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00:00In this video, I'm going to show you exactly how I would start my day trading career over again
00:03if I had to start from scratch.
00:05And before getting to a point of developing an entire process
00:08and setting my trading up to be able to scale to three, sometimes $5,000 single profit days,
00:12I realistically wasted years of my 20s with thousands of hours of being confused
00:16and also thousands of dollars that I didn't need to waste
00:19had I have known the information and the foundation that I'm going to share with you in this video.
00:23So I'm going to start with foundational information.
00:25So a simple way of looking at trading to start with the basics.
00:27Then I'm going to show you the websites and the tools that you're going to need to follow along with this process.
00:31I'm going to talk about trading psychology, which is probably the most important thing
00:35that will either make or break your trading.
00:36A simple way to understand trading math that can be really confusing in the beginning,
00:40as well as a complete crash course of the most important things that I know about technical analysis.
00:44Then I'm going to show you how to build and test your own strategies.
00:47Then at the end, I'm going to show you how we can take everything that we've learned.
00:50We're going to apply them into a real life scenario to show you working them in real time.
00:54So by the time you make it through this entire video, you're going to have a clear cut, simplified path
00:58to starting your trading career properly.
01:00Okay, so let's first start and set the foundation by understanding how trading works
01:04and how we should be looking at the market.
01:06Okay, there's a lot of technical elements that can be really confusing.
01:09And if you learn bits and pieces of it, it can throw you off the rails.
01:12This is a very simple way to understand how the market works and how the mechanics of it work.
01:16So over here, I have a chart open.
01:18But right now, we're not going to worry about anything other than how and why the market is moving.
01:21Okay, so whenever we're looking at a chart, which in this case is this blue line,
01:25we're looking at increases and decreases.
01:28So all the chart is showing us is a visual representation of mass human psychology,
01:33meaning that there are buyers and there are sellers.
01:35Now, this is done with algorithms.
01:36It's done by physical trading.
01:38This is done in all sorts of different ways.
01:40So it's not as simple as people just clicking buy and sell, right?
01:43But the general premise is the market is adjusting to fill imbalances,
01:47which are caused by supply and demand.
01:49So how this works is like this.
01:51Let's take right here, for example.
01:53In this part of the chart, when price is moving up,
01:55that means that there is demand from buyers and supply from sellers.
01:59If the demand outweighs the supply, the market is going to move up
02:03until there's another point where supply starts to outweigh the demand
02:06and the market will correct until once again, there's more demand than supply.
02:10And that will sort of bounce back and forth,
02:11which is going to produce something called volatility.
02:13Now, volatility is basically anytime there are drastic big moves in the market.
02:18These are going to open up trading opportunities for us later.
02:20So simply put, as traders, our job is to find areas of the market
02:24where we can enter at a certain price, have the price increase to another price.
02:28Then however many of these we bought times the increase is going to give us our profit.
02:33So if we bought 100 of these units at $200 and it increases to 205,
02:38that's $5 in profit per hundred, which is going to give us $500 in profit.
02:43But let's take another layer deeper to start understanding
02:45where these intraday opportunities come from.
02:47So let's take a one year starting point as an example.
02:50Over the course of a year, this is the general stock market.
02:53We can see anywhere from 10, 15, 20, even 30% gains in an individual year.
02:58That means that if we were to buy $100 worth of SPX at this point and price increases,
03:03we now have $130.
03:05And technically our total risk implication is if everything were to melt down
03:09and technically go to zero, we're technically risking $100.
03:12This is the concept of investing.
03:14Now you're only going to get say 10, 20, 30% in a good year, but usually right around 10%.
03:19So effectively we'd have to wait an entire year to get between 10 and 30%,
03:23which is good if you're dealing with a lot of money.
03:25But if you're trying to scale a small amount and make an income off of it,
03:28you need to have a tremendous amount of capital.
03:30Otherwise you have to find other opportunities in the market.
03:33Now, what happens if we zoom into just this one small area,
03:36where now instead of looking at an entire year's worth of movement,
03:39we're now looking at individual day's worth of movement.
03:42So we'll take today, for example.
03:43Now, even in a single day, we had this amount of movement to the upside
03:47and this amount of movement on the downside.
03:49So instead of waiting an entire year,
03:51if we were able to enter here and sell somewhere up here,
03:54and now still risking $100, just with this single move, we would make $341.
03:59This would happen in the matter of one hour.
04:01We can have multiple of these opportunities in a single day,
04:04which allows us to go from making say $30 in a year
04:07to be able to take that same amount of risk and be able to make $600, $700, $800 in a single day,
04:13risking $100.
04:14Okay, but as the numbers get smaller and we're dealing on a zoomed-in one-day view,
04:18the math and the strategy behind this starts to get a lot more complicated,
04:21and it gets more important to know how to do this to properly calculate your risk.
04:25Not only that, but we need to know where we're buying and selling
04:27and the likelihood of that happening.
04:29So just as an example, if you're new,
04:31you're especially not going to understand exactly how this works.
04:33But this is a trade that took about two hours where I was basically able to pick an area
04:37where I expected for the price to significantly drop, enter in,
04:41actually be able to make profit from the market going down,
04:44which even a lot of people don't understand that you can do,
04:46especially good when markets are moving down to know how to do this skill.
04:49And you can see I followed this down for hours,
04:51going up $2,400, $2,600, $3,000, nearly $4,000 for taking the trade off for full profit.
04:59And that was only risking $500 that I was able to make over $3,000 in about two hours.
05:04This isn't to brag, it's just to show you that if we can use this ideology and framework on a
05:08daily basis, these are the opportunities that if you lock in and take it seriously,
05:12that are going to be on the table for yourself.
05:13But before that, let's talk about all the tools in websites
05:15that you're going to need to set this up for yourself and start as a beginner.
05:18Okay, so realistically, you're going to need three major things.
05:21First thing is going to be trading view,
05:23which is where we're going to be doing all of our charting and analysis.
05:26That's going to be your home base.
05:27The second thing that you're going to need is some sort of way to actually place trades.
05:30Now, you're going to need some experience before actually doing this.
05:33Okay, but considering I trade cryptocurrency, I like to use Blowfin or Bybit.
05:36I'll show you how specifically to use those a little bit later into the video.
05:39Okay, and if you're looking to trade stocks, a lot of our traders are using topstep.com.
05:43The third thing you're going to need is a trade journal,
05:45which I'm going to provide to you, but more on that later.
05:47Once you make your way into trading view,
05:48you're going to have a screen that looks something like this.
05:51What you're going to want to do is click on products here and click on super chart.
05:54That's going to bring you to a plain chart like this.
05:56Now, when it comes to style and really setting this fully up,
05:59I have an amazing video you can go through that I'll bookmark at the end of this video.
06:01So you can watch that after and get fully set up.
06:03What I like to do when I'm trading is take my trading view,
06:06put it on one side of my screen.
06:07I'll take my trading platform where I can input my orders and I'll put it on the other side.
06:10So now I want to share with you some fundamental trading information
06:13so you fully understand the approach you take with trading.
06:15So anytime you're placing a trade, you're basically selecting what's called a pair.
06:19Now, a pair is going to be any sort of asset that you're either buying or selling
06:23against the value of the US dollar.
06:26Okay, so this is Solana versus the US dollar,
06:29which US dollar is going to maintain a pretty consistent value.
06:32And Solana will either go up or down against that value,
06:35which is going to create price movement.
06:37The way we manage our pairs is using something called watch list,
06:40which is over here on trading view.
06:42Okay, so for example, if you're creating a new watch list,
06:44we can click this plus button here.
06:46and if we want to go to cryptocurrencies, we can click on Bitcoin, XRP, Sol.
06:51We can start selecting different cryptocurrency pairs to have in a list here,
06:54which will allow us to flip between and to have access to viewing
06:57how these individual charts are moving.
07:00So when I'm looking at a chart here, you'll see we started off with a line chart.
07:03So it's basically a line showing how the price is moving.
07:06And then I can switch between something called candles.
07:08So candles are a better way of getting information as a day trader.
07:12Okay, so the way candles work, okay, considering this is a green candle,
07:15that means that price started here, went as high as this point,
07:18as low as this point, and ended up closing right here.
07:21And that's why our candle is green.
07:23That's the body of the candle.
07:25So we had the total movement up and the highs and lows.
07:27Same is true for a red candle, only the open happened here.
07:31The close was lower than the open, and the highs and lows remain the same,
07:34giving us a red body.
07:36If we go back over to our chart here, right, I have black and white,
07:39so it's a little bit different.
07:40Still looking at a similar example.
07:41Here, we had the candle open, we had the candle close, the highs and the lows.
07:46And then say, for example, this candle opened here, closed here,
07:49and the high and lows were here.
07:50Okay, and these candles are going to show us different information
07:53depending on the chart frequency that we choose.
07:55So for example, we have up in our top menu here,
07:58chart frequencies between anywhere from 15 seconds to one full week.
08:02So you'll notice I have two side-by-side charts of Ethereum.
08:04On this side, we have a five-minute Ethereum chart.
08:07And over here, we have a one-day Ethereum chart.
08:09This green box is the same green box on both sides,
08:13only this is one candle showing us the open price,
08:16the closed price, and the highs and lows.
08:18And if we notice over here, this is the high, the low,
08:21and this was the total movement over the day,
08:23but in five-minute increments opposed to a one-day increment.
08:27And there's different combinations that we can use,
08:28but the lower you go down into the time frame,
08:31each candle is going to show you, in this case,
08:33five minutes worth of movement opposed to a whole entire day of movement.
08:37Okay, so now let's get into a section talking about trading psychology.
08:40This is the most important part that will either make or break
08:44any progress that you make throughout this process.
08:46Okay, this is what will keep people caught in a cycle of never getting better,
08:49or will allow people to sort of skate through trading
08:51and get better really, really quickly.
08:53Okay, so I've identified three major things
08:55that you need to retrain your mind around,
08:57and I'm going to explain to you exactly how and why this works,
09:00so that once you get through this section of the video,
09:02you're going to have an aha moment,
09:03and it's going to clear you up to be able to proceed and learn
09:06and get started with trading the right way.
09:07So I've boiled it down to these three main points.
09:09Okay, and the first thing that you need to retrain your mind out of
09:12is that losing is inherently bad.
09:14We're human beings, and anytime you lose at something,
09:16this is viewed as you're not sufficient,
09:18you're not doing a good job,
09:20or something needs to be changed to make you be able to perform better.
09:23This does not apply to trading,
09:25and you really need to understand that,
09:26as weird as that concept sounds,
09:28and you're going to understand why in a second.
09:30The next thing is being wrong is bad.
09:32This kind of ties into losing.
09:34Being wrong and losing money, we view as human beings.
09:37There needs to be a corrective action to fix that behavior.
09:40In trading, this is not the case at all.
09:42You actually need to completely flip this on its head.
09:44The third thing is the misconception that making money on a trade makes it a good trade.
09:49This is not the case whatsoever.
09:50So let's look at this example,
09:51so you can understand why thinking losing is bad,
09:54being wrong is bad,
09:55and why making money, no matter how, is good.
09:57Okay, so think of it this way.
09:58Anytime we're buying into the market,
10:00one of two things is going to happen.
10:01It's either going to move up, and we're going to make money,
10:04or it's going to move down, and we're going to lose money.
10:06How we actually go about that as traders
10:08is what is going to dictate whether we're successful long-term or not.
10:12So let's look at it this way.
10:13Anytime we're entering the market,
10:14we need to, number one, figure out how much we're trying to risk,
10:17whether it's a percentage or whether it's a dollar amount.
10:19Say we want to risk $100, for example.
10:21That means that if we enter right here,
10:23we need to make sure that if price moves down to this level,
10:27that we're only risking $100.
10:28And in doing that, we can ensure that if this moves up 3x more,
10:33now we know exactly how much we're expected to win
10:35and how much we're expected to lose.
10:37So let's take that same exact example.
10:39We have our one unit of risk, which we know is $100,
10:42for 3x positive units of risk, if we're right.
10:45So let's say, for example,
10:46whatever we're buying is valued at $153.52,
10:50and we want to risk exactly $100 on this trade.
10:53That would mean that we'd pull up our calculator.
10:55I'm going to show you a really cool, simple way to do this afterwards,
10:58but I want you to understand the math
11:00of how we're actually going to be calculating risk, right?
11:02If we want to position an entry in the market,
11:05we're going to take our entry value at $152.
11:07Okay, and say our stop loss level or this level
11:10where we're going to get out for a contained loss
11:12is at $150.52.
11:14So we're going to subtract by the stop loss value,
11:16and that's going to give us 3.
11:18Now we're going to take the dollar amount
11:19that we want to risk and divide by 3,
11:21and that's going to give us 33.33 units
11:24to effectively buy in at
11:26to ensure that if this moves against us,
11:28we're containing the risk to $100,
11:30and we know exactly what to expect
11:31if the trade moves in our direction.
11:33So anytime we're looking to enter into a trade,
11:36we're already positioning ourselves
11:37to accept the fact that we can be wrong
11:39and we can lose,
11:40and in order to actually get into the market
11:42and open ourselves up for the potential of making money,
11:45we have to accept that we could potentially be wrong.
11:48In that sort of same mind process,
11:49a lot of people think they need to be right all the time
11:51to actually make money in trading,
11:53which is 100% not true.
11:54So let's take this for an example.
11:56Say we take a total of 10 trades.
11:58We've contained our risk
11:59that every time we're losing a trade,
12:00we're losing negative one unit of risk.
12:02So we have one, two, three, four, five, six,
12:05seven losses and three wins.
12:06So when we're making these wins,
12:08we make 5.2 times what we're risking,
12:102.5 what we're risking,
12:11and 3.1 what we're risking,
12:13which is going to give us a sum of 10.8,
12:15and on the loss side,
12:16it's going to give us a sum of negative seven.
12:19We lost 70% of the time,
12:20winning 30% of the time,
12:22which is going to give us a net total
12:24of plus 3.8 risk factors.
12:26So once again, we're risking $100,
12:28which is going to leave us
12:29with a profit of $380,
12:32being wrong 70% of the time.
12:35If you want a really easy way
12:36to do this position sizing automatically on chart,
12:38you can click into indicators,
12:40you can search up IT position calculator.
12:42This is a calculator that we made
12:43on the private side of our trading team.
12:44I'm giving it to you guys for absolutely free.
12:46You can click onto this,
12:47and then basically you can click right here at your entry
12:49where you want to take profit
12:51and where you want to set your risk to,
12:53and you can actually input your dollar amount risk.
12:55Say I want to risk $100,
12:56hit apply,
12:57and that's going to show you the exact quantity
12:59that you need to enter in at that exact amount
13:01to risk $100 if the price is to move against you.
13:04So if we go through our trading
13:05thinking that losing is bad
13:07and being wrong is bad,
13:08we're never going to put ourselves in market situations
13:11where we can actually allow ourselves to be right.
13:13The losses that you take
13:14are simply opportunity costs
13:15to be able to get into the market.
13:16Understanding that making money
13:18does not make a trade good or bad.
13:19It's about following the specific process
13:21that you know is going to be repeatable
13:22while keeping your risk contained.
13:24If you're just going into stuff
13:25and putting a bunch of money into it,
13:26you're not quantifying your risk,
13:28you don't know if it's going to work over time or not
13:30by studying it,
13:31and you make a bunch of money,
13:32you're one decision away from losing every single thing,
13:34even if on an individual trade,
13:36you get lucky and end up making a bunch of money.
13:38It's about following the process,
13:39making sure that you understand
13:41that this is the mental psychology in trading math
13:43that's going to put you in a position
13:44to approach the markets properly.
13:46And understanding that trading has nothing to do
13:48with being right or wrong,
13:49it has everything to do with understanding
13:51how much you're making when you're right versus wrong
13:53and the percentage of time that you are right
13:55to be able to determine
13:56whether you're going to be profitable or not profitable.
13:59This is all going to be based around
14:00keeping your risk uniform,
14:01knowing how much you make when you're right
14:03versus when you're wrong,
14:04having your average loss and your average win
14:06and the percentage of the times those are happening
14:08to once again,
14:09be able to look at this table
14:10and figure out if you're not profitable
14:12or if you're profitable.
14:13Okay, so now that I've showed you the general structure,
14:15the framework of building positions
14:16and understanding how and why we're controlling risk,
14:19let's go back to trading view
14:20and understand how we're actually going to approach
14:22the market on a technical analysis standpoint.
14:25Now, this is where there's millions of things to focus on.
14:27I've boiled them down to about five or six major things
14:30that I look for to find key areas in the market.
14:33And I'm basically going to give you a crash course on this.
14:35I have a really good technical analysis guide
14:37if you want to dive into more detail after this video,
14:39which I'm going to put in the card at the end
14:41so you can dive a little bit more into that.
14:43Okay, so let's pull up a five minute chart
14:45so that each candle is five minutes worth of price data.
14:47And let's start taking a look at how I would read this chart.
14:50Okay, so the first thing that I'm always starting with
14:51is identifying what are called trends on charts.
14:54And trends are basically areas in the market
14:55where price is generally moving in a specific direction.
14:58So if it's generally moving up,
14:59that's going to be an uptrend.
15:01And if it's generally moving down,
15:02that's going to be a downtrend.
15:03Okay, and the way that I can really determine
15:05whether we're in an uptrend or a downtrend
15:06is by clicking on this tool right here
15:08and starting to find areas on the chart
15:10where price seems to be bouncing off of an invisible level.
15:13Once again, going back to that supply and demand area.
15:15So if I see these critical areas
15:17and I draw from that low to that low
15:19where the price is sort of responding off of,
15:21okay, anytime the price is maintaining
15:22above this specific area,
15:24that's maintaining the status of an uptrend.
15:27And you'll notice this point,
15:28price finally pushed below this trend,
15:30pushed up and continued to go lower,
15:32which is now making this as a downtrend.
15:34So we have an uptrend over here
15:36and a downtrend over here.
15:37So I can draw another trend level off of there.
15:39Okay, and one thing that I really like to take note of
15:42is if we have an area
15:43where price is continually making these levels,
15:45breaks underneath it,
15:46and then comes up and retests it.
15:48Oftentimes, this is a beautiful key level
15:50to get big moves down
15:51once the trend does change direction.
15:53So trends are basically showing us
15:54areas where price is likely to come down to
15:56and have a continuation.
15:58And then once it does finally break,
15:59where it's likely to bounce off of
16:01and continue moving lower,
16:02which we can start to use
16:04to start to craft some of these positions
16:05where we're entering in,
16:07expecting for price to move significantly in one area
16:10and not come through to the other.
16:11Okay, considering this is a visual representation
16:13of mass human psychology,
16:15there's another tool
16:16that is really, really useful in trading
16:18called a Fibonacci retracement.
16:20This is one of my go-to indicators.
16:21So this is how a Fibonacci works.
16:23Say you have a chart moving up
16:25where you have a trend in a certain direction.
16:26You can click on this Fibonacci retracement,
16:28click at the beginning of a trend
16:29and go all the way up to the highest point on the trend.
16:32And what you're gonna see are these numerical values.
16:34Okay, starting from one to zero,
16:35we have 78.6,
16:3661.8,
16:38which is in green,
16:3850,
16:3938.2,
16:40and 23.6.
16:41And what you'll notice is oftentimes
16:42if a trend is going to have a pull down,
16:44this 50 level is often the level
16:46it will go to
16:47and have a continuation higher.
16:48Same thing with this 61.8.
16:50This is referred to as the golden ratio.
16:53This is the ratio
16:53that can be found naturally occurring
16:55in the formation of shells,
16:57plants,
16:57trees,
16:58even your facial symmetry,
16:59all for some reason fall around
17:01this specific Fibonacci value,
17:03which oftentimes will lead the price
17:04to revert cleanly down to that level
17:06and have a continuation move up,
17:08which once again can allow us
17:09to start to structure positions
17:11around these key levels.
17:12Okay, so if we go back to our chart,
17:14we know we have an uptrend and a downtrend.
17:16So say for example,
17:16we wanted to look at this trend
17:18and see some of its important levels.
17:19We'd click at the high
17:20and then go over to the low.
17:22And then let's watch what happens
17:23to price and where it starts to respond.
17:25Okay, so as the chart moves forward,
17:26that becomes the low.
17:28Okay, price comes up,
17:29reacts cleanly off of that 61.8 value.
17:31and it just so happens
17:32that that level was the last level
17:34for a massive move to the downside.
17:36Even looking at this area right here,
17:38say we were to start
17:39from this point to there,
17:40this push down before a continuation higher
17:42was basically the last level
17:44that the price regressed down to
17:45before making a continuation up.
17:47Okay, another really cool piece
17:48of technical analysis
17:49that I like to use
17:50when I'm looking at these formations
17:51is something called a fair value gap.
17:53And you can see these all over the chart.
17:55So it's basically these big candles
17:57that are making these big pushes
17:58like here and like here
18:00or like here and like here.
18:01And I can actually turn an indicator on
18:03called the Lux Algo fair value gap indicator.
18:05And that's going to pull them up
18:06on my chart automatically.
18:07But the reason that I look for them
18:09is because you can see
18:10oftentimes price will end up
18:11coming back into these
18:12and making big moves back in.
18:14Fair value gap right in here.
18:15Price moves up,
18:16has a response off of it.
18:18Fair value gap produced here.
18:19Price pulls back down,
18:20even though it wicked through
18:21this one like crazy,
18:22comes back down to the middle of that,
18:24has a continuation up.
18:25Okay, this one's not showing,
18:27but here price comes into the midpoint,
18:28has a continuation up.
18:30Okay, and the way that we can identify
18:31these on a chart
18:31is basically we need
18:32one, two, three candles
18:34either in the up direction
18:35or the down direction
18:36where the first wick
18:37and the third wick
18:38do not overlap
18:39on the second candle.
18:41So you'll see
18:41this is the high
18:42of the first candle.
18:43This is the low
18:43of the third candle.
18:44In between here
18:45is going to be
18:46a bullish fair value gap.
18:47And right here,
18:48we have one, two, three candles.
18:50First wick, third wick.
18:51Price doesn't overlap right here,
18:52creating a bearish
18:53or a fair value gap
18:55that is likely
18:55to continue moving
18:56to the downside.
18:57It's things like these
18:58that I'm using
18:58when I'm doing analysis
18:59to be able to find key areas
19:01that even though
19:02we don't know for sure
19:03it's going to move
19:03in our direction,
19:04that we're able
19:05to at least start off
19:06in an area
19:06where we can keep
19:07our risk contained,
19:08let the market move
19:09in our direction
19:10and hopefully make more money
19:11than we're risking.
19:12Okay, and of course
19:12this is just scratching
19:13the surface.
19:14I talk about all this
19:15on my channel a lot more.
19:16But as far as the foundation,
19:17these are the primary things
19:18that I'm using.
19:18Like I said,
19:19you can watch
19:19the technical analysis video
19:21at the end of this video
19:22to dive more deeply
19:23into how I use
19:24these things specifically.
19:25Okay, so now that we understand
19:25some of the analysis
19:26and tools that go
19:27into actually trading,
19:28let's talk about
19:29how to actually put this
19:30into a strategy
19:31that you can start practicing
19:32and trading for yourself.
19:33So this is the progression
19:34that we're using
19:34anytime we're building
19:35a trading strategy.
19:37The first thing is
19:37the concept
19:38which is coming
19:39from observation.
19:40So just like we were noticing
19:41on our other chart
19:42that certain things
19:42were happening
19:43based on certain pieces
19:44of analysis,
19:45what we want to do
19:46is gather a bunch
19:46of those ideas
19:47and observe a general tendency
19:50in the market.
19:50Okay, the next thing
19:51that you want to do
19:51is create a rule set
19:53based on your observations.
19:54And then the next thing
19:55that you want to do
19:56is evaluate that outcome
19:57by identifying
19:58the percent of the time
19:59that it happens,
20:00the average amount
20:00that you make
20:01versus how much you lose
20:02while considering
20:03the specific loss size.
20:05Okay, and then basically
20:05it's up to us
20:06to be able to see
20:07whether it's going
20:07to be profitable or not.
20:09Okay, so let's just use
20:09a really simple example
20:11of how you can actually
20:12go through
20:12and test your strategy.
20:13Once you have an idea,
20:14you can click on this button
20:15on your chart
20:16which is called bar replay
20:17and you can click back
20:18to a random part
20:19on your chart
20:20and then click this play button
20:21and it's actually going
20:22to play the chart forward
20:23allowing you to see
20:24how your idea would work
20:25in real time.
20:26So what I'm noticing
20:26on this chart
20:27is every time
20:28we have this indicator
20:29which is a custom indicator
20:30called the Inevitrade
20:31Pro Plus Indicator.
20:32It's actually in a tool suite.
20:33If you follow me
20:33on Instagram
20:34in the description,
20:35you can add it to your chart.
20:36Basically shows you
20:36when the markets
20:37are perceived
20:38to be undervalued
20:39or overvalued
20:40and when they're undervalued
20:41it will give you
20:41this red highlight strip here.
20:43So let's say for example
20:44every time
20:45a red strip is produced
20:46I'm going to enter in.
20:48I'm going to sell
20:48when it produces
20:49a green strip
20:50and I'm going to put
20:51my risk
20:51underneath that recent low
20:53and I'm going to risk
20:54$100 every time.
20:55That means that
20:55I can calculate
20:56a loss as negative 1R
20:58and a win is
20:59however much more
21:00I'm making
21:00than I'm risking.
21:01So in this case
21:01it would be like 3.94.
21:03So then I can just go ahead
21:04and play my chart forward
21:05and set the strategy
21:06up to work.
21:07Okay, so we have
21:07a highlight strip here
21:08setting up my position.
21:09Okay, so we have
21:10a sell right here.
21:11So we would sell
21:12our position.
21:12We would make
21:13plus 6.2R.
21:14We would sell in here.
21:15Okay, we have
21:16a red highlight strip
21:17so we sell.
21:18That's plus 3 risk factors.
21:19Okay, so we would
21:20buy in here.
21:21Price comes down,
21:22goes through our stop loss.
21:23so that's negative 1R.
21:24Okay, so you can basically
21:25do this over a large
21:26period of time.
21:27Now all you have to do
21:28is add up the total
21:29amount of trades.
21:29You can basically go
21:30into a trade tracker.
21:31This is a trade tracker
21:32that are in the tools
21:33that I'll send you
21:33if you follow me
21:34on Instagram
21:34and DM me the word tools.
21:36You can click each trade.
21:37Say it's on sole,
21:3815 minute.
21:39You can put long or short.
21:40You can put whether
21:40it's a win or a loss.
21:42So in this case
21:42we had two wins
21:44and one loss.
21:45P&L on the first
21:46was 620.
21:47P&L on the second
21:48was 300.
21:49And then we had
21:49a $100 loss.
21:51So that's going to show
21:51us our winning percentage.
21:53We can click on this sum here
21:54and we can go over
21:55and hit average.
21:56And that's going to show
21:57us our average profit
21:58per trade
21:58as well as our average
21:59winning percentage
22:00which we can take
22:01into our system
22:02which based on our average
22:03273 would put us
22:05somewhere between
22:06these two amounts
22:07at a 66% win rate
22:09would put us well
22:10into the profitable zone.
22:11Now obviously
22:12this is only three trades
22:13so you'd want to do this
22:14over an extended
22:14amount of time.
22:15But once you have that
22:16you've effectively
22:17found a concept,
22:18identified rules,
22:19found out your data,
22:20made sure that it's confirmed
22:21to be profitable.
22:22This is where you can
22:23actually start to test
22:24this strategy in full time.
22:25Okay, so we just talked
22:26about doing on chart
22:27bar replay.
22:28The next would be
22:29using a simulated account.
22:31Okay, and then after that
22:31you'd actually apply this
22:32onto a real account.
22:34Okay, so let's say
22:34for example you wanted
22:35to actually enter
22:36into this trade position.
22:37Since we're trading
22:37cryptocurrency
22:38I'm going to go
22:39onto an exchange
22:40like Blowfin.
22:41I'm going to pull up Solana
22:42and you'll see over here
22:43we have limit in market.
22:44If you want to choose
22:45a specific price
22:46you click on limit.
22:46If you just want to get
22:47in or out of the market
22:48quickly you're going to
22:48click on market.
22:49so we're going to stick
22:50with limits for now.
22:51Okay, if I went into
22:51every single detail
22:52about this video
22:53it would be like
22:53eight hours long.
22:54Okay, since this is
22:55where the price is
22:55first thing that we need
22:56to do is figure out
22:57how much we need
22:58to enter in to risk
22:59say for example $100.
23:01So we're going to
23:01click on our entry
23:02take profit
23:03stop loss
23:03enter $100.
23:05That's going to give us
23:0656 as a quantity
23:07and this is where
23:08leverage or using prop
23:09firms is going to be
23:10important because
23:11that would mean
23:12that effectively
23:12we would have to buy
23:13at 121.73
23:16times 56.18 Sol
23:19which is going to
23:19cost us $6,800.
23:22Unless you have
23:22$6,800 in an account
23:24you're not going to be
23:24able to take this
23:25kind of size.
23:26And that's exactly
23:26why we're going to
23:27use something called
23:28leverage which for
23:29example if we use
23:3010x leverage would
23:31take $6,800
23:32and only require us
23:33to use $683.
23:35Okay, so we would
23:36enter in 121.74
23:38as our entry.
23:39We would go into
23:40our amount.
23:40We'd have 56.18.
23:42I would check this
23:43take profit and stop loss.
23:44Our take profits
23:45at 130.76
23:46which gives us
23:48our estimated
23:48profit level
23:49and our stop loss
23:50at 120.8
23:52which you can see
23:52is going to give us
23:53exactly $100 worth
23:55of risk
23:55by entering
23:56specifically at
23:57this amount.
23:58So we know
23:58if we lose
23:59we're losing
24:00$100
24:00and if we're
24:01profitable
24:01we're making
24:02$460
24:03on this strategy.
24:04Now you can see
24:04right here
24:05it says the cost
24:06which is $6,800
24:07if we increase
24:08the leverage
24:09up to say
24:09for example
24:10$10
24:10now once again
24:11that cost
24:12comes down
24:12to $688
24:13and that's how
24:14you can start
24:14with a smaller
24:15amount of money
24:15and still be able
24:16to have the upside
24:17if you know
24:18your strategy
24:18and your process
24:19works
24:20and you're looking
24:20at it inside
24:21this framework.
24:22Okay so now
24:22that we're at
24:23this point
24:23we've developed
24:24all these skills
24:24and understanding
24:25of trading
24:26I'm going to
24:26take you through
24:27a strategy
24:27that I like
24:28to trade
24:28on the channel
24:28that we trade
24:29a ton
24:29on the private
24:30side of our
24:30trading team
24:31we have team
24:31members
24:32absolutely crushing
24:33it.
24:33Me personally
24:33when I'm
24:33trading these
24:34sessions
24:34a lot of times
24:35my last session
24:36even I made
24:36$7,500
24:37in about
24:38four or five
24:39trades
24:39risking $500
24:40I'm going to
24:41show you
24:42what I look
24:42for on a
24:43setup
24:43and how I
24:43apply all
24:44of this logic
24:44to get into
24:45positions
24:45and how effective
24:46it is
24:47and I'm going
24:47to show you
24:47a few entry
24:48models that I
24:48like to follow.
24:49Okay first
24:50thing that I'm
24:50going to turn
24:50on is this
24:51buy and sell
24:51indicator
24:52the second
24:52thing that I'm
24:53going to turn
24:53on are those
24:54fair value
24:54gap indicators
24:55so in this
24:56strategy I
24:56can't share
24:57every single
24:57thing that I'm
24:58looking at
24:58without being
24:59unfair to the
24:59private side
25:00of the team
25:00but I will
25:01show you
25:01something you
25:02can get
25:02started with
25:02and apply a
25:03lot of your
25:09on YouTube
25:10what I'm
25:10looking for
25:11is some
25:11sort of
25:12sell signal
25:12right I
25:13can't tell you
25:13exactly what
25:14the signal
25:14is some
25:15sort of
25:15indication of
25:16an over
25:17undervalued
25:17area somewhere
25:18we have a
25:19trend break
25:19under here
25:20into one
25:20of those
25:21fair value
25:21gaps in
25:22which case
25:22I'm looking
25:23to enter
25:24in the
25:24midpoint
25:25of this
25:25fair value
25:25gap
25:26place my
25:26stop loss
25:27outside and
25:28try to
25:28ride the
25:29trend down
25:29okay so
25:30I'm going
25:30to go ahead
25:30forward and
25:31play this to
25:31show you
25:32what I'm
25:32looking for
25:32okay so
25:33we have
25:33overvalued
25:34but no
25:34signal
25:34okay so
25:35right here
25:35I start to
25:39starting to
25:40push down
25:40so once
25:41again if
25:41I'm targeting
25:42the halfway
25:42point of
25:43this area
25:44with an
25:44oversell
25:45and a
25:45trend break
25:46price is
25:46starting to
25:46come underneath
25:47price comes
25:48up goes
25:48into our
25:49area gets
25:49into the
25:50trade and
25:50then immediately
25:51reverses down
25:52already putting
25:53us up in
25:53this situation
25:54something like
25:5412 times the
25:55amount that
25:56we're risking
25:56once again if
25:57we were risking
25:57$100 our
25:59profit would be
25:59at $1200
26:00so even with
26:01one of these
26:02situations we
26:03could still be
26:03wrong 10
26:04other times and
26:05still be profitable
26:06for the session
26:07okay and of
26:07course every trade
26:08doesn't look like
26:08this there are
26:09definitely losers
26:10this is just
26:10scratching the
26:11surface of all
26:12of the data
26:12sets that we
26:13run on the
26:13private side of
26:14our trading
26:14team but if we
26:15just want to
26:15focus on the
26:16basics of it
26:16it's things like
26:17these where we
26:18can follow these
26:18types of models
26:19and actually apply
26:20them into the
26:20market okay so
26:21let's take a look
26:21at another example
26:22of a trade that
26:23I entered you can
26:24see I'm entering
26:24in here price
26:25starts to move in
26:26my direction once
26:27again off of that
26:27area overvalued
26:29starts to make a
26:29significant push
26:30down once again
26:31$4,000 $5,000
26:33$6,000 in profit
26:34risking $500 then I
26:36eventually close this
26:37out for about
26:38$4,600
26:38you can see here
26:40I'm looking to
26:40buy in hoping the
26:41market moves up
26:42I enter in here
26:43and just to show
26:43you the realities
26:44and be transparent
26:45a lot of times you
26:46are going to have
26:46losing trades too
26:47so for example
26:48okay this trade
26:49closed out and I
26:50lost within minutes
26:50but the fact that I
26:51can make four or
26:52$5,000 in a good
26:54trade and only lose
26:55five $600 on the
26:56losing trades as long
26:57as I'm following the
26:58strategy keeping my
26:59position size
27:00consistent this gives
27:01me the framework to
27:02actually dive into
27:02trading and do it
27:03properly okay and
27:04those are just two
27:05trading models we have
27:05tons of ways of
27:06approaching the
27:07market in general
27:08I would definitely
27:08recommend for you to
27:09watch this video if
27:10you want to dive deeper
27:11into the technical
27:12analysis if this
27:13helped you especially
27:14as a beginner hit the
27:15like button share with
27:16the friend subscribe to
27:17the channel if you like
27:18the content if you
27:18follow me on Instagram
27:19and DM me the word
27:20tools I'll send you all
27:21the resources but until
27:22next time I will see you
27:23all in the next video
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