How to Start Day Trading from ZERO (Full Training)

all right everyone so we're going to go
ahead and get started we've got the
Whiteboard we've got the screen share
we've got the full camera view here in
today's class I'm going to teach you how
to start day trading and I'm going to
break it down for you into nine simple
steps that you can Implement in your
trading today now trading doesn't have
to be as complicated as many people make
it out to be so my goal for this class
is that I'm able to break it down to the
barebone things that you need to know in
order to start your journey with
confidence and consistency now this is a
special class because I'm actually doing
it as a live broadcast so thank you guys
who are tuning in live I'm looking
forward to reading your comments those
of you guys who are watching this later
after the fact you're of course welcome
to be tuning in I think you'll really
enjoy this class I wanted to do
something special here because uh what
you may not know is that right now we're
celebrating my 10-year anniversary of
when I first talk day trading the
warrior Pro course my day trading course
so it's called day trading strategies
and scaling and what I'm going to teach
you here today uh in a lot of ways is a
cliffnotes version of this uh class or
or at least sort of the high level my
full length curriculum is over 100 hours
long so there's no way that I could
teach all of that um here today of
course on YouTube but I'm going to give
you what I hope is going to be a really
great starting point so you can begin
Trading today with confidence and for
those of you who've been trading for a
while if you've been trading for a while
you probably already know what it's like
to struggle you've had some ups and
downs and hopefully this gets you
started on the right path so I'm going
to break it into two parts part one of
learning how to day trade is learning
the basic required knowledge part two is
learning to develop or or adapt or adopt
a trading strategy now when I'm talking
about basic knowledge what I'm really
talking about um essentially is I want
to make sure that you understand the
Dynamics of the market do you understand
the basic things of how to execute
orders how to get in how to get out the
these for me lay the foundation of
success as a Trader and if you don't
have that you don't have anything you
can build on so I'm going to begin by
breaking down what I think are the four
most critical components of the general
knowledge category then we're going to
get into part two which is the
development or adoption of a trading
strategy and naturally I'll be sharing
with you the strategy that I've been
trading now every every day for more
than a decade full-time so this is a
strategy that works really well for me
and ultimately when it comes to trading
you really have a choice of essentially
three types of day trading strategies
and and really I can narrow them down to
two so the first is trading with the
trend which means you look for for
something that is trending and you look
to jump on that Trend you could do this
with Bitcoin you could do it with
Futures you could do it with Forex pairs
you could do it with stocks you could do
it with indices you want to look for
something that's moving generally up you
want to buy and ride that momentum
higher it's really as simple as that
that's called Trend based trading so
with trend-based trading we're writing
the trend all right so this is the first
day trading strategy and the second is
counter trend
so counter Trend means you're not going
to ride the momentum you're going to
wait for the trend to reverse and you're
going to take that reversal and this can
be in the context of something declining
for the reversal back up it could be in
the context of something going up for
the reversal back down either way is
fine but this would of course be counter
Trend trading so in my career I have
always been a trend Trader I have tried
both but I ended up really being more
comfortable as a trend-based Trader and
I'll talk about that decision a little
bit more in today's class so we'll go
through part one four steps we'll go
through part two in uh five steps which
will be nine steps total and then I'll
share with you some steps you can take
to continue learning my video is sort of
covering this right now so I'll just
hide it for a moment um I'm going to
give you some recommended reading I'm
also going to give you guys a link for
those of you who are watching this uh
weeks or months down the road I'll give
you a link to a two-e trial at Warrior
trading if you're interested and for
those of you who are tuning in today we
have our uh anniversary sale which will
be ending in about 48 hours so that
coupon code is still active and you'd be
welcome to use that okay so let's go
ahead and jump in with step one of the
basic required knowledge Step One is
setting up your trading station now a
trading station can be very simple or it
can be very complex it's really whatever
you want you can tell this is a is a
picture of a fairly complex trading
station and as you look at my trading
station here on the broadcast you
probably also uh would think that this
is a little bit more complex but for me
my trading station has always began with
just a simple laptop computer now the
reason I used laptops instead of desktop
computers early on uh was just due to
accessibility I had a laptop I had a
friend's laptop that I was able to
borrow and that's what I used to start
my career but the fact is as a Trader
you could do this from anywhere in the
world so why you know lock yourself down
with a giant 75lb desktop trading
station when you could just as easily do
it with this and then whenever you're
traveling which I travel quite a bit
this is what I do I got my backpack
right here I slip the laptop into the
back and right next to it is a USB
monitor this USB Monitor and I this is I
don't have any affiliate links here so
use it if you want don't use it if you
don't it don't really doesn't matter to
me but this is a Asus USB monitor this
one is
dated 2018 so it's several years old
I've been using it for a long time
totally happy with it and I bring two of
these with me whenever I travel so that
along with my laptop charger is the
extent of my trading station now just as
a anecdote uh about let's see maybe 6
weeks ago I was in the Caribbean and I
had forgotten my laptop char charger
which was very dis disappointing uh but
I forgot my laptop charger I got down
there to the Caribbean and the laptop
that I was using it wasn't actually this
one it was this one right here and this
requires a very specific charger and I
couldn't find that charger anywhere on
the island and I was like you know shoot
what am I going to do the market was
really hot so this is what I did I
bought I went to a computer store I
bought a cheap laptop for $1,000 and
over the next five days I made about
$660,000 using this laptop so the laptop
is just a tool right you can really use
any laptop for the most part you don't
have to use a super fancy laptop it can
be a $1,000 laptop maybe a little bit
less and $1,000 is not nothing it's not
the cheapest laptops ever but you can go
pretty basic with your trading station
the way I break mine down and I'll kind
of draw it out for you uh because I
think that'll be easier for you to see
is I've got my
laptop right here so this is my laptop
and on my laptop these are the keys so
on my laptop I have my
broker right here and this is where I
have the buy and the sell buttons so I
like to have this right on my front
laptop screen because it's right in
front of me this is critical for me on
my second monitor which is going to be
right over here and on my other monitor
which will be right over here these are
my USB monitors and I can either lean
them against a flower pod or a vase in
the hotel room or I can connect them
with these little clips that they make
they have Clips so you can connect it on
this one I have my stock scanners which
is giving me a list of all the stocks
that are currently moving up and I'll
just show you on my um main screen here
what that looks like so I have let's see
um where is
it oh it's right
here so these are my stock scanners that
I have on the left and then I have
charts on the right so that's what this
monitor looks like right here I've got
charts right here I've got scanners on
the other side and then this monitor
right here these are more charts stocks
that are moving
around and that for me is the extent of
my entire trading system my trading
station so you know $1,000 laptop sort
of you know at a minimum is decent
although I got started with $150 laptop
um and then a couple of these monitors
whatever they're 100 bucks or something
each so more or less you're all in um at
about you know
$1,200 maybe a little bit more depending
on how big you want to go all right so
this is just the basis you know of my
trading station that I use for traveling
I really do think it's adequate um
you're welcome to use more if you feel
like you need more but if you want to
use um something a little bit simpler
because you're just getting started
that's okay too all right so let's jump
out of this so Step One is setting up
your trading station and and uh to give
you a little bit of context here into
where we're going this is a road map of
nine steps to get you ready for day
trading this is not you know this isn't
this is for people who are really ready
to take the leap and start trading so
you could say oh I don't need a trading
station yet because I'm just watching
videos on my phone on YouTube and
learning about trading and that's
totally fine if you're at that place in
your learning curve you don't need to
get into the trading station yet you can
just sort of focus on you know gaining
more of this general knowledge but
nonetheless you will probably at some
point if you're going to make a go of it
you're going to need to get it trading
station because the fact is although
it's true that the market has never been
more accessible that you can access it
from your phone um I don't know none of
my students who have made over a million
dollars none of my successful Traders uh
that are in our community are trading on
their phones so if you want to take this
seriously if you really want to make a
career out of this you have to have at
least a basic trading station some basic
equipment and so I I this is what I
would recommend as a starting point okay
um so and by by the way for those of you
guys tuning in um I see long biased
bananas uh in the chat feed let's see
Hello Tobias he's in the chat feed
Albert hey Albert good to see you uh
Dave Rocky Seer let's see uh Travis Matt
hey guys welcome so thank you guys for
tuning in throw questions out there I
will stop um here what my my plan as we
go through these nine steps is that
after each step I'll pause for a moment
and see if there's any questions so if
you have any questions related to the
trading station please um feel free to
throw those out uh right now okay so uh
and at one point for what it's worth I
had uh 12 external monitors so I had a
really huge trading station and it's not
necessary you know it's you will not
make exponentially more money uh the
more the more trading the more monitors
you add it's it's just not like that so
I would focus on keeping it simple to
start don't overwhelm yourself don't
spend a ton of money right now for a lot
of you it's about proof of concept can
you even you know make this work and and
find some degree of consistency and if
you can then you can lean in and and
push a little harder okay so doesn't
look like there's any specific questions
um related to the trading station so
we're going to continue on with step two
general knowledge of how to buy and how
to sell okay so when it comes to buying
and selling securities stocks equities
specific Al there are really two ways to
do it um one way is to use buttons so
when you're using buttons you have a
button on your um on your on your screen
right here as part of the trading
platform that you're using so I'll just
uh let's see if I can get this going
um sorry I just want to get my drawing
tool so you've got a buy button right
here you've got a sell button right here
you see these uh and you've got a buy
button right here for a th shares you
got a sell button right here so these
are your sort of standard um buttons
that a lot of people will set up on
their platform they're hot buttons and
you can either use hot Keys hot buttons
or you can manually enter your orders
now when we're trading in the market The
Market opens at 4:00 a.m. eastern
standard time so we'll start writing
this out 4:00 a.m. is
pre-market 9:30 a.m. is the opening bell
400 p.m is the closing bell 8800 p.m is
when after hours ends so this is um
after hours this is uh pre-market and
then this right here is um regular
regular trading now the reason I bring
it up is because depending on the time
you're trading you may have to change
the type of order
that you're using so if you want to buy
a stock and it's trading at you know we
could just use one of these stocks as an
example let's say uh you you want to buy
um ACB right here this is Aurora
cannabis so you want to buy this stock
all right that's just fine so you could
see it's currently trading at
1720 by
1724 uh the way stocks trade is they're
always trading with a spread they have
the best buyer and then the lowest price
seller and when someone says oh ACB is
at $17 23 cents and they're just saying
one price they're generally referring to
the last price that went through the
last price that was traded which is fine
$17.23 but but in fact all stocks trade
with a spread this example is a stock
trading at 225 by 226 which is a spread
of only one penny that's obviously a
very tight spread this one's a little
bit bigger so if you want to if you want
to buy this type of stock right here uh
what we would typically do is we would
say all right I want to buy a th000
shares and I want to buy at the offer
right here at
1724 if you buy right here at 1724 it'll
be basically an instantaneous order
because there are people selling shares
at
1724 that's the price they're asking
that's what that's why they call this
the ask this is the ask this is the bid
so people are asking
1724 you can buy immediately from that
seller you can get filled
instantaneously and we would call this a
marketable order because you're getting
filled at essentially market price now
market prices move and fluctuate quickly
during the day but this would be an
entry basically at market price now if
you want to get out you're holding sh
you want to sell you could sell
immediately to one of these buyers right
here at 1720 there are people lined up
they want to buy and you could go ahead
and sell them shares and you're out of
the
position however sometimes people will
say well there's a little bit of a
problem with doing all this and the
problem is that if I sell at 1720 I'm
not really getting the best price
because I might prefer instead to sell
at 1724 and get that extra 4 cents a
share now it's 4 cents it doesn't really
seem like a lot but if you have a th000
shares that's 40 bucks all right so you
could choose to put an order at 1724 and
join all these other sellers at the same
price and wait for a buyer to come along
and buy your shares when I'm trading
this is My Philosophy if I see something
that's moving I want to get in basically
immediately I don't want to sit and wait
so what I'm going to do is I'm going to
go ahead and buy from someone who's
selling right now and I can set up this
button right here to buy 1,000 shares
and the way it's been set up the way
it's been programmed is that that buy
button is automatically going to buy at
whatever this current market price is so
we actually have something uh called a
market order a market order to
buy will get you in at the Cur
know hey let me know if if um that
reconnected for you if you guys can
still see me hopefully you can it says
it
reconnected okay so um so if you do a
market buy order you're going to buy at
1724 if you do a market sell order
you're going to sell at
$17.20 so a market order is going to get
you in and out
instantaneously but it's not going to be
at the best price you'll lose a little
bit of money versus if you sat and were
patient and waited however While most
people like using Market orders because
you can instantly get in you can
instantly get out it's very quick
there's a problem you cannot do Market
orders pre-market and you cannot do them
after hours you can only do a market
order during uh regular trading hours so
we'll just do
MRK for Market
order so the rest of the time you can
use a limit order limit orders you can
use at any any time of the day and so
what most active Traders use who are
actively trading pre-market or after
hours in addition to regular trading
hours is they change the way they buy
from using Market orders to using limit
orders so with a market order you're
telling your broker you're saying hey
think or Swim you know whatever broker
you're using hey I want to get in this
and I'm happy to get in just at market
price so just get me my shares and
they'll get you your shares with a limit
order what you're doing is you're
telling the broker the most you're
willing to pay and so what I've done is
I've automatically scripted these
buttons to say I want to buy shares and
the most I'm willing to pay is 10 cents
higher than the current offer and what
we actually do is we can go into the
custom orders here and these are three
different platforms this platform number
one this is platform number two and this
is platform number three this one on the
far side is thinker swim and what you
could do is you could go into the custom
orders and you could say I want to buy
this number of shares and I want to buy
on the ask plus X number of cents so ask
plus 5 cents ask plus 10 cents Etc and
when you do that you essentially have an
order that
functions as a market order but it does
have a limit on it it's not a complete
blank check for your broker to fill at
any price the reason that we have these
um these rules around Market orders is
because pre-market and after hours
there's not a lot of trading volume so
if you press the buy button with a
market order to buy 100,000 shares let's
say you meant to buy a th but you just
kept typing zero you kep you click Send
then all of a sudden your broker once
you send the order you can't cancel it
so now they're buying 100,000 shares and
because there's not a lot of people
buying and selling during these times a
day they're going to have to pay a much
higher price to find your shares and so
to prevent you getting completely
screwed on a position like that they
just say no Market orders pre-market no
Market orders after hours so that means
pre-market after hours you have to use
limit and during regular hours you could
use either one but for me I just use
limit across the board because I'm
instead of having different hot keys
that I use at different times of the day
I just don't use Market I only use limit
orders okay so I wanted to help you
better understand order types so when
we're buying and selling what you'll see
right
here is uh time and force day on this um
on this platform so this time and force
being um being a day order means at in
this platform it'll work at any time
during the day it's not just a regular
trading hours order it's a uh it's an
order that'll function pre-market and
after hours some platforms call it day
plus uh and other platforms specifically
um show you pre-market after hours
regular trading hours but regardless
when I want to buy a stock I look at I
look at the level two this right here is
called level two it's the depth of the
market it's showing us all of the quotes
all of the buyers and all of the sellers
I've checked the spread in this case
it's a 4 Cent spread and if the stock is
moving and it fits my strategy to buy it
I'm going to go ahead and I'm going to
punch the buy button and I'm going to
get filled at 1724 now because I have a
5 to 10 cent offset above the offer it's
possible I could get filled some shares
at
1725 but I will not fill any shares at
1790 so if it jumps right to
1790 with a market order you would be
filling those shares but not with the
limit order because you set your limit
at
1729 or 1734 depending on whether you
used 5 or 10 cent offsets
now for a lot of beginner Traders uh
even understanding level one is kind of
a A New Concept so let's see let's get
um let's zoom in on this a little bit
here so this first row right
here is your first depth of the market
this is showing you your best buyer and
your best
seller all right so we're going to erase
this and I'm going to draw this out as I
do it hopefully
um let's see so I'm actually going to
use this marker so level one data shows
you the
bid the ask or the
offer and typically it'll also tell you
um the high of day the low of day and
the last uh the last price that went
through the last trade that went through
and you'll also see uh typically the
volume the total number of shares traded
on the day
so this is level one data right here
okay so when we're looking at the price
we'll see this is
1720 by
1724 these are the
prices and we will see a couple more
pieces of information we'll see NASDAQ
and bats right here these are the actual
routes these are the financial exchanges
that people are sending their order
through NASDAQ and bats and you'll see a
couple other on this side and then
you'll see these numbers which reflect
the number of shares that someone's
trying to buy or
sell okay so we'll see the market maker
sln this is the route that the trades
are going
through and then we'll see uh the number
of shares that someone wants to buy or
sell and we'll see the same thing on
both the bid and the offer this is level
one this is the first depth of the
market level two is when we start seeing
1719 1 oops
17 uh 15
1710
1705 and you see going up
1729
1734
1745 1750 and let's just say maybe at
1750 we see someone is selling 100,000
shares now if you were only looking at
level one market depth level one market
data you wouldn't see this 100,000 share
seller you would just see 1720 X 1724
and if you liked the stock for reasons
that we'll explain later in this class
you might go ahead and and buy it and
that would be a problem because you
wouldn't realize that there's a huge
seller and they're not very far away so
by using level two the depth of the
market you can better see and you'll be
able to visualize where we may have
areas of resistance which is formed when
we have large sellers you could also see
where we might have areas of support
which could be formed by uh by large
buyers okay so let's see so I'm going to
clear those
drawings now uh if anyone has questions
on level one level two hot keys or hot
buttons please feel free to put them in
the chat feed now
now I'm going to keep talking about this
for another moment but just feel free to
put the questions in now while I'm uh
still on the
topic so for me when I'm trading I look
at uh level two right here as sort of
being the road in front of me this helps
me visualize what's coming because when
we're looking at a Candlestick chart
we're looking at a stock chart the
problem with a stock chart now I love
stock charts but one of the problems
with a stock chart is that it's actually
only given giving us historical
information it's telling us what's
already happened this is all things that
have happened what we have to do is then
make a prediction based on a chart
pattern that we see here of what is
going to happen next right so we make a
prediction that based on this this is
going to happen next but the fact is
charts are not going to show us those
orders so the orders will be displayed
on the level two so level two
and Candlestick charts really go hand in
hand so there's a question there about
the coloring of the of the uh depth of
Market here so this is colored right
here based on the
tiar sorry um let me just go down
here okay so this is colored based on
the tiers so right here we've got 1720
these prices 1720 they're both the same
same price so they're green the closest
to the market is green these are all
1724 so they're in green the next price
out is red 1725 the next one's yellow
the next one's blue so you could choose
any colors you want you just want to
make sure you're consistent and you're
able to remember the choices that you
made for me this is important way to
visualize level two because what some
Brokers do is they just have a gradient
where it just goes from like light green
to dark green or light blue to dark blue
or whatever and I find that to be very
difficult to read I want to visually see
if there are more buyers or there are
more sellers in this case there are more
buyers there are four buy orders and
there's only two sell orders so when
we're trading
ultimately stocks move up when there's
an imbalance between supply and demand
the greater the imbalance the bigger the
move and just in these little moments
here we can see whether the supply and
demand IM balance is towards the buy
side or it's towards the sell side so in
the in this example the imbalance is on
the buy side in this example there's an
imbalance that's on the sell side okay
now this is constantly fluctuating it's
constantly changing and this is only
just in this very moment it could it
could change but it's still helpful to
know and it's much easier to visualize
when you change the color of the first
tier because if you just looked at every
order in total that wouldn't be super
helpful cuz you could have big orders
but they're really far away from the
current price maybe you have a 1 million
share buyer that's at $1 a share so
you'd say oh we have more buy more
buying demand than you know more more on
the buy side than on the sell side but
it's so far away it's not really
relevant so for me I find it really
helpful to color my level two based on
the tiers so the first tier is green and
then I can very easily see if there's
more buyers or there's more sellers
second tier is red just has to be
contrast next one's yellow next one's
blue that's what's important so this is
the way I color it and I do find this to
be um really helpful now um there's a
question about whether or not using
level two is necessary for swing trading
and for swing trading it's not because
when you're swing trading you're holding
for days and days and days so your setup
is based much less on um the very sort
of momentary dynamics that you're seeing
on um these Candlestick charts and on
the level two and it's more on your
daily chart pattern and on your um
perhaps 15 minute 60 Minute time frames
so for that reason level two becomes
less
important good question though thank you
for for throwing that out there
um and when it comes to hotkeys the way
I have my hotkeys um set up and I'll
just uh bring this keyboard over here
just so you can see it so this is just a
little keyboard here that I use for one
of my computers shift one shift 2 Shift
3 th 3,000
shares now when I want to get out I
press contrl z contrl z is my exit
button so I can sell my full position
just by pressing these two buttons and
this for me really makes it uh very very
quick so when I'm trading I can be
moving in and out just by pressing the
buttons here and I actually don't have
to be clicking anything with my mouse
that makes it faster so the more you can
streamline your trade the better now
ultimately as a beginner Trader you need
three hot Keys you need three buttons
you need buy sell and you need cancel
orders that's it so one button to buy
one button to sell and one button to
cancel an order that maybe you put out
that didn't get filled that's a starting
point so the way I would script those
keys is I would say just erase this here
I would say that your buy button
buy would be ask plus 10
cents and then you choose your position
size um position could be based on uh
certain number of shares it could be
based on a percentage of your buying
power however you want to do it all
right so buy and then I set this as
shift + one that's the key I don't want
to have I prefer not to have just one
button execute aive order I'd rather
have it be two just to reduce the risk
of yeah a keyboard a cat walking across
the keyboard and and causing an
accident and then um for selling I do
Control Plus Z and this is
sell bid minus 10 cents full
position the full position selling the
bid minus 10 cents
and then you can either use um the
escape button or
control+ Q either one you want uh either
or or uh
cancel all
orders now I do have a stream deck um
but I use the stream deck for um I
actually use it for for my videos here
um so full camera White board back to
here um I don't like using it for
trading I just don't uh I've I've tried
it for trading and some people if you
want to use it for trading you certainly
can and then you just click one button
and it's a buy button it's a buy order
and it's a sell order and a cancel order
so you totally can do that um some
people have even scripted a uh a mouse
like an external Mouse you know that has
commands on it on the button to be like
Buy sell Etc so you could do that I I
mean you could use a a you know a gaming
device you know you could use really
whatever you want it's it's your choice
um but I suppose nonetheless these are
the three hot keys that I would start
with buy sell and cancel
orders that's it keep it simple now once
you've mastered that then you might say
well gez you know my sell button is just
selling on the bid right I I wanted to
make it very simple so my sell button is
selling on the bid right here and just
selling the full position maybe the next
level would be you say I'm going to
create one more order in here and it's
going to be um to sell bid minus 10
cents for half position so you use 50%
your position that way instead of
selling the whole thing you're selling
half to scale out and then maybe you
make another one for selling quarter
position for scaling out even
slower then maybe on the buy side you
have one that's you know for uh a th000
shares one for 2,000 shares one for
3,000 shares and those are shift one two
and three and then maybe you say well
sometimes I also want to sell at the ask
price here now if I want to sell at the
ask price and get the best exit well
shoot I'm going to need a whole set of
hot Keys you know for full half quarter
positions instead of at the bid price
that are at the ask price and don't have
an offset that are just sitting right at
the ask so I can get the best price and
then next thing you know you're in a
situation like what I'm at where you've
got 15 or 20 or 30 hot keys and that's
fine there's nothing wrong with that but
don't go overboard yet Focus first on
setting a foundation with understanding
the basics and I I want to note that
this class because we're only on step
two this class it's going to be a very
comprehensive class but at the same time
I could spend hours
on each one of these steps going into
all the Nuance details of exactly how I
do it and I of course I do that in my
warrior Pro curriculum and then some but
for the purpose of this class I want to
keep it high level so if you think that
I'm excluding something or leaving
something out I don't want you to think
it's because I I don't know about that
or because I'm just being absent-minded
it's just for the purpose of keeping
things high level because I think what's
what can be a good goal is as as a as a
teacher teaching you the highlevel
concept and if you're interested and you
want to learn more then I give you the
additional learning where you can dive
and dive down even deeper okay so right
now we're going to start with getting
high level layer you know top layer of
information on each of these nine
Concepts nine steps and then we can go
deeper if you want to uh so by the way
for those of you guys who are tuning in
this is a special live broadcast I'm
doing here today to celebrate that it is
our 10year anniversary of when I taught
my very first um my very first class
which is called uh day trading
strategies and scaling I'll actually
pull up my um my slide deck for this
class right here so day trading
strategies and scaling I taught um 10
years ago this is when I taught the
first class and this is now built out
this section is 1635 slides deep and uh
I broke it into two volumes part one and
part two so this is now a class that
when I teach it live takes about six
weeks when I'm teaching it of teaching
class every single day and is over 100
hours of content so um I I know many of
you uh already know that but we're also
running a special right now with the
anniversary sale so if you want to come
over to Warrior trade.com memberships
there's a link that's pinned in the
comments here uh it'll be in the
description you can check that out and
for those of you who are watching this
episode months even years down the line
and the anniversary sale has passed I'm
going to put a link for you guys where
you can do a twoe trial at Warrior
trading for 20 bucks now that $20 helps
cover our Market data costs because
during your two weeks you'll have access
to charts scanners news my live audio
video broadcast plus a curated selection
of the classes that go deeper into
things that we're covering here today
high level okay so step two step uh step
two is how to buy and sell step three
we're going to start with giving you a
basic understanding of Candlestick
charts again this class today is broken
into to um really uh two parts part one
is teaching you the basic knowledge part
two is teaching you a strategy so the
basic knowledge is the general stuff
that you need to know in order to trade
you need to know how to set up a trading
station you need to know how to buy and
sell uh and buying and selling includes
sort of a highlevel breakdown of order
types hot Keys level one level two now
we're going to talk about Candlestick
charts Candlestick charts are the
universal language of the financial
markets doesn't matter if you're trading
cryptocurrency you're trading Futures
pairs you're trading Commodities you're
trading stock does not matter because
every Financial instrument will give you
the ability to pull up a chart that's
going to look something like this this
is a Candlestick chart and this is what
we use as active traders to try to make
a prediction about what the price is
going to do next it's as simple as that
those who are successful at making the
right prediction will make money those
who are not will lose you already know
that the majority of Traders uh out
there do lose money and I think one of
the reasons is because most Traders fall
victim to not following the rules of a
strategy and instead trading on impulse
and gut but the thing is because we have
all of this historical data all of these
charts create historical data so because
we have all of this historical data we
can actually start to understand which
patterns resolve the best these are
technical patterns so when we see these
patterns and they repeat themselves and
and we learn that they have a
statistical likelihood of resolving in
One Direction or another we can begin to
create a strategy around it and that's
how you develop your Edge as a Trader
okay so uh Candlestick charts and I'm
going to put this back up here um for
those of you who are very new as I said
they're the language of the financial
market and they've been around for
hundreds of years and the way a
Candlestick chart works is uh each
individual candle as you could see right
here communicates to us four pieces of
information this candle is communicating
um the
open the close the high and the low so
the price opened it dipped down for a
moment it surged up might have pulled
back for a second we don't know moved
higher might have pulled back again hit
a high and then closed right here okay
that's the price action that occurred
inside this candle now um I'm actually
going to change my drawing tool here to
make it a little bit all right so then
this is a red candle a red candle opens
High it hits its peak here so it opened
it popped up it then dropped down to the
low and then closed right
here okay so the difference between a
candle that's green a candle that's red
is where the open is red candles open
high and Clos low now for some of you um
and this may be not many of you but if
there are any of you tuning in here
today who struggle um with color
blindness you don't have to go with red
and green you can just simply have
candles um that are Hollow or candles
that are like white and black just you
could you could make a much greater
contrast between the two but you need to
know which direction the color the
candle is going so let me pull up a
chart here and I'll just show you um
what this chart would look like just for
instance
so I'm going to look at this as a chart
this is a stock that I traded um couple
weeks ago had a couple nice trades on it
so we're going to change the color of
these candles to make all of them
white okay and I'm going to do this here
just as an just just as an example just
for the fun of
it
okay so now let's look at this
Candlestick chart
you can certainly still see in this area
for instance that the price moved up and
then pulled back going hide
this the price obviously moved up pulled
back and then moved
higher if we go back a little bit
further back over here we could see you
know the price moved up pulled back
moved up pulled back moved up pulled
back but with candles just in white
what's hard to and of course you could
see the green volume profile down here
but what's hard to know is um is really
what was happening during this period of
pullback so if you have your candles
colored um green green and red based on
the direction they're going right um
well now I'm just going to click the
undo button and it'll be
faster let's see there we
go there we go okay um then you're able
to visualize clearly that right in this
area we had sellers so we had an
imbalance to the buy side there were
lots of buyers and then we switched and
we had an imbalance to the sell side and
then we had an imbalance to the buy size
we pushed up and then an imbalance to
the cell side and during this period of
sideways consolidation it's important to
know if the candles are red or green
because important to know if people are
accumulating to buy a position or if
people are um are selling and their
unloading positions so this helps us
understand uh really whether people are
buying or selling so you need to have
the colors uh so you can differentiate
the buyers and the sellers okay
so the so when we first look at
Candlestick
charts you first have to understand the
individual Candlestick pattern so an
individual Candlestick based on its
shape is communicating Market sentiment
so let me pull up the Whiteboard here
and let's just say for instance we had a
candle that looks like this
what does that candle tell you that
communicates lot strength what if you
had a candle that looked like this well
that communicates more indecision the
price went up it went down it kind of
closed to the same price well if you had
a candle that looked like
this or a candle that looked like this
these all communicate different messages
to us this candle is a little bit more
bullish because although the price
declined it bought it got bought all the
way back up so the price uh opened
declined and then came all the way back
up and closed at the high in this
example the price opened came all the
way up came all the way down and closed
here so this one is a little bit more
weak this one's a little bit more
positive this one is a little bit weaker
as well because it's showing this
indifference the price is opening
closing at the same price this is very
strong so the actual shape of the
Candlestick and certainly the color
communicates Market sentiment this tells
us how strong wrong the stock is hey
Nelson thanks for sending that
appreciate
it so what we do as active Traders is we
look at these Candlestick charts to try
to develop a bias essentially of what we
think I don't maybe bias in the right
word we try to develop a thesis of what
we think the price is going to do next
if we think it's going to go up we think
it's going to go down and so what I've
learned is that there are a number of
technical indicators and cand cick
patterns that help me make the right
decisions so we're going to talk first
about a few of the
indicators so technical
indicators so on my charts I use uh
moving
averages and the moving averages I use
are the nine the 20 and the 200 uh and
these are all exponential moving
averages so the way this works is a
moving average takes the average price
over the last X number of periods so the
average price over the last nine periods
if you have a chart where the price has
gone up very quickly like
this then your nine moving average the
average price over these last nine
candles is going to move up very quickly
as well it's always going to be a little
bit below the price because it's
trailing behind you know the average is
not up here the average is these last n
candles you know plus more that would
have been back here so the average dra
drags behind a little bit so I use the
nine exponential moving average and I
actually use it in a gray uh gray color
I use the 20 in blue down
here and I use the 200 in sort of a
magenta color let's see way down
here so we'll just say um
magetta okay now the reason I use these
moving averages is because when I'm
watching The Price move up the more
extended the price is versus these
moving averages this helps me understand
my risk because generally what happens
is when the price pulls back the price
will pull back to the nine moving
average now you might say why does it do
that and I would answer your question
with a question why is it that people
stop when the traffic light is red they
stop because they know that that's what
it means and because this is a universal
language people have learned that when
you have a stock that's moving higher
and it has its first pullback it comes
down to the nine exponential moving
average and if it breaks that level your
next level of support is the 20 if it
breaks that level your next level of
support usually well the 200's a little
ways away the next level would be your
volume weighted average price and the
vwap I have in a dotted orange line so
the volume weighted average price is
like a moving average it's an average
price but it weights the volume in as it
creates the average so it actually
figures out for instance let's say this
stock had a ton of volume on this candle
and almost no volume up here the
weighted average would be way down here
it would be low on the flip side if it
had no volume here the volume weight
average price would move up very quickly
and it could be way up here like that
this is actually telling us the average
price of the stock based on how many
shares traded so this is super important
because the volume weight average price
being that it tells us the average price
of the stock over the course of the day
if the price is above it the Bulls are
in control if the price is below it the
Bears are in control so this whether the
price is above or below is telling us
bullish or bearish on the stock very
clearly so I'm going to use volume
weight average price I'm going to use
the N9 the 20 and the 200 period moving
averages I'm of course going to use
volume
bars so my volume bars are going to be
colored based on um whether the price
went up or down and I'm going to use Mac
D Mac D is an oscillating indicator that
stands for moving average convergence
Divergence macd so what this means is
when your moving averages 9 20 200 Etc
when the moving averages are
diverging let's think about what's
happening so that's your
nine and this is your
20 why are they diverging like
this they're diverging like this because
the price is moving up really quickly if
the price is moving up really fast it's
going to pull the nine moving average
away from the 20 the 20 is going to take
longer to move because it's a longer
period so when the moving averages are
uh diverging they're moving apart the
price is moving quickly when they're con
when they're converging they're starting
to come closer together that usually
means the price is coming back and we're
coming into a period of pullback so now
we're sort of going sideways you know
just I'll just go like that we starting
to come back in So what I have found is
the macd
as a technical
indicator is really good at helping me
identify when I want to be focusing on
uh trading a stock and when I want to
just completely leave it alone all right
so let's go back here for a
second so we're going to go back to this
bigger move back in this
area and what you're going to see on the
chart down
here is the
macd macd right here is diverging moving
apart and then right here it converges
and it even crosses over and look at the
nine moving average moving up the 20 is
moving up vwap is moving up and then
right here our 9 and 20 moving average
actually do a crossover the nine crosses
below the 20 so that is a bearish
indicator it's a moving average
crossover this is a technical um
something that occurs it's technical
pattern and when that moving average
crosses over then for me this is really
not something that I'm going to be
interested in any longer I would be
leaving this alone so the area I want to
trade when the macd is moving up when
the moving averages are moving apart
once they start uh converging they start
pulling back together usually that's
when we find that the price becomes
choppy and that's not when it's going to
be easier to trade so something that's
really important to understand is that
you can have a stock that's really
strong and there's a time during the day
when you should have been trading it you
should be really really aggressive on it
and then there's the whole rest of the
day when you just leave it alone it's
not even worth trading at all so I want
to focus on trading these on the front
side of the move when they're making
these really big squeezes when they're
really volatile and completely leave it
alone the rest of the day okay so the
technical indicators I'm using on my
charts moving average vwap keeping it
simple I do not want to over complicate
things it's important to keep it simple
as a Trader I think a lot of beginner
Traders get C
into making things over complicated and
and the reason for doing it in many
cases is due to a fear of loss you're
trying to find the Holy Grail
combination of technical indicators so
you'll never lose but the reality is
that doesn't exist and so as you keep
searching for that you end up generally
getting yourself into this Rabbit Hole
of getting your charts more and more
complex with all these indicators just
hoping that you won't have a loss but
that's not realistic Traders will lose
and I lose too I lose about 30% of the
time and even in spite of that I've been
able to do really well in my career as a
Trader I was first interested in the
market during 1997 and 1998 during uh
the dot bubble and I opened my first
account in the early 2000s I've been
trading full-time now for more than 10
years and I have more than $12 million
of a gross profit uh to show for it so
if I clear this out you'll see
we'll go to detailed right here this is
going to show $12.6 million of gross
profit now I'm not going to say my
results are typical because they're not
but it is important for you to learn and
know that the person that's teaching you
here today is actually credible and
qualified that actually know what I'm
talking about and that I'm still trading
uh every single day in today's market so
you know it's true that there are things
that worked 10 years ago that don't work
as well now but I'm still trading I'm
still here every single day and I can
tell you what works and in the market
today okay so let's
see so what I want to do in this section
um of step three is give you sort of a
crash course in Candlestick charts um
help you understand the indicators I use
including volume down here which is very
simple it's just the the color is based
on the candle and it's the total number
of shares that traded during each period
and we're not going to get into all of
the different patterns because it would
take too long to do that but I'll talk
about some of the patterns in a few
minutes when we get into um into part
two on timing your entries and exits
your entry indicators so now let's go
into uh part four of this class which is
on market
dynamics so I think it's very important
to have a general understanding of the
way the market works why do stocks go up
so as a vol ility Trader and it's
someone who's trading the trend I'm
trading stocks that are moving up so I'm
never going to buy something that's just
sideways not moving at all I look for
things that are already moving and I
want to get in and I want to ride that
momentum to the next level so why would
a stock go up 15 20 30 40 50% or 100% in
one day typically there's some
underlying Catalyst that's driving the
move that's bringing Traders into this
stock so that Catalyst could be like a
pharmaceutical company that has FDA
announcement that some drug they've been
working on has been approved they could
have clinical trials that are really
good it could be any company having
quarterly earnings or a small cap
company that now has a new contract with
like Amazon or Google or Apple or
something like that these can be a big
deal now what I've learned in my career
is that um trying to trade stocks like
apple Nvidia Tesla these high price
stocks is they don't really move on an
intraday basis enough to give me the
profit that I'm looking for so I found
at a minimum that I'm looking for stocks
that have the potential to go up 30 to
40% or more in one single day now that's
setting the bar perhaps a little high
but that is what I'm looking for as a
Trader so what creates those moves
initially first news comes out on a
stock so a stock will have breaking news
but breaking news doesn't create a price
change what creates a price change are
when actual buyers press the buy button
so people buy because they read the news
and they like it now as the price begins
to go higher other Traders see that the
stock is moving they check the news they
like it too and now the price goes even
higher and what's interesting in the
market is that the higher the price goes
the more people want it so there's this
dynamic in the market Market sort of
related to fear and greed supply and
demand and just human behavior that as
prices go up people get more and more
excited about buying these stocks and we
saw this certainly with Tesla during
covid but we've seen it with thousands
of other stocks over the years so I want
you guys uh to throw in in the chat feed
here um who are tuned in what your
general process is each day of finding
stocks to trade so you just tell me
what's your process what do you how do
you find stocks to day
trade the way I find stocks to trade
each day is I'm using scanners so let me
show you the scanners that I'm
using this is the scanner that I use
that searches the market in real time
and tells me if a stock is moving higher
and what's important to note about these
scanners is that typically it is the top
scan result the top leading percentage
uh Gainer that gets the most attention
so I'm seeing a number of you guys
saying scanners scaners
scanners usually it's the number one
position this is like first page of a
Google Search and on at any time at any
day you can scan the market and you can
see what is the biggest moving stock
right now and typically the biggest
moving stock is the one that's going to
have the most attention that's the one
that's the allstar for today and it's
also important to note that typically a
lot of these commission-free Brokers
will email out to their newsletter there
you know th well probably not thousands
potentially millions of people hundreds
of thousands probably millions of people
on some of these newsletters you know
Robin Hood the Robin Hood um what do
they have I can't remember what they
call their newsletter but in any case
you know they send out out hey these are
the hot stocks today these are the
stocks that are moving because those
Brokers want you to trade the more that
you trade the more money they make
because of payment for order flow so
they're going to be constantly telling
you hey check out these stocks hey this
company has earnings today and they're
not going to tell you about a stock
that's going sideways and is boring and
is doing nothing because no one's going
to be interested in that let's be real
they're going to be telling you about
stocks that are moving they want you to
not just buy once they want you to
actively trade as much as you want the
more you trade the more money they'll
make and so the result here is that we
have a market where Traders flock to hot
stocks at different times of the year
and certainly on any given day so for me
as an active Trader I'm always trying to
ask myself and understand what is the
sort of collective sentiment today you
know what are all the other Traders
looking at what is obvious today and if
I can figure out what's obvious that's
the stock that I'm usually going to do
the best on the days that I lose often
it's because I ended up trading a stock
that was not obvious maybe I thought it
was but at the end of the day I realized
that I had gone off track and it was in
fact not the obvious stock to trade and
that resulted in me taking unnecessary
losses okay so once you understand the
sort of General concept of Market
dynamic
it's going to help you as we go into
part two of this class it's going to
help you understand the right type of
stocks to trade okay so let's go ahead
and jump into step five so today this
class is on how to day trade in nine
simple steps and our first part which we
just completed was breaking down the
basic knowledge that you need in order
to start trading in the market I wanted
to have make sure you understand how to
set up a trading station how to buy and
sell different order types hotkeys level
one level two then step three we talked
about Candlestick charts talked about my
favorite technical indicators and step
four we talked just briefly about market
dynamics and the power of fear and greed
ultimately it is fear and greed that get
um Traders so excited the the
opportunity to make money greed the fear
of missing out Etc and now I want to
help you understand how to trade in the
market so for me I have a strategy that
I've been trading for more than a decade
now this is just one strategy there's
you know Millions probably of Traders
out there that have different variations
of strategies but at the beginning of
this class I I shared with you the fact
that really all strategies fall to your
two strategies of trading Trend trading
or counter Trend trading as you already
know I am a trend Trader I find this to
be much easier and so this is what I'm
going to be teaching on today so all
Trend Traders ultimately would probably
be able to relate to some of the things
that I'm going to share with you uh in
this class even if they're Strat is
slightly different they're go they're
going to be fairly similar so step five
I want to talk about risk management and
setting guard rails for yourself because
we know so many beginner Traders fail
it's very important that you're able to
do things differently from what all
those other people are doing so I think
the first thing that you need to
understand is the concept of managing
risk so let's just talk from a
statistical point of view here for a
second if your average losers
are let's say if your average winners
are $2 and your average losers are
$1 what is your break even Point these
are your average losers those are your
average winners you would be break even
if you're right even just 33% of the
time that's your break even now if your
average losers are minus $1 your average
losers your average winners are plus $1
your break even naturally is
50% and over here if your average losers
are $2 and your average winners are just
$1 you would have to be right 66% of the
time in order to Break Even This is math
there's no arguing it this is just
exactly what it says this is this is how
it
works unfortunately a lot of beginner
Traders fall into this Camp over here
their average losers are bigger than
their average winners often twice as big
if not even
bigger this was what it was like for me
when I got started so the reason my
average losers were twice as big as my
average winners was because I had this
habit that when I would have a winning
trade I would be scared it would turn
into a loser and what what I do I press
the sell button right away I just get
out be like I got to get out of this
thing I'm afraid it's going to turn into
a loser and next thing you know I'm
pressing the sell button I'm getting out
only to watch it go higher and I feel
like an idiot but well I sold but on my
losing trades the price would start to
go down and rather than just cut my loss
and get out I would hold and I would
hope that it would turn around and I
would hold the whole position until
finally I took my loss and so my losses
became big double the size of my average
winners and with that I need to be right
66% of time just to break even that was
really hard so in my first two years of
trading I struggled now my first year I
actually made money I made about $30,000
but in my second year of trading I gave
that all back I lost
$30,000 now if we look at my metrics
right here what you're going to see is
that my accuracy today well this is over
the course of $12 million is
68% accuracy I I'm right 68% of time and
my average winners and average losers
are about the same
$1,500 more give or take they're
slightly skewed to the negative but
they're pretty close to the same $1,400
losers $1,500 sorry $1,500 losers $1,400
winners accuracy
68% now if I still had a inverted profit
loss ratio where my average losers were
2,800 or 3,000 you could say goodbye to
that 12 million I wouldn't have it
so in truth what has given me this
profit is my accuracy and my ability to
keep my losses as small as they are they
you know they could be bigger and
they're not now if my winners were
bigger I would certainly only make more
but when you start swinging for home
runs what can happen is your accuracy
declines so these are all part of sort
of an an intricate relationship now what
I'll share with you is as a beginner
Trader I would encourage you to strive
for a profit loss
ratio of 2:1 aim for 2:1 where your
average winners will be twice your
average losers you're going to be
optimistic and in the end you're
probably going to come in closer to one:
one because that's what happens with
most Traders but if you aim for one: one
you'll probably come in low and you'll
have an inverted profit loss ratio so
aim high two: one and it's okay if you
come in a little bit low now when it
comes to
accuracy again you want to aim high for
65 you know 70% but realistically it's
very common if you come in closer to 55
to 60% as a beginner and that's okay now
what I'm starting to build out here are
your Three core components of
profitability you've got your accuracy
your profit loss ratio and then your
consistency I'm going to draw a calendar
here with all the different days of the
of the the month so what we want to see
is that you're consistently green green
maybe one red day here and then green
green maybe one more red day here it's
okay to have red days but you want to be
green more often then you're red now if
you focus on A+ quality setups what's
going to happen to your accuracy is it's
going to improve when your accuracy
improves out of a 100 trades you have
now 65 Winners instead of just 50 now
you've got more winners you've cut out
some of the losers and because you focus
on a quality setups you most likely cut
out what would have been some of your
biggest most uh egregious losses so when
you focus on a quality setups you focus
on accuracy first what typically
improves is your profit loss ratio your
profit loss ratio gets better and when
your profit loss ratio gets better your
consistency gets better and when your
consistency improves your confidence
gets better and now you've got this
second layer so all of this is happening
on the first layer with let's say a 100
shares but now you have increasing your
share size so scaling up and you cannot
start scaling up and increasing share
size until you first have consistency
and confidence so in order to build a
positive feedback loop it starts right
here with accuracy now what a lot of
beginner Traders struggle with and I was
no exception is a negative profit loss
ratio with poor accuracy and you you you
have sometimes a hard time knowing what
to focus on what what do I do to make
things better I just keep losing
sometimes you'll feel like I just need
to hit a couple of huge winners and
that'll change everything that's not
going to change things and by trying to
swing for a home run most likely you're
going to strike out you're going to have
more big losses and you're going to
realize that you know in the in the
analogy of a home run you could have had
a a a double or maybe even a triple but
you went for that home run you gave back
everything you got struck out right so
that's something that's really important
the bigger your
winners typically the lower your
accuracy will be because in order to hit
these big Winners you have to be up
sometimes significantly and choose not
to sell and keep holding and holding and
holding and holding and a certain
percentage of time you do that and it
goes all the way back down to flat or
break even so I am a big advocate of
being a base hit Trader focusing on
consistency and one of the reasons that
I do this is because my strategy that
I'm beginning to share with you was born
during a period in my life when I was
100% dependent on the in income I made
from Trading I couldn't afford to be
speculative I couldn't afford to gamble
with my account I couldn't afford to
Hope a stock would go up 400% over the
next week what I needed was $100 to $200
today consistency and that's what I
strive for and that's what you'll see in
the strategy that I trade even still
today because I learned to trade during
a period of time when money was scarce I
taught myself to focus on consistency
I still trade that same strategy today
even having made more than $12 million I
don't gamble with my account I focus on
being consistent I try every single day
to walk away with profit now there will
be days where I lose but I I respect a
certain set of guard rails in my trading
and I'm going to begin sharing them with
you now um some of you may have already
read um my book how to day trade the
plain truth in this book as I go through
the book I share with you um several of
the guard rails I've implemented in my
trading and then later in the book
there's a glery where all the guard
rails are listed so you go back and and
refer to them I'm going to share some of
those guard rails with you here in this
episode so the first guard rail um and
this actually isn't uh going to be
straight from the book but the first
rule um that is very
important rule uh let me do this
differently um so so I'm just going to
go rule tools number one is Max
loss you have to have a Max loss you
have to draw a line in the sand of when
enough is enough on any particular day
and it's also worthwhile to do this in
total for your career as a Trader like
how much money am and time am I willing
to put in before I call it quits but on
a on a daily basis to keep things sort
of focused I put my Max loss personally
at minus $55,000 now some of you are
probably like that's big that's more
than my entire account that's crazy
that's way too much uh and that's fine
you got to choose the number that's
right for you but here's the way I came
to this
number I have a daily goal and my daily
goal is also
$5,000 and what I figured is that if I
if I lose my daily goal one day a week I
can bounce back no big deal so what I
mentally allocate is up to four Max loss
days per month one per week and I don't
want to go deeper than my daily goal
because I don't want to lose more in one
day than I will make in one day so my
daily goal is
5,000 so then what's my weekly goal is
my weekly goal
25,000
no my weekly goal assumes that I will
have a Max loss day which means my
weekly goal is actually my daily goal
time 3 which equals
15,000 so that means my weekly goal is
15,000 and now my monthly goal is
approximately 50 to $60,000 now I have
had years where I far exceeded that my
best year I actually made nearly $5
million but more typically I'm averaging
less than that so if I can be consistent
at5 $220,000 a week I'm very happy with
that in a slower Market if I'm only at 8
to 12,000 a week that's fine too but
this is the way I kind of Lay It lay it
down so it's important that your max
loss isn't just arbitrary but it's based
within your strategy so for me my Max
loss is my daily goal all right so
whatever your daily goal is that should
be your max loss if you're going to
follow the same system that's been
working so well for me so this is my
first rule now rules are only as good as
a Trader who enforces it so if you're
down
$5,000 and you continue trading you've
broken your rule what happens when you
break your rule well you can enforce
consequences if you have the discipline
to enforce them or you could be someone
who just trades without regard to rules
at all and if you're trading in a
ruleless way unfortunately you're going
to be emotional you're going to be
impulsive and you'll eventually blow up
your account the traders who are the
most successful are extremely
disciplined in following the system that
they've created they went to all this
work to create a system I have more than
10 years of historical data that
supports my system why would I deviate
from from the rules I've created that
have given me all this profit now even
as I say this I will admit that there
have been days where I've gotten really
emotional I've gotten really angry and I
have broken my rules and I always look
back at that with a lot of frustration
and disappointment in myself and I share
those episodes in you know those days in
in red day Recaps when it happens now a
red day doesn't have to be a day that
you broke your rules red days happen but
a day where you continue to trade past
Max loss now that's where you break your
rules so one of the most most important
concepts for you to
master is the concept of a
successful red
day you'll be read a lot as a Trader
four times a month once a week okay so
you're going to be read a lot even when
you become successful if you're a
beginner you'll be read more but as a
successful Trader you'll still be read a
lot there's nothing wrong with being r
as long as on your red days you followed
the rules
you're good that's fine so max loss
follow your max loss and get out now if
on your red days you started trading CD
quality setups you have no one to blame
for being red but yourself but there
will be times where you'll focus on all
the a quality setups and the market is
just not on your side and that's why
it's important to say you know what this
right now can be a successful red day I
can lock it up right here I don't have
to overstay my welcome I could say
enough's enough and I can live to trade
another day the market will be here for
you so I really encourage you to start
to spend some time embracing the concept
of successful red days and rather than
think about how many consecutive green
days you can have in a row don't worry
about that think about how many success
how many consecutive days in a row you
can have where you implemented your
strategy and had discipline how many
days in a row can you have without
losing self-control control without
spiraling without falling victim to
emotional hijack emotional hijack occurs
when typically you're triggered by
something that happens in your trading
usually it's a big loss and suddenly
you've you've become emotionally
triggered and now you're trading from
just emotion raw emotion you're buying
and selling huge positions you're
desperately trying to recoup loss you've
actually gone into a fight ORF flight
State and it was triggered by the loss
of money it created a fear so strong
that now you're fighting to make back
what you lost and in those moments it's
your primitive brain that's making all
the decisions and you're going to make
huge mistakes because that part of our
brain was not designed to work or trade
in the market so when we're trading in
the market we have to be using our
analytical mind we have to be calm cool
collected we have to be composed and if
you can't but you need to walk away now
I've come to learn that I have a set of
triggers so so my first rule of course
is that I have to have my Max loss uh
and I have to set it and what I've
learned is that I actually need to call
my broker and tell them to set that Max
loss on my account so if I'm down more
than that amount I cannot trade because
I know that sometimes when I go deep in
the red I get emotional and I'll keep
trading even though I have that Max loss
so I actually told my broker to to put
that on my account now another um
trigger I have and Rule is that um if I
give
back
more
than half of my profit after hitting my
$5,000 daily goal I have to walk because
there's something about having your
daily goal and then giving back half of
it that creates a real big emotional
response for me so I give back half of
my daily goal I have to walk if the if
it if it somehow happens that I go from
Green to
red and this isn't necessarily like if I
if on my first trade I made like $30 and
on my second trade I lost 60 I don't
really consider that red to Green
because I never really was green but if
I'm green on the day ,15 $1,200 and I go
red the second I go red that for me is
like okay it's time to walk away because
it can be so frustrating to go from
profit to go from Lo to go into a loss
so going from green to Red um after you
know Crossing I don't I don't know you
know maybe a quarter of or half of goal
something like that something like that
um and you know these These are sort of
highlevel what I would say would be the
most important to follow in your trading
when it comes to Knowing When to Walk
Away each day you have to know when to
walk away traders who overtrade their
welcome who trade too long are often the
traders who give back a lot of profit
and it's not worth it so you really have
to discipline yourself to learn when to
walk
away
now I'm going to touch on um some
additional rules and guardrails as we
continue to go through this but um but
we'll keep moving along here so step six
we're going to talk about stocks uh
stock selection so uh let's see let me
just grab my um yeah I'm just going to
grab this for one
second so
so we've already covered Step 1 2 3 four
and five and we're the beginning of part
two where I'm breaking down my strategy
for you we're going to start talking
about stock selection and this is going
to come back to some of the things we
talked about in step four on market
dynamics so on any given day I know that
the most attention is going to be on the
Stocker at the top of the scanner now
this is an interesting day here where
you could see I ended up um locking up
about $9,000 of profit which was a great
day and I was trading
WIA on the previous day right here it
actually went up over 100% And was our
number one leading percentage Gainer and
on the next day the momentum continued
so this was a stock that was the the
biggest percentage Gainer over this 48
hour period And even though carrying
into day two it was only the third
leading Gainer it was I thought the most
obvious and that is reflected in the
volume look at the volume it had 8.3
million shares and this was a great day
of trading okay so let's talk about that
criteria for me to be interested in
trading a stock so let's
see number one of a opinion that I think
that that's where I make the most money
that's actually based on let's see um
I'm going to pull my metrics out here
this is actually based on all of this
data right here again 12.6 million doll
of profit and we can look at price and
volume and what we will see is that I
make uh the most money on stocks between
two and $20 a share this is where I do
the best okay so it's it's not just my
gut feeling this is actual analytical
statistical data of where I make the
most now do I make money pretty much
everywhere that I trade yeah over past
10 years yes but if I'm going to focus
I'm going to focus on this area and what
I'm talking about here in this class is
how to start day trading as a beginner
so as a beginner I'm going to encourage
you to focus on the areas of the market
where I've had the highest level of
success not to say you couldn't venture
out but let's focus on the areas where I
think the success is going to be easier
than on the areas where it's even more
difficult for me so number one we're
going to talk about and we're going to
look for stocks are priced between $2
and $20 a share this is my sweet spot
number one number
two the stock has to be up
10% minimum so again this is not just um
this isn't just like opinion of oh it
you know 10% gains are better um this is
based on the fact that my performance by
instrument movement clearly shows that I
make more money when the stock is up 10%
or more right there there it is so these
metrics if you had if if I gave you all
this historical data you would be able I
mean maybe not as a beginner but if I
gave all this to an experienced Trader
they would be able to start to outline
what my strategy is just based on my
performance they' be like oh well this
is what he trades this is what he does
the best on so number two the stock
should be up at least
10% number three we want to see stocks
that are trading with with five times
relative volume right here now what's
interesting about stocks trading with um
five times relative volume is that it's
typically a catalyst that creates that
volume so stocks that have high relative
volume you'll see there's a little bit
of a bell curve here this is um oh sorry
this is relative to the prior day um and
I actually want to show you let's see
this one right here which is relative to
the 50-day
average both of these are interesting in
different ways so uh the trade that I
took on WIA here uh this was an example
where uh the relative volume daily was
it was still 6.9 which is times six
that's still way way way above average
so that's totally fine this is five
times so 500% five times um so this is
performance relative to the 50-day
average this is performance relative to
the prior day there will be times where
I make a lot of money even though the
volume is slightly lower or flat versus
prior day and these are examples of
continuation when I'm trading uh day one
and then day two so when we have
multiple days that's when we see the um
that kind of continuation so that that
is common um and and I do like to see
that okay so let's see so we're going to
switch back here so then number three
we're going to look
for five sorry five times relative
volume and to Define relative volume
it's the amount of volume that's average
over a 30day period so relative volume
for a stock if it's trading an average
of 100,000 shares a day then relative
volume is 100,000 so then if tomorrow it
trades on 200,000 shares the relative
volume ratio is two and Jeffrey yes this
is a live class today so uh thank you
for tuning in and if you have questions
um I'm happy to answer and Rocky yes it
is a live
class okay so Rocky stands
corrected okay so now let's jump back
over here
um all right so uh in order to find
stocks like this we're looking for
criteria so price between two and 20 up
at least 10% on the day relative volume
of at least five so what else I looking
for grab another
marker uh number four news Catalyst
today now it's true that I will trade if
even if there's no news Catalyst but for
a beginner Trader I would encourage you
to focus on stocks that have news
because these are going to be more
predictable so news cataly is preferred
and now number
five is float
under 20 million shares so when a
company does an initial public offering
they're selling shares onto the open
market from that point forward those are
the number of shares available to trade
so let's say they sold 20 million shares
onto the market so this represents the
supply that's the number of shares
available to trade all of these things
that I've just showed you these all
represent indicators of
demand when a stock has news five times
relative vol is up 10% is priced between
2 to 20 that creates demand so the lower
the supply and the higher the demand the
greater the imbalance and you have that
big imbalance between supply and demand
that's how a stock goes up 300 400% over
the course of two or three days so this
is exactly what I'm looking for every
single day this is the criteria that I
use now I'm in a fortunate position
where I was able to hire a development
team to build out assess stock scanners
for me that I use and all my warrior Pro
members use as well and these search the
market in real time for stocks that meet
this
criteria so that that is like takes all
the heavy lifting off your shoulders so
now instead of having to manually search
through 10,000 stocks to try to find the
needle in the hay stack the scanner is
giving us the the stocks that meet this
criteria so now all we have to do is
pull up the chart and begin asking
oursel what is a good entry so let's
talk about it step seven entry
indicators okay so let's say Obviously a
stock has hit our scanners and meets all
of the criteria for being worth trading
so what are we going to do next step one
I got to find the stock I'm going to
find that on my scanner so that's going
to be easy to do step two I want to try
to figure out what the catalyst is so
I'd like to check the news now I'll pull
my um platform up for you here so this
is pretty easy
pull up a stock uh pull up the chart I
click on it pull it up and right down in
this window right here um it's going to
tell me what the news is so this is
where I'm going to see the news right
down here all right so I've got my news
down here in this window and it's
automatically populating now I could go
ahead and click on this and see like
read specifically the headline but I
don't really spend a lot of time doing
that and you'll actually notice that
during this uh class I haven't spent a
lot of time talking about fundamental
analysis
we have technical analysis and we have
fundamental analysis I'm focusing on
technical analysis because when we're
talking about day trading and these
intraday fluctuations in price this is
all technical analysis fundamental
analysis is like what Warren Buffett
will do he'll analyze the balance sheet
of a company he'll analyze um you know
the the the news the the fundamentals
like what what the what the company does
what their earnings look like what the
business model is what the business
risks are that's all fundamental
analysis their competitive competitive
Advantage who their competitors are you
know what the landscape is in that
sector that's fundamental analysis and a
lot of those people are not really
looking at stock charts at all they're
forming an opinion on the stock based on
what the company actually does but it's
not an opinion of what the price is
going to do tomorrow it's an opinion of
what the Outlook of this company is over
the next 5 10 years and if they do their
analysis what they're going to do is
they're going to put what they believe
is a fair market value on the company
like if they were going to buy the
entire company today this is how they
would value it and they'll say so
they're going to run these sort of um
calculations and say based on this this
and this I'm going to Value this entire
company at you know let's just say $10 a
share and then they check the price and
they're like oh shoot it's currently
trading at $20 a share so I can't get in
it right now well I could you know if it
comes down to 10 I can get in later or
in the meantime I just have to wait
right or maybe they see well wait it's
trading at $6 a share this is an
opportunity where I can get in because
it's trading below what I think is the
fair market value but that's fundamental
analysis as a technical Trader I'm
focusing on volatility and I'm focusing
on chart patterns so we like to see that
there is some type of news that's
bringing in the volume and that is a
fundamental headline but someone
recently asked me they said Ross do you
think you should subscribe to a
Bloomberg terminal it's like25 $330,000
a year because you would get the news
really fast and they know that I'm
trading based on breaking news because
every day when I'm doing a case study
I'm saying okay this is the stock I
traded this was how I found it scanners
this was the news headline this is where
I got in and got out and they're
thinking well the sooner you have the
news the more money you'll make it's
actually not true so I actually at one
point subscribed to one of these really
expensive news services and this is what
I found I would hear the news headline
and I would pull up the and it wouldn't
be moving yet and I wouldn't know if the
news was good bad or indifferent because
sometimes the stocks you know 10 15
minutes later nothing would happen the
price wouldn't move at all it was like
the headline was just insignificant
nobody cared about it other times the
news headline sounded great but the
price would drop instantly this happens
all the time with pharmaceutical
companies they'll put out a headline the
price drops and a lot of times it's
because unless you really understand the
context of the the headline
you're not going to really be able to
make a decision on it so sometimes a
headline will sound good but it's
actually bad relative to what they had
projected or what they had put out
recently so it's in in comparison so now
with context you're like oh I do see why
that's bad news so this was what I found
being the first one to have the news I
didn't know what to do with it unless
I'm an expert in each one of these
companies and have followed all of their
news headlines and there's 10,000 plus
companies in the market that you could
follow so it's impossible to do that I
couldn't know what to do so instead I
wait for the wave to start that's what I
do as a trend based Trader I wait for
that first wave to begin and when the
first wave begins then at that point
boop boop the Stock's going to be
hitting my scanners now it's up 10% now
I'm like okay let's check it out I check
the relative volume I check um what the
news catalyst is of course I check the
price I check the float right I start
doing my due diligence here and if I
like all these things then you know it's
going to continue moving higher and then
on the first pullback I'm going to be
buying that dip and then I might even
buy the second dip and I'm going to
start trading it and then this is
trend-based trading where we're buying
and then selling and then buying it back
and then selling and selling and the
reason we sell here is because we don't
know if it's going to just start rolling
over we've got to take our profit and
we've got to focus on consistency and so
I'm doing base hits I get in I get out I
get back in I get back out maybe I take
two three four five trades on one stock
and this is the most obvious stock to
trade today so as long as it's the right
stock this is what I'm going to focus on
okay so what is my entry indicator so
let's get dialed into this little zone
right here I'm going to do this by
drawing a pattern it's a very common
pattern that we see uh really all the
time okay so we're going to see a stock
that squeezes up like this so what
happened was news Catalyst event
occurred right here and then trading
began the price started to move up all
right price starts to move up now SC
it's now hitting my scanner scanner
alert scanner alert scanner alert
scanner alert so that means I'm seeing
it hit the scanner just like this stock
did right here these are all scanner
alerts and I check all of them I check
to see do I like it what's you know I I
dig deeper and kind of figure out how
much it's moving and the relative volume
and everything else so all of that's
happening I've done my due diligence and
let's say that this meets all five
criteria for being the right type of
stock to trade price float relative
volume news everything okay so it moves
up and now it starts to pull back just a
little bit What's Happening Here is
there's some early profit taking from
people who were in down here or who
maybe were already holding the stock
before this move so the second they see
a red candle they begin to feel emotion
the emotion is fear uhoh my loser is
going away I better sell so they sell
some more people sell and the price dips
down now here one of two things will
happen the price will either just
continue to sell off in which case there
is no trade and I would never press the
buy button
or the trend
continues so that moment where we fork
in the road we either go up or we keep
going down that that's the spot where
I'm looking to take my first trade this
is going to happen right in here and
it's going to happen as soon as this as
soon as a candle makes a new high
because What's Happening Here is the
wave was going up it was going out and
now right in this moment this is what we
would call an
apex the moment this price breaks and
this green candle breaks the high of
this red candle that right there the
second that I buy and now I'm looking
for a move for the next leg
up now when I take this trade my Max
loss on this position is the low of this
red candle so that's my Max loss down
here and if my entry is right here at
the Apex typically these are pretty
close together so let's just say it's a
20 cent Max
loss what's my profit Target going to be
this is going to go back to what we
talked about with risk management profit
Target is going to be 40 cents a share
that's what I'd like to be able to make
so I'm going to look at the previous
high of day and I'm going to look to see
is there any nearby resistance I'm going
to do this by looking at the daily chart
and I'm going to ask about the position
of the 200 moving average the 200 EMA
daily gaps and
windows I'm not going to get into all
the details of this but these are a
couple of things that I'm going to look
at on the daily chart and if I don't see
anything nearby then that's the first
Target a retest to the high and then
continuation higher
now what typically happens with these
stocks is we get one and two waves up so
we get one pullback a second pullback
and the second one gets spot up as well
because traders who missed the first one
are now eager to trade something that's
moving and this could go up 100 200 300
400 500% or this could be up only 30% it
could depend on the price range but we
can see huge moves and it's following
these patterns right here now this is a
pattern that I've been trading and
teaching for years and years and years
and it works just like the red light on
a traffic signal Works people have learn
to recognize what this pattern
means so let me grab um my other slide
deck here for
you okay so I'm just going to grab a
slide in
here scroll down a little
bit
uh by the way if you do have questions
feel free to put them in the chat feed
let's
see um this oh this chapter five I got
to go a little bit further to chapter
seven maybe I'll actually go to chapter
eight okay so chapter eight we're going
to go back here chapter eight part four
chapter
eight part two chapter eight part one
okay all
right so I'll give you a little sneak
preview here this is um some content
right for my warrior Pro
curriculum as I mentioned earlier uh for
people who are tuned in um I'm doing the
special live broadcast because today um
this is the 10y year anniversary of when
I taught my first uh day trading course
and this is the this is what it's now
evolved into so we've got an anniversary
sale going on right now uh but for those
you guys who are going to watch this
down the road there'll be some links in
the description where you could do a uh
twoe trial at Warrior trading for 20
bucks so you're welcome to check it out
but those of you guys tuning in live um
make sure you check out the anniversary
sale we've got going on we've got some
nice
specials okay so um so this is where
we're buying that first and second
pullback and this is the example here of
what this looks like on a
chart it's going to take a second to
load because this file is
huge so we have this nice rally up oops
sorry what did I
do
um oh switch tabs all right so whatever
we've got this nice rally up
here oh my
gosh nice move up pull back and a move
higher now I want to show you this um in
the animated
form so first candle's green the stock
has breaking news it's hitting our
scanners it's moving higher it's moving
higher it pulls back it pulls back again
now down here do I buy right here I want
to buy when the first candle makes a new
high boom that's the spot where I'm
buying now of course I made this so it
looks beautiful because I I did it
myself but this is the pattern that we
look at first candle make a new high so
now let's look at some live examples
pull back right here one red candle next
candle makes a new high boom two red
candles next candle makes a new high
boom two red candles this candle makes a
new high right here a few candles this
candle makes a new high stop is at the
low of the pullback and knows the
position of our moving averages we've
got our 9 our 20 we've got our 200 we've
got the volume weight average price
right here again same pattern first
pullback second pullback first pullback
second pullback this one went a little
higher first pullback right here first
pullback here first pullback second
pullback third pullback first pullback
first pullback second pullback moving
higher first pullback second pullback so
this is the pattern that I trade almost
every single day I'm using time frames
of one minute charts primarily 1 minute
and 5 minute because I'm trading fast
moving
stocks this is a nice pullback right
here this stock went from 4 to eight
that's a 100% move this one goes from
620 to 730 not as big of a move this one
put in a pretty nice move this one right
here nice move from 26 up to 30 several
dollars a share a little higher priced
now on a very volatile stock it's true
I'll use a shorter time frame frame this
one went from $6 a share to $36 a share
if you can believe that this is a day
where I finished up over
$100,000 this is a insane move that was
in 2020 now this is going to be a little
case study of a momentum stock msgm went
up 3,000% in two days so we had that
multi-day continuation it began with
breaking news late one day the news
comes out after hours and the stock
begins to move up a lot of Traders
missed it because later in the day
people don't notice it the next morning
it hits the scanner it's already up 100%
pre-market it squeezes up at 4:00 a.m.
between 4:00 a.m. and 7: a.m. it has
light volume and at 7 a.m. it squeezes
right here right at 7: a.m. it pushes
higher up to 8 pulls back goes up to $
850 by B morning it's up
580 and it squeezes from $8 to
$28 a share this is incredible this is
what we like to see so the question is
was that the right stock to be trading
yes it met all of the criteria and let
me just go back here um met all the
criteria for being the right stock to
trade it was the leading percentage
gainer in the market so let me just zoom
in on this all right it's a little
blurry but leading percentage gainer in
the market up 182% price between 2 and
10 2 and 20 sorry volume 17 million
shares float 332,000 shares relative
volume
2,254 that's incredibly High it has a
news cataly list check check check check
check so now the only question is where
are the dips can I buy the dips and this
gave us some nice pullback some nice
dips and it pushed higher it kept going
higher this was a particularly nice
pullback right here that occurred right
around um
$10 okay so let me just back out of that
sorry all right so I'll put this back up
here for now
um okay so when when I get in a trade um
and let me just find my other slide deck
here so when I get in a trade um one of
the first things that I'm looking for is
I want to see strength so my entry
indicator when that first candle's about
to make a new high what I want to
see we've got um let's see I still have
it here push higher what do I want to
see happening right in here right in
here when that first candle makes a new
high
this is what I want to see I'll list it
right here so it's
clear so number one
surge in
buying right now if I'm timing my
entries correctly and I'm getting in at
a true Apex point then there should be a
surge of buying because other people
should see the same pattern so there
should be a surge in buying right at the
Apex Point number two
to the price should go up immediately
and should go up like 203 cents a share
it should immediately squeeze up that
means I'm correct that this was the
right entry so Surge and buying price
should immediately go up and what that
means is that this is a trade where
you're going to have almost instant
resolution you're not going to be
sitting for days weeks wondering what's
going to happen you're going to know
within the first 30 seconds if this was
the right trade and you had the right
entry if it's the right trade it's going
to break out instantly it's going to
start squeezing higher so my entry
indicator is as it's pulling back I'm
watching the high of that previous
candle I'm looking at this candle and
I'm thinking okay you know this is the
high right here I'm looking for that
price to break so when I know that
that's the price I start thinking uh so
a couple things so when I know that
that's the price I pull up my uh my
order entry right here I'm looking at
the price and let's say that Apex price
is
1724 so if the price is 1724 I'm
watching
1724 and what I'm looking for are to see
orders going through right here which
tells me this is the time in sales this
is a display of every order that's going
through the market I want to see those
orders going through that's going to
tell me other people are
buying other people are buying this
stock other people like this stock
that's that's what I want to see all
right so I want to see the volume come
in and then when I see that that's when
I jump in I go ahead and buy this is
typically on a one minute time frame a
one minute Candlestick chart so now I'm
buying right here when I see all that
volume come in and now I want to see it
continue to squeeze up and continue to
move higher my Max loss was the low of
the pullback all right so pretty tight
this is nice because my entry is pretty
close to my Max loss on the trade now I
won't risk $5,000 and potentially go red
on the day and hit my Max loss on the
day on one trade but usually the way
I'll do it is on my first trade I'll
risk like $500 and if it's a winner and
I can be up anywhere from $500 to $1,000
a profit then I've broken the ice with
my first trade I'll explain more about
that position Management in a second so
these are the things that I need to see
Surge and buying and the price should be
moving up so something that I struggled
with over the years was was on my first
trades I would have a tendency to try to
swing hard you know try to hit like a
big winner and the risk with doing that
is that you can have a big strikeout you
can end up making a big mistake and
having a big loss on your first trade
and now now you're down $5,000 so what I
started doing to help build more
consistency is I started each day by
capping my share size at about a quarter
of full size so if your full size
position right now is a th000 shares
that means you'd be starting with 250
shares and until I had made about 20
cents per share on that starter size I
don't increase my positions so for me my
starter size is 5,000 shares 20 cents is
$11,000 of profit and until I'm up more
than $1,000 I do not increase my share
size so that means on this first trade
if this was my first trade of the day
I would be buying with up to 5,000
shares if it goes up 20 cents and I'm up
1,000 bucks great now I can lift my Max
share size move it up to 20,000 shares
and I could take trades two three four
and continue trading it until I'm up
three four $5,000 on the day but if I go
right on that first trade I'm down $250
or I'm down $500 then I'm going to
continue to trade with small size until
either I cross over a th000 on the day
or I start getting close to my Max loss
and I'm just like you know what it's not
happening today
so this is a technique that I'm using to
manage my risk where basically during
the time when I have the highest risk of
going red on the day I trade with small
size and I don't trade with big size
until I'm already in the green on the
day and then by that point I have a
cushion where if I make a mistake I can
stop out break even and call it a day
there so this is helping me be a more
consistent Trader now these are my entry
indicators again to reiterate these are
only valid when we focus on the right
sty stocks to trade each day if you try
to apply this to the wrong stock it's
not going to work so now let's talk
about exit
indicators okay
so something that's kind of interesting
for me is that my exit indicators more
or less are the inverse of what I want
to see the second I get in trade what I
want to see the second I get in a trade
is a surge in buying and the price
moving up so if I'm in a trade and I see
buying
stops or I see
price um
sideways price
dropping or big
sellers these are all
indicators to exit the
position if I don't see any of these
things and the price is continuing to go
higher so let's just say we had the move
up right here and then we had our little
pullback and then the price moved higher
as a beginner what I used to do is I
would dump my whole position I would
sell the whole thing like right here
because I was afraid of it turning into
a loser and now I'm saying to myself oh
wait a second if I'm not seeing a valid
exit
indicator why would I sell
keep
holding so I want to hold as long as I
can now maybe at some point up here when
we get we start to get a little extended
off of our nine moving average I'm
thinking okay we've got risk of having a
flush back down maybe I'll sell half of
my position to lock up a little bit of
profit and then I'll hold the rest and
I'll let it ride and it goes up a little
further maybe I'll now sell you know a
quarter of my position I'll sell a
little bit more and it keeps going
higher it keeps going higher and now I
can't buy it up
here I can't buy right here this is too
extended but I'm still in and I can keep
holding a little longer so then maybe I
sell a little bit more sell a little bit
more and then I finally sell the rest
when we get that first candle coming
down here and now I'm out of the rest of
the position right there first candle
that goes
red so the the pattern that we're
talking about here
is when we're talk when we're looking at
trends what signifies the trend is
changing now to be honest the price
stopping and the price going sideways
don't necessarily signify that the trend
is changing they indicate it may be
changing and so I would say the price
stopping is sort of the yellow light
caution
flag even big sellers don't necessarily
guarantee but when the price begins
dropping that's when we've got the red
light that's when we've got to get out
of this thing okay so let me pull up a
chart and show
you um show you this pattern I'm just
going to eras the Whiteboard here okay
so we're going to pull up this chart
here and let's see we're going to look
at um WIA again this was the stock that
gave some nice trades
here all right so we're going to back
this up
um so so if we looked at this right here
just for
instance now this was kind of
interesting because um the price was
moving higher right here moving higher
moving higher moving higher and we had a
red candle but it actually didn't dip
down it wasn't a pullback I did get in
right here though because I thought that
this candle was a reversal indicator and
I thought maybe people were going to
shore because it was like it had already
been up two four six eight green candles
and then when it surged higher I was
like I'm going to get in right here with
a stop at the low of this red candle and
then what I'm thinking is I don't want
to sell the final position until the
first candle makes a new low and that
occurred right here on this red candle
it made a new
low so if we zoom in on this you'll see
how we're these are all making new highs
new highs new highs new highs and then
this is the first time you have a candle
where the low of the candle is lower
than the previous low right there and
then we start to move back up we're
making a new high right here so we're
back in on this
candle and then where do we get out well
we have a pullback here but none of
these candles actually went lower than
the previous candle that kept going
higher right so when they keep going
higher that makes me think I should keep
holding this
position this here was when it
dropped so and certainly watching those
volume bars as they're growing is an
important indicator because that's
telling you that more people are buying
the macd is open so all of our indicat
are confirming that this is something I
should be focused on it's an obvious
stock everyone's dialed in on it so this
just makes sense this is what people are
focused on here
today right so for me exit
indicators number one well I already
have I don't have to so I'll just just
to reiterate I don't need to write them
down again so we want to see um if price
sort of stops moving higher that's a
caution flag if the price starts going
sideways that's a caution flag if we
start to see some big sellers on the
level to that's a caution flag but the
ultimate confirmation is when the candle
makes a new low versus its previous
candle that's when we're confirming that
the trend is Shifting now we don't know
in that moment is this just going to be
a small pullback or is it going to be a
big pullback and it doesn't matter
because what we know is short term the
trend is Shifting and so as a day trader
who's focusing on being consistent and
hitting lot of base hits it's time to
get out of the position I can always
come back and try again but for right
now I got to jump out so that's the spot
where I say all right I'm going to jump
out I can always get back in later um
and by the way the links for so I see
someone asking about uh the two-e trial
um that link is in pinned in the
description the link to do a two-e trial
at Warrior trading for 20 bucks that's
in the description the link for the
anniversary sale should also be in the
description um so you should see both
them right
there okay so now let's step back um for
a moment and let me pull this um let's
see what slide deck am I looking for
okay
so part one of this class on how to day
trade is about the basic required
knowledge setting up your trading
station how to buy and sell with a high
level overview of order types hot Keys
level one level two step three
Candlestick charts and I didn't talk
about all the different Candlestick
patterns because there's dozens and
dozens of them that I use but we talked
about the anatomy of candlesticks and we
talked about the technical indicators
and then step four we talked about
market dynamics and the power of fear
and greed then we got into part two
which is developing or adopting a
strategy and this is something where
when I got started I didn't have the
opportunity to adopt a strategy that
someone else was trading you know I mean
I got started I started a long time ago
when it was in the late 90s when I got
into the market but when I started with
my first real money account in 2001 2002
there were not the there weren't the
resources to get started there were some
places you could go like in New York
City or Boston and you could get a job
at a trading firm and and I I didn't
know if whether or not I was going to do
that I actually tried to apply to a
place like that and I got rejected so I
was like so I I didn't know how to get
my foot in the door so what I ended up
doing was a lot of trial and error I
just was trading and what I was doing
while I was trading was I was being very
detail oriented about tracking each one
of my trades in an Excel Doc in an Excel
sheet you could use a Google sheet today
so I was tracking each one of those
trades I was making notes about the time
of day the price I got in the price I
got out the setup that I saw I would
take some additional notes and you know
I was just trying to better understand
what was what was what I was doing and
for
me that was critical because what ended
up happening was in my first year as I
shared I had a little beginner's luck I
made about $30,000 which honestly was
impressive I think it might have just
been like the market was Stronger that
year second year that luck ran out and I
lost
$30,000 and now I had nothing to show
for those first two years but during
year one I had taken the $330,000 of
profit out to pay my cost of living so
when I came into year two losing
$330,000 basically what that meant was
that instead of paying my bills with
trading profits I was paying my bills on
credit cards so I was accumulating
$330,000 of credit card debt in order
just to not have to take money out of my
trading account so then what ended up
happening was I had a $5,000 loss at the
beginning of August it was the new month
my goal for the whole month was to make
5,000 I was trying to make about you
know $200 a day $1,000 a week and I
figured if I could do that that was
great so that was my goal and to lose
$5,000 at the beginning of the new month
was devastating now it was like all
hopes of hitting 5,000 are gone now I'm
going to be working the whole month just
to get back to flat but what's worse is
I had lost so much I would need to add
more money to my account to keep trading
so my account was offline and at this
point I remember going into my my barn I
had a woodshed right next to the barn
where I stacked up firewood I remember
sitting there I split a bunch of
firewood cuz I was like so angry and
then I just sat there and I was like
what am I going to do how am I going to
turn this around and I ended up going
back into my little
office and I start I opened up that
Excel Doc and I started looking at my
metrics and I just started asking
myself what is what is there here now in
those days I didn't have this software
that I use today um for analyzing my
metrics I didn't have this all I had was
the raw Excel doc the Excel data and so
what I did was I started sorting the
data sorting the table and I would sort
by first biggest winner Biggest Loser so
I was looking at the biggest losers and
I was like what did I do wrong on these
and a lot of them it was like well I got
emotional I was being I I was already
read on the day and then I took that
final Hail Mary pass it was a huge loss
so I was like if I could just stop doing
that man that would save me a lot I
looked at some of the other big losses
and they were trading uh again like
later in the afternoon and I was like
well okay so if I stop trading in the
afternoon so I started kind of going
through all of this data and and I can
even just show you here um this is just
um this is just one month of data but it
was interesting because it um I think
when you look at it you'll see like oh
um there's some conclusions to draw so
let's look at um this data right here
and tell me if you would draw any
conclusions
okay so would you draw any conclusions
about the best time of day for me to
trade based on looking at this data
right
here I think the conclusion that it
would be safe to to draw is that I
should stop trading before 7 a.m. and I
should stop trading after 12:00
p.m.
right this is what these metrics have
the opportunity to show you they can
show you what in your trading right now
is is working and what is not working
now what about um price and
volume what would what does this data
tell tell me about the price of stocks
I'm trading what should I focus on I
should keep focusing on stocks between
two and 10 and I should probably stop
focusing on stocks below two and stocks
over 10 now as it turns out this was
just a limited period of time and as
time expands I can trade over 10 and and
do well between 10 and 20 but
this data the idea is that if you're
actively trading you're producing a ton
of historical data and in that data are
hints and clues at what might be working
so in my instance when I had this
Epiphany I pul I went through all this
data I looked at the winners the losers
and what I discovered and this this is
so important is that my biggest winners
we're on stock so we're up more than 10%
on the
day okay so now this this was just like
this is what the data said up more than
10% on the day so this marker is dying
I'm going to let this be its final so up
10% on the
day oh
boy oh my
gosh
10% okay up 10% on the day and what I
also discovered was that these stocks
had
high relative volume on the day that I
traded them they didn't all have news a
lot of them did have news but there were
some that didn't have news but that
still had high relative volume and high
percentage change so you know the the
news was not for all of them um my best
trades were uh
between
9:30 a.m. and 11:00
a.m. okay um
floats under 20 million Shar
and this became the
criteria that I set for whether or not I
would take a
trade I had to discover everything I've
shared with you the hard way through
trial and error now you have a privilege
that I didn't have you have YouTube
episodes like this you have people like
me who are teaching classes now the one
challenge you have is that there's a lot
of people out there that are teaching
classes that are not actually profitable
Traders they're making money just as
content creators and it's hard to
distinguish them because some of the
content creators put a lot of money into
creating really nice content so what I
would always encourage you to look at is
look at their website and ask yourself
if you can find their broker statements
and ask them for broker statements say
can this person prove to me that they're
actually a profitable Trader now if you
go over uh to my website here let's see
we've got 2024 statements right here and
this is my audit report this is seven
years of audited trading results this is
when I began my small account Challenge
on January 1st
2017 so I began of course 0% return at
that time and um let's get to the dollar
section $583 was day one January I made
$116,000 that was January of uh
2017 February 60,000 March 28,000 was
red in April Green in May anyways
finished uh year 1
$335,000 year 2 $499,000 year three so I
just kept trading and then we had or um
not do we had uh Co the co Market boom
so 2020 2021 were incredible 2022 2023
were a little slower 2024 is on track to
be better than 2023 so moving back in
the right direction which is great
nonetheless this is seven years of
audited trading history that's real
money so you guys have the benefit of
being able to learn from people who are
proven profitable you have to weed
through the ones who are proven
profitable from the ones who aren't but
you don't have to go through 2 years of
trial and error trying to figure out
your own strategy that's what I did
trial and error and I almost failed I
almost had to give up but I I finally
made this discovery right here I then
added more money to my account I sold
some stuff that was in my garage on
Craigslist in my barn I funded my
account with another $5,000 and I said
this is the last time I'm not going to
fund this account again this is the last
time I don't have I don't have much more
stuff I can sell so this is going to
have to be the last time and with that I
had the pressure to be very
disciplined and so what I did was I came
in every morning I traded I I sat down
around 9 a.m. I traded until 11:00 a.m.
and I was done I walked away and what I
ended up doing is I went outside and I
spent the rest of August painting my
house I got some buckets of white paint
and I said my house needed painting and
I was I I can't afford to hire someone
to paint my house so the paint was
peeling it looked terrible so I was like
I'm going to paint the house and those
you know five gallons or whatever it was
probably more than that but whatever it
was 10 gallons of white paint that the
amount of money I spent on that white
paint saved me so much money in trading
losses because it get got me into a
routine of focus and discipline and I
developed confidence so now let's go
back to something that we talked about
before we're going to talk about this
positive feedback loop so I focused on
accuracy I focused on trading the
highest quality setups that improved my
profit loss ratio now I had now a new
system that I was following that was
helping me with these a quality setups
my profit loss ratio improved
immediately my consistency over the
course of the month the calendar of all
the green days and all the red days that
went up and now what happened is my
what's a good what's a good little icon
for self-confidence I don't know um
maybe it's like an arm with like a big
muscle all right so this is like your
arm it's kind of funny looking but my
confidence started to go up and when my
confidence started to increase then my
share size went
up and then my profits went
up and then that made me even more
confident and I was able to increase my
share size even more went up and the
profits went up even more and that
create even more confidence now it's not
to say I didn't have setbacks at times
I did have setbacks at
times but this was the beginning of a
positive feedback loop and this has now
carried me more than a decade into my
career as a full-time Trader
so you guys have the benefit of being
able today to track all of your trading
to export your trades and then to import
them into a platform like this so when
we're talking about step nine reviewing
your metrics this isn't something to
overlook like oh step nine review your
metrics it's not something to overlook
this is something that is critical to
your ability to recover from mistakes
and from losses you've got to import
your metric so you can make educated
decisions so everything that I've been
sharing with you here is to help get you
ready for um what I would say is day one
of trading in a simulator day one of
trading in a simulator for some of you
you're like oh I'm already trading with
real money okay maybe but if you're not
trading my strategy yet what I would
encourage you to do is to start
practicing trading the strategy that's
working for me it's a proven strategy it
works for me I've got uh 10 students who
have made over a million dollars it
works for them too now I'm going to tell
you as always their results are not
typical my results are not typical I
don't track the results of every Trader
who's ever taken a class or watched a
video that I've taught so I can't tell
you the the total success rate but I can
tell you that this strategy does work
for the people who apply the rules of
the system correctly the reason I can't
guarantee that you'll be successful is
because I can't force you to follow the
rules and a lot of people will deviate
from the rules and I did too you know
when I was getting started I had a
really hard time with discipline but
what I encourage you to do is to
implement the things I'm sharing with
you to start practicing it in a
simulator to start tracking all of that
data and then to make you know make it
part of your habit that you're reviewing
that data as the end of each week and
then you're making action steps for the
week ahead you're saying okay based on
this week you know this is what worked
this is what didn't work and then you're
continuing to sort of make improvements
make adjustments to constantly try to
get your trading better and better and
better and better I'm here as a resource
whether you're a student at Warrior
trading you become a member you do a
twoe trial you're welcome to do that I'm
here as a resource you can throw
comments on YouTube videos I'm always
happy to answer them but you have to
just continue focusing on making
progress you know the fact is the best
time to learn how to trade would have
been 10 years ago so you could have
profited during um the covid Boom the
next best time would have been to have
learned in the early '90s so you could
have profited from the dot bubble um but
the next best time is now because by
starting to learn now you'll beginning
you'll be beginning to accumulate the
general knowledge and the actual
strategy so you'll be able to capitalize
on the next you know boom in the market
and we don't know when that's going to
be maybe it's next year maybe it's 10
years from now we don't know but when it
comes you'll be here so I would say
these are the nine highlevel steps to
get started now I'm going to talk about
things that you guys can do to keep
learning including some recommended
reading and um I'll share the link for
the twoe trial at Warrior trading and
I'll talk a little bit about the
anniversary sale but um I also want to
open up this to Q&A so I know some of
you guys were like is this a live class
you know it is a live class I haven't
answered every one of your questions
that you guys have been posting um Zod I
see you're you're like oh this is
pre-recorded it's obvious so it's not
pre-recorded and now you stand corrected
just like Rocky did before uh but I
didn't want to distract my train of
thought too much by jumping off into
questions every now and then I saw one
that I was like oh that was good but I
should have answered it like two minutes
ago and now I'm sort of off on a
different so so please let's do a little
Q&A here
um and and so I see a great question
there about level two so I'm going to
answer that um so you guys start
throwing questions in the chat feed I'm
then going to scroll up and answer the
questions one by one and what I'm going
to do um first here is give you some
recommended reading so you guys can keep
learning okay so we're going to switch
to the Whiteboard here
um all right so first book um there's my
first book um for
today I'm going to move this out of the
way so this is the Happiness Advantage
by Sha
aor the reason that I'm going to make
this the first book is because you
cannot
underestimate how a positive brain fuels
success in work and life now I'm not
trying to be all you know floofy here
um but I think that this really is
important because I found that in the
times when I'm trading the best I have
so much confidence I'm feeling so
positive I'm feeling so good and when I
can maintain that head space I can be on
long extended periods of really good
trading but once I start to get knocked
down and I start to question myself I
start to get frustrated I start to get
emotionally shaken that's when I can go
into these periods of really emotional
and volatile trading so the first book I
would recommend is Happiness Advantage
by Sha aor now for those you guys that
want more of a technical book this is
the Candlestick course by Steve niss
which is way too expensive at $75 us but
you might be able to find a used copy
this is something that I got more than
10 years ago I don't know the date on
this particular book um this one's 2003
it's a very old book but but this is the
cool thing about trading is that a lot
of this is timeless now he gets into a
little bit more detail than I think is
really necessary for the markets that
we're tra trading to be honest some of
the very subtle candlesticks that he'll
mention I'm like yeah I don't think
that's really I don't think people
really are noticing that um it's he gets
into almost distinguishing like the
shades of color in traffic lights like
green is green like orange yellow I
don't really care like it kind of says
the same thing so it's good high level
to be honest if you watch my episodes
here on YouTube on on Candlestick charts
I think that they're Superior to this
because they're interactive and I think
you're going to get more out of it but I
understand people have different
learning styles so knowing your learning
style is important are you the type of
person that learns really well from
YouTube videos if you are then keep up
with these and there's tons of them if
you're someone that generally learns and
really comprehends and consumes things
better through through Reading then this
is a good book um if you're someone that
learns a lot by doing things Hands-On
then for sure like the twoe trial is
great great or using a simulator
something like that is good because you
could start practicing and really
playing with charts and getting in there
that's the way I learn best which was
what sort of had me on a path of
learning by trading with real money but
you can learn in a simulated environment
just the same so I would encourage you
to do that okay um the next book is um
quit by Annie Duke the power of knowing
when to walk away this is something that
um I learned to walk away at 11: a.m.
every day um you know when I was at the
beginning of my learning curve when I
well at year two when I made this big
sort of had that big mistake and then
realized I needed this discipline to
sort of recover so this is about knowing
when to quit each day it's a fantastic
book I think you'll really enjoy it um
and then we have thinking in bets also
by Annie Duke this is good um in just
the way you're sort of thinking about
trading um of course there's my book
which you guys can read the audio book
is uploaded on YouTube which you could
listen to for free so you could check
that out um this is a book uh little
market Wizards it's it's a very short
read um it's
interesting you know I I think it's
worth I think it's worth a read but um
but I wouldn't go I wouldn't go crazy on
it just read it once um dark pools this
is an interesting book for entertainment
same with um so Bandits but these are
hard well this one's harder to find now
and this is not super topical or
relevant it's more of just like nice
vacation reading to be honest it's more
entertaining it's not really relevant uh
trade mindfully this is a great book uh
by Gary Dayton on um mental the mental
side of things and thinking fast and
slow is another good book although I
disagree with the way he characterizes
day trading in this book you know he
he's sort of negative on it and I think
that there's at this point a lot of data
that disproves that that um attitude so
anyway so that's some continued reading
uh for those you guys who want to
continue uh
learning and of course tons of episodes
I've uploaded right here on YouTube by
the way those of you who haven't already
um subscribed to the channel I hope you
do hit the thumbs up uh for this episode
I hope you do subscribe to the channel
because there's lots of trading strategy
episodes um that I upload my curriculum
my full length curriculum is over 100
hours of content at Warrior trading and
um while some of you may think oh you've
got a lot of content on YouTube I do I
put a lot of free content on YouTube um
but the content that's in the curriculum
has been organized in a learning path
using enterprise software for uh online
learning it's the same software used by
big big companies for online education
there's quizzes there are PDF downloads
it it is a fully immersive environment
and then the classroom setting is my
live broadcast that's running every
single day I used to do my live
broadcast uh during as a a Morning Show
on YouTube I decided to stop doing that
uh about a year ago I decided that it
didn't make sense to give that away for
free on YouTube that was giving away too
much value I like giving I like putting
out a lot of this educational stuff on
YouTube but when it comes to my actual
trading uh you're not able to really
make the most of the broadcast if you
don't understand my strategy so at this
point my live audio video broadcast is
only for members at Warrior trading and
it's not something that's going to be uh
streamed on YouTube for free during Co
when we were all in this lockdown I was
like I'm just going to start streaming
on YouTube because you know we're all
kind of in this together and and then I
kept doing it for a while but um but I
kind of got to a point where I felt like
it wasn't helping people in the same way
that the educational content helps
people uh and in fact maybe some people
it was encouraging them to trade with
real money when they really shouldn't
even though of course I always tell
people not to trade with real money
until you first proven profitability I
think some people just not make good
decisions with that so you know I have
to do the best I can to encourage you to
make good decisions you're going to make
them on your own so uh there's only so
much I can do I suppose but all right so
um so let's do some Q&A um I'll back out
of here so you've you've got the
recommended reading which is great U
becoming a member at Warrior trading you
guys can either um use our anniversary
sale coupon code that we've got going on
right now for those of you who are
watching this live or are watching
within the next 48 hours before the sale
ends and everyone else you guys can use
uh the link which will be pinned at the
top of the comments to do a twoe trial
at Warrior trading by the way in case
you didn't know my course has been rated
by Investopedia as the most
comprehensive day trading course that's
something I'm pretty proud of there's a
lot of FAQs here uh you can Mouse over
these and see what um some of our
members say Ernesto says Ross is the
best teacher Trader ever thank you um
let's see thank you for been always
supporting us I think he's English as a
second language very proud um to be part
of warrior trading so appreciate that
from Dennis uh from Ernesto Dennis you
you guys can check these out if you'd
like to I do have featured success
stories from some of our um some of our
members these are members who have made
over a million over 250,000 over 100,000
over 25,000 and there's some videos here
anyway so check those out if you'd like
all right so now I'm going to go ahead
and
um switch to doing some Q&A so let me
scroll up here on the chat
feed let's see I'm just going to adjust
my mic as I get closer to this
computer okay
so so there was a question about um
level two first
um so that was the first one so what's
your opinion on level two price versus
ladder okay so I don't like level two in
ladder form I only like it in um the
standard form so for those that aren't
familiar um on level two and I'll
just
so oops so we've got level two and then
we've got the
lad so the ladder shows price and then
um price going up and price going down
and traditional level two shows the bid
and the offer
and the price is the last price so the
bid is here and the offer is here so
basically what the ladder does is it
takes this and flips it like this so
you've got your current price and then
this is price going up so this is the
ask and this is price going down which
is the bid um on the one hand so most
most this is something that thinker swim
does um I actually don't know too many
other platforms that show it in the
ladder the main issue is that
this is a histogram so in color so it
just um it's a gradient sorry it's a
gradient that just slowly Fades it's
very hard for me with that to to sort of
differentiate the levels uh of the
current price and where we have stacks
so I don't find this to be helpful and I
don't like using it so I do not use it I
use level two in the standard um form
right here so good question thanks for
asking that um
so doesn't using 10 cents offset eat
away your potential profit loss ratio so
yeah earlier in the class I talked about
how for my hot keys I'm using offsets of
10 cents now here's the thing um I'm
focusing on trading stocks that are
moving quickly so we've got like a $6
stock for instance it squeezes up it
pulls back right here I'm getting in
let's say $6 stop is 590 approximately
and on this I'm looking for like a 10%
return so I'm looking for a move up to
like 660 so 650 660 something like that
that's 50 cents a share so if I get in
at $6 or I get filled at
610 you know does it cut into my profit
loss ratio a little bit it does but it's
not that bad for me now if I lost a full
10 cents on my entry and I lost a full
10 cents on my exit that that would be
not ideal that doesn't usually happen on
$6 stocks though that might happen on
like a 3040 $50 stock where you get that
kind of slippage but not usually on the
cheap ones alternatively if we were
trading something that was priced at you
know
a15 then 10 cents in andout slippage
would be too much you could manually
adjust your hot Keys um but if you look
at the depth of the market you're
actually looking at the level two you
usually can get a pretty good sense of
how much slippage you'll get just based
on looking at the number of orders that
are on either side so if I see a lot of
orders I'm going to think all right I'm
going to get more slipage if I don't see
as many then I'm going to think oh no I
should I should be all right with
this um okay so good question though
thank you all right so next question
let's see uh will I bring back the
morning show yep so answer that no I
won't bring back the morning show but
I'll keep doing uh Recaps and
educational episodes on YouTube Morning
Show not coming back to YouTube let's
see um thoughts on how much to hold in
your account for capital gains tax well
so I have a whole another episode uh
specifically dedicated to that topic I
pay zero income tax on my trading
profits how do I do that I pay zero
income tax on my trading profits because
I am trading in a retirement account so
I have an episode that I uploaded um not
that long ago here let's see
um it's
uh right there so um how Traders legally
pay zero in taxes so you could check
that out if you'd like to um this is uh
specifically about that topic so it it's
a deep dive but for those that are
interested you're you're welcome to
check that out okay so good
question all right next one um can I go
over level two in price action so this
class um I'm keeping things higher level
in this class just because I I don't
think it's realistic for me to get into
the level of detail um for each of these
nine steps that would be sort of
required to like really go deep um so
what I'm going to do is let's see um if
you go
into my channel and you just search for
videos um you could just search for
level two for instance um how to use
level two with zero experience that's a
good video um these are all good videos
on how to use level two so check those
out for a deep dive on level
two okay uh so let's see next question
and yes you could move to Puerto Rico to
avoid uh capital gains tax uh for that
person that was asking about
that it's act act um 60 I act 20 act 22
something like that anyways there's
there's a whole bunch of videos on that
topic I talked about it in that class
um Okay so when I when I could not
afford to lose money what did I do
discipline myself during that time so
when I was unable to afford loss and I
had to be incredibly disciplined this is
what I did number one I knew that if I
lost after I'd funded that account again
that I I wouldn't be able to fund my I
wouldn't be able to add more money so
like this was my last chance because the
stakes were high that had me like hyper
Vigilant so what I would do is is I had
my strategy I knew the five criteria for
the stocks I wanted to trade I had
printed out my favorite chart patterns
so I had those printed out I had them
kind of all over my desk I knew what I
was looking for and I said I just have
to be super hyperfocused on this now
those of you guys um I'll actually give
you a link right here if you want to
download um my micro pullback strategy
PDF I'm going to grab you a link to this
because I think you might like this for
those that are still tuned in um this is
something can you can print out and have
on your desk um let's see so there's
this one hang on let me just find it
because I think you're going to like
this okay so the micro pullback strategy
PDF you could print it out have it on
your
desk I'm going to put I'm going to put
this in um the chat feed right here and
I'll add it U I'll just make a note to
myself to add it into the description of
this video so I printed out I basically
had the micro pullback strategy PDF you
know printed out that was my system of
like this is how I'm going to be trading
each day this is what I'm going to be
looking at and so I had that ready to go
I had the examples of the charts print
printed and pinned to my wall so I knew
what I was looking for each day and I
said I just have to wait I just have to
wait now something I actually did and I
don't know if I'd recommend this but I
think I might have heard it somewhere
and I thought it was a good idea um I
can't remember
um I put a tack in my shoe and I could
feel it under my shoe and it was
uncomfortable and it was a reminder to
only stay in the market for a very
limited period of time cuz standing
there was uncomfortable I was I was
doing a standing desk at the time so I
was like this is going to be
uncomfortable but this is just going to
be like a reminder I had a rubber band
around my wrist you know snapped it if I
started getting a little frustrated I
was just trying to do everything I could
anything I'd heard people had done I was
doing daily meditation I was running a
lot I was exercising as soon as I was
done trading I was going outside I was
painting the house I was splitting
firewood so I gave myself a lot of
structure a lot of routine and I did not
let myself deviate and what kept me
motivated and kept me disciplined to to
do all of that I set my mind to it
because I knew other people were
profitable as Traders I wanted this for
myself I knew to make it happen I had to
take it more seriously than I had ever
taken it so far so that for me was um
you know that that's what I ended up
doing okay um so let's
see offshore Brokers yeah so you know
right now whether cash only accounts
with a settlement date um T1 settlement
May 31st 2024 you know that's a big
change so I think a lot of people are
going to be using cash accounts instead
of offshore I'm not using level three
data I don't have access to it I think
only Brokers have access uh to that they
would see stop orders I don't I don't
see those
orders okay so looking for the next
question
[Music]
um can you upload simulator metrics to
Trader view yes you can you can export
your trades um so if you went into
Trader
view right here and you go to import
trades um you can actually choose the
warrior trading simulator right here and
you can import trades from our
simulator there you go sorry so you can
import trades from the simulator right
there so we've worked with them so
that's all set up so you could do that
if you wanted to um and that would be
fine and then you'd have everything
imported yep good question um and yeah
the audio book um so let's
see uh we'll go back to videos here so
the AUD book is right here uh it just
uploaded this three days ago so again
those of you guys who may have bought a
copy I appreciate you doing that you get
to listen with no interruptions uh this
has interruptions from ads and stuff
like that but um but hopefully it's
valuable for those that want to save the
$9.95 okay so psychology um is way
different when trading with real money
and that's true so I think the value of
trading in a simulator is is that you
want to do it for your first few weeks
while you're trying to figure out
whether or not this strategy is even
viable if you can't make money in
simulator there's no point in putting
real money on the line but if you can
make money in the Sim then it's like
okay let's flip the switch and trade
with real money but yeah only risk a
dollar make the risk so tiny that the
losses don't matter but it's beginning
to condition you to experience gains and
losses and keep scaling it up from $1 to
two to five to six to8 you know Etc and
the next thing you know you're risking
$100 on trades but you've conditioned
yourself to experience it so it doesn't
feel like a big um you know a big
challenge
emotionally okay so let's see U thank
you guys who are tuned in for this live
class by the way I hope you've hit the
thumbs up and
subscribed uh how many months uh should
I show consistency and profit and
simulator before going live I would say
if you have six weeks of consistent
profitability a six week stretch of
being green that's pretty good to
consider flipping the switch with small
size and beginning to experience at that
point the emotions that come with
trading with real
money okay um you have the stat that
your most profitable trades are on
stocks that are over 10% gain on the day
is that 10% prior to you taking the
first trade or based on the movement of
the entire day so that is based on the
movement of the entire day however the
over 10% is sort of a low threshold
because in fact most of the stocks I end
up trading and making a lot of money on
go up 40 50 or 100% or more so 10% is
just like the minimum at this point I
wouldn't look at a stock if it's not
already up 10% the only exception to
that would be a continuation setup where
it was up 200% yesterday and today it's
not up anything but it's holding
yesterday's high I would look at that
for continuation but aside from that um
I would say I I would say focus on up
10%
okay um let's see so let me scroll down
a little bit further get a couple more
questions
um
[Music]
so hang on one
second so I do host inperson um classes
from time to time but um I was doing
them much more frequently before Co and
I've only hosted two of them or three of
them two or three of them since then so
I I mostly am teaching my classes uh
online in uh both with the recorded
recording CL recorded classes and then
in the live um sessions that I
host do I ever chase a move yes I will
chase a move so if we have a momentum
stock we have something that's clearly
moving very quickly what I'll do
sometimes is I'll buy a micro pullback
like that and ride and that's something
that I want to trade so that's what I
would say um I'm willing to trade it but
it's got to be
moving
okay
um so why don't I have a Lamborghini uh
I mean I've had nice cars I just don't
show them off so you know it's just
that's not really the type of um person
that I have that I
am okay so let's see um what about
Market awareness how important is
General market um conditions so it's
definitely true that um that overall
Market is something to be aware of like
what's the overall market doing is the
overall Market tanking is the overall
Market moving higher um let's see so let
me just grab this here for you so what I
usually will do is I'll look at the S&P
500 the iwm is a Russell um index and
since I'm mostly trading small caps some
people would say I should look at the WM
but I generally just look at the overall
Market the S&P just to get a perspective
of like what's what are things looking
like right now so the last week we've
been in a little bit of a draw down um
but overall the last six months have
been really strong so for me if we are
in like covid you know dropping 30% like
this was a crazy big drop and it
happened really fast the world like you
know everything was on lockdown it was
crazy obviously those are market
conditions I'm aware of um the market
rally those are market conditions I'm
aware of you know this is a bare Market
from 2022 we rallied back up in 2023 so
like I'm aware of all these things but
generally I do find that I trade better
when there's a Tailwind so when the
overall Market is strong I'll trade
better and when the market is not as
strong I find that trading is a little
bit more sluggish it's a little bit more
difficult yet I have still made money um
every year consistently until I from
when turn the corner I've made money
every year consistently I haven't had a
year after turning the corner where I
was red knock on wood even though we've
had a bare Market in 2022 I still made
three quars of a million dollars or
800,000 something like that it was a
good year um you know I can have I could
I could see myself having a red year
potentially I guess but I'm because of
my way of sort of being so focused on
individual days and hitting base hits I
think that I'm reducing the risk of that
happening quite a bit so um you know I
again I just I stay focused on you know
looking for those stocks that meet my
criteria for being in play uh so if we
go back
here you know just to sort of reiterate
we've got the basic knowledge of trading
trading stations how to buy sell
Candlestick charts market dynamics but
you know once I get into risk management
I've got my system for finding the right
stocks each day I've been doing that
every single day for more than a decade
I've got my system for entry indicators
dialed in I've got my system for exit
indicators dialed in so for me at this
point trading is very systematic it's a
system that I follow every single day
the hardest part is making sure I leave
emotions at the door if the market is
choppy and I don't let myself get
frustrated and that's something that I
think we all work towards as Traders and
hopefully um I'm able to you know give
you some some tips of things that have
worked for me and inspire you to be a
more disciplined Trader because if you
can be disciplined if you can follow the
rules then you you know you're setting
yourself up really well for um you know
for a longer hopefully a longer career
at this so with that I think I will um
end this broadcast thank you guys for
being here for tuning in I hope I
answered a lot of your questions if I
didn't put it in the comments below
because I'm always checking comments on
my phone I'm always answering them so
throw a questions down there in the
comments and if you want to check out
our two-e trial for 20 bucks there's
going to be a link for that pinned to
the top of the description
uh and in the comments there's also a
link right now for the anniversary sale
although it is ending in 48 hours so
that's coming to an end but check that
out for those you guys who are here now
uh the recommended reading I hope you
guys enjoy some of these books grab a
copy of mine if you'd like and hit that
thumbs up subscribe the channel and the
micro pullback PDF that's available to
download as well so you guys I hope got
a lot out of this class we packed a lot
into what is about oh two a little over
two and a half hours so uh I hope this
was a great class for you thank you
thank you for tuning in I love being
able to be here as your Mentor as your
educator my goal has always been to
throw the ladder back down to help you
guys make your way up so if this is of
any use at all I hope you share it with
some friends and spread the good word
all right thanks as always for tuning in
I'll remind you trading is risky my
results aren't typical manage your risk
take it slow and I'll see you back here
for the next upload real soon