0:01 In this video, I'm going to show you
0:03 exactly how I would start my day trading
0:04 career over again if I had to start from
0:06 scratch. And before getting to a point
0:08 of developing an entire process and
0:09 setting my trading up to be able to
0:12 scale to three, sometimes $5,000 single
0:14 profit days, I realistically wasted
0:16 years of my 20s with thousands of hours
0:18 of being confused and also thousands of
0:20 dollars that I didn't need to waste had
0:21 I have known the information and the
0:22 foundation that I'm going to share with
0:23 you in this video. So, I'm going to
0:25 start with foundational information. So,
0:27 a simple way of looking at trading to
0:28 start with the basics. Then I'm going to
0:29 show you the websites and the tools that
0:31 you're going to need to follow along
0:32 with this process. I'm going to talk
0:33 about trading psychology, which is
0:35 probably the most important thing that
0:36 will either make or break your trading.
0:38 A simple way to understand trading math
0:40 that can be really confusing in the
0:41 beginning, as well as a complete crash
0:43 course of the most important things that
0:44 I know about technical analysis. Then
0:46 I'm going to show you how to build and
0:47 test your own strategies. Then at the
0:48 end, I'm going to show you how we can
0:50 take everything that we've learned.
0:52 We're going to apply them into a real
0:53 life scenario to show you working them
0:55 in real time. So, by the time you make
0:56 it through this entire video, you're
0:58 going to have a clear-cut, simplified
0:59 path to starting your trading career
1:01 properly. Okay. So, let's first start
1:03 and set the foundation by understanding
1:05 how trading works and how we should be
1:06 looking at the market. Okay? There's a
1:08 lot of technical elements that can be
1:09 really confusing and if you learn bits
1:11 and pieces of it, it can throw you off
1:13 the rails. This is a very simple way to
1:15 understand how the market works and how
1:17 the mechanics of it work. So, over here
1:18 I have a chart open, but right now we're
1:19 not going to worry about anything other
1:21 than how and why the market is moving.
1:23 Okay? So whenever we're looking at a
1:25 chart, which in this case is this blue
1:27 line, we're looking at increases and
1:29 decreases. So all the chart is showing
1:31 us is a visual representation of mass
1:33 human psychology. Meaning that there are
1:35 buyers and there are sellers. Now this
1:37 is done with algorithms. This is done by
1:39 physical trading. This is done in all
1:40 sorts of different ways. So it's not as
1:42 simple as people just clicking buy and
1:44 sell, right? But the general premise is
1:46 the market is adjusting to fill
1:49 imbalances which are caused by supply
1:51 and demand. So how this works is like
1:53 this. Let's take right here for example
1:55 in this part of the chart when price is
1:56 moving up that means that there is
1:59 demand from buyers and supply from
2:01 sellers. If the demand outweighs the
2:03 supply the market is going to move up
2:05 until there's another point where supply
2:07 starts to outweigh the demand and the
2:08 market will correct until once again
2:10 there's more demand than supply and that
2:11 will sort of bounce back and forth which
2:13 is going to produce something called
2:15 volatility. Now volatility is basically
2:17 anytime there are drastic big moves in
2:18 the market. These are going to open up
2:20 trading opportunities for us later. So
2:22 simply put, as traders, our job is to
2:24 find areas of the market where we can
2:27 enter at a certain price, have the price
2:29 increase to another price. Then however
2:31 many of these we bought times the
2:33 increase is going to give us our profit.
2:36 So if we bought a 100 of these units at
2:39 $200, and it increases to 205, that's $5
2:41 in profit per 100, which is going to
2:43 give us $500 in profit. But let's take
2:44 another layer deeper to start
2:46 understanding where these intraday
2:48 opportunities come from. So, let's take
2:50 a one-year starting point as an example.
2:52 Over the course of a year, this is the
2:53 general stock market. We can see
2:57 anywhere from 10, 15, 20, even 30% gains
2:58 in an individual year. That means that
3:01 if we were to buy $100 worth of S&P at
3:03 this point and price increases, we now
3:06 have $130 and technically our total risk
3:08 implication is if everything were to
3:10 melt down and technically go to zero,
3:12 we're technically risking $100. This is
3:14 the concept of investing. Now, you're
3:17 only going to get, say, 10, 20, 30% in a
3:19 good year, but usually right around 10%.
3:21 So, effectively, we'd have to wait an
3:23 entire year to get between 10 and 30%.
3:24 Which is good if you're dealing with a
3:26 lot of money. But, if you're trying to
3:28 scale a small amount and make an income
3:29 off of it, you need to have a tremendous
3:31 amount of capital. Otherwise, you have
3:32 to find other opportunities in the
3:34 market. Now, what happens if we zoom in
3:37 to just this one small area where now
3:39 instead of looking at an entire year's
3:40 worth of movement, we're now looking at
3:42 individual days worth of movement. So
3:44 we'll take today for example and now
3:45 even in a single day we had this amount
3:47 of movement to the upside and this
3:49 amount of movement on the downside. So
3:51 instead of waiting an entire year if we
3:53 were able to enter here and sell
3:55 somewhere up here and now still risking
3:57 $100 just with this single move we would make
3:58 make
4:01 $341. This would happen in the matter of
4:03 1 hour. We can have multiple of these
4:04 opportunities in a single day, which
4:07 allows us to go from making say $30 in a
4:09 year to be able to take that same amount
4:12 of risk and be able to make 67 $800 in a
4:14 single day risking $100. Okay? But as
4:16 the numbers get smaller and we're
4:18 dealing on a zoomedin one day view, the
4:20 math and the strategy behind this starts
4:22 to get a lot more complicated and it
4:23 gets more important to know how to do
4:25 this to properly calculate your risk.
4:26 Not only that, but we need to know where
4:28 we're buying and selling and the
4:30 likelihood of that happening. So, just
4:31 as an example, if you're new, you're
4:32 especially not going to understand
4:34 exactly how this works, but this is a
4:36 trade that took about 2 hours where I
4:38 was basically able to pick an area where
4:39 I expected for the price to
4:41 significantly drop, enter in, actually
4:43 be able to make profit from the market
4:45 going down, which even a lot of people
4:46 don't understand that you can do,
4:48 especially good when markets are moving
4:49 down to know how to do this skill. And
4:51 you can see I followed this down for
4:56 hours, going up $2,400, $2,600, $3,000,
4:58 nearly $4,000 for taking the trade off
5:00 for full profit. And I was only risking
5:03 $500 that I was able to make over $3,000
5:04 in about 2 hours. Okay, this isn't to
5:06 brag. It's just to show you that if we
5:08 can use this ideology and framework on a
5:10 daily basis, these are the opportunities
5:11 that if you lock in and take it
5:12 seriously that are going to be on the
5:14 table for yourself. But before that,
5:15 let's talk about all the tools and
5:16 websites that you're going to need to
5:18 set this up for yourself and start as a
5:19 beginner. Okay, so realistically, you're
5:21 going to need three major things. First
5:23 thing is going to be Trading View, which
5:24 is where we're going to be doing all of
5:26 our charting and analysis. That's going
5:27 to be your home base. The second thing
5:28 that you're going to need is some sort
5:30 of way to actually place trades. Now,
5:31 you're going to need some experience
5:33 before actually doing this, okay? But
5:35 considering I trade cryptocurrency, I
5:36 like to use Blofin or Bybit. I'll show
5:38 you how specifically to use those a
5:39 little bit later into the video, okay?
5:41 And if you're looking to trade stocks, a
5:42 lot of our traders are using
5:44 topstep.com. The third thing that you're
5:45 going to need is a trade journal, which
5:46 I'm going to provide to you, but more on
5:48 that later. Once you make your way into
5:49 Trading View, you're going to have a
5:50 screen that looks something like this.
5:52 What you're going to want to do is click
5:53 on products here and click on super
5:55 chart. That's going to bring you to a
5:56 plain chart like this. Now, when it
5:58 comes to style and really setting this
5:59 fully up, I have an amazing video you
6:01 can go through that I'll bookmark at the
6:02 end of this video, so you can watch that
6:04 after and get fully set up. What I like
6:05 to do when I'm trading is take my
6:07 trading view, put it on one side of my
6:08 screen, and I'll take my trading
6:09 platform where I can input my orders and
6:11 I'll put it on the other side. So, now I
6:12 want to share with you some fundamental
6:14 trading information so you fully
6:15 understand the approach you take with
6:17 trading. So, anytime you're placing a
6:19 trade, you're basically selecting what's
6:21 called a pair. Now a pair is going to be
6:22 any sort of asset that you're either
6:25 buying or selling against the value of
6:28 the US dollar. Okay? So this is Solana
6:30 versus the US dollar which is going to
6:32 maintain a pretty consistent value and
6:34 Solana will either go up or down against
6:36 that value which is going to create
6:38 price movement. The way we manage our
6:40 pairs is using something called watch
6:42 list which is over here on Trading View.
6:43 Okay. So, for example, if you're
6:45 creating a new watch list, we can click
6:47 this plus button here. And if we want to
6:49 go to cryptocurrencies, we can click on
6:51 Bitcoin, XRP, soul. We can start
6:53 selecting different cryptocurrency pairs
6:55 to have in a list here, which will allow
6:57 us to flip between and to have access to
6:59 viewing how these individual charts are
7:01 moving. So, when I'm looking at a chart
7:03 here, you'll see we started off with a
7:04 line chart. So, it's basically a line
7:06 showing how the price is moving. And
7:07 then I can switch between something
7:09 called candles. So candles are a better
7:11 way of getting information as a day
7:13 trader. Okay. So the way candles work,
7:14 okay, considering this is a green
7:16 candle, that means that price started
7:19 here, went as high as this point, as low
7:21 as this point, and ended up closing
7:23 right here. And that's why our candle is
7:25 green. That's the body of the candle. So
7:26 we had the total movement up in the
7:29 highs and lows. Same is true for a red
7:31 candle, only the open happened here. The
7:33 close was lower than the open, and the
7:35 highs and lows remain the same, giving
7:37 us a red body. If we go back over to our
7:38 chart here, right, I have black and
7:40 white, so it's a little bit different.
7:42 Still looking at a similar example here.
7:43 We had the candle open, we had the
7:45 candle close, the highs, and the lows.
7:47 And then say for example, this candle
7:49 opened here, closed here, and the high
7:51 and lows were here. Okay? And these
7:52 candles are going to show us different
7:54 information depending on the chart
7:56 frequency that we choose. So for
7:58 example, we have up in our top menu
8:00 here, chart frequencies between anywhere
8:02 from 15 seconds to one full week. So
8:03 you'll notice I have two sideby-side
8:05 charts of Ethereum. On this side, we
8:07 have 5-minute Ethereum chart. And over
8:09 here, we have a 1-day Ethereum chart.
8:12 This green box is the same green box on
8:14 both sides. Only this is one candle
8:16 showing us the open price, the close
8:19 price, and the highs and lows. And if we
8:20 notice over here, this is the high, the
8:22 low, and this was the total movement
8:25 over the day, but in 5minute increments
8:27 opposed to a 1-day increment. And
8:28 there's different combinations that we
8:30 can use, but the lower you go down into
8:32 the time frame, each candle is going to
8:34 show you, in this case, 5 minutes worth
8:36 of movement opposed to a whole entire
8:38 day of movement. Okay, so now let's get
8:39 into a section talking about trading
8:42 psychology. This is the most important
8:44 part that will either make or break any
8:45 progress that you make throughout this
8:47 process. Okay, this is what will keep
8:49 people caught in a cycle of never
8:50 getting better or will allow people to
8:52 sort of skate through trading and get
8:53 better really, really quickly. Okay, so
8:55 I've identified three major things that
8:57 you need to retrain your mind around and
8:59 I'm going to explain to you exactly how
9:01 and why this works so that once you get
9:02 through this section of the video,
9:03 you're going to have an aha moment and
9:05 it's going to clear you up to be able to
9:06 proceed and learn and get started with
9:08 trading the right way. So, I've boiled
9:09 it down to these three main points,
9:10 okay? And the first thing that you need
9:12 to retrain your mind out of is that
9:14 losing is inherently bad. We're human
9:16 beings and anytime you lose at
9:18 something, this is viewed as you're not
9:20 sufficient, you're not doing a good job
9:21 or something needs to be changed to make
9:24 you be able to perform better. This does
9:25 not apply to trading and you really need
9:27 to understand that as weird as that
9:28 concept sounds and you're going to
9:30 understand why in a second. The next
9:32 thing is being wrong is bad. This kind
9:35 of ties into losing. Being wrong and
9:37 losing money we view as human beings,
9:39 there needs to be a corrective action to
9:41 fix that behavior. In trading, this is
9:42 not the case at all. you actually need
9:44 to completely flip this on its head. The
9:46 third thing is the misconception that
9:48 making money on a trade makes it a good
9:50 trade. This is not the case whatsoever.
9:52 So let's look at this example so you can
9:54 understand why thinking losing is bad,
9:56 being wrong is bad, and why making money
9:57 no matter how is good. Okay, so think of
9:59 it this way. Anytime we're buying into
10:01 the market, one of two things is going
10:02 to happen. It's either going to move up
10:04 and we're going to make money or it's
10:06 going to move down and we're going to
10:07 lose money. How we actually go about
10:09 that as traders is what is going to
10:11 dictate whether we're successful
10:12 long-term or not. So, let's look at it
10:14 this way. Anytime we're entering the
10:15 market, we need to number one figure out
10:17 how much we're trying to risk. Whether
10:19 it's a percentage or whether it's a
10:21 dollar amount. Say we want to risk $100,
10:23 for example. That means that if we enter
10:25 right here, we need to make sure that if
10:27 price moves down to this level that
10:29 we're only risking $100. And in doing
10:31 that, we can ensure that if this moves
10:34 up 3x more, now we know exactly how much
10:36 we're expected to win and how much we're
10:38 expected to lose. So let's take that
10:40 same exact example. We have our one unit
10:43 of risk, which we know is $100 for 3x
10:45 positive units of risk if we're right.
10:47 So let's say for example, whatever we're
10:49 buying is valued at
10:52 $15,352, and we want to risk exactly
10:54 $100 on this trade. That would mean that
10:55 we'd pull up our calculator. And I'm
10:57 going to show you a really cool simple
10:58 way to do this afterwards, but I want
11:00 you to understand the math of how we're
11:02 actually going to be calculating risk.
11:04 Right? If we want to position an entry
11:05 in the market, we're going to take our
11:08 entry value at 152. Okay? And say our
11:10 stop-loss level or this level where
11:11 we're going to get out for a contained
11:14 loss is at 150.52. So, we're going to
11:16 subtract by the stop-loss value and
11:18 that's going to give us three. Now,
11:19 we're going to take the dollar amount
11:21 that we want to risk and divide by
11:23 three. And that's going to give us 33.33
11:26 units to effectively buy in at to ensure
11:28 that if this moves against us, we're
11:30 containing the risk to $100. And we know
11:32 exactly what to expect if the trade
11:33 moves in our direction. So, anytime
11:35 we're looking to enter into a trade,
11:37 we're already positioning ourselves to
11:39 accept the fact that we can be wrong and
11:41 we can lose. And in order to actually
11:43 get into the market and open ourselves
11:45 up for the potential of making money, we
11:47 have to accept that we could potentially
11:49 be wrong. In that sort of same mind
11:50 process, a lot of people think they need
11:52 to be right all the time to actually
11:54 make money in trading, which is 100% not
11:56 true. So let's take this for an example.
11:58 Say we take a total of 10 trades. We've
12:00 contained our risk that every time we're
12:02 losing a trade, we're losing -1 unit of
12:06 risk. So we have 1 2 3 4 5 6 7 losses
12:07 and three wins. But when we're making
12:09 these wins, we make 5.2 2 times what
12:11 we're risking, 2.5 what we're risking,
12:13 and 3.1 what we're risking, which is
12:16 going to give us a sum of 10.8. And on
12:17 the loss side, it's going to give us a
12:20 sum of -7. We lost 70% of the time,
12:22 winning 30% of the time, which is going
12:26 to give us a net total of plus 3.8 risk
12:28 factors. So once again, we're risking
12:30 $100, which is going to leave us with a
12:31 profit of
12:35 $380 being wrong 70% of the time. If you
12:36 want a really easy way to do this
12:38 position sizing automatically on chart,
12:40 you can click into indicators. You can
12:42 search up it position calculator. This
12:43 is a calculator that we made on the
12:45 private side of our trading team. I'm
12:46 giving it to you guys for absolutely
12:48 free. You can click onto this and then
12:49 basically you can click right here at
12:51 your entry where you want to take profit
12:52 and where you want to set your risk to.
12:54 Then you can actually input your dollar
12:56 amount risk. Say I want to risk $100.
12:58 Hit apply. And that's going to show you
12:59 the exact quantity that you need to
13:01 enter in at that exact amount to risk
13:03 $100 if the price is to move against
13:05 you. So, if we go through our trading
13:07 thinking that losing is bad and being
13:09 wrong is bad, we're never going to put
13:11 ourselves in market situations where we
13:13 can actually allow ourselves to be
13:14 right. The losses that you take are
13:16 simply opportunity costs to be able to
13:17 get into the market. Understanding that
13:19 making money does not make a trade good
13:20 or bad. It's about following the
13:22 specific process that you know is going
13:23 to be repeatable while keeping your risk
13:25 contained. If you're just going into
13:26 stuff and putting a bunch of money into
13:28 it, you're not quantifying your risk.
13:29 you don't know if it's going to work
13:31 over time or not. By studying it and you
13:32 make a bunch of money, you're one
13:34 decision away from losing every single
13:36 thing. Even if on an individual trade
13:38 you get lucky and end up making a bunch
13:39 of money, it's about following the
13:40 process, making sure that you understand
13:42 that this is the mental psychology in
13:44 trading math that's going to put you in
13:45 a position to approach the markets
13:47 properly and understanding that trading
13:49 has nothing to do with being right or
13:50 wrong. It has everything to do with
13:52 understanding how much you're making
13:53 when you're right versus wrong and the
13:55 percentage of time that you are right to
13:56 be able to determine whether you're
13:58 going to be profitable or not
13:59 profitable. This is all going to be
14:01 based around keeping your risk uniform,
14:03 knowing how much you make when you're
14:04 right versus when you're wrong. Having
14:06 your average loss and your average win
14:08 and the percentage of the times those
14:09 are happening to once again be able to
14:11 look at this table and figure out if
14:12 you're not profitable or if you're
14:13 profitable. Okay, so now that I've
14:15 showed you the general structure, the
14:17 framework of building positions and
14:18 understanding how and why we're
14:20 controlling risk, let's go back to
14:21 Trading View and understand how we're
14:23 actually going to approach the market on
14:25 a technical analysis standpoint. Now,
14:26 this is where there's millions of things
14:28 to focus on. I've boiled them down to
14:30 about five or six major things that I
14:32 look for to find key areas in the
14:33 market, and I'm basically going to give
14:35 you a crash course on this. I have a
14:37 really good technical analysis guide if
14:39 you want to dive into more detail after
14:40 this video which I'm going to put in a
14:42 card at the end so you can dive a little
14:43 bit more into that. Okay, so let's pull
14:45 up a five-minute chart so that each
14:47 candle is 5 minutes worth of price data.
14:49 And let's start taking a look at how I
14:50 would read this chart. Okay, so the
14:51 first thing that I'm always starting
14:52 with is identifying what are called
14:54 trends on charts. And trends are
14:56 basically areas in the market where
14:58 price is generally moving in a specific
14:59 direction. So if it's generally moving
15:00 up, that's going to be an uptrend. And
15:02 if it's generally moving down, that's
15:03 going to be a downtrend. Okay? And the
15:05 way that I can really determine whether
15:07 we're in an uptrend or a downtrend is by
15:08 clicking on this tool right here and
15:10 starting to find areas on the chart
15:12 where price seems to be bouncing off of
15:13 an invisible level. Once again, going
15:15 back to that supply and demand area. So,
15:17 if I see these critical areas and I draw
15:19 from that low to that low where the
15:21 price is sort of responding off of.
15:23 Okay. Anytime the price is maintaining
15:25 above this specific area, that's
15:26 maintaining the status of an uptrend.
15:28 And you'll notice this point, price
15:30 finally pushed below this trend, pushed
15:32 up and continued to go lower, which is
15:34 now making this as a downtrend. So we
15:36 have an uptrend over here and a
15:38 downtrend over here. So I can draw
15:40 another trend level off of there. Okay.
15:41 And one thing that I really like to take
15:43 note of is if we have an area where
15:44 price is continually making these
15:46 levels, breaks underneath it, and then
15:48 comes up and retests it. Oftent times,
15:50 this is a beautiful key level to get big
15:52 moves down once the trend does change
15:54 direction. So trends are basically
15:55 showing us areas where price is likely
15:58 to come down to and have a continuation.
15:59 And then once it does finally break,
16:01 where it's likely to bounce off of and
16:03 continue moving lower, which we can
16:05 start to use to start to craft some of
16:07 these positions where we're entering in
16:08 expecting for price to move
16:10 significantly in one area and not come
16:12 through to the other. Okay, considering
16:14 this is a visual representation of mass
16:16 human psychology, there's another tool
16:18 that is really, really useful in trading
16:20 called a Fibonacci retracement. This is
16:22 one of my go-to indicators. So this is
16:24 how a Fibonacci works. Say you have a
16:25 chart moving up or you have a trend in a
16:27 certain direction. You can click on this
16:28 Fibonacci retracement. Click at the
16:30 beginning of a trend and go all the way
16:32 up to the highest point on the trend.
16:33 And what you're going to see are these
16:35 numerical values. Okay? Starting from 1
16:38 to 0, we have 78.6, 61.8, which is in
16:41 green, 50, 38.2, and 23.6. And what
16:43 you'll notice is oftent times if a trend
16:45 is going to have a pull down, this 50
16:47 level is often the level it will go to
16:48 and have a continuation higher. Same
16:51 thing with this 61.8. This is referred
16:53 to as the golden ratio. This is the
16:54 ratio that can be found naturally
16:57 occurring in the formation of shells,
16:59 plants, trees, even your facial
17:00 symmetry. All for some reason fall
17:03 around this specific Fibonacci value,
17:04 which often times will lead the price to
17:06 revert cleanly down to that level and
17:08 have a continuation move up, which once
17:10 again can allow us to start to structure
17:12 positions around these key levels. Okay,
17:14 so if we go back to our chart, we know
17:16 we have an uptrend and a downtrend. So
17:17 say for example, we wanted to look at
17:19 this trend and see some of its important
17:21 levels. We'd click at the high and then
17:22 go over to the low and then let's watch
17:24 what happens to price and where it
17:26 starts to respond. Okay, so as the chart
17:27 moves forward that becomes the low.
17:30 Okay, price comes up, reacts cleanly off
17:32 of that 61.8 value and it just so
17:34 happens that that level was the last
17:36 level for a massive move to the
17:37 downside. Even looking at this area
17:39 right here, say we were to start from
17:41 this point to there, this push down
17:42 before a continuation higher was was
17:44 basically the last level that the price
17:46 regressed down to before making a
17:47 continuation up. Okay, another really
17:49 cool piece of technical analysis that I
17:51 like to use when I'm looking at these
17:53 formations is something called a fair
17:54 value gap. And you can see these all
17:56 over the chart. So, it's basically these
17:58 big candles that are making these big
18:00 pushes like here and like here or like
18:02 here and like here. And I can actually
18:04 turn an indicator on called the Lux ALGO
18:05 fair value gap indicator and that's
18:07 going to pull them up on my chart
18:08 automatically. But the reason that I
18:10 look for them is because you can see
18:12 oftent times price will end up coming
18:14 back into these and making big moves
18:15 back in. Fair value gap right in here.
18:17 Price moves up, has a response off of
18:19 it. Fair value gap produced here. Price
18:21 pulls back down. Even though it wicked
18:23 through this one like crazy, comes back
18:24 down to the middle of that, has a
18:26 continuation up. Okay, this one's not
18:28 showing, but here price comes into the
18:30 midpoint, has a continuation up. Okay,
18:31 and the way that we can identify these
18:33 on a chart is basically we need 1, two,
18:35 three candles either in the up direction
18:37 or the down direction where the first
18:39 wick and the third wick do not overlap
18:41 on the second candle. So you'll see this
18:43 is the high of the first candle and this
18:44 is the low of the third candle. In
18:46 between here is going to be a bullish
18:48 fair value gap. And right here we have
18:50 one, two, three candles. First wick,
18:52 third wick. Price doesn't overlap right
18:54 here, creating a bearish or a fair value
18:56 gap that is likely to continue moving to
18:58 the downside. It's things like these
18:59 that I'm using when I'm doing analysis
19:01 to be able to find key areas that even
19:03 though we don't know for sure it's going
19:04 to move in our direction that we're able
19:07 to at least start off in an area where
19:08 we can keep our risk contained, let the
19:10 market move in our direction and
19:11 hopefully make more money than we're
19:12 risking. Okay? And of course, this is
19:14 just scratching the surface. I talk
19:16 about all this on my channel a lot more,
19:17 but as far as a foundation, these are
19:18 the primary things that I'm using. Like
19:20 I said, you can watch the technical
19:22 analysis video at the end of this video
19:24 to dive more deeply into how I use these
19:25 things specifically. Okay, so now that
19:26 we understand some of the analysis and
19:28 tools that go into actually trading,
19:30 let's talk about how to actually put
19:31 this into a strategy that you can start
19:33 practicing and trading for yourself. So
19:34 this is the progression that we're using
19:36 anytime we're building a trading
19:38 strategy. The first thing is the concept
19:40 which is coming from observation. So
19:41 just like we were noticing on our other
19:43 chart that certain things were happening
19:45 based on certain pieces of analysis.
19:47 What we want to do is gather a bunch of
19:49 those ideas and observe a general
19:51 tendency in the market. Okay. The next
19:52 thing that you want to do is create a
19:54 rule set based on your observations. And
19:56 then the next thing that you want to do
19:58 is evaluate that outcome by identifying
20:00 the percent of the time that it happens,
20:01 the average amount that you make versus
20:03 how much you lose while considering the
20:05 specific loss size. Okay? And then
20:06 basically it's up to us to be able to
20:08 see whether it's going to be profitable
20:09 or not. Okay. So, let's just use a
20:11 really simple example of how you can
20:13 actually go through and test your
20:14 strategy. Once you have an idea, you can
20:16 click on this button on your chart,
20:18 which is called bar replay, and you can
20:19 click back to a random part on your
20:21 chart, and then click this play button,
20:22 and it's actually going to play the
20:24 chart forward, allowing you to see how
20:26 your idea would work in real time. So,
20:27 what I'm noticing on this chart is every
20:29 time we have this indicator, which is a
20:31 custom indicator called the Inevitrade
20:32 Pro Plus indicator. It's actually in a
20:34 tool suite. If you follow me on
20:35 Instagram in the description, you can
20:36 add it to your chart. Basically shows
20:38 you when the markets are perceived to be
20:40 undervalued or overvalued. And when
20:41 they're undervalued, it will give you
20:43 this red highlight strip here. So, let's
20:45 say for example, every time a red strip
20:48 is produced, I'm going to enter in. I'm
20:50 going to sell when it produces a green
20:52 strip and I'm going to put my risk
20:53 underneath that recent low and I'm going
20:55 to risk $100 every time. That means that
20:58 I can calculate a loss as -1R and a win
21:00 is however much more I'm making than I'm
21:02 risking. So, in this case, it would be
21:04 like 3.94. So, then I can just go ahead
21:06 and play my chart forward and set this
21:07 strategy up to work. Okay, so we have a
21:09 highlight strip here setting up my
21:11 position. Okay, so we have a sell right
21:12 here. So, we would sell our position. we
21:15 would make plus 6.2R. We would sell in
21:16 here. Okay, we have a red highlight
21:18 strip. So, we sell. That's plus three
21:20 risk factors. Okay, so we would buy in
21:22 here. Price comes down, goes through our
21:25 stop loss. So, that's -1R. Okay, so you
21:26 can basically do this over a large
21:28 period of time. Now, all you have to do
21:29 is add up the total amount of trades.
21:31 You can basically go into a trade
21:32 tracker. This is a trade tracker that
21:33 are in the tools that I'll send you if
21:35 you follow me on Instagram and DM me the
21:36 word tools. And you can click each
21:39 trade, say it's on soul, 15 minute. You
21:40 can put long or short. You can put
21:42 whether it's a win or a loss. So in this
21:45 case, we had two wins and one loss. P&L
21:48 on the first was 620. P&L on the second
21:51 was 300, and then we had a $100 loss. So
21:52 that's going to show us our winning
21:54 percentage. We can click on this sum
21:55 here, and we can go over and hit
21:57 average, and that's going to show us our
21:59 average profit per trade as well as our
22:01 average winning percentage, which we can
22:03 take into our system, which based on our
22:05 average 273 would put us somewhere
22:08 between these two amounts at a 66% win
22:10 rate. would put us well into the
22:12 profitable zone. Now, obviously, this is
22:14 only three trades, so you'd want to do
22:15 this over an extended amount of time.
22:16 But once you have that, you've
22:18 effectively found a concept, identified
22:20 rules, found out your data, made sure
22:22 that it's confirmed to be profitable.
22:24 This is where you can actually start to
22:25 test this strategy in full time. Okay?
22:27 So, we just talked about doing onchart
22:30 bar replay. The next would be do using a
22:31 simulated account. Okay? And then after
22:33 that, you would actually apply this onto
22:34 a real account. Okay? So, let's say for
22:36 example, you wanted to actually enter
22:37 into this trade position. Since we're
22:39 trading cryptocurrency, I'm going to go
22:41 onto an exchange like Blofin. I'm going
22:42 to pull up Solana. And you'll see over
22:44 here we have limit and market. If you
22:46 want to choose a specific price, you
22:47 click on limit. If you just want to get
22:48 in or out of the market quickly, you're
22:49 going to click on market. So, we're
22:50 going to stick with limits for now.
22:52 Okay. If I went into every single detail
22:53 about this, this video would be like 8
22:55 hours long. Okay, since this is where
22:56 the price is, first thing that we need
22:58 to do is figure out how much we need to
23:01 enter in to risk. Say for example, $100.
23:02 So, we're going to click on our entry,
23:05 take profit, stop loss, enter $100.
23:07 That's going to give us 56 as a
23:09 quantity. And this is where leverage or
23:10 using prop firms is going to be
23:12 important because that would mean that
23:15 effectively we would have to buy at
23:17 $121.73 *
23:21 56.18 soul which is going to cost us
23:24 $6800. Unless you have $6,800 in an
23:25 account, you're not going to be able to
23:26 take this kind of size. And that's
23:28 exactly why we're going to use something
23:29 called leverage, which for example, if
23:32 we use 10x leverage, would take 6,800
23:34 and only require us to use
23:38 $683. Okay? So, we would enter in 121.74
23:40 as our entry. We would go into our
23:42 amount. We'd have 56.18. I would check
23:44 this takerit and stop loss. Our
23:48 takeprofit's at 130.76, which gives us
23:50 our estimated profit level, and our stop
23:53 loss at 120.8, 8, which you can see is
23:55 going to give us exactly $100 worth of
23:57 risk by entering specifically at this
23:59 amount. So, we know if we lose, we're
24:01 losing 100. And if we're profitable,
24:04 we're making $460 on this strategy. Now,
24:06 you can see right here it says the cost,
24:08 which is $6,800 if we increase the
24:11 leverage up to say for example 10. Now,
24:12 once again, that cost comes down to
24:14 $688. And that's how you can start with
24:16 a smaller amount of money and still be
24:18 able to have the upside if you know your
24:20 strategy and your process works and
24:21 you're looking at it inside this
24:23 framework. Okay, so now that we're at
24:24 this point, we've developed all these
24:26 skills and understanding of trading. I'm
24:27 going to take you through a strategy
24:29 that I like to trade on the channel that
24:30 we trade a ton on the private side of
24:31 our trading team and we have team
24:33 members absolutely crushing it. Me
24:34 personally, when I'm trading these
24:35 sessions, a lot of times, my last
24:37 session even, I made
24:40 $7,500 in about four or five trades
24:42 risking $500. I'm going to show you what
24:44 I look for on a setup and how I apply
24:45 all of this logic to get into positions
24:47 and how effective it is. And I'm going
24:48 to show you a few entry models that I
24:50 like to follow. Okay, first thing that
24:51 I'm going to turn on is this buy and
24:53 sell indicator. The second thing that
24:54 I'm going to turn on are those fair
24:56 value gap indicators. So, in this
24:57 strategy, I can't share every single
24:59 thing that I'm looking at without being
25:00 unfair to the private side of the team.
25:02 But I will show you something you can
25:04 get started with and apply a lot of your
25:05 own logic to that will still get you in
25:07 a position to be able to make this a
25:09 profitable operation. This is crazy for
25:10 me to be sharing on YouTube. What I'm
25:12 looking for is some sort of sell signal.
25:14 Right? I can't tell you exactly what the
25:16 signal is. Some sort of indication of an
25:18 over undervalued area somewhere where we
25:20 have a trend break under here into one
25:22 of those fair value gaps. In which case,
25:25 I'm looking to enter in the midpoint of
25:27 this fair value gap. Place my stop loss
25:29 outside and try to ride the trend down.
25:30 Okay. So, I'm going to go ahead forward
25:32 and play this to show you what I'm
25:33 looking for. Okay. So, we have
25:35 overvalued but no signal. Okay. So,
25:37 right here I start to have lows forming.
25:39 We have an overvalued area right here
25:40 with price starting to push down. So
25:42 once again, if I'm targeting the halfway
25:45 point of this area with an oversell and
25:46 a trend break where price is starting to
25:48 come underneath, price comes up, goes
25:50 into our area, gets into the trade, and
25:52 then immediately reverses down, already
25:54 putting us up in this situation
25:56 something like 12 times the amount that
25:57 we're risking. Once again, if we were
26:00 risking $100, our profit would be at
26:02 $1,200. So even with one of these
26:04 situations, we could still be wrong 10
26:06 other times and still be profitable for
26:08 the session. Okay? And of course, every
26:09 trade doesn't look like this. There are
26:10 definitely losers. This is just
26:12 scratching the surface of all of the
26:13 data sets that we run on the private
26:15 side of our trading team. But if we just
26:17 want to focus on the basics of it, it's
26:18 things like these where we can follow
26:20 these types of models and actually apply
26:21 them into the market. Okay, so let's
26:23 take a look at another example of a
26:24 trade that I entered. You can see I'm
26:26 entering in here. Price starts to move
26:27 in my direction once again off of that
26:29 area overvalued starts to make a
26:32 significant push down once again 4,000
26:36 5,000 $6,000 in profit risking $500.
26:37 Then I eventually close this out for
26:40 about $4,600. You can see here I'm
26:41 looking to buy in hoping the market
26:43 moves up. I enter in here and just to
26:45 show you the realities and be
26:46 transparent. A lot of times you are
26:48 going to have losing trades too. So for
26:49 example, okay, this trade closed out and
26:51 I lost within minutes. But the fact that
26:54 I can make $4 $5,000 in a good trade and
26:57 only lose $500 $600 on the losing trades
26:59 as long as I'm following the strategy,
27:00 keeping my position size consistent,
27:02 this gives me the framework to actually
27:04 dive into trading and do it properly.
27:05 Okay? And those are just two trading
27:06 models. We have tons of ways of
27:08 approaching the market in general. I
27:09 would definitely recommend for you to
27:10 watch this video if you want to dive
27:13 deeper into the technical analysis. If
27:14 this helped you, especially as a
27:16 beginner, hit the like button, share it
27:17 with a friend, subscribe to the channel
27:19 if you like the content. If you follow
27:20 me on Instagram and DM me the word
27:22 tools, I'll send you all the resources.
27:23 But until next time, I will see you all