-to-reward ratio right here. So, uh this is the trade that we're taking.

Let's say we enter for a market buy. What we can do is press this stop-loss button.

And as you see it popped up on our screen. We can actually drag this to our drawing because remember this is

25:36

just a drawing. It's not we're not in a trade until we actually press buy or sell.

So I can actually drag this to my drawing right here. So now my stop loss is here.

It tells me how much I'm risking right now with the current lot size amount that I'm using. I can check

25:52

the takerit right here. And as you see, it's showing me exactly what um how much I'd make if I hit my full take profit, that dollar amount right there.

Let me drag this over so you guys can see it a little bit better. Um and then it shows

26:09

me the P&L right here as well. So it shows me the price of where my stop loss is, which is 18602.

As you see right here where I drag my stop loss is 18602. Um, this is the price of where my takeprofit is, that 1911998.

This is the amount of ticks or

26:26

pips. And then this is my P&L as far as how much money I'd make if it hits my TP, how much money I'd make if I if it hits my stop-loss.

And then what's cool is that you can actually press this risk feature right here if you click it. And if you want to determine how much money you

26:42

want to risk, so let's say in your trading plan, you only want to risk $1,000 per trade. I want you to keep in mind, look at this part right here, the lots right here.

If I change this to say I only want to risk $400 on this trade, it'll change the lot size to the amount

26:58

that I need to open up so that this is a $400 um risk. It'll automatically do that.

And that's why I like that. Make sure you have this risk thing checked, though, because that's when you'll be able to put this.

And let's say you drag your stop loss right here. Let's say I

27:14

want to risk $1,000 on this trade. It'll tell me how many lots to open up.

It'll tell me what my P&L will be. I think this messed it up and dragged it further.

Um, it'll tell me what my P&L will be as far as my profit that I'll make and everything. It It plays it out

27:29

very very easily for me. So, I can see what I'm risking.

I can see what I'm going to make. If I press buy right here, let me actually just do a small position.

So, I'm actually not trading this. Um, one sec.

Let's just do a one lot size right here.

27:45

Let's put our stop loss and our takeprofit where it's at. So, our 0.01 lot size.

I'll press buy. So, now I'm in the trade.

You see my stop loss is right here. My take profit is right here.

And I can always adjust this. So, I can click on stop-loss and I can actually

28:01

adjust this and it'll tell me how much I'm uh risking on this trade just by doing that, just by moving it. The further out I drop I uh drag it, the more I'm risking obviously because I'm making my stop loss bigger.

Same thing when it comes to the TP. It's the same exact thing.

Once I decide, okay, this

28:16

is my new TP and this is my new stop loss. I'll press confirm right here.

It's confirmed. You see, right now I'm floating 20 cents in profit.

Now I'm down 140. I could press this partial close position button if I wanted to close part of my position.

Or I can

28:32

press this full close pos uh button and it'll close up my position entirely just like this. Now, keep in mind, you don't have to set your stop loss and take profit before you enter into the trade.

It just helps with this risk thing because it it when you're changing this P&L, it gives you the amount of lots

28:49

that you should use without you having to calculate yourself. But let's say I enter this trade without putting any stop loss or anything.

Let's say I open up another 0.1 lot. I enter the trade.

I can click this and I can actually adjust the stop-loss right here. So, if I click

29:05

on the stop-loss, I can still put a stop loss in there even after I enter the trade. Same thing when it comes to my takeprofit, I can drag it and put one on there.

The only thing is that we can't change the contract size that we have open right now or the or the lot size that we have open right now. We have to stay in there with the same amount that

29:21

we have. So, we we can't really adjust our risk based off of the lot size.

We have to adjust it based off of where we're putting our stop-loss. But, uh we'll confirm this.

Actually, we'll close out this position right here. just lost $8.50 to show a example.

It's perfectly

29:38

fine. I didn't want Chipotle anyways.

But um that is basically how you use Trade Locker. It's very very simple.

Like I said, you'll come over here, type in whatever you want to trade. Say I want to trade S&P.

I can do that. And um I can do the same thing.

So I'll hit this panel up here, the button

29:56

to extend this panel up. And it'll give me the options to buy, sell, set pendings.

Pending is simply like I said an order that you uh will buy at a certain price. So say I put this pending right here.

I press a buy. Now when price comes right here, it'll

30:12

automatically get me into the trade. And you can set up this pending limit to automatically have a stop-loss on it as well.

So when it gets you into the trade, it automatically has a stop-loss or take profit at whatever level you want it to be at. Um same way we did with a market order.

Now that's how you

30:28

use Trade Locker. Now, let's get into how to use Trade of So, once you create your Trade of account and you log in for the first time with the account credentials that you gave yourself, uh, let me drag this back over here.

You'll actually be able to it's going to take you to this screen right here. Now, it

30:44

might look a little bit different if you didn't create a live account yet. Um, you might you might only see market replay or simulation, but realistically, it doesn't really matter.

Once you get to this page, uh, you'll press live trading or simulation or market replay. We don't have to worry about market replay right now.

Um, but let's go into

31:00

a simulation account. Let's press launch.

This is just taking me on a demo account right now. I just want to walk you guys through how to use this platform.

When you first start off, your chart's going to look like this. This is very, very confusing.

When I first started off trading, this confused me. I

31:16

did not know what any of this stuff was. Trust me, I'm going to walk you'all through it.

It's not as bad. First step, press X next to all of this stuff.

Delete all this stuff, right? I don't I don't want any of this stuff.

Right. Then we're going to press this um in the top left corner.

Add

31:33

modules. And we are just going to press where is it at?

Chart right here. You'll press chart or drag click and drag chart and move it right into the center of your screen.

And then next to this search, type in whatever you want to trade. So let's say I'm going to

31:49

trade ES. So I'll type in ES.

Um the first one that's at the top is always the most current contract version. As you see, there's multiple versions of this.

And we'll get into um this later on when we get into understanding futures contracts. But uh

32:04

the first one here is called ES. It's always going to be the first one.

That's the the one that we're on. You're going to click it and your charts might look something like this.

It's kind of I don't know what type of chart this is. It's a bar chart, actually.

Um what you're going to do is exit out this right here, the top left corner. And

32:21

right over here next to the 15M, I'm not sure what time frame it might start on a different time frame for yourself, but um I want to I want you guys to get familiar with this. And this is very similar to Trading View.

It just looks a little bit different. So this panel up here, we have a zoom in button.

We can

32:37

click to zoom in. We have a zoom out button.

We can click to zoom out. This is a time period.

So our time frame. So we can press this and we can go to the one minute time frame if we want.

We can go to the 5minut time frame. Next to that is the type of candles or graph that we're looking at.

So if we press

32:52

bars here, we can press regular candlesticks. So now we see regular candlesticks or we can go to high kanashi candlesticks, whatever you want to see.

Just want regular candlesticks for right now. Next to that, we have a chart settings which just lets us um edit our charts.

If you want to do any

33:09

type of editing as far as the color scheme, the uh day volume profile, price levels, any of those things, you can edit it all through your settings and play around with it if you want. Um I don't even know what I just pressed.

Um one second, let me fix

33:29

this. Here we go.

Um so next to that is the configure chart element. So this is if you want to put uh indicators on and what indicators are on there you can make it invisible you can delete it al together the button next to that is indicators where you can find your indicators you can search for VWAP you

33:47

can search for EMA you can search for any indicator on here and you'll be able to see it and then you have a template list. This is where let's say you set up all your indicators you set up everything how you like it.

You can create this as a template and um it'll save it so you don't have to do all this

34:02

work all over again. Now, most of the time it saves it.

So, like next time I come into this or next time you come into this, you won't have to exit out all the tabs and drag the stuff and all that things, all those things. Um, but then on the left panel over here, you have your crosshair.

You can have crosshair. You can have snap global crosshair.

I keep it on show crosshair.

34:19

Um, you have a data box, which is what we exited out before. You have a drawing tools where you can draw your lines.

Oh, snap. I didn't need that.

where you can click your line and draw your line just like you would on uh trading view. You can draw polygon.

You can draw shapes

34:36

and a rectangle. You can do all that things on here.

Then you can lock menu items on chart which basically means that this won't fade away cuz this stuff fades away after a while of you not using it. Um so yeah, that's how you use this over here.

Now obviously this works

34:52

the same. We have our chart in the middle.

We have our price scale over here which tells us where price is at and things like that. That's um all that is over here.

We have application settings which we'll get into a little bit later. We have news chats and all

35:08

these other stuff that I never pay attention to. And then over here we can add more modules.

So the same way we press this plus button to add the chart, we can actually add other things. So, what I like to add is I'll add um positions and I'll drag and drop it on the bottom of my screen here.

This will

35:26

show me all my open positions. I'll just drag this down to make this smaller cuz I don't need it that big.

Let's say I open up a position right here. Obviously, this tells me what I'm trading right now, which is ES.

Um if I was on another thing, it would tell me it's another thing. It tells me the price that it's at, the bid and the ask,

35:42

um which we'll get into a little bit later on. in my position.

If I have any positions open, it'll show me it right here. Now, we have a bid in the axe button.

I don't use this much. I just do buy market and sell market.

Um, this right here is the contract amount. This is the time obviously of where we're at.

35:59

Um, alerts, search. These are all things that you can play around with.

I don't really use it too much. What I main mainly spend my time on is this section over here.

So, we have buy market and sell market. This number right here is the amount of contracts that we're entering into.

We'll get into contracts more in depth um a little bit later on.

36:17

And then once we uh have the amount of contracts that we are going to uh use, let's say we want one contract, we can simply just press buy market. And as you see, we're in the trade.

In the bottom left corner, you see the trade right now. You see right here, we're negative $25 right now on this

36:34

trade. Negative $12.50 on the trade.

Um, and then once I close out a position, so once it goes negative or positive, I'll close it out. And how I close it out is I'll press this exit at market close.

This will close out all my

36:49

positions. I'll press exit.

As you see, my P&L is $62. I made $62.

This is on a fake account. I wish I did that on that other account that when I was showing you guys the trade locker um, walk through.

It's okay. Um, but yeah, it shows me our realized P&L.

37:06

realize simply means that that's the closed position. I don't have any open positions.

I close this position. I made my $62.

Uh open position simply means if I have a trade open and I have not closed it out. Now under here is ATM for futures.

Stop-loss and take profit is

37:23

ATM. So um this is just the version of ATM.

So how you set this up because most of the time you won't have an ATM. You'll go into it'll be off but you need it to be on so you can have your stop loss and take profit.

What I like to do is I press the settings gear next to the

37:38

ATM and you can create your own ATM. So this settings window will pop up and what I'll do most of the time is I'll put this on.

Let's say I make a name um let's say YT, right? I press okay.

The ticks um shown in tick which

37:55

basically just tells me what I'm uh where I'm going to put my stop loss and my takeprofit. Uh and this right here is the type which is a stop loss and a takerit.

I could do stop loss only or take profit only. And then this number right here next to take profit is the amount of ticks that my takeprofit's

38:12

going to be at. And my stop loss here is the amount of ticks that my stop loss is going to be at.

Now, this really doesn't matter. Well, it does matter because you need to have this.

I suggest putting this at like 20 because you're going to adjust it after. Keep the stop loss type um stop.

You can switch it, but keep it

38:28

stop uh for right now when we're setting up basic stop-loss and take profit. So, but switch the takeprofit and stop loss to 20.

The reason why it doesn't really matter because once we save this and make sure our y our ATM is on the one that we saved. Once we enter a trade,

38:44

let's say I press buy market, you'll see the red bars up here. This is our takeprofit since we entered for a buy.

The red one on top is our take profit and the one on the bottom is our stop-loss. Um, there's a way for me to actually see this.

Show order lines.

39:00

Yeah. Um, so how you get it to show the order lines if yours doesn't show automatically is you press chart settings right here and press fills and orders and press show orders right here.

Show order lines. Um, that's how you get it to

39:16

show. Uh, so now that you see this red line is my take profit since I entered for a buy.

This red line on the bottom is my stop loss since I entered for a buy. It would be vice versa as in my takeprofit would be below if I entered for a sell and my take and my stop loss

39:32

would be sorry my takeprofit would be below if I entered for a sell and my stop loss would be above if I enter for a buy. But I said all that to say, let me just exit market and close really quickly.

I said all to say that it doesn't matter what that number is on the ATM. I say put it to 20 and 20

39:49

because we can drag it afterwards. So let's say we enter for a buy.

it automatically put it 20 ticks away from where we entered at and 20 ticks away from where we entered at for our stop loss. But we can drag that and line that up on Trading View.

So, how I do it is I mark up my charts on Trading View and

40:04

all I'm doing on Trade of Trade Locker is entering my position and then lining up my position with my drawing on Trading View. So, if on my my drawing on Trading View, my stop loss is at 5420, I'm just going to drag my stop loss to

40:19

5420. If my takeprofit is at 5436 or 5437, I'm just going to drag it there.

And that's simply how I do it. That's how you set up your ATMs or your stop losses.

Now, once you're ready to exit out this position, automatically

40:35

it's going to take you out at your stop loss and your takerit. But if you want to exit manually, you'll just press this exit at market and uh close button.

And you see it close out the trade and it remove your stop loss and take profits. Over here is going to be your account.

Obviously, I'm on a demo account right

40:51

now, showing you guys this example. Here's your equity in your account, which is basically how much money you have inside of your account.

Now, when we're in a trade, right now, we're not in a trade, so this number isn't going to move up or down, but let's say we're in a trade. You're going to see this number move up or down because we have

41:07

an open P&L right now. Um, and that's your equity as far as how much money you have in your account.

Technically, when you're negative $25 on a trade, you're negative $25 in your account. So, it's going to reflect that.

So, press exit that market and close. Then you're out of it.

Um, this is your open P&L to show

41:24

it here. Your day margin and your initial margin.

You shouldn't have to worry about this as long as you're not opening up 100 million contracts and you only have $30 inside of your account. We'll get into how much money you need in your account in a second from now.

Um, but that is honestly how you use um,

41:42

Trading or sorry, Trade of So, we went over how to use Trade Locker and we went over how to use Trade of Trade Locker, you're connecting Osprey to Trade Locker to trade forex. With Trade of You're creating a Trade of account and using the Trade of platform to trade futures.

Now, before we actually are able to

41:58

start trading, we actually need to purchase Market Data subscription on both Trade of Trading futures, you need to purchase it on Trading View as well, both of them. Now, I'm going to walk you through how to do that right now.

um on Trade of Eate in the top right corner right here,

42:14

you're going to press application settings. Um and then under um add-ons, I believe, or no, subscriptions, you're going to scroll down right here, and you're going to need to get a market data subscription.

42:29

Right now, I obviously have market data subscription already, but what you're going to do is need to purchase market data subscription so you can actually see the markets because if you don't, your data is going to be delayed by 10 to 15 minutes, which means you'll be

42:45

seeing on Trade of 8, the candlestick. Let's say it's 12:00 p.m., you're going to be seeing the 11:45 candlestick.

You're going to be behind. You can't trade like that.

So, what you need to do is purchase the market data subscription. And um what I suggest, there's a couple options for you guys, but what I suggest is the CME bundle

43:02

that allows you to trade most of the pairs, basically every single pair that I talked about um in this video so far. NQE, gold, YM, um NG, every single pair.

I suggest to get the CME bundle cuz that includes all of it. That's how you get it on Trade of Now, how you get it on

43:18

Trading View because it'll be the same exact thing. If you go to like NQ or anything, it's going to be like a yellow D up here that said that basically signifies delayed.

Um, so what you're going to look for is in the top left corner, hover over your account. You need to

43:33

have an account for this. Hover over your account.

You're going to hover over your name here and go to account and billing, I believe. And then once you're here under settings, uh, you're going to want to go next to real time market data and get real time data.

Now, it's the

43:50

same as I mentioned before on Trade of I suggest getting the CME group bundle. It's $7 a month.

That includes everything. Um, and you'll just get that.

Obviously, I already have that right now. So, you'll get that and you'll subscribe to that and then you'll be able to see realtime data.

You need to have it to be able to trade on Trade

44:07

of 8. And you also need it if you plan on marking up your charts on um Trading View or else if you don't have it, the data will be delayed.

Like right now we're it's uh 533 or whatever, but I'd

44:23

be only able to see these candlesticks over here, right? So it basically be cut off like this.

And you obviously I can't trade like this cuz stuff has already happened and I wouldn't know what has happened currently in the market. So you need to do that if you plan on using uh Trading View.

You need to get on Trading View and you need to get on Trade of if

44:39

you plan on using Trade of Eate. Now you've heard me mention futures contracts or the term contracts a lot during this video.

Now, we're going to deep dive into exactly what contracts are, what they mean, the risk management behind them, um how to calculate risk with contracts that we are using specifically when it comes to futures.

44:57

I'm also going to go through a couple of the key terms here as well, so you guys understand exactly uh what you're seeing when you're looking at these things. So, first of all, in simple terms, futures contracts are legal contracts to buy or sell something at a predetermined price.

Now, you're basically buying the the

45:13

option to buy something or sell something at a specific price. We're not actually buying the underlying asset when we're day trading futures.

Uh you could do that, but most I'd say 99.99% of people who trade futures, we're not buying the underlying asset. We're basically saying, for example, with this

45:29

iPhone, we're buying a contract to sell 1,000 of these iPhones at $10,000 per iPhone. Now, if the price of each iPhone drops drastically to $5,000 per iPhone, we still have a contract to sell 10,000

45:45

of these or a,000 of these. I forgot my example I gave you.

Um, 10,000 of these at a $1,000 or at a $10,000 price point. So, no matter if everybody else is buying for 5,000, we can sell this for $10,000 cuz we bought that contract.

Um, same thing vice versa. If each of these

46:02

iPhones was going for $1,000 and we had a contract to buy this iPhone for $500, we could buy a,000 of these iPhones for $500 because we have a contract to do that. And obviously, as you can tell, the more the price of the iPhone goes up

46:19

or um if it goes down, depending what example we're talking about, that contract, us holding that contract to buy or sell an iPhone at a certain price becomes more valuable to somebody else if they actually want to buy iPhones. I don't want to buy iPhone.

I want to trade that contract because the value of

46:34

it is going higher. Um and that's basically what futures contracts are in very very simple terms.

Now some key terms contract size, margin requirements, um buy contract and sell contract. So contract size simply means the amount of the underlying asset that

46:51

each contract is buying. Because when we buy one contract of let's say NQ, we're not just buying one um NAS 100, right?

NQ is the futures version of NAS 100. ES is the futures version of the S&P 500.

We're not just buying one contract and

47:06

buying one NQ share. We're buying 20, for example, 20 times or 20 NASDAQ shares, right?

Or with ES, we're buying 50 one contract, one ES contract, we're technically buying the option to buy one

47:23

S&P 500 contract at whatever price we bought the futures contract for. So, that's where it can start getting leverage.

Same way with our our example here where we're not just buying a futures contract to sell this iPhone at $1,000. We're buying a futures contract to sell a,000 of these iPhones at $500

47:41

or whatever the amount is. Um, so as you can see, it can get it can become very very valuable cuz selling one of these at $500 when everybody else is selling them for a hundred bucks is good.

But being able to sell a thousand of those

47:56

for $500 and everybody else is paying $100, it's great. You know what I'm saying?

Um, so that's contract size basically. And then margin requirements.

So margin requirements is the amount of money needed in your account to purchase one contract. We don't need all of the

48:12

money on hand to be able to purchase that account because futures brokerages give us margin. Margin basically means it gives us leverage.

So in simple terms, let's say you have a $100 in your account. Because of margin, you're technically trading as if you have

48:27

$100,000 in your account. And that's because of the brokers that we use, depending if you trade forex, futures, they all give you a certain margin requirement um or margin amount.

That way, it breaks it down very simply. So, instead of us needing to have to be able

48:43

to purchase one contract of NQ, that allows us to buy 50 or 20 um shares of NAS of the NASDAQ, which could possibly be, for example, $150,000 to purchase a,000 shares of the NASDAQ or 20 shares of the NASDAQ, sorry.

48:59

Um, our brokers will let us do it for $1,000. They'll let us open up one contract for $1,000.

And that's actually what it is. We'll go into the specific numbers for each contract because it varies depending on the contract as far as the margin requirements.

But that's basically what it means. The brokers are technically letting us leverage our

49:16

money or um trade as if we have more money than we actually do to be able to purchase these contracts. But that's technically what margin requirements mean.

It basically is the the amount of money that you need to be able to open up one contract, open up a buy position

49:31

on one contract or a sell position on one contract. Like I said, we'll dive deep into examples here in a second here, but I want to make sure you guys understand the key terms before we go into that.

Now, next is something you heard me say a million times, buying and selling contracts. So, a buying contract simply means I'm going long.

Simply

49:46

means that I'm betting on price going up. Now, if I'm selling a contract, that just means I'm going short or that means that I'm betting on price going down.

That means if price goes down, I'm profiting when price goes down. If I enter a buy or a long, I'm profiting

50:02

when price goes up and I'm losing money when price goes down and vice versa. Um, now here are the monthly codes because when it comes to futures contracts, they change every single month and some change every single quarter.

So, if you saw in the example when we were going over ES, um, you saw

50:18

it was ESM, I believe. That's because the monthly code we're on right now is M because M is it's always the monthly code of when we the month after um it expires.

So to put it in simple terms right now we are in April right and NQM

50:38

they all change every four months or every quarter. Um the next one changes in June.

So in June that contract will expire and we'll switch. So, right now we're in ES and you'll see at the end of it ESM, but when June comes and that ESM

50:53

contract expires, we'll be trading the ESU contracts because that'll be the next one. Same thing when it comes to um NQ.

Right now, we're on NQM contracts. We'll switch to NQU contracts.

And I'll show you guys this obviously more in

51:09

depth, but I want you guys to understand the monthly codes. When it comes to the indices, the indices are NQ, ES, and YM.

Those change every quarter. So, every four months they expire.

NG changes every single month. So, you'll see each of these monthly codes for

51:24

every single month. As you see, January's is F, February's is G.

And this is when they expire. We always trade the one that's closest to expiring.

Um, so if we were in uh if we were in July, like the month that we're living in is July, we'd be trading the August contract because the next

51:40

contractire expires in August. Um, so yeah, that is monthly codes.

Now, let's go into the types of futures contracts cuz there's so many things that you can trade when it comes to futures. It's actually ridiculous.

Obviously, we can trade commodities. You guys have heard me talk about natural gas.

I love

51:57

trading natural gas. That's a commodity.

You can trade gold. You can trade silver.

You can trade platinum. Um this is just some examples of what we can trade.

You can trade currencies. So straight currencies you can trade um euro.

You can trade the can Canadian dollar. You can uh trade the

52:13

Japanese yen. You can trade um um you can trade a bunch of different currencies.

I don't even know why I can't think of one right now. Um you can also trade indices which is what we trade all the time.

NAS 100, the futures version of that is NQ. um indices the

52:29

futures version of that is I mean sorry the S&P 500 the futures version of that is ES uh you can trade US30 which the futures version of that is YM and you'll see it on the next slide here etc etc um then you have grains we can trade wheat

52:45

we can trade soy contracts we can trade corn futures contracts um you can trade cattle I believe contracts which is crazy I've never traded any of these before you can also trade bonds a lot of people would trade bonds bonds, 5-year bonds, uh treasury notes, 10-year bonds,

53:01

you can trade all that when it comes to futures. And it's just a contract to to as we explained before, the contract to buy or sell any of these underlying assets at a specific price.

Um so yeah, this is what I just broke down, which is um E- mini, which basically is just the

53:17

the futures contract of S&P 500, the ticker symbol. Ticker simply means the the abbreviation of it.

So you'll see a lot of times if people is talking about a stock like um Tesla, right? They don't type out Tesla.

They type TL TS LA. I believe

53:36

that's the ticker symbol for it. It's just a shortened version of the actual underlying asset.

So the ticker symbol for S&P 500 is ES. The ticker symbol for NASDAQ 100 is NQ.

The ticker symbol for Dow Jones, which is uh US30, that's YM. The ticker symbol for gold, if you want

53:52

to trade gold, is GC. The ticker symbol for natural gas, if you want to trade natural gas, is NG.

But that's basically what futures contracts are. Now, let's hop into how do you actually calculate your risk?

What do these future contracts um mean? How much do you need

54:08

inside your account? What does each tick mean?

What even is a tick? Let's hop into that right now.

So, how I do that is by using this website right here. It's actually by Trade of Eate.

I'll leave the link for it or you can type this in your browser, but I'll leave the link for it inside the description of this video. Um, but this allows you to

54:24

look up any futures contract that you want to trade. You get to see the margin requirements that you need.

You get to see how much each tick is worth. Um, let me actually pull this up so you guys get a good view of it.

I can walk it through uh for you guys. But um, let's say I'm

54:41

looking at GC, which is gold. I can press search right here and I'll press it right here.

So over here breaks down all the information about this futures contract. Now I know this might look a little confusing um but trust me it's really not.

You're really not going to have to

54:56

come to this page very often once you figure out the pairs that you're going to trade and you put that in your trading plan and you learn them. Um but it starts off by telling you the value per point as in how much dollar amount uh you'd gain or lose depending on the point movement for each point movement.

55:12

Sorry. Um it shows you the monthly codes here as well.

It shows you how much is each tick worth. And I'll show you guys what a tick is on gold here in a second.

And then you don't really have to pay too much attention to the trading hours. We went over the trading hours already, but markets open at um 500 p.m.

Central

55:29

Standard Time on Sunday. Um and every day they open up at 5:00 p.m.

Central Standard Time. Then they close at uh 400 p.m.

Central Standard Time. And it's from 4 until 5:00 when the markets are closed.

Um then it's open all throughout the rest of the day for that. Obviously

55:45

markets close from Friday at uh 400 p.m. all the way up until Sunday at until it reopens at 7 on Sunday at 5:00 p.m.

Um so it's completely closed on the night of Friday, all of Saturday, and the

56:01

morning of Sunday. And that's for all pairs on futures.

So just be aware of that. Shows you the fees here as well.

Then it shows you the margin. So, what you need to worry about is the day margin.

Unless you plan on holding this over multiple days, over over a day,

56:16

over when the market closes, this is how much you'll need inside your account to hold that trade open. But if you're just day trading this, how most of you guys are going to be, 95% 99% of you guys are going to be trading it.

This is how much money you need in your account to open up one GC contract. You need $1,000 in

56:32

your account to open up one contract. That doesn't mean when you open up one contract that you lose your $1,000 because we have our stop losses in place.

We have all these things. That just means in order to open up one position of one contract, you need $1,000 inside of your account.

Now, I

56:48

mentioned to you guys tick value over here. It shows you what each what's um basically what determines a tick movement and show you how much that is worth if you open up one contract.

So, let's go to a gold chart right now and um let's open up this long

57:05

position. So, let's say I open up a buy right here and uh this is my stop loss.

This is my take-profit, right? I told you guys if you hover over here, the middle number is the tick amount right here.

I'm my stop loss is 43 ticks away. So, what you would do is

57:22

calculate that 43 times this $10 cuz remember each tick is worth $10. So you do 43 * $10.

You're risking $430 on this trade to make 136 ticks times $10,

57:37

whatever that amount is. Uh $1,360.

Uh so that's how you calculate the tick amount. Now the tick amount I told you guys is a 0.01 movement.

And this is for gold. This changes depending on what you're trading.

And I'll go through a couple examples. Um a 0.01 movement is

57:54

considered one tick. So, if you see right here on the right side, it's 3 point right now.

The price of gold is 3.226 uh or $3,226.7 when this moves. So, right now it's at 7.

When this moves, if this

58:10

moves anytime soon, right now it's a little later on the day, so it's not much volume. We're just going to sit here until this moves at this point because this is absolutely crazy.

Never mind. Yeah.

So, when this moves from 7 to 08, that's a one tick

58:27

move. So, you'd be down or up um $10 depending on if you were buy or if you were to sell.

So, if this moves from 3226.7 to 3226.8 like it did just now, you'd then be up one tick. And one tick is worth

58:45

$10. Now, keep in mind this is per contract.

You need $1,000 to open up one contract with this. But you can open up multiple contracts.

Let's say I open up 10 contracts on this. So then each tick movement wouldn't be worth $10 anymore since I have 10 of them.

Each tick movement would be worth $100. And then

59:02

you do the math. 100 times 43 or whatever your stop loss is or whatever your takerit is.

Now you get used to it and you start realizing and remembering what each tick amount is. So you don't have to go to this website to see, okay, gold, each tick is $10.

Um, but this is

59:17

a valuable website to have and look at. Now, if we go back here, you're going to see that all them are different.

So, if we go to NQ, go to search, press NQ, you can see that each tick to be considered a tick movement is a 0.25 movement. And that's worth $5.

So, if we

59:34

go to NQ here, and let's say we bought right here, stop loss is below here. Take profit is up here.

This is 200 ticks. So, this would be $200 time $5, which is $1,000 if I open up one contract on NQ.

59:52

Um, value per point, you don't really have to worry about that. A point really just means per whole number movement.

So, most time ticks are after the decimal. So, this is 18847 something.

And each tick movement is 0.25, but each point movement would

00:07

be like 18846 going to 18847. That's a point movement.

And um this moves in 25 increments. So 25, 50, 75, then a whole number.

So out of each point, there's four ticks. And as you see here, $5 per

00:25

tick. Five time four comes out to that value per point, which is $20 per point.

That's why I say you don't really have to worry about it. You get the same um calculations when you measure it by tick.

I like measuring it by tick. It is a little bit more um what's the word?

um

00:41

detailed I should say. Um so like you here on NQ the day margin to open up one contract is $1,000.

If you hold it overnight, $34,000 is what you need inside your account. Um if we go here to YM, you'll see each tick value movement

00:59

is one, which is one whole number and it's $5 per tick. If we go to YM here and let's say we do this, our tick amount is 70 and let's say our stop take profit is up here is $319.

You do those

01:15

numbers times $5. Um the day margin in order to have to open up one contract is $500.

Um and then obviously to hold it is $11,440 and so on and so on and so on. You can keep doing this to whatever

01:30

pairs that you're actually trading. you'll be able to see how much money you need in your account and the dollar per tick.

That's what I pay attention to most of the time. Now, some of you guys might be saying, "I don't have $500 in my account.

I don't have $1,000 in my account." If that's the case, you can trade Forex. You'll have a much higher

01:45

leverage. You don't need as much money in your account.

Or there's many versions or what they're called is micro versions of every single pair or every single um futures contract that we just went over. So, we went over NQ, right?

02:01

We see NQ right here. You need $1,000 in your account and each tick is worth $5.

There's any single thing that you're trying to trade, NQ, GC, YM, ES, whatever you're trying to trade. If you put an M in front of that and then type in the ticker.

So, let's say

02:18

MNQ. Press search.

You'll see we have the micro version. It's always going to say E- mini.

M in is just the the futures contract, but micro is simply onetenth of what the regular contract is. So what I mean by onetenth is that instead of $1,000 what you need in your

02:34

account to open up one contract, you only need $100 in your account to open up one contract. Same thing with the ticks.

So instead of it be being each tick being worth $5, it's the same tick movement. So it's the same 0.25 movement, but that 0.25 movement is

02:50

onetenth of what it was on regular contracts. So instead of it being $5, it's 50 cent per tick movement.

Um, so this is great for people who don't have bigger accounts. I tell you, I tell all my students when you're new, start off

03:05

with micro contracts. I don't care if you're trading micro NQ, micro ES.

Like I said, you just put an M in front of any of the tickers that you're trying to trade, and the micro version will pop up. Um, regular ES contracts, you need $500 in your account to open up one

03:21

contract, and it's $12.50 per tick movement. But obviously, we're on the micro version of it, so it's onetenth of it, and it's um $50 in your account to open up one contract and $1.25 per tick movement.

Now, keep in mind, the charts

03:38

will most of the time be the exact same. So, if you're trading on a M a YM chart, you can actually a MYM chart will be basically the exact the the exact same.

So, if you're trading on a YM chart, you can just stay on a YM chart and trade it

03:53

and then just open up MYM contracts on your broker. Or you can go to the actual chart and type in MYM and you'll see it here.

And it's, like I said, basically the same exact thing. um it might be off slightly by like a couple ticks, but for

04:09

the most part it's the same. Now, I would suggest for you guys to if you're going to trade micros, trade on the micros chart, but um if you already kind of marked up all your charts on, let's say, regular instead of the micros, it's not that big of a deal while you're transitioning all them all your drawings

04:25

and stuff over to the micro versions of those charts. But that's how you see the u margin requirements as far as for uh to calculate your risk and calculate your profits and also know how much money you need in your account to open up one contract.

Now obviously like I

04:42

said you can open up multiple contracts and this tick amount uh dollar amount will change depending on how many contracts. This is based off of one contract.

But that's how you do the calculations. So you plan out your trade and after a while you get to know and remember that on my each tick is worth

05:00

$1. So this contract or this trade right here if this is where my stop loss is is 87 takes 87 time $1.

I'm risking $87 on this trade and you get very used to it. Um it's just getting familiarized with yourself in using this website.

Like I

05:15

said I'll put the link for it inside the description of this video so you guys can go straight to it without having to type all this out. Um, you can go through here and find any futures contract that you want and it'll tell you all that same information.

And now that we have that information and know where to get that information, now we can talk about one of the most crucial

05:32

parts of not just becoming a day trader, but becoming a consistently profitable day trader. It's not having the perfect strategy.

It's not winning every single trade. It's with proper risk management.

And I try to explain this to all my students, especially my new students,

05:48

that realistically you can be extremely profitable with a 20 30% win rate. If your risk management is on point and you're cutting your losses very very quickly and letting your winners ride out, you can be extremely profitable with a 20 or 30% win rate.

I know

06:03

someone with a 30% win rate who is making over $3 million a year day trading. And that's not a huge win rate at all, but it's all about having the proper risk management.

So, I'm going to dive in and show you guys my suggestions for you to have proper risk management, what that looks like, because as I

06:19

explained to you, it's one of the most important things for you to focus on when it comes to uh your trading. So, the first thing here is if you are a new trader, we're going to go through the steps and how I walk through my students, how I walk through uh my inner circle people.

I'm going to walk through

06:34

the steps on how I usually take people if you're a complete beginner. And I'm assuming if you're watching this video, you are a complete beginner because this is made for complete beginners or uh intermediate traders who are just not profitable yet.

If you're not profitable yet or if this is uh you haven't actually started trading yet, I always

06:50

suggest for you to start on a demo account. Now, I say start on demo account and stay on this account for at least two weeks.

I suggest and I suggest and I will continue to suggest at least a month, but two most people cannot make it to a month. I told y'all I've worked

07:05

with tens of thousands of people and I could probably count on two hands how many people have actually waited to get to a month to start on a demo account. And the reason why it's so important and why I try and drill this in people's mind is because in the beginning of my trading I was on a demo account for

07:22

about two days. And there's this thing that we like to call in the trading industry demo luck, right?

And obviously there's beginner luck in the real world, but it's even worse when it comes to trading because on demo account, you feel like you

07:38

are Warren Buffett, right? I'm talking about you just learned how to trade.

You barely even know what support and resistance is and you just made $100 million on the demo account. So what that does is it gives you confidence that you should not have as a trader.

07:53

So, after my two days on a demo account, I loaded up $15,000 into a live account because I was making like 13K, 14K per trade on a demo account. Keep in mind, I was overleveraging.

What I mean by overleveraging, we'll get into this a little bit later on, is risking way more

08:09

than I should have on the demo account. I was not really taking trades.

I was just randomly hitting buy or sell. And because I had such huge position sizes, if the price just moved slightly in my direction, I was up 13 14K.

I ignored when I was down 70k on demo accounts and

08:25

closed it out at a 15k profit or whatever it was. But um I ended up loading up a real account with $15,000 in it and I blew it.

And what that did for me is it set this this this light in my head where I'm like I got to get it

08:42

back. And when you get in that mindset of revenge trading, I told you guys one of the biggest downfalls of us traders are emotions and impulses.

impulsiveness. When you get in that emotional mindset of revenge trading, that's what we call it.

Um, you don't think straight, you don't make good

08:58

decisions. So, it's very important that you don't get in that phase.

So, I got in the phase of trying to make $15,000 back. So, I loaded up another 10,000 in there, lost it.

Another 15,000, lost it. Another$10,000, lost it.

I was down about $60,000 within two weeks of me starting learning how to trade. And it's

09:14

all because I jumped to a live account way too fast. So, this is why I tell people and I try and get them to not get in this mindset.

Um, the skill will come. Trust me, the sorry, the money will come.

Get the skill first. The market isn't going anywhere.

The market's been here longer than everybody

09:29

watching this video has been live. Well, majority of people that's watching this video has been alive.

It's not going anywhere anytime soon. Learn the skill.

Worry about making the money later. Trust me, it will pay off.

So, I suggest for everybody, if you're a complete beginner, to start on a demo account for

09:45

at least two weeks minimum. I suggest a month though.

Then you're going to want to go to a small live account and scale slowly. So what I mean by this is go to a small live account, $200, $300 account.

And scaling it slowly every two weeks. If, let's say you start at a $300 account every two weeks, if that account

10:01

is over $300, you put another $100 in there. I don't care if it's at $310, you put another $100 in there.

You reward yourself after two weeks of profitability. So then you're at $400.

After two weeks, if that account balance is over $400, then put another $100 or

10:18

another $200. And keep doing that till you get to $1,000 account balance.

Now, keep in mind, you're not trying to flip this $300 account into $1,000. Majority of the profits that you're going to see is when you're putting that extra hundred or that extra $200 in after you had a profitable two weeks.

Now, the reason that why this is

10:34

important is because it gets you used to trading real money without having you um going all out and putting a bunch of money into an account, which caus you not to have to lose that huge amount to then chase that huge amount. If you don't end up getting yourself in that revenge trading mindset in the first

10:51

place, you're good. I promise you, you're good.

You do not want that cuz for your entire trading career, for the first year, first two years, you'll probably be chasing that $10,000, that $15,000 that you put in there. So, start on that small live account and scale slowly.

And what you have to understand,

11:06

uh, because people will say this all the time, they're like, "Yeah, after the two weeks, my $300 account was only at $360." They're like, "That's nothing. That's 20% in two weeks." I'm going to go into here in in a little second how 20% in two weeks, 20% a month can

11:22

literally change your life. Like, I'm talking about give you way more money than you thought.

So, if you look at it in percentage bases versus in dollar amounts, trust me, you'll be proud of yourself. That's why I said if it's at $310 after two weeks, that's phenomenal.

That is great as long as you're using

11:37

the proper risk management. So, next thing is um once you do that and you scale to that $1,000 account by putting more money in there, rewarding yourself every two weeks, then you decide if you're going to want this is when you can actually start making money.

That first phase, that that small live

11:53

account, you're not trying to make money. you're proving to yourself and getting used to to actually trading with real money and the emotions of real money.

After you finish that and get to that $1,000, next you decide. This is where you veer off and decide how you're going to make a crazy amount of money with trading.

There's one thing called a prop

12:09

firm, which we're going to go over in a second, which is probably what I suggest to most people. The other option is to fund a larger account.

So, put way more money inside of account, like 10, 15, $20,000 into an account and start using that to then start making money and be able to live off of those funds, quit

12:25

your job, do everything, whatever you want to do with that. Um, but it's only after you did that demo account, and it's only after you were on that small live account and proved to yourself that you were profitable with that small live account, that's when you go and make this decision to use a prop firm or fund a larger account.

You're not supposed to

12:42

go straight from not knowing how to trade to then just randomly buying a prop firm or putting 20 20 or $50,000 into an account. I promise you, you're just going to end up blowing money.

You need to learn the skill first and then use these tools to make you way more money. Now, if you're on a live account,

12:58

what I suggest, a good rule of thumb is to risk no more than 3% of your account per trade. So, if you're on that um let's say you you load $10,000 into an account, this just for simple math, you should not be risking more than $300 per

13:16

trade. There's no need to do that, especially as a beginner.

Now, of course, when you get more comfortable and more profitable as a trader, like I risk more than 3% inside my account, but I've been doing this for eight years, but as a beginner, I would not suggest you risking more than 3% per trade. Now,

13:32

obviously, like I said, when you get more experience and you get more confidence and you've been doing the back testing and you have your strategy that has this certain win rate after you've tested it over 500 trades, over 200 days, whatever it is, you're more confident in it, then you can up that percentage, get wherever you want. I

13:48

really don't go anywhere over like 10 to like 12% per trade. I really don't go much over that depending on my account balance.

Um, but obviously it's not at 3% anymore. But that's what I would suggest for complete beginners.

Risk no

14:04

more than 3% because that gives you enough breathing room to lose a couple trades. You're a beginner.

You're going to lose a bunch of trades. No matter how good the strategy is that I've showed you guys, no matter what, I promise y'all I give you the checklist.

I I'm pretty sure some of y'all are going to just not follow the checklist. And then

14:20

you're going to end up losing more trades than you should have, which is perfectly fine. It's the learning curve.

Um, you're going to get tired of losing and follow the checklist. um very very fast, especially if you're doing that consequence that I mentioned to you guys earlier inside this video.

But like I said, risk no more than 3%. It'll give

14:35

you a lot of breathing room and it won't make you feel like you are actually betting the entire house. And that kind of goes into the next point that I wanted to say.

Do not put money in your trading account that you need. If you think this is like a get-richqu type of thing and you could flip your rent money

14:52

to have a year's worth of rent money in two days, you're going to lose all of your rent money and it's not going to be good. So, do not put any money into the markets that you are not comfortable seeing burn right in front of you.

I'm talking about if you decide to put $1,000 in in account, can you picture

15:09

yourself watching this thousand dollars burn? Because ultimately, that can happen.

Obviously, I've given you all the tools to make this make that very very very very unlikely. But if you decide to just disregard the tools I've given you, the information I've given you, and you go on tilt, tilt as in you just you don't

15:26

follow your trading plan anymore, you don't follow risk management, you don't follow anything, you can lose all of the money inside of your account, and we do not want that. So, do not ever put money that you absolutely need inside of your trading account.

So, I mentioned prop firms, but let's dive into exactly what they are and why they are literally game

15:43

changers for every single trader. In simple terms, prop firms give us as traders the opportunity to pray pay a small amount of money, let's say $500, $600 to trade with capital as high as $200, $150,000,

16:00

um $200,000, $250,000 with certain prop firms. Now, the way that they do this is you pay a cert a set fee to have an evaluation or a challenge most of the time where you'll pay that $500 and you pay that $500 to have the opportunity to

16:16

prove to this prop firm or prove to this company that you can actually trade. And once you prove that you can actually trade and that's that's you're proving to them that you actually trade by hitting certain profit targets and not losing a certain amount of money before you hit that profit target.

then also some other small rules that um they have

16:33

on their websites and things like that. So that's basically the gist of it.

You're paying $500 $600 to take a challenge and prove to a trader or prove to a prop firm or a funded account is another word for them. Prove to a funded account that you can actually trade.

And once you prove to them that you can

16:49

actually trade, they will let you trade with let's say 100 or $150,000 account. And all the profits you make on that account, you keep a majority of the profits.

Some of the prop firms are you keep 100% of the profits. Some profit uh prop firms you keep 90% of the profits.

17:06

Some you keep 50% of the profits. It all depends on the prop firm and there's so many different things um to go through on the prop firms to understand them in the most in the best way possible depending on you as a trader.

But for the most part, that's it. So you're paying a set amount of money to make a

17:22

ridiculous amount of money. If you think about it, if you remember what I was just saying, 20% in a month is pretty great.

20% on a $150,000 account is $30,000 in a month. And the only thing you had to pay, the only money out of pocket for you is that $500 or $600 fee

17:38

that you have to pay to get access to take that challenge, to pass that challenge, and get funded. Now, these challenges are not easy, right?

They're not like you come in here and you just randomly make money, right? That's not how it works.

These challenges are built to filter out people who can trade and

17:53

people who cannot trade. And then once you pass the challenge, most of the time, if the proper does have a challenge, most of the time you pass the challenge, then you have to make more money.

And then that money that you make on top of it, you can um withdraw a certain amount of that. Some of them

18:08

will start off with smaller withdrawals that you could take. Then when you're more consistent with your trading, you can take out bigger withdrawals and things like that.

There are a bunch of different prop firms. Like I said, uh we'll go over a couple of them here, but I just want to go over a couple of the benefits of them.

So, as I told you, they give you capital. You do not have to load up your own account.

You if you

18:25

don't have $50,000, $100,000, $150,000, you can leverage other people's money, which like I said is extremely beneficial. Um we all know like with real estate, you're not supposed to just go buy your house cash, right?

You want to leverage other

18:40

people's money, use other people's money. That way, you can actually buy more of the asset.

So, same way when it comes to trading. Um, it's honestly if I they I didn't have prop firms or I wasn't aware of prop firms when I first started off trading in the beginning.

18:55

Um, if I did, it would have been a lot easier and I wouldn't have lost that $60,000 of my own money. Um, but yeah, so they give you capital.

You can trade with their capital. The nice thing is that they kind of force you to have risk management because I mentioned to you guys that they have their own rules.

you have to make this amount of money

19:11

without losing this amount of money and doing this and doing this and doing this. So, they give you a set amount of rules.

So, it forces you to have risk management because you don't want to lose the account. If you lose the account, you then have to pay that amount again.

Now, keep in mind, a lot of people ask me this when it comes to funded accounts. If you, let's say you

19:27

have a $100,000 funded account, if you lose $3,000 on that account, you don't actually lose $3,000. You don't have to pay them $3,000.

You don't have to uh they're not going to come after you or nothing like that. You just lose the account.

you blow the account is what we call it. When you blow the account, you can simply just buy the account again or

19:44

retry it. You can actually pay a reset fee and reset it and start the challenge all over again.

So, as you can see, this can be a very, very, very, very beneficial um thing for us as traders to be able to leverage other people's money while limiting our downside. Because no matter what, if we paid $600 for that prop firm

20:01

challenge, if we lose $20,000 on the account, most of them would not let you lose $20,000. But if you lose $20,000 on the account, you didn't lose $20,000.

You only lost $600 out of your pocket. And that's one of the the

20:17

um just the the biggest benefits when it comes to prop firms. Um like I said, they also force you to have risk management because you have to follow their rules to pass their challenge.

Uh it also lets you use other people's money to make money, which is what we've talked about, leveraging other people's money. You don't have to put $20,000 of

20:34

your own money into an account, $100,000 of your own money inside of account. You can pay that fee, make money, and withdraw percentage of the um the profits, and the prop firm keeps the other percentage of the profits.

Uh you don't have to risk your own money. Um and you have account resets, which like

20:51

I said, you're not losing all the money. You're not buying $150,000 account, losing $10,000, and now they're coming after you for $10,000.

That's not how it works. you don't, the only thing that you are accountable for is when you pay that challenge fee.

And if you want to

21:07

reset it, you can reset it. Uh, so that's some of the benefits of a prop firm.

We're going to get into exactly how to pass a prop firm here in a second, but I want to show you guys my favorite prop firm to use. And there's a reason why it's my favorite prop firm to use because it's my prop firm.

If you

21:22

guys have been seeing up here, um, the edgefinder, this is my prop firm. It's built by a trader, obviously me, for other traders.

And I built it because I've gotten multiple payouts, tens of thousands of dollars from payouts from prop firms. I've seen the good about it.

I've seen the bad about it. And I

21:39

decided to instead of kind of just being upset more so about the prop industry or um certain things I didn't like about specific prop firms. There are great prop firms out there, don't get me wrong, but there's certain things I don't like about prop firms that I really wanted to give um a different option to people that benefit traders

21:57

more so than um just benefits the prop firms. So I built my own prop firm.

Um I had the best team inside the world build this prop firm. The greatest thing, one of the best things about this prop firm is that I mentioned to you guys most of the times you pay $500, $600 and you

22:13

take a challenge. You take that challenge, you have to pass the challenge.

Once you pass the challenge, you then have to make profits again because when you pass the challenge, they reset the account. Let's say you you start at $150,000 account.

um when you set when you pass the challenge and

22:28

let's say you get it to the the profit target of $150,000 account. Profit target is usually like $159,000.

So let's say you get it to that. Once you pass the challenge, they then reset you back down to a $150,000 account and you have to do it again and

22:45

then you can start taking profits on top of that $9,000 if that makes sense. Um and I wasn't really a big fan of that.

I wanted people to be able to purchase the challenge, start making money, pass a payment threshold as far as pass a certain amount inside the account, and

23:01

everything above that account that they make, they can keep it. That's why I built the EdgeFunderer, which to me is obviously the best prop firm out.

I'll go over a couple other um reasons why I love this prop firm, why I truly would suggest it for every single person

23:17

watching this. Once you've went through your demo phase, once you went through um all the other phases, the small live account, then coming to a a live a funded account, sorry, a prop firm account specifically for the reason that this is the best option for um to scale

23:34

your trading after that. So, um we have no challenges on it.

So, not a single challenge. You don't have to pass a challenge.

You don't have to hit a certain profit target and then prove to us that you can trade. We are calling all really funders that have or sorry traders that have an edge already.

What

23:49

I mean by edge and why this is called the edge funder is because an edge is a strategy that works. I teach on my YouTube channel strategies that work.

So I attract people who have an actual edge inside of the market. People who have um the ability to trade and want to be able

24:05

to leverage how much money they're making with their trading without having to worry about challenges. So, we have a direct funding where you come in here, you're able to purchase a $50,000 account, a $100,000 account, and $150,000 account.

And you're able to profit after you reach a certain

24:21

threshold inside of your account. Once you reach that threshold, all the profits on top of it, you can start taking payouts on.

You can start withdrawing that money. Same way applies to this.

If you buy a $100,000 account, let's say you lose $3,000 account,

24:37

$3,000, you don't owe our prop firm $3,000. You would simply just have to reset your account and you can try again.

Now, I want you guys to take this with a grain of salt. Just because you can reset your account does not mean I

24:52

suggest for you to go and keep blowing accounts, blowing accounts, blowing accounts trying to get lucky. That's not how this works.

And that's only going to make you end up losing money. The goal of this is to get you guys to end up making money.

So that's why I said for you guys to go through that step by-step process of starting on that demo

25:08

account, then going to that small live account and getting consistent with that and building your confidence in your trading and then go the route of a prop firm or um loading up your own live account to be able to make profits with. But this is the prop firm that I truly

25:23

would suggest. I will leave the link for this inside the description down below.

Um, it's like I said, it's I've built it to be the exact thing that I did not um well, the exact thing that I loved about prop firms and taking away the exact

25:38

thing that I did not like about prop firms or that I I felt made it way too hard for traders, new traders, experienced traders to start making money in this space. So, like I said, I'll leave a link for this prop firm down in the description down below.

But now, I'm going to dive into how do you

25:54

actually pass these prop firms? How do you actually get money if you decide not to go with the edge funer and not go with the direct funding where you actually try and pass a challenge instead of going direct to funding?

We're going to dive into how do you actually do that. But the same systems that I'm going to show you guys and the same techniques that I'm going to show

26:10

you guys are the same things that you can use in here to skip the challenge phase process and just start making money without having to pass the challenge. You'll just follow the same steps that we're about to go over right now and you can start actually withdrawing real money into your bank account.

But yeah, like I said, I'll leave the link for this inside the

26:26

description down below. And let's hop into how to actually make money from these prop firms.

So, how do we make money with these prop firms? Regardless if you go with an instant funding like the edge funer or you go with a regular challenge account where you go through

26:42

the challenges and then start making money on top of the um after pass the challenge. It's important that you follow these specific steps cuz as I just mentioned, I don't want you buying these prop firm challenges just to lose them and reby them just to lose them to reby them just to lose them.

That should not be your mindset. I do not want that

26:58

for you guys. I want you guys to be able to actually make money with these prop firms and by leveraging their money, not just keep feeding them money.

So, how do we do this? The first thing and the first suggestion and first most vital tip that I have for you guys is to not trade your funded account every day.

I

27:15

know it can get very um you get very excited because you're like, "Man, I have a $100,000 account right now. If I just make $3,000 on it, I can literally pay my my car note.

I could pay my rent. I could do all this, right?" And I understand that.

But what that does is

27:31

that brings emotions in you. I will keep saying this, you guys will keep hearing this that emotions and impulsiveness will make you the most unsuccess unsuccessful trader in a very very short amount of time.

When you get in that mindset and that emotion of um overly

27:49

excitement or trying to rush the process, you're going to end up taking trades that are not there. You're going to end up saying that you're taking the ultimate support and resistance strategy, but you're just taking random trades.

Or saying you're taking the squeeze strategy, but you're taking random trades. saying you're taking this scalping strategy, but you're just

28:05

literally taking random trades. I 100% do not suggest that you trade every single day.

This should be the funded account that you're using should be used to trade when everything aligns on your checklist. What I tell people and what I suggest is if everything does not align

28:21

on your checklist, but you're just itching to trade, go on a demo account. Trust me, going on a demo account when you really, really want to trade, but you know it's not a good setup will save you so much money and it'll get that itch out.

you'll still be able to feel that that that dopamine hit of you actually trading. So, don't trade your

28:37

funded account every day. Only trade it when it's the good setups uh and everything checks off.

Now, when it comes to risk, so risk, as I said, or proper as I said, they're going to give you their own rules. So, a lot of them will be like you can't if you have $100,000 account, you can't lose more

28:52

than $4,000, right? So, what you want to do is not risk too much money, especially as a new trader.

And this is the the area that I would suggest for most of you guys to be in, which is the conservative approach of risking half a percent to 1% per trade. And what that

29:08

looks like is if you have $100,000 uh properform account, um you can risk $500 per trade all the way up to $1,000 per trade. And that's it, right?

Um now, if you're more advanced, and I have a one right here, you can risk one and a half%

29:24

to 2% on each trade. And that's to be more aggressive.

As I explained here, that's for experienced traders only. What most you guys should be doing right now, at least for the first couple months as traders, is risking a max of 1% per trade on your funded account.

If

29:39

you have a $100,000 account, you're not supposed to be risking more than $1,000 per trade. You should really be risking about $500 to $750 per trade on your prop firm account or on your funded account.

It does not make sense for you to be aggressive and try and rush it

29:55

because what's going to end up happening is if you're too aggressive and you're not experienced enough. You're going to end up risking one and a half to 2% per trade and you're going to blow your account in one day.

We don't want that to happen. We want you to have longevity in this, but we also want you to have breathing room because no matter what,

30:10

no matter what strategy you're using, you're going to end up losing and there are times when you can go on a losing streak. So having your um risk lower allows you to go on that losing streak but still not lose your account.

Like all every single strategy that we went over today, the uh ultimate support and

30:27

resistance strategy, the squeeze strategy, and the um scalping strategy, I've used every single one of them individually to pass prop firms and make money with them. So the strategy works completely.

I've done this multiple times. I literally just passed five

30:43

account challenges cuz somebody had challenged me to do one. and they they thought I couldn't do one.

So, I passed five challenges in 4 days or something like that. Um 4 days, 3 days, I forget.

But every and I was using this the scalping strategy for that one. So,

30:58

every single one of the strategies can be used to pass prop firms and make money. If you're using the instant funding like the edge funer, you can pass you don't even have to pass the challenge.

You can use these strategies to start making money instantly on uh these prop firms. But the thing is, if

31:13

you don't give yourself enough breathing room, if you go on a two loss, a two lose streak or you you you're on a two losing streak, that's how you put it. If you're on a two losing streak and you overleveraged, you lo you risked way more than you should have, the account's

31:28

gone, and then you have to buy a new account. Now, obviously, it's not the end of the world.

You don't owe them $10,000, but still, you having to keep buying accounts could add up over time, and we don't want that. So, uh, like I said, be conservative with your trading, especially when you're first starting off, if you're new to trading or if

31:45

you're new to prop firms, be conservative. And then when you're more advanced, um, possibly you can up that risk to about one and a half%.

The next thing is to create an altered trading plan specifically for your funded account. So, we've talked about trading plans and building a trading plan.

that was mostly mainly

32:00

tailored towards you having your um own live account because when it comes to having a funded account, you need to actually alter that plan just a little bit. Don't alter it.

Keep that one for your live account, but um create an additional one, a separate one, a copy of it that has a a couple different

32:16

things that change about your plan. One of the ones that I suggest is changing the amount of trades that you can take per day slashw week.

Because if you're risking half a percent per day and let's say you can't lose more than 4%. Maybe you don't want to take five trades a day

32:32

because god forbid you lose all five of those trades. You're going to be in pretty heavy um negatives and you don't really want that.

So look over your trading plan before you purchase a funded account or start trading on your funded account or propform account and

32:48

um see if the rules that you have in your trading plan align with the rules that the properform has as well. Next thing you want to want to change is the amount you're able to risk per trade.

Because a lot of times in your trading plan, you'll put I want to risk $300 per trade, but that's you trading with a

33:04

$500 or not $500, a $5,000 account, right? versus if you have a $150,000 account, you're going to risk more than $300 per trade.

So, adjust that mount amount, but don't let it be I'm risking $5,000 per trade now. Just adjust that amount.

So, uh for instance, you're

33:21

risking $1,000 per trade on each trade now uh for your prop firm and have that separate trading plan specifically for that. Next, you're going to want to choose the most consistent of your strategies.

So, um, whatever we

33:36

mentioned before about back testing and tracking our results. We're going to get into journaling all of our trades and how you should be journaling all of your live trades, not just your back testing trades.

We're going to get into that in a second. But out of all the trades where you've all the strategies, sorry, where you've seen your most consistency, pick the one that you see the most

33:53

consistency. So, if you trade three strategies and this one's good, this one's good, but this one's great, only trade that great one when it comes to your your funded account because that's the one that's going to make you the most money.

And you don't have to trade those other two. You can trade those other two either on your small live account or on a demo account if you

34:09

really want to trade them. But honestly, go through your trading plan.

This why I put etc here. Go through your trading plan and see exactly what um things you might have to alter to adjust it to your funded account trading plan.

So like I said, don't delete or erase your current

34:26

trading plan, but just create a copy of it and alter it slightly for your trading uh for your prop firm. Now, understand you can reset your challenge, but don't abuse it.

Now, I've talked about this a couple times already, but what I mean is some people will come in here and just hail marry it, right?

34:41

They'll be like, "Okay, I'm just going to make I'mma risk $10,000 on this account. I'm going to make$10,000, right?

It's either I lose 10,000 or I'm going to make 10,000." First of all, some prop firms have rules set in place to stop you from being able to just randomly get lucky and make $100 million. Um, but even if they don't have

34:59

that set in place, still don't abuse it because I promise you, majority of the time, you're going to lose every single time. You're going to lose the account, have try again.

Lose the account, try again. Lose account, try again.

Lose the account, try again. And you don't want to abuse the whole aspect of being able to reset an account.

You want to trade

35:15

this funded account as if it's your live account. Treat it as if it's like your actual fund, like it's if it's actually $150,000 in your account or actually um $100,000 in your account.

So, be very cautious of that. Next, like I said, I'm

35:31

going to double down on this is don't trade your funded account every day. Only take the A+ setups.

A+ setups for me is when everything aligns. I've given you guys checklist for those three strategies.

If you guys have my strategies course, every single strategy inside my strategies course has been used to pass prop firms and make money

35:46

by not just me, but thousands of my students. If you have any of those strategies and you follow the checklist and every single thing lines up, that's an A+ setup.

If one thing's missing, it's not an A+ setup. When it comes to trading your funded account, only take

36:01

the A+ setups. If you really want to trade, but everything's not aligning, go on a demo account.

I promise you, it'll save you so much money. But realistically, just be very um cautious of when you're trading prop firms because a lot of people will come into

36:17

the prop firm space and buy a prop firm and treat it as if they have that demo account uh kind of euphoria that I talked about before. These prop firms are not demo accounts.

These prop firms cost you real money. They um it's not just free lying around.

So don't get in that euphoria just because the number is

36:33

big. Just because your account size is $100,000 on a prop firm, don't let it get to your mind where you just start randomly taking trades.

Treat this more serious than you would that small live account that you have. Speaking on mindset, mindset is really the most important part when it comes to trading.

I'm going to beat this in you guys' head

36:49

until it rings in your head as you sleep. Every time you close your eyes, you're going to hear this.

Emotions and impulsiveness will kill your trading dreams. And that all comes from not having a strong psychology.

So, I'm going to dive into my most important and

37:05

crucial tips for you to become profitable, but not just become a profitable day trader, but become and stay consistently profitable over a long period of time. And the only way you'll do that is with having the right psychology.

And that's one of the main reasons why psychology is important. My

37:22

honest opinion, day trading is over 80% psychology. I I've taught 10-year-olds how to trade.

It's very easy to look at a chart, spend a week looking at a chart, be able to see support and resistance, um trend lines, doies, all that. It's very easy to do that.

It's

37:37

just a game of memory. The hard part comes in when your mind starts talking to you and when you start getting emotional, when you start getting impulsive, when you start making stupid decisions, that's when the hard part comes in.

When you start overleveraging, risking more than you're supposed to, taking more trades than you're supposed to. It's not the trading part, it's the

37:52

psychological part. Now, I've said this multiple times, but once you are profitable on a demo account, you know how to trade already.

And why I say that is because most people that trade on a demo account and they treat it like they treat it like a real account, they're trading with no emotion. They're just

38:08

seeing their setup, taking it, seeing their setup, taking it, waiting for their setup, taking it when it when it shows itself. That's it.

They don't have any emotions behind it because they don't they don't care. like they don't if they make $100,000 on this on this demo account, they do not care.

They don't get $100,000. So, they're trading

38:24

with no emotions, which is what we need to translate into trading live. The problem is most people will be profitable on a demo account, then as soon as they go to a live account, they end up losing all their money.

I've seen this countless times, even going back to

38:40

prop firms. Most people can pass that challenge, but as soon as they pass that challenge and they start realizing in their head, "Oh, snap.

this is real money. If I make $10,000 right here, I can go get a scat pack.

I can go to the Lambo store. I can buy a bust down freaking bracelet or something like

38:56

that. Their psychology starts getting into it.

They start forcing trades. They start rushing into trades.

They start overleveraging on their trades, risking more than they're supposed to. Um, so it just becomes a very, very, very toxic environment.

But I've said this before and I'll say it again. Once you're

39:11

profitable on a demo account, you know how to trade. You know what support and resistance is.

You know the checklist strategies. You know how to how to spot trend lines.

You know what a dogee is. You know what a hammer is.

You know what a uh bullish engulfing is. You know what all these things are.

You are a you were able to be

39:28

profitable on that demo account. But once you go to that live account, your psychology is not in check.

We're going to fix that within the next couple minutes. Once you start focusing on psychology, day trading becomes much more profitable, much less stressful, and much easier.

So let's exactly how we

39:44

do this. So mastering psychology is different for everyone.

We all have different personalities. So we will all struggle with different aspects of trading mentally and honestly why mastering trade why mastering our psychology is so hard is because trading is a you versus you game.

Nobody is

40:00

holding you accountable. I just told you guys this.

Nobody is holding you accountable. Nobody's keeping you disciplined except for you.

And if you're not doing it, no one's doing it because it's a screen right here. It's a chart right here.

And it's me right here. There's nobody here saying you shouldn't take that trade because it doesn't follow the checklist.

There's no

40:16

one here saying you shouldn't risk that much because that's above your uh trading plan or you shouldn't take that that many trades because of your trading plan says do this. It's only you that's holding you accountable and that's why it's so hard for most people.

A lot of people and I' I um I made this analogy before a lot of people are super

40:33

disciplined in other areas of life and then they come into trading and they realize they're not that disciplined. Uh like I would consider myself a very disciplined person.

And I've been a very disciplined person since I was a kid. Even with working out, um, with learning new skills, I'm very, very disciplined.

I could hold myself accountable to a lot

40:48

of things. But when it came to day trading, when I first started off, I'm talking about that discipline went out the window.

I didn't even know what discipline meant. I didn't even know how to spell discipline at that time.

As soon as I started trading, and the reason is is because a lot of people are disciplined by force as far as you're a

41:06

good student in class because you know your teacher's watching. you're a good employee at work because you know you're dis you're a disciplined employee at work.

You never you never come in late. You never um steal pens from the office.

You're super disciplined at work. But that's

41:22

because the boss sees you. The boss is holding you accountable.

Your your manager is holding you accountable. So it's not that you're disciplined.

It's your discipline knowing that somebody else is there. So when we come into day trading and no one's there, it's just you.

You realize just how disciplined or undisiplined you are. But that's really

41:37

why mastering psychology is so hard because you you realize that and you come to that realization. Now, as I've said, I've helped countless amount of people start trading and become consistently profitable.

And speaking to these thousands of people, I've realized that

41:52

most people only struggle with two to three things max. And the craziest part about it, like the the most ludicrous part about it is that they already know what they are struggling with.

When I say this, most people will struggle with two to three things max. For example, a

42:09

lot of people will struggle with overleveraging. A lot of people will struggle with taking too many trades every single day.

A lot of people will struggle with jumping from strategy to strategy to strategy. Most of the time, it's not more than three things.

Those are just three examples, but it's usually a mixture of two or three things and other

42:25

things that I didn't mention. But most people struggle with two to three things max.

And the craziest part is that they come on the one-on-one calls with me and they tell me what they're struggling with, what's causing them to lose money. They know what it is that's holding them back from being profitable,

42:41

yet they still continue to do it. And that's the life story of a lot of traders.

And this is what this section that we're about to go through is going to eliminate out of you. You're not going to have to go through that.

Um because once you realize, this is what I try to explain to my my students and my mentees, once you realize that you

42:57

continuously opening up five trades instead of two trades in a day is causing you to be unprofitable, if you just stop doing that, you would be profitable. Like people work years to become profitable traders.

But if you just stop doing that one thing, that two

43:14

things, you instantly become profitable. And I've seen this happen so many times when when I finally get that light uh light bulb to click in people's mind.

Just stop doing those things and you're profitable. And this is what we're going to get you to do so you don't even have to go through that.

Let's fix your psychology here. So when it comes to

43:32

trading, think in terms of probabilities. Understand that while trading a trading method might have a high probability of success, it does not guarantee success in every individual trade.

Think of it as rolling a dice. we talked about before, if you have a 90%

43:47

win rate. That means nine out of 10 trades you're going to win, you still don't know when that one time is going to happen.

And just because you have a 90% win rate doesn't mean that that one time can't happen two times in a row or even three times in a row. So think of trading as a probability game, not as a

44:04

I'm taking this trade and I'm going to win this trade game. That's that's you're going to be let down every single time that you lose.

So think in terms of probabilities. There is not a direct relationship between trading patterns and the outcomes of individual trades.

Clarify or I'm I'm emphasizing

44:22

individual trades because and that's why I suggest when you're back testing to do it over a span of 50 days. That way you get a data of 50 to 100 trades because you want to see the data of a 100 trades, not the data of one trade.

Because as I just said, we cannot guarantee that our next trade will be

44:39

profitable. What we can guarantee from what we've seen before is that over the course of a hundred trades, I will win majority of those trades.

But that doesn't mean that every single trade I'll take will win. There is no direct relationship between trading patterns.

44:55

It could be the perfect setup A++ million setup and it will still lose. And that's perfectly fine.

That's just something that we have to deal with. You also have to develop a carefree state of mind in trading.

Now, I need to make you guys aware of this. This does not mean

45:10

being careless but rather trading without the fear of losing as fear can cloud judgment and lead to poor trading decisions. Fear is an emotion.

We don't need fear of losing. We need to every single time we see a trade happen, we need to roll the dice.

We need to take

45:26

that trade because it's our profitability is not in one trade. Our profitability is in taking that strategy a 100 times and seeing that 70 times out of 100 times we made money.

So, the only thing we can do, regardless if we're scared or not, is continue to take that

45:42

trade every single time that that trade sets up because every losing trade we have, every winning trade we have takes us closer to that 100 trade mark. Now, I keep saying 100 trade.

Obviously, you don't have to get to 100 trades. It's just the number that I'm using.

And for

45:57

you to think inside of your mind, I'm not looking at the individual outcome of this specific trade. I'm looking at what's my P&L the last three months.

What's my profit and loss or my win rate the past 100 days? That's what you should be looking at, not what happened on Tuesday or not what happened on Wednesday because you will get very very

46:15

very discouraged if you have a losing day. Next is to have a bulletproof trading plan.

Now, we already went through this extremely in-depth. I that's why I put the um the trading plan first so that we could go over that and you guys completely understand that.

So,

46:30

make sure you have a bulletproof training plan, one that has actionable steps on it, things that you understand and things that you will um continue with. Now, let's go through these actionable steps to help with your psychology.

So, first thing is to read over your trading plan before you enter

46:45

the trade. Your trading plan means absolutely nothing if you don't remember it, if you don't have that consequence, and if you don't hold yourself accountable to doing that consequence that you had to do because you um didn't follow your training rules.

So, what I suggest for you to do if you have it

47:00

typed out on your computer, have it open right before you enter a trade. Every morning before you hop into the trade, and I'm going to go through exactly my kind of routine and how I set up my trades or how I set up my day when I'm getting into trading a little bit later on this video, but every day when you're

47:16

going to your computer to start trading, read over your entire trading plan first so it's refreshed in your mind and you can recite it back to yourself without having to read it. That's the first step.

The next thing is to create a personal plan of the trade before it happens. So this is different than creating a trading plan, an overall

47:32

trading plan. Create a specific plan for that trade.

What I mean by that is if let's say you hopped in a support or resistance uh trade. Let's say you hopped uh in for a buy and you have three take-profit levels.

Create a plan that says when it hits TP1, I'm going to

47:48

move my stop loss to here or when it hits TP2, I'm going to take some of my profits off. when it hits TP3, I'm going to close it or if it's if it's going really fast through my last TP, I'll um TP stands for take profit.

If you guys didn't know by now, um I'll continue to

48:05

hold it a little bit longer to make more money. So, create an individual plan for that trade because what ends up happening is that when we enter when we enter trades, we do not become smarter.

We become much stupider. We make really bad decisions when we're in a trade.

So have your plan set in place first for

48:21

that trade before you hop into that trade and those emotions start kicking in and you start making bad decisions. That way you're not it that way your trade isn't hitting TP1 and you're thinking, "Oh, what should I do?

What should I do?" You're you already know what you're going to do because you have that inside of your trade plan for that

48:38

trade. Now, that this can vary from um when are you going to um exit early, like if you say if it gets to like 12:00 p.m.

I'll close my trade out early or something like that. just have that plan beforehand so you're not making impulsive decisions um while you're in the trade

48:53

itself. Switch to a higher time frame after entering your trade.

And the reason I say to do this is because it's another uh reason because uh we don't get smarter when we enter trades. So let's say you entered your trade on the one minute time frame.

sitting there and watching one minute time frame

49:08

candlesticks can really really um stress you out because it could be going in your direction then have one big candlestick that goes against you and you think your entire life's over and you're ready to close a trade out and miss out on all the profits that you were planning to make just because of one small retracement. So what I suggest

49:25

for people to do is uh switch to a higher time frame because you don't see as much of the noise. Noise as in the smaller time frames and all the smaller movements.

you just see the overall picture, which helps you if you're on the right side of trading, which you should be and what we've talked about a lot. Um, it helps you to be a lot more

49:40

calm when it comes to your trading. The next step, the next thing is to imagine your stop-loss as money you already spent to enter the trade.

So, instead of thinking in your mind, okay, I'm entering this trade and I could probably lose $500 on it. I'm risking $500.

Think

49:56

of it more so as I spent $300 to enter this trade. That's how you should be thinking about it.

I spent $300 to enter this trade, not I'm risking $300. Because what ends up happening is you start being in the wrong mindset and when it starts going against you, you start moving your stop loss in direction

50:13

in the opposite direction, cause you to lose more money or just make more impulsive or bad decisions. So, automatically think in your mind as soon as you press that buy or sell button and enter into a trade, whatever your your stop loss was after you did your calculations, calculating the ticks, um,

50:28

or use trade locker and it did it automatically and you saw negative $533. As soon as you're pressing that that button to enter the trade, just imagine that $533 left your account or that $1,000 left your account.

That's how you should think about it.

50:44

The next thing is that realize um that winning or losing um as long as you follow your trading plan, it was a good trade. Now, I used to write inside of my book.

I used to carry a book around in my pocket um every single where I went. It was a small book and it had a to-do

51:00

list on it along with um like when I read the Bible and uh just things like that. I have notes in there all throughout the day.

Um, I used to write I used to have a to-do list on there and my to-do list would always be to make money day trading. That was it.

Like when I first started off trading, I my

51:16

to-do list was to make money day trading. But then I realized no matter what, if I do everything perfectly, I could just not make money that day trading.

And I didn't fail. I didn't do anything wrong.

I followed my trading plan. I just didn't um it just didn't play out in my favor, which happens.

51:32

Remember our whole analogy of we have a 90% win rate. We don't know when that one time is going to come.

So instead, I changed my mindset and this has helped out a lot with every single day I go into the markets. I just want to be proud of my trades.

And the only way I'm

51:49

proud of my trades is if I follow my trading plan to the tea, if I waited for my checklist for my entries, if I had the proper risk management, that makes that a good trading day. That makes me proud of my trades.

And that's the same way that you should look at it because no matter if you have an A++ a freaking

52:06

million plus setup, you can still lose and that's perfectly fine. You did everything right after you're journaling and going back and and looking over it and you're like that was a good trade.

You should not be upset that you won or upset that you lost that trade no matter what the outcome was. Same way if you

52:22

win a trade but you didn't follow your trading rules. That's one of the most dangerous things that you can actually do because it gives positive reinforcement to negative behavior.

And you do not want that cuz you don't want to think your head now, okay, if I break my rules again, I might win again and I might make more money by breaking my

52:39

rules. Like you associate a good outcome with a bad action.

And you do not want that. So avoid breaking your rules at all to not even give you the chance to win by breaking your rules and getting in that that mindset.

Um, but yeah, always come into the market to be proud

52:54

of your trades and to have good trades, not to win or lose on your trades. Now, another step that I have for mastering your psychology and helping with your psychology is walk away from your PC or your laptop after you enter your trade.

Um, because sitting here looking at your

53:10

charts, you really have to think about this. Sitting in looking at the chart go up and down, you seeing your profit and loss go up or down.

You doing that does nothing. Like, you don't control the market.

You can't make it go up higher. you can't make it come down lower.

You doing it does nothing except for stress you out. So, what I suggest to people is

53:26

to just walk away from your computer, close out your your trading view, close out your trade or your your um trade locker uh website. Don't even look at it.

What you can do, because you don't want to just leave it blind, obviously set your stop losses. Always have your stop losses and always have

53:42

your take profits, but set alerts at your key levels. What I mean by key levels is um set an alert at your stop loss so that when you your stop loss hits you get notified to your phone.

I showed you guys how to set up stop losses or sorry how to set up alerts on Trading View. Um so make sure that you

53:58

are using those alerts if you walk away from your PC or your laptop. Set alerts at your stop loss.

Set alert at your TP level. If you have multiple TP levels, set alerts at all those.

If you have places where you think that you might want to exit your trade at because you

54:13

think it might reverse, set an alert at that point. That way, you don't have to be sitting there looking at your computer, but you're not being oblivious to your trade, if that makes sense.

The next step is to switch to hyenashi candlesticks or all black candlesticks after entering a trade. Now, I went over some of the benefits of

54:29

hyenashi candlesticks because it smooths things out. You don't see all the noise as we just talked about earlier inside this video.

Um, so it makes you less stressed when holding your trade as long as you're it's obviously trading in your direction overall. Or another tactic

54:44

that people use, and I tried it out for a little bit. I didn't really like it too much, but they switch it to all black candlesticks after entering a trade.

So they switch it instead of it being green and red, they'll switch it to all black because when you see like green going against you, uh, or red going against you, it uh, just psyches

55:01

you out even more, I guess. I don't know.

For me, the black candlesticks thing didn't work too well, but I've heard a lot of traders say that it works very well for them. So, it's definitely something to try out.

For me, hikenoxy candlesticks work uh much better. And then lastly, you should not feel your heart

55:18

racing before slash after entering a trade. If you do, close the trade and re-enter when you calm down.

You'll make better decisions. As I explained multiple times here, when you enter a trade, you do not become smarter.

You do not make more conscious decisions. you do not become more educated, you become

55:35

stupider. So if you enter a trade and you feel your heart racing, you start sweating, your hands start sweating, your foreheads start sweating, that means you either overlever as far as you're risking too much, that means you're too invested in the trade, which should never happen.

Robots do not

55:50

become too invested inside the trade. So you do not want to do that.

Um, if your heart starts racing racing before or after you enter the trade, um, that also means that you just you didn't do enough of your um, homework to be like, "This is a good trade," or you didn't follow the checklist enough to be like, "This

56:06

is a good trade. Regardless of our win or lose, I follow the checklist.

I'm rolling dice." Um, and I'm I'm adding this trade to my bucket of 100 trades. So, if you feel your heart racing, you didn't do that.

So, if you do feel your heart racing and you notice like, dang, I'm kind of stressing out right now,

56:23

close the trade out. Re-enter once you've calmed down and you've assessed to realize that this is a good setup.

Or you might realize, I should have never taken this. I shouldn't have risked this much.

I should not be doing this. Let me close this straight out and I'll come back here tomorrow um when I get in my

56:39

right senses. I don't know.

But this is a very very very key tip that I give to a lot of my beginner students and a lot of my beginner mentees. because a lot of them will come to me and say, "Man, I feel like I'm about to have a heart attack when I'm entering trades or I feel like uh my hands just start

56:54

sweating. I stand up from my seat and it's just a puddle or something like that." Um, if that's happening to you, it was you're not in the right mind space.

You're being very emotional, very impulsive, and as I've said 100 million times, that is not good. So, if you feel

57:10

your heart racing before after before after entering a trade, close it out. And one of the best ways to actually be confident about your trades and not have that heart racing or uh have to deal with a huge barrier with your psychology is by trusting your trades.

And now I

57:27

mentioned this before. We need to journal our trades and journal our trades correctly.

That way we can have confidence in our strategies, confidence in our trades. That's the main reason why I'm confident in my trading because I have so much data.

have years backed behind the strategies that I've used

57:43

that just give me the confidence to not have to be super emotional about my trading. But let's get into what is journaling, right?

So, journaling your trades involves keeping a detailed record of each trade you make. This typically includes the date and time of the trade, the instrument traded, the entry and exit points, the size of the

58:00

position slash the risk that you had, and any reasons or strategies behind the trade. And we're going to get into a a checklist for all the things that you should be journaling in a second here.

But this is the benefits of journaling your trades. So it gives you a track record.

It helps you to maintain a

58:15

detailed record of your trades including your profit and loss, your win rate, which can be very very valuable for analyzing your performance over a certain amount of time. It also gives you a great overview analysis.

By reviewing your journal, you can actually

58:30

identify patterns in your trading behavior, learn from your mistakes, and refine your strategies and really double down on the winning things about your um trading. similar to how we talked about in back testing where you see your patterns in your losses.

You see, okay,

58:46

40% of the time I lose my trades is because I enter too early or uh 50% of the time that I I win my trades is because um it was between the hours of 12 and 1 p.m. or whatever it is and you start picking up on those small things and that helps you to refine and

59:02

optimize your live trading. Um it gives you emotional control.

So, journaling can help you manage emotions like fear and greed by allowing you to reflect on your decisions in a more rational way. Instead of you looking at each trade on a day-to-day basis or a trade-to-rade

59:19

basis, you can zoom out and see your how you've been trading over the past week, the past two weeks, the past month, right? And that helps you put in perspective um no matter if you had a losing day today, that small losing day looks like

59:36

nothing compared to the monthly chart or compared to the monthly profit and loss that you have um with your trading. It also helps with accountability.

So, it holds you accountable for your trades as you're more likely to stick to your trading plan if you know you have to record each trade. Uh we're going to get

59:52

into the things that you have to record in a second here, but it helps you stay very very accountable because you're going to have to write down why you entered the trade. And if you don't know why you entered the trade, you're going to be looking at yourself like you're stupid and you do not want

00:07

to do that. So, it holds you accountable knowing that you have to write down a reason or try and think of a reason if you don't have a real one um when you're going over your journaling at the end of the day.

Now, journaling helps with improvement because it can help you improve your decision-making process by

00:24

forcing you to have reasons for entering or exiting each trade. Similar to exactly what I just said, it also helps with strategy development.

It can help in the development of new trading strategies by providing insights into what works and what does not work. So, being able to look over your journal and

00:39

see the data on it shows you the things that you should stop doing. Maybe you should stop trading on Tuesdays.

Like for me, I know I should not trade natural gas on Thursdays because of me journaling. I've noticed that my win rate drops over 50% on Thursdays when I trade natural gas.

So, what did I do? I

00:56

just cut out trading natural gas. Simple as that.

Uh it also helps with risk management. So, by journaling your trades, you can assess whether you're effectively managing your risk exposure.

Um, there's, and we'll get into this a little bit later on, but there's platforms that can journal your trades

01:11

for you, and it'll put it onto a nice little calendar that it will break down. Okay, Tuesday, March 1st, you won $1,000.

Thursday, March 7th, you lost $500,000. That's extreme, but you'll see like on your winning days, you're like

01:27

you're plus a,000, plus 500, plus 600. On your losing days, you're down 4,000, down 6,000.

and puts you into perspective to realize I'm not managing my risk properly. I'm not risking the right amount of money for the amount of money that I'm making on my winning days.

So, it helps you see that when you

01:43

actually are journaling your trades. Um, it's great for learning because it could be a valuable learning tool, help you understand different market conditions, how various factors influence your trading.

Um, there's also traders who have noticed from their trading that they are much better at just buying

01:59

trades versus selling them. So, they're good at seeing market when it's going to go up, but they're not good at seeing the market when it's going to go down.

So, they only really look for buy opportunities. There's people that have done that, and it's just so much that you can learn when you journal your trades and pull the curtain back.

So,

02:14

how do we actually properly journal our trades? So, you're going to want to write, and like I said, there's platforms that'll do this for you automatically.

There's one that I've used um for the last couple years. I'll leave a link for inside description down below.

It'll automatically get all this data. you'll just have to input one part in there.

And that's the part, and we'll

02:31

get into this a little bit later on, but that's the part where you explain why you entered into the trade. But everything else, it'll completely automate it for you, so you don't have to do it.

I highly suggest for every single trader to use it. I'll put a link for it, like I said, in the description down below to use that journal.

Um, but you're going to want to track, if you're writing this yourself on a piece of

02:47

paper or on a spreadsheet or something, you want to track the day and time that you took the trade. You also want to track what instrument you traded.

Let's say you you traded NQ or you traded ES or CL, whatever it is. You want to track the direction of the trade.

Either you went long, you entered buys, or you went

03:03

short, you entered sells. You also want to track the size of the position you took.

So, how many contracts did you open up when you bought or sold that trade? You want to write down how much money you risked on the trade, how much money you planned on risking on the trade.

So, say you planned on risking

03:19

$500. You want to write that down.

And then you want to write down the amount you expected to actually make on the trade itself. You're also going to want to write down how much you actually lost and how much you actually made on the trade because we can plan to lose 500, but if we cut our losses short, you can

03:35

write that down as well. That's something you'll have to do manually if you do use an automatic system.

Um, but it can do it automatically based off of your trading if you uh just to cover the how much you plan on risking part. But if you ended up uh sorry, how much you actually risk risked part um because

03:51

it'll show you how much you actually risked or how many how much you actually lost or how much you actually won, but it won't be able to track how much you planned on risking. Um but you do want to track that as well.

You also want to track what strategy you used when you took that trade. You want to um track

04:07

why you entered that trade as well. Um as far as did you enter because it broke above a swing high?

Did you enter because you got a bullish engulfing? Did you see a dogee?

Did you see this? Did you see that?

Whatever it is, you want to write that down because you'll notice patterns that, let's say, your setups where you wait for a dogee played out

04:23

more than setups where you entered on a bullish engulfing or where you waited for a break of a swing high or swing low played out better than when you waited for a hammer. Things like that you'll notice.

Um, you also want to obviously write whether the trade was profitable or it was a loss and the amount of

04:39

profit or loss that you actually incurred or how much you actually lost or won. You also want to write how you manage the trade, including any changes to stop-loss or take-profit levels, when and why you decided to close the trade.

So, this is another part you'll have to put in manually if you do decide to use any automatic

04:56

journals. Um, you'd want to write down why you changed your trade at all.

And I don't suggest you really, 90% of the time, I don't suggest you changing your trade once you're in it. That's why I said to make your trade plan.

That way, you have that and you know exactly what you're going to do. Um, but if you do do

05:12

it some reason, uh, you want to write down what you changed. Did you move your stop loss?

Did you move your takeprofit? When and why did you decide to close the trade or move your stop loss or take profit?

Just things like that. Uh, you also want to write down the overall conditions of the market.

So, something very short like you could just say it

05:29

was a news day or a lot of volatility or not a lot of volume. Um, things like that.

You want to write that down uh because you'll be able to see patterns in days where there's a lot of news. You might see that you win more or you lose more.

You want to write that down and see that to be able to make decisions

05:45

based off of that. You also want to write the reasons for the trade.

So, your rationale for entering the trade, including any technical or fundamental analysis that supported your decision. That's what we went over.

And then this is the most um crucial one that I feel like a lot of people skip and I always

06:01

tell my students to pay attention to this, but write why you think you won or lost the trade. So if you lost a trade, but you think you lost it because you entered too early or because um you entered too close to news events or whatever it is, write

06:18

down why you think you lost the trade. And also on the flip side, write down why you think you won the trade.

Because you'll see patterns on why you think you won the trade. And you'll see patterns on um I think I won it because I saw three green candlesticks and then I saw my entry candlestick or I think I lost

06:35

it because I didn't wait until the candle closed. I just entered in the middle of the candlestick and it wicked me out or it it faked me out.

Whatever it is, you want to write down why you think you won or lost the trade so you can see those patterns. it.

Journaling is all about seeing the patterns and seeing the data. I told you guys before

06:51

that trading is all about gathering data and making decisions based off the data that you gathered. You have to da you have to gather the data with journal with journaling um and then make decisions based off of that data that you did gather.

So track why you think

07:08

you won or lost each of those trades. If you can do that consistently and then look back on your journal at least once a week.

I suggest for people to do it on like a Saturday or a Sunday when the market's closed, look back on your journal before the next week starts.

07:23

Make decisions and altercations alter altercations. What is the word?

And make changes. We'll just use that.

Um make changes to your system or your strategy based off of what you journaled the past couple weeks or so. If you do see any

07:40

patterns, stop doing the things that um the patterns that you saw on your losing trades and stop doing the things that or and start doing more of the things that you saw on your winning trades. Um and that'll help you out a lot.

So read back on your journal. Do not just write these

07:56

these things down and journal these trades and never look back on it because that just becomes pointless at this point. You need to look at the data.

It's going to be one of your most best friends. I promise you.

People ask me all the time what was my biggest stepping stone to become a profitable trader. And it's when I started

08:12

consistently journaling my trades and not just journaling them, but looking back on the data of the trades themselves and adjusting my strategies, adjusting my systems, adjusting my psychology based off those things. Now, I have 13 core principles that I

08:29

completely live by when it comes to my trading. If you can adapt these 13 core principles, I promise you the journey from going from a complete beginner to a consistently profitable trader will be cut drastically.

The fourth core principle is take only A+ setups. You

08:44

guys have heard me say this before in a lot of things that I've went over. You guys are going to see taking A+ setups cuts out a lot of the noise of bad trades, giving money back to the markets, and just doing things that don't benefit us on the long run when it comes to becoming and staying consistently profitable.

Core principle

09:01

number two is trading less means making more. Now, I made a YouTube video about this about a year ago where I explained to people if you look even if you're unprofitable right now, look at all the trades that you've taken for the past month, all the wins that you've taken, all the profits that you made.

Let's say

09:17

it was $10,000. You could be unprofitable, but let's say the amount of wins total was $10,000, but the amount of losses that you had was $12,000.

So, you're negative. You don't even have to make more money.

You can keep that same $10,000. But if you give away less money or give back less money,

09:35

you become profitable. So, trading less means more.

Taking only those A+ setups, taking only the best setups, that means you're actually going to make more money. More trades you take does not equal more money.

99% of the time it equals making less money. Core principle

09:50

number three is to follow the trend. The trend is your friend.

You don't want to trade against all the big institutions. You want to trade with them.

Follow a proven plan. Your plan gets proven when you used it, tested it, and abide by it over a long period of time.

That's when

10:05

you have to completely and stay um you have to fully follow that plan once it gets to that point. Core principle number five is to journal everything.

We just went over journaling and how to do it correctly. Have a set plan for each trade is number six.

We talked about

10:21

that. The difference between having a trading plan and set of rules and a and the difference between that and having a set plan for each individual trade.

Core principle number eight is to have a strict set of rules. That's all part of your trading plan.

A strict set

10:37

of rules as in if you say you can only risk $300 per trade, you stick to it. If you can only take three trades a day, you stick to it.

If you can only trade NQ and ES, you stick to that. Core principle number nine is don't be afraid to pay yourself.

And you would think that most people don't struggle with this. But a lot of my students when they

10:53

start consistently making money, they're very scared to start paying themselves. They they they feel like they get like a I guess fear kind of feeling or they feel like they don't deserve it because they're now making hundreds if not thousands of dollars consistently now.

So now they're like, I'm printing this money out of thin air. So they they they're scared to pay themsel.

But what

11:09

I suggest for you, do not be scared to pay yourself. set yourself up on a pay schedule.

Um, same way how I explained on that small live account every two weeks. You'll put more money in it if it's profitable.

You can do that same thing. You can take a certain percent of your profits out every two weeks.

If

11:25

you're trading on a prop firm, take payouts every single time. You can take payouts.

Um, don't be afraid to pay yourself. You earned it.

You put in the time to learn how to trade. You watched through a couple hours of this video already.

You deserve to take money out and go buy yourself something nice or a

11:41

family or a friend something nice. Core principle number 10 is don't try to flip accounts.

This is one of the main things that messed me up in the beginning thinking that I was going to flip $1,000 to a million dollars. And in order to do that, you have to risk way too much.

You have to overlever and it's super super

11:57

stressful. It does not work.

You've probably seen these YouTube videos of these people turning freaking $100 to a million dollars. And I'll be the first person to tell you it's either it's completely fake or they basically hit the lottery.

That is not a thing at all.

12:14

Because in order to do that, they have to risk their entire accounts. And in order to risk their entire accounts and make it to a million dollars, they have to have a 100% win rate.

And I guarantee you, every single person you see on YouTube does not have 100% win rate. So, it's either they got extremely lucky,

12:29

like I'm talking about got struck by lightning three times in a row lucky, or it's fake. Do not try and flip accounts.

That's not how you make money day trading. Core principle number 11.

Be patient and wait for your entry. If you have to see a double top, double top

12:46

simply means that uh price got to the same level twice. If you have to see a double bottom, which means price has to get to the same level twice.

If you have to see a dogey candlestick, if you have to see a whatever it is that you have to see to enter your

13:01

trade, be patient enough to wait for that. Don't try and jump the gun.

Jumping the gun does not make you more money over a long period of time. Maybe you'll get lucky one time, but over the course of 10 trades, you will lose a lot of money.

Core principle number 12. I

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don't know why I put this here. Um, it says 11, but core principle of 11.

Number two, number 112, whatever, is to trust your trade. When you enter a trade and you've gotten consistent to the point where you've followed the checklist, it's an A+ setup.

Trust it. There's

13:34

nothing you can do by sitting here looking at your charts and hovering over the the close button. There's nothing you could do.

Trust your trade. You entered it for a reason.

You entered the A+ setup. You waited for your entry.

You waited for everything to check off. Trust it.

Core principle number 12 is to

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enter your trade and walk away. This helps me out a lot.

You'll notice a lot of times if you're in my inner circle, you're live trading with me um a lot. When I enter a trade, I'll switch off that chart.

I don't even want to see it. If I'm not at my key, if I don't have to be at my um computer, if I'm not trading

14:05

live with my inner circle, um then I'll enter the trade and I'll walk away. I'll set my alerts at my key levels like I told you guys to and I walk away.

I find no pleasure in seeing thousands of dollars go up and down. I just want the trade to play out in whatever way it's

14:22

going to play out, win or lose. Core principle number 13, which is one of the most important ones, is don't overleverage.

You can have a 90% win rate, but if you overleverage that one trade, you lost all of your profits. No matter if you won 10 trades in a row,

14:38

you can overleverage one trade and lose every single one of those profits. If you take these 13 core principles, it's technically 14 now.

Um, if you take these 14 core principles and apply them and stick to them, add them to your trading plan, I guarantee you that

14:55

period of you being a beginner to that period of you being a consistently profitable trader will be cut drastically. You will not have to spend a lot of time in the markets.

I'm doing this for eight years and I compiled eight years worth of data, eight years worth of experience into these 14 core

15:11

principles. So, take them, run with them, and start milking the markets.

Now, a lot of you guys might ask, "What does your routine have to be to be a consistently profitable trader?" I'm going to dive into what my exact routine is so that you can follow my routine, follow exactly how I go about my

15:26

mornings to get ready to start milking the markets, as we just said, cuz honestly, winning trades are born in the charts. But profitable traders are made in their daily routines, and I will stick by this.

I promise you that. So realistically, I start every day and I kind of mentioned this before and this

15:42

how I personally start my day and how I've done it for the past more than I've been trading. So probably like 10 12 years now.

Um I start every day with praying, meditating, and reading my Bible. It just gets me in a nice calm mind space and headsp space realizing

15:58

that money trading is not the end goal. That's not all that life is.

Life is so much bigger. And that just helps me put into perspective and not be too attached to trading or too attached to the trades or the outcome of the trade knowing that there's so much more to life.

Um, it

16:13

really keeps me focused. It keeps me calm on, like I said, the things that truly matter.

Once I do that, I'll go to the charts and I'll see what the market has done while I was sleeping. Once I see what the market has done while I was sleeping, I'll start drawing my major areas of interest zones starting from my

16:28

higher time frames and working myself down how I showed you guys. I'll draw my zones on the 4 hour time frame or on the hourly time frame.

And those are the I'm basically making my plan for the day. What do I want price to do?

Do I want price to tap into this resistance zone up here? Do I want price to time to the support zone right here?

If it does,

16:45

what am I looking for? Just things like that.

And then once I have that all plotted out, I hop on my live call, my inner circle, and then I start taking live trades if the setups um come up. I didn't mention the inner circle before, but I do have an inner circle.

It's really for people who are super super serious about trading and aren't just

17:01

trying to do this as a hobby. I'm talking about make if if you're someone who just wants to make a couple hundred dollars a month, uh, Inner Circle is probably not for you.

It's for people who are extremely serious. Um, people who want to make 10, 20, 50, if not $100,000 every month with day trading.

17:16

That's really what my inner circle is for and it's catered for. It doesn't matter if you're a complete beginner.

It doesn't matter if you're an advanced trader. We've been able to help people from all levels get to profitable trading.

I had someone who just started inside my inner circle. Um, and then two weeks, sorry, in two months, not two

17:33

weeks, in two months, he was able to take $40,000 worth of payouts from a prop firm, which is absolutely amazing. Um, but I trade live with them every single morning.

So, that's next on my routine. I didn't mention the inner circle before, but if you are someone that's interested and if you're serious

17:49

about your trading, which if you've made it this far into this video, I can tell you are serious about your trading. I'll leave a link to apply to join my inner circle inside the description down below.

It's very exclusive. It's very limited.

If you go through any of my YouTube videos, you're going to see people always complaining that the spots

18:05

are full. That's why I would suggest if day trading is something that you really want to take serious and be able to not just make enough money for yourself, but your family, your friends, those around you, I suggest you hit find the link inside the description down below to join my inner circle.

Apply to see if you can have the opportunity to join in

18:21

if there's spots and lock in your spot at that point. What's included inside my inner circle is live trades with me every day.

You get one-on-one access to me to be able to ask me any questions at all. I'll help you build out your trading plan where um have I have four

18:37

other coaches inside of there, four other profitable coaches. I'm talking about traders who send out their trades as well and I take their trades.

I'm making thousands of dollars taking my coaches trades. They're absolutely amazing.

We have a crypto uh futures coach. We have three more futures

18:53

coaches um that trade like NQM um and gold and things like that. And then I also have a dedicated trading psychologist in there.

I mentioned to you guys that psychology is the hardest part when it comes to trading. And that's why it was important to add that

19:08

to my inner circle, which is something that I built to be the one stepping stone that I would have needed in the beginning of my trading. So, it wouldn't have taken me two and a half to three years to become profitable.

So, we have a dedicated trading psychologist inside of our inner circle that is at complete disposable use to you. We also have a

19:26

bunch of other things. We do giveaways all the time.

you um just have a whole community of people who are serious about trading that can hold you accountable. I mentioned to you guys before if you have friends to share this video to them so to get them excited and get them hyped and educated about trading to help hold you accountable.

If

19:44

you don't have that, we have my inner circle which is the same people that are super excited and super serious about trading that we all hold each other each other accountable. So that's what's in my inner circle.

There's so much more inside of it but I don't want to take up too much about it. If you guys want to join my inner circle to trade live with

20:00

me, even taking every single trades, if I don't take the trades live, uh, or if there's no setup while I'm live, I'll still send the trade out so you guys can follow my trades step by step. You get all of my courses, the strategies course, you get every single course that I've ever created is in there as well.

20:15

The boot camps, everything is in there. It literally equips you with everything you need to become a profitable trader in a short amount of time, plus more.

like it's it's an abundance of value and that's why the spots are always full. I never have a problem um getting people

20:30

inside of my inner circle. But like I said, if you're serious, which if you're at the end of this video, uh you seem like you're a very serious person and really want to make this work, I suggest you click the link inside the description down below to have the opportunity to join my inner circle.

We're back to my daily routine here. So

20:46

then once I mark up my charts and my areas of interest, I'll go out my uh the live call with my inner circle to take the live trades or go over my zones and show them why I have these areas, show them why I'm looking for trades here, what I'm looking for, and take some trades if they do uh present themselves.

21:02

Uh like I said, I'll make a plan of action for when the market goes into my major zones of interest, major areas of interest, which is just another way of saying my support or my resistance zones or my key levels, things like that. And then I'll set my alerts and my areas of interest.

So I'll be alerted as soon as

21:18

there's an opportunity. Like I said, sometimes the market isn't close to my support or resistance zones.

So I'll set my alerts. That way if I happen to go away from my computer, I'll get a notification to my phone and I can still be notified that the trade is happening or that I might get an opportunity soon.

21:34

And then honestly, I walk away from the charts and wait for my my alerts to go off. I try and trade very passively.

I don't want to sit here in front of my computer for hours a day. I got into trading to get not just financial freedom but also location and time freedom.

I have a wife. I have a daughter.

I have a son that by the time

21:51

this video comes out will be here. So I have a life.

I don't want to sit here in front of the charts. And that's why I utilize my alerts.

Um now it's important to understand that successful trading is a marathon. It is not a sprint.

You need to have emotional regulation and stay calm under pressure which is what I've

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