Full transcript
Intro
0:00In this video, I'm going to show you
0:01exactly how I would start my day trading
0:03career over again if I had to start from
0:04scratch. And before getting to a point
0:06of developing an entire process and
0:08setting my trading up to be able to
0:09scale to three, sometimes $5,000 single
0:12profit days, I realistically wasted
0:14years of my 20s with thousands of hours
0:16of being confused and also thousands of
0:18dollars that I didn't need to waste had
0:20I have known the information and the
0:21foundation that I'm going to share with
0:22you in this video. So, I'm going to
0:23start with foundational information. So,
0:25a simple way of looking at trading to
0:27start with the basics. Then I'm going to
0:28show you the websites and the tools that
0:29you're going to need to follow along
0:31with this process. I'm going to talk
0:32about trading psychology, which is
0:33probably the most important thing that
0:35will either make or break your trading.
0:36A simple way to understand trading math
0:38that can be really confusing in the
0:40beginning, as well as a complete crash
0:41course of the most important things that
0:43I know about technical analysis. Then
0:44I'm going to show you how to build and
0:46test your own strategies. Then at the
0:47end, I'm going to show you how we can
0:48take everything that we've learned.
0:50We're going to apply them into a real
0:52life scenario to show you working them
0:53in real time. So, by the time you make
0:55it through this entire video, you're
0:56going to have a clear-cut, simplified
0:58path to starting your trading career
0:59properly. Okay. So, let's first start
The goal of trading
1:01and set the foundation by understanding
1:03how trading works and how we should be
1:05looking at the market. Okay? There's a
1:06lot of technical elements that can be
1:08really confusing and if you learn bits
1:09and pieces of it, it can throw you off
1:11the rails. This is a very simple way to
1:13understand how the market works and how
1:15the mechanics of it work. So, over here
1:17I have a chart open, but right now we're
1:18not going to worry about anything other
1:19than how and why the market is moving.
1:21Okay? So whenever we're looking at a
1:23chart, which in this case is this blue
1:25line, we're looking at increases and
1:27decreases. So all the chart is showing
1:29us is a visual representation of mass
1:31human psychology. Meaning that there are
1:33buyers and there are sellers. Now this
1:35is done with algorithms. This is done by
1:37physical trading. This is done in all
1:39sorts of different ways. So it's not as
1:40simple as people just clicking buy and
1:42sell, right? But the general premise is
1:44the market is adjusting to fill
1:46imbalances which are caused by supply
1:49and demand. So how this works is like
1:51this. Let's take right here for example
1:53in this part of the chart when price is
1:55moving up that means that there is
1:56demand from buyers and supply from
1:59sellers. If the demand outweighs the
2:01supply the market is going to move up
2:03until there's another point where supply
2:05starts to outweigh the demand and the
2:07market will correct until once again
2:08there's more demand than supply and that
2:10will sort of bounce back and forth which
2:11is going to produce something called
2:13volatility. Now volatility is basically
2:15anytime there are drastic big moves in
2:17the market. These are going to open up
2:18trading opportunities for us later. So
2:20simply put, as traders, our job is to
2:22find areas of the market where we can
2:24enter at a certain price, have the price
2:27increase to another price. Then however
2:29many of these we bought times the
2:31increase is going to give us our profit.
2:33So if we bought a 100 of these units at
2:36$200, and it increases to 205, that's $5
2:39in profit per 100, which is going to
2:41give us $500 in profit. But let's take
2:43another layer deeper to start
2:44understanding where these intraday
2:46opportunities come from. So, let's take
2:48a one-year starting point as an example.
2:50Over the course of a year, this is the
2:52general stock market. We can see
2:53anywhere from 10, 15, 20, even 30% gains
2:57in an individual year. That means that
2:58if we were to buy $100 worth of S&P at
3:01this point and price increases, we now
3:03have $130 and technically our total risk
3:06implication is if everything were to
3:08melt down and technically go to zero,
3:10we're technically risking $100. This is
3:12the concept of investing. Now, you're
3:14only going to get, say, 10, 20, 30% in a
3:17good year, but usually right around 10%.
3:19So, effectively, we'd have to wait an
3:21entire year to get between 10 and 30%.
3:23Which is good if you're dealing with a
3:24lot of money. But, if you're trying to
3:26scale a small amount and make an income
3:28off of it, you need to have a tremendous
3:29amount of capital. Otherwise, you have
3:31to find other opportunities in the
3:32market. Now, what happens if we zoom in
3:34to just this one small area where now
3:37instead of looking at an entire year's
3:39worth of movement, we're now looking at
3:40individual days worth of movement. So
3:42we'll take today for example and now
3:44even in a single day we had this amount
3:45of movement to the upside and this
3:47amount of movement on the downside. So
3:49instead of waiting an entire year if we
3:51were able to enter here and sell
3:53somewhere up here and now still risking
3:55$100 just with this single move we would
3:57make
3:58$341. This would happen in the matter of
4:011 hour. We can have multiple of these
4:03opportunities in a single day, which
4:04allows us to go from making say $30 in a
4:07year to be able to take that same amount
4:09of risk and be able to make 67 $800 in a
4:12single day risking $100. Okay? But as
4:14the numbers get smaller and we're
4:16dealing on a zoomedin one day view, the
4:18math and the strategy behind this starts
4:20to get a lot more complicated and it
4:22gets more important to know how to do
4:23this to properly calculate your risk.
4:25Not only that, but we need to know where
4:26we're buying and selling and the
4:28likelihood of that happening. So, just
4:30as an example, if you're new, you're
4:31especially not going to understand
4:32exactly how this works, but this is a
4:34trade that took about 2 hours where I
4:36was basically able to pick an area where
4:38I expected for the price to
4:39significantly drop, enter in, actually
4:41be able to make profit from the market
4:43going down, which even a lot of people
4:45don't understand that you can do,
4:46especially good when markets are moving
4:48down to know how to do this skill. And
4:49you can see I followed this down for
4:51hours, going up $2,400, $2,600, $3,000,
4:56nearly $4,000 for taking the trade off
4:58for full profit. And I was only risking
5:00$500 that I was able to make over $3,000
5:03in about 2 hours. Okay, this isn't to
5:04brag. It's just to show you that if we
5:06can use this ideology and framework on a
5:08daily basis, these are the opportunities
5:10that if you lock in and take it
5:11seriously that are going to be on the
5:12table for yourself. But before that,
5:14let's talk about all the tools and
5:15websites that you're going to need to
5:16set this up for yourself and start as a
Tools & Setup
5:18beginner. Okay, so realistically, you're
5:19going to need three major things. First
5:21thing is going to be Trading View, which
5:23is where we're going to be doing all of
5:24our charting and analysis. That's going
5:26to be your home base. The second thing
5:27that you're going to need is some sort
5:28of way to actually place trades. Now,
5:30you're going to need some experience
5:31before actually doing this, okay? But
5:33considering I trade cryptocurrency, I
5:35like to use Blofin or Bybit. I'll show
5:36you how specifically to use those a
5:38little bit later into the video, okay?
5:39And if you're looking to trade stocks, a
5:41lot of our traders are using
5:42topstep.com. The third thing that you're
5:44going to need is a trade journal, which
5:45I'm going to provide to you, but more on
5:46that later. Once you make your way into
5:48Trading View, you're going to have a
5:49screen that looks something like this.
5:50What you're going to want to do is click
5:52on products here and click on super
5:53chart. That's going to bring you to a
5:55plain chart like this. Now, when it
5:56comes to style and really setting this
5:58fully up, I have an amazing video you
5:59can go through that I'll bookmark at the
6:01end of this video, so you can watch that
6:02after and get fully set up. What I like
6:04to do when I'm trading is take my
6:05trading view, put it on one side of my
6:07screen, and I'll take my trading
6:08platform where I can input my orders and
6:09I'll put it on the other side. So, now I
6:11want to share with you some fundamental
6:12trading information so you fully
6:14understand the approach you take with
6:15trading. So, anytime you're placing a
6:17trade, you're basically selecting what's
6:19called a pair. Now a pair is going to be
6:21any sort of asset that you're either
6:22buying or selling against the value of
6:25the US dollar. Okay? So this is Solana
6:28versus the US dollar which is going to
6:30maintain a pretty consistent value and
6:32Solana will either go up or down against
6:34that value which is going to create
6:36price movement. The way we manage our
6:38pairs is using something called watch
6:40list which is over here on Trading View.
6:42Okay. So, for example, if you're
6:43creating a new watch list, we can click
6:45this plus button here. And if we want to
6:47go to cryptocurrencies, we can click on
6:49Bitcoin, XRP, soul. We can start
6:51selecting different cryptocurrency pairs
6:53to have in a list here, which will allow
6:55us to flip between and to have access to
6:57viewing how these individual charts are
6:59moving. So, when I'm looking at a chart
7:01here, you'll see we started off with a
7:03line chart. So, it's basically a line
7:04showing how the price is moving. And
7:06then I can switch between something
7:07called candles. So candles are a better
7:09way of getting information as a day
7:11trader. Okay. So the way candles work,
7:13okay, considering this is a green
7:14candle, that means that price started
7:16here, went as high as this point, as low
7:19as this point, and ended up closing
7:21right here. And that's why our candle is
7:23green. That's the body of the candle. So
7:25we had the total movement up in the
7:26highs and lows. Same is true for a red
7:29candle, only the open happened here. The
7:31close was lower than the open, and the
7:33highs and lows remain the same, giving
7:35us a red body. If we go back over to our
7:37chart here, right, I have black and
7:38white, so it's a little bit different.
7:40Still looking at a similar example here.
7:42We had the candle open, we had the
7:43candle close, the highs, and the lows.
7:45And then say for example, this candle
7:47opened here, closed here, and the high
7:49and lows were here. Okay? And these
7:51candles are going to show us different
7:52information depending on the chart
7:54frequency that we choose. So for
7:56example, we have up in our top menu
7:58here, chart frequencies between anywhere
8:00from 15 seconds to one full week. So
8:02you'll notice I have two sideby-side
8:03charts of Ethereum. On this side, we
8:05have 5-minute Ethereum chart. And over
8:07here, we have a 1-day Ethereum chart.
8:09This green box is the same green box on
8:12both sides. Only this is one candle
8:14showing us the open price, the close
8:16price, and the highs and lows. And if we
8:19notice over here, this is the high, the
8:20low, and this was the total movement
8:22over the day, but in 5minute increments
8:25opposed to a 1-day increment. And
8:27there's different combinations that we
8:28can use, but the lower you go down into
8:30the time frame, each candle is going to
8:32show you, in this case, 5 minutes worth
8:34of movement opposed to a whole entire
Trading Psychology
8:36day of movement. Okay, so now let's get
8:38into a section talking about trading
8:39psychology. This is the most important
8:42part that will either make or break any
8:44progress that you make throughout this
8:45process. Okay, this is what will keep
8:47people caught in a cycle of never
8:49getting better or will allow people to
8:50sort of skate through trading and get
8:52better really, really quickly. Okay, so
8:53I've identified three major things that
8:55you need to retrain your mind around and
8:57I'm going to explain to you exactly how
8:59and why this works so that once you get
9:01through this section of the video,
9:02you're going to have an aha moment and
9:03it's going to clear you up to be able to
9:05proceed and learn and get started with
9:06trading the right way. So, I've boiled
9:08it down to these three main points,
9:09okay? And the first thing that you need
9:10to retrain your mind out of is that
9:12losing is inherently bad. We're human
9:14beings and anytime you lose at
9:16something, this is viewed as you're not
9:18sufficient, you're not doing a good job
9:20or something needs to be changed to make
9:21you be able to perform better. This does
9:24not apply to trading and you really need
9:25to understand that as weird as that
9:27concept sounds and you're going to
9:28understand why in a second. The next
9:30thing is being wrong is bad. This kind
9:32of ties into losing. Being wrong and
9:35losing money we view as human beings,
9:37there needs to be a corrective action to
9:39fix that behavior. In trading, this is
9:41not the case at all. you actually need
9:42to completely flip this on its head. The
9:44third thing is the misconception that
9:46making money on a trade makes it a good
9:48trade. This is not the case whatsoever.
9:50So let's look at this example so you can
9:52understand why thinking losing is bad,
9:54being wrong is bad, and why making money
9:56no matter how is good. Okay, so think of
9:57it this way. Anytime we're buying into
9:59the market, one of two things is going
10:01to happen. It's either going to move up
10:02and we're going to make money or it's
10:04going to move down and we're going to
10:06lose money. How we actually go about
10:07that as traders is what is going to
10:09dictate whether we're successful
10:11long-term or not. So, let's look at it
10:12this way. Anytime we're entering the
10:14market, we need to number one figure out
10:15how much we're trying to risk. Whether
10:17it's a percentage or whether it's a
10:19dollar amount. Say we want to risk $100,
10:21for example. That means that if we enter
10:23right here, we need to make sure that if
10:25price moves down to this level that
10:27we're only risking $100. And in doing
10:29that, we can ensure that if this moves
10:31up 3x more, now we know exactly how much
10:34we're expected to win and how much we're
10:36expected to lose. So let's take that
10:38same exact example. We have our one unit
10:40of risk, which we know is $100 for 3x
10:43positive units of risk if we're right.
10:45So let's say for example, whatever we're
10:47buying is valued at
10:49$15,352, and we want to risk exactly
10:52$100 on this trade. That would mean that
10:54we'd pull up our calculator. And I'm
10:55going to show you a really cool simple
10:57way to do this afterwards, but I want
10:58you to understand the math of how we're
11:00actually going to be calculating risk.
11:02Right? If we want to position an entry
11:04in the market, we're going to take our
11:05entry value at 152. Okay? And say our
11:08stop-loss level or this level where
11:10we're going to get out for a contained
11:11loss is at 150.52. So, we're going to
11:14subtract by the stop-loss value and
11:16that's going to give us three. Now,
11:18we're going to take the dollar amount
11:19that we want to risk and divide by
11:21three. And that's going to give us 33.33
11:23units to effectively buy in at to ensure
11:26that if this moves against us, we're
11:28containing the risk to $100. And we know
11:30exactly what to expect if the trade
11:32moves in our direction. So, anytime
11:33we're looking to enter into a trade,
11:35we're already positioning ourselves to
11:37accept the fact that we can be wrong and
11:39we can lose. And in order to actually
11:41get into the market and open ourselves
11:43up for the potential of making money, we
11:45have to accept that we could potentially
11:47be wrong. In that sort of same mind
11:49process, a lot of people think they need
11:50to be right all the time to actually
11:52make money in trading, which is 100% not
11:54true. So let's take this for an example.
11:56Say we take a total of 10 trades. We've
11:58contained our risk that every time we're
12:00losing a trade, we're losing -1 unit of
12:02risk. So we have 1 2 3 4 5 6 7 losses
12:06and three wins. But when we're making
12:07these wins, we make 5.2 2 times what
12:09we're risking, 2.5 what we're risking,
12:11and 3.1 what we're risking, which is
12:13going to give us a sum of 10.8. And on
12:16the loss side, it's going to give us a
12:17sum of -7. We lost 70% of the time,
12:20winning 30% of the time, which is going
12:22to give us a net total of plus 3.8 risk
12:26factors. So once again, we're risking
12:28$100, which is going to leave us with a
12:30profit of
12:31$380 being wrong 70% of the time. If you
12:35want a really easy way to do this
12:36position sizing automatically on chart,
12:38you can click into indicators. You can
12:40search up it position calculator. This
12:42is a calculator that we made on the
12:43private side of our trading team. I'm
12:45giving it to you guys for absolutely
12:46free. You can click onto this and then
12:48basically you can click right here at
12:49your entry where you want to take profit
12:51and where you want to set your risk to.
12:52Then you can actually input your dollar
12:54amount risk. Say I want to risk $100.
12:56Hit apply. And that's going to show you
12:58the exact quantity that you need to
12:59enter in at that exact amount to risk
13:01$100 if the price is to move against
13:03you. So, if we go through our trading
13:05thinking that losing is bad and being
13:07wrong is bad, we're never going to put
13:09ourselves in market situations where we
13:11can actually allow ourselves to be
13:13right. The losses that you take are
13:14simply opportunity costs to be able to
13:16get into the market. Understanding that
13:17making money does not make a trade good
13:19or bad. It's about following the
13:20specific process that you know is going
13:22to be repeatable while keeping your risk
13:23contained. If you're just going into
13:25stuff and putting a bunch of money into
13:26it, you're not quantifying your risk.
13:28you don't know if it's going to work
13:29over time or not. By studying it and you
13:31make a bunch of money, you're one
13:32decision away from losing every single
13:34thing. Even if on an individual trade
13:36you get lucky and end up making a bunch
13:38of money, it's about following the
13:39process, making sure that you understand
13:40that this is the mental psychology in
13:42trading math that's going to put you in
13:44a position to approach the markets
13:45properly and understanding that trading
13:47has nothing to do with being right or
13:49wrong. It has everything to do with
13:50understanding how much you're making
13:52when you're right versus wrong and the
13:53percentage of time that you are right to
13:55be able to determine whether you're
13:56going to be profitable or not
13:58profitable. This is all going to be
13:59based around keeping your risk uniform,
14:01knowing how much you make when you're
14:03right versus when you're wrong. Having
14:04your average loss and your average win
14:06and the percentage of the times those
14:08are happening to once again be able to
14:09look at this table and figure out if
14:11you're not profitable or if you're
Intro To Technical Analysis
14:12profitable. Okay, so now that I've
14:13showed you the general structure, the
14:15framework of building positions and
14:17understanding how and why we're
14:18controlling risk, let's go back to
14:20Trading View and understand how we're
14:21actually going to approach the market on
14:23a technical analysis standpoint. Now,
14:25this is where there's millions of things
14:26to focus on. I've boiled them down to
14:28about five or six major things that I
14:30look for to find key areas in the
14:32market, and I'm basically going to give
14:33you a crash course on this. I have a
14:35really good technical analysis guide if
14:37you want to dive into more detail after
14:39this video which I'm going to put in a
14:40card at the end so you can dive a little
14:42bit more into that. Okay, so let's pull
14:43up a five-minute chart so that each
14:45candle is 5 minutes worth of price data.
14:47And let's start taking a look at how I
14:49would read this chart. Okay, so the
14:50first thing that I'm always starting
14:51with is identifying what are called
14:52trends on charts. And trends are
14:54basically areas in the market where
14:56price is generally moving in a specific
14:58direction. So if it's generally moving
14:59up, that's going to be an uptrend. And
15:00if it's generally moving down, that's
15:02going to be a downtrend. Okay? And the
15:03way that I can really determine whether
15:05we're in an uptrend or a downtrend is by
15:07clicking on this tool right here and
15:08starting to find areas on the chart
15:10where price seems to be bouncing off of
15:12an invisible level. Once again, going
15:13back to that supply and demand area. So,
15:15if I see these critical areas and I draw
15:17from that low to that low where the
15:19price is sort of responding off of.
15:21Okay. Anytime the price is maintaining
15:23above this specific area, that's
15:25maintaining the status of an uptrend.
15:26And you'll notice this point, price
15:28finally pushed below this trend, pushed
15:30up and continued to go lower, which is
15:32now making this as a downtrend. So we
15:34have an uptrend over here and a
15:36downtrend over here. So I can draw
15:38another trend level off of there. Okay.
15:40And one thing that I really like to take
15:41note of is if we have an area where
15:43price is continually making these
15:44levels, breaks underneath it, and then
15:46comes up and retests it. Oftent times,
15:48this is a beautiful key level to get big
15:50moves down once the trend does change
15:52direction. So trends are basically
15:54showing us areas where price is likely
15:55to come down to and have a continuation.
15:58And then once it does finally break,
15:59where it's likely to bounce off of and
16:01continue moving lower, which we can
16:03start to use to start to craft some of
16:05these positions where we're entering in
16:07expecting for price to move
16:08significantly in one area and not come
16:10through to the other. Okay, considering
16:12this is a visual representation of mass
16:14human psychology, there's another tool
16:16that is really, really useful in trading
16:18called a Fibonacci retracement. This is
16:20one of my go-to indicators. So this is
16:22how a Fibonacci works. Say you have a
16:24chart moving up or you have a trend in a
16:25certain direction. You can click on this
16:27Fibonacci retracement. Click at the
16:28beginning of a trend and go all the way
16:30up to the highest point on the trend.
16:32And what you're going to see are these
16:33numerical values. Okay? Starting from 1
16:35to 0, we have 78.6, 61.8, which is in
16:38green, 50, 38.2, and 23.6. And what
16:41you'll notice is oftent times if a trend
16:43is going to have a pull down, this 50
16:45level is often the level it will go to
16:47and have a continuation higher. Same
16:48thing with this 61.8. This is referred
16:51to as the golden ratio. This is the
16:53ratio that can be found naturally
16:54occurring in the formation of shells,
16:57plants, trees, even your facial
16:59symmetry. All for some reason fall
17:00around this specific Fibonacci value,
17:03which often times will lead the price to
17:04revert cleanly down to that level and
17:06have a continuation move up, which once
17:08again can allow us to start to structure
17:10positions around these key levels. Okay,
17:12so if we go back to our chart, we know
17:14we have an uptrend and a downtrend. So
17:16say for example, we wanted to look at
17:17this trend and see some of its important
17:19levels. We'd click at the high and then
17:21go over to the low and then let's watch
17:22what happens to price and where it
17:24starts to respond. Okay, so as the chart
17:26moves forward that becomes the low.
17:27Okay, price comes up, reacts cleanly off
17:30of that 61.8 value and it just so
17:32happens that that level was the last
17:34level for a massive move to the
17:36downside. Even looking at this area
17:37right here, say we were to start from
17:39this point to there, this push down
17:41before a continuation higher was was
17:42basically the last level that the price
17:44regressed down to before making a
17:46continuation up. Okay, another really
17:47cool piece of technical analysis that I
17:49like to use when I'm looking at these
17:51formations is something called a fair
17:53value gap. And you can see these all
17:54over the chart. So, it's basically these
17:56big candles that are making these big
17:58pushes like here and like here or like
18:00here and like here. And I can actually
18:02turn an indicator on called the Lux ALGO
18:04fair value gap indicator and that's
18:05going to pull them up on my chart
18:07automatically. But the reason that I
18:08look for them is because you can see
18:10oftent times price will end up coming
18:12back into these and making big moves
18:14back in. Fair value gap right in here.
18:15Price moves up, has a response off of
18:17it. Fair value gap produced here. Price
18:19pulls back down. Even though it wicked
18:21through this one like crazy, comes back
18:23down to the middle of that, has a
18:24continuation up. Okay, this one's not
18:26showing, but here price comes into the
18:28midpoint, has a continuation up. Okay,
18:30and the way that we can identify these
18:31on a chart is basically we need 1, two,
18:33three candles either in the up direction
18:35or the down direction where the first
18:37wick and the third wick do not overlap
18:39on the second candle. So you'll see this
18:41is the high of the first candle and this
18:43is the low of the third candle. In
18:44between here is going to be a bullish
18:46fair value gap. And right here we have
18:48one, two, three candles. First wick,
18:50third wick. Price doesn't overlap right
18:52here, creating a bearish or a fair value
18:54gap that is likely to continue moving to
18:56the downside. It's things like these
18:58that I'm using when I'm doing analysis
18:59to be able to find key areas that even
19:01though we don't know for sure it's going
19:03to move in our direction that we're able
19:04to at least start off in an area where
19:07we can keep our risk contained, let the
19:08market move in our direction and
19:10hopefully make more money than we're
19:11risking. Okay? And of course, this is
19:12just scratching the surface. I talk
19:14about all this on my channel a lot more,
19:16but as far as a foundation, these are
19:17the primary things that I'm using. Like
19:18I said, you can watch the technical
19:20analysis video at the end of this video
19:22to dive more deeply into how I use these
Building A Business Trading Plan
19:24things specifically. Okay, so now that
19:25we understand some of the analysis and
19:26tools that go into actually trading,
19:28let's talk about how to actually put
19:30this into a strategy that you can start
19:31practicing and trading for yourself. So
19:33this is the progression that we're using
19:34anytime we're building a trading
19:36strategy. The first thing is the concept
19:38which is coming from observation. So
19:40just like we were noticing on our other
19:41chart that certain things were happening
19:43based on certain pieces of analysis.
19:45What we want to do is gather a bunch of
19:47those ideas and observe a general
19:49tendency in the market. Okay. The next
19:51thing that you want to do is create a
19:52rule set based on your observations. And
19:54then the next thing that you want to do
19:56is evaluate that outcome by identifying
19:58the percent of the time that it happens,
20:00the average amount that you make versus
20:01how much you lose while considering the
20:03specific loss size. Okay? And then
20:05basically it's up to us to be able to
20:06see whether it's going to be profitable
20:08or not. Okay. So, let's just use a
20:09really simple example of how you can
20:11actually go through and test your
20:13strategy. Once you have an idea, you can
20:14click on this button on your chart,
20:16which is called bar replay, and you can
20:18click back to a random part on your
20:19chart, and then click this play button,
20:21and it's actually going to play the
20:22chart forward, allowing you to see how
20:24your idea would work in real time. So,
20:26what I'm noticing on this chart is every
20:27time we have this indicator, which is a
20:29custom indicator called the Inevitrade
20:31Pro Plus indicator. It's actually in a
20:32tool suite. If you follow me on
20:34Instagram in the description, you can
20:35add it to your chart. Basically shows
20:36you when the markets are perceived to be
20:38undervalued or overvalued. And when
20:40they're undervalued, it will give you
20:41this red highlight strip here. So, let's
20:43say for example, every time a red strip
20:45is produced, I'm going to enter in. I'm
20:48going to sell when it produces a green
20:50strip and I'm going to put my risk
20:52underneath that recent low and I'm going
20:53to risk $100 every time. That means that
20:55I can calculate a loss as -1R and a win
20:58is however much more I'm making than I'm
21:00risking. So, in this case, it would be
21:02like 3.94. So, then I can just go ahead
21:04and play my chart forward and set this
21:06strategy up to work. Okay, so we have a
21:07highlight strip here setting up my
21:09position. Okay, so we have a sell right
21:11here. So, we would sell our position. we
21:12would make plus 6.2R. We would sell in
21:15here. Okay, we have a red highlight
21:16strip. So, we sell. That's plus three
21:18risk factors. Okay, so we would buy in
21:20here. Price comes down, goes through our
21:22stop loss. So, that's -1R. Okay, so you
21:25can basically do this over a large
21:26period of time. Now, all you have to do
21:28is add up the total amount of trades.
21:29You can basically go into a trade
21:31tracker. This is a trade tracker that
21:32are in the tools that I'll send you if
21:33you follow me on Instagram and DM me the
21:35word tools. And you can click each
21:36trade, say it's on soul, 15 minute. You
21:39can put long or short. You can put
21:40whether it's a win or a loss. So in this
21:42case, we had two wins and one loss. P&L
21:45on the first was 620. P&L on the second
21:48was 300, and then we had a $100 loss. So
21:51that's going to show us our winning
21:52percentage. We can click on this sum
21:54here, and we can go over and hit
21:55average, and that's going to show us our
21:57average profit per trade as well as our
21:59average winning percentage, which we can
22:01take into our system, which based on our
22:03average 273 would put us somewhere
22:05between these two amounts at a 66% win
22:08rate. would put us well into the
22:10profitable zone. Now, obviously, this is
22:12only three trades, so you'd want to do
22:14this over an extended amount of time.
22:15But once you have that, you've
22:16effectively found a concept, identified
22:18rules, found out your data, made sure
22:20that it's confirmed to be profitable.
22:22This is where you can actually start to
22:24test this strategy in full time. Okay?
22:25So, we just talked about doing onchart
22:27bar replay. The next would be do using a
22:30simulated account. Okay? And then after
22:31that, you would actually apply this onto
22:33a real account. Okay? So, let's say for
22:34example, you wanted to actually enter
22:36into this trade position. Since we're
22:37trading cryptocurrency, I'm going to go
22:39onto an exchange like Blofin. I'm going
22:41to pull up Solana. And you'll see over
22:42here we have limit and market. If you
22:44want to choose a specific price, you
22:46click on limit. If you just want to get
22:47in or out of the market quickly, you're
22:48going to click on market. So, we're
22:49going to stick with limits for now.
22:50Okay. If I went into every single detail
22:52about this, this video would be like 8
22:53hours long. Okay, since this is where
22:55the price is, first thing that we need
22:56to do is figure out how much we need to
22:58enter in to risk. Say for example, $100.
23:01So, we're going to click on our entry,
23:02take profit, stop loss, enter $100.
23:05That's going to give us 56 as a
23:07quantity. And this is where leverage or
23:09using prop firms is going to be
23:10important because that would mean that
23:12effectively we would have to buy at
23:15$121.73 *
23:1756.18 soul which is going to cost us
23:21$6800. Unless you have $6,800 in an
23:24account, you're not going to be able to
23:25take this kind of size. And that's
23:26exactly why we're going to use something
23:28called leverage, which for example, if
23:29we use 10x leverage, would take 6,800
23:32and only require us to use
23:34$683. Okay? So, we would enter in 121.74
23:38as our entry. We would go into our
23:40amount. We'd have 56.18. I would check
23:42this takerit and stop loss. Our
23:44takeprofit's at 130.76, which gives us
23:48our estimated profit level, and our stop
23:50loss at 120.8, 8, which you can see is
23:53going to give us exactly $100 worth of
23:55risk by entering specifically at this
23:57amount. So, we know if we lose, we're
23:59losing 100. And if we're profitable,
24:01we're making $460 on this strategy. Now,
24:04you can see right here it says the cost,
24:06which is $6,800 if we increase the
24:08leverage up to say for example 10. Now,
24:11once again, that cost comes down to
24:12$688. And that's how you can start with
24:14a smaller amount of money and still be
24:16able to have the upside if you know your
24:18strategy and your process works and
Learning & Implementing A Strategy
24:20you're looking at it inside this
24:21framework. Okay, so now that we're at
24:23this point, we've developed all these
24:24skills and understanding of trading. I'm
24:26going to take you through a strategy
24:27that I like to trade on the channel that
24:29we trade a ton on the private side of
24:30our trading team and we have team
24:31members absolutely crushing it. Me
24:33personally, when I'm trading these
24:34sessions, a lot of times, my last
24:35session even, I made
24:37$7,500 in about four or five trades
24:40risking $500. I'm going to show you what
24:42I look for on a setup and how I apply
24:44all of this logic to get into positions
24:45and how effective it is. And I'm going
24:47to show you a few entry models that I
24:48like to follow. Okay, first thing that
24:50I'm going to turn on is this buy and
24:51sell indicator. The second thing that
24:53I'm going to turn on are those fair
24:54value gap indicators. So, in this
24:56strategy, I can't share every single
24:57thing that I'm looking at without being
24:59unfair to the private side of the team.
25:00But I will show you something you can
25:02get started with and apply a lot of your
25:04own logic to that will still get you in
25:05a position to be able to make this a
25:07profitable operation. This is crazy for
25:09me to be sharing on YouTube. What I'm
25:10looking for is some sort of sell signal.
25:12Right? I can't tell you exactly what the
25:14signal is. Some sort of indication of an
25:16over undervalued area somewhere where we
25:18have a trend break under here into one
25:20of those fair value gaps. In which case,
25:22I'm looking to enter in the midpoint of
25:25this fair value gap. Place my stop loss
25:27outside and try to ride the trend down.
25:29Okay. So, I'm going to go ahead forward
25:30and play this to show you what I'm
25:32looking for. Okay. So, we have
25:33overvalued but no signal. Okay. So,
25:35right here I start to have lows forming.
25:37We have an overvalued area right here
25:39with price starting to push down. So
25:40once again, if I'm targeting the halfway
25:42point of this area with an oversell and
25:45a trend break where price is starting to
25:46come underneath, price comes up, goes
25:48into our area, gets into the trade, and
25:50then immediately reverses down, already
25:52putting us up in this situation
25:54something like 12 times the amount that
25:56we're risking. Once again, if we were
25:57risking $100, our profit would be at
26:00$1,200. So even with one of these
26:02situations, we could still be wrong 10
26:04other times and still be profitable for
26:06the session. Okay? And of course, every
26:08trade doesn't look like this. There are
26:09definitely losers. This is just
26:10scratching the surface of all of the
26:12data sets that we run on the private
26:13side of our trading team. But if we just
26:15want to focus on the basics of it, it's
26:17things like these where we can follow
26:18these types of models and actually apply
26:20them into the market. Okay, so let's
26:21take a look at another example of a
26:23trade that I entered. You can see I'm
26:24entering in here. Price starts to move
26:26in my direction once again off of that
26:27area overvalued starts to make a
26:29significant push down once again 4,000
26:325,000 $6,000 in profit risking $500.
26:36Then I eventually close this out for
26:37about $4,600. You can see here I'm
26:40looking to buy in hoping the market
26:41moves up. I enter in here and just to
26:43show you the realities and be
26:45transparent. A lot of times you are
26:46going to have losing trades too. So for
26:48example, okay, this trade closed out and
26:49I lost within minutes. But the fact that
26:51I can make $4 $5,000 in a good trade and
26:54only lose $500 $600 on the losing trades
26:57as long as I'm following the strategy,
26:59keeping my position size consistent,
27:00this gives me the framework to actually
27:02dive into trading and do it properly.
27:04Okay? And those are just two trading
27:05models. We have tons of ways of
27:06approaching the market in general. I
27:08would definitely recommend for you to
27:09watch this video if you want to dive
27:10deeper into the technical analysis. If
27:13this helped you, especially as a
27:14beginner, hit the like button, share it
27:16with a friend, subscribe to the channel
27:17if you like the content. If you follow
27:19me on Instagram and DM me the word
27:20tools, I'll send you all the resources.
27:22But until next time, I will see you all
27:23in the next video.