4/5/2020 - LIVE 🖥 How to Start Day Trading TODAY by Ross Cameron

all right well I thought I'd come on here and give you guys a little Sunday classroom time today we're going to talk about how to get started day trading I know in the last few weeks I've had a bunch of folks email me and hit me up in the comments on Facebook and YouTube and with the simple question of you know how do I get started day trading how much money is it going to take how long does it take to learn how difficult is it really and you know can I get started today so I want to answer some of those questions for you and for those of you guys that are getting logged in live good morning I hope you guys are all doing well and enjoying the weekend so far of course we'll be back at it trading tomorrow morning so this time tomorrow morning I will probably be just finishing up trading getting ready to do my midday recap and hopefully locking up the fourth green day of April as you can see I actually ventured out of my house which was kind of nice I'm down in my little office here so I suppose well um some folks get logged in I'll give you a little walk around so this is this is where I'm usually working during you know before this whole quarantine and pandemic and everything else I usually would come down here every morning and work on this laptop right here this is my my workstation at the office so main laptop two monitors and one up there and then that stuff is all that lists like audio/video stuff is all for streaming and you know I've got this space out here which is where all the folks on my team work and so these are the guys who are responding to emails so like member support staff essentially Steff is over there Ana's over there is where Kareena works where Kate works a lot of you guys who have emailed them they've talked to Kate or Kareena and so you know right now this office is pretty much empty I mean it is empty I'm the only one here and no one's been here for a couple weeks and no one's probably gonna be here for I mean we don't even really know how long this is gonna last you know this is just kind of the situation that we're all in so you know in any case you know I suppose the good news for for those of us who are in the market is that every day the market opens well Monday through Friday and there is no indication that that's going to change the market will continue to be open Monday through Friday people need to be able to have access to their money the exchange for the most part is electronic anyways and so there is an opportunity for those of you guys who are at home right now to start learning this new skill now before I got kind of walk you guys through how to get started trading I want to emphasize the fact that this is a skill the skill of day trading or the skill of being able to invest your money that you will have for the rest of your life on the one hand the goal for me is to continue actively trading but on the other hand for some of you a trading may be something that you do for a period of time until you're able to get back to doing what you really love if you're a chef for you know you you work in the service industry all of those for the most part jobs are closed right now or you know at those businesses are closed and you got it work so trading may be something that you do in the meantime and the nice thing about it is that by learning this skill it'll make you better better equipped to manage term retirement to know how to make decisions when you see something that you think is a good opportunity like buying zoom or buying Chipotle or you know whatever the case is you see a stock that you really like you'll know how to actually get in there and buy it so many people not just Americans by any means so many people out there just put their money into an ETF or just buy the sp500 and and don't look at it any deeper they don't adjust their position they just set it and forget it or they have a financial advisor that they might not really know that well who manages it for them using a cookie cutter template that they use for every client and that might not really be appropriate for you so you know until you know really more about the market you're kind of stuck with with that approach of managing your long-term you know finances and things like that so I see a lot of you guys are already getting logged in welcome that's great a question there about trading OTC stocks no I don't trade OTC stocks or penny stocks those are the type of stocks that you probably if you watched wolf of Wall Street those the type of stocks that they were talking about and I don't trade those stocks i trade stocks generally between two dollars and fifty cents and ten dollars sometimes I'll trade up to 20 25 every now and then a little bit higher but I focus on trading stocks that are listed on the New York Stock Exchange and Nasdaq meaning that they have to meet the compliance requirements of financial transparency posting their quarterly and annual earnings their balance sheets everything else that's important for me it helps me reduce the risk of getting caught in a you know a penny stock that is just really not worth not worth trading and that could potentially go to zero while a couple you guys are just getting settled in I put a link in the description for a beginner's guide to getting started date trading that link right down there below if you guys click on it you'll be able to you'll land on a page that has my guide and that will help you get started as well it'll give you some things that you can download as PDFs and stuff like that so I encourage you to check that out I'll pause for a moment so you guys can do that and then we'll get in here and start talking a little bit about how start day trading and maybe maybe I'll grab my whiteboard here and really take this role of being a teacher for you guys pretty seriously I don't have a whiteboard it's not serious all right so you guys so I've got my whiteboard here this is my conference room okay let me see how well you guys are able to do okay all right so you guys want to learn have a date tray right no first - tell me what your what your daily goal is how much money you want to make in a perfect world as a day trader not in a world of like being you know a billionaire but just realistically what realistically would be your goal as a trader let move my chat feed over here so per day 500 a day 100 a day 200 a day 200 a day 300 a day 100 a day $10 a day 300 a day 500 a day 2,000 a day that's a big goal 6,000 a day that's gonna be that's gonna be tough but maybe you meant per month a hundred a day 200 a day 800 $210 okay all right so my goal when I was getting started initially was 200 per day and that equals 52 thousand per year all right so that was my goal and I was first getting started now here's the blessing and the curse in the market the curse is that and I this was my experience you can literally spend years struggling to make even a hundred dollars a day or 200 a day and best if you don't have a real proven strategy because what will end up happening is you'll have a day where you make $200 and then you'll have a day 150 and then you'll have a day where you make 200 and then you'll have the next day where you lose 500 and say you know it's not that you can't make money but you're just generally going up and down up and down but most beginner traders that is the line you're losing money while you trade you're not making money consistently now the blessing of the market is that once you are consistently making even just twenty dollars a day if you're making twenty a day and then maybe losing time in the making thirty losing fifteen making twenty so you know you're generally moving up like this the only difference between making twenty a day and making 200 a day is increasing the number of shares that you buy that's the only difference now what I will tell you is that you trade for at least one month in a trading simulator so a trading simulator and I'll put this up here let me just move this over so this is a trading simulator right here this is the one that I have for our students so there's the charts on the right and the the actual window here on the left so this is where you would go in and you press the Buy button to buy shares you press the sell button to sell shares until you have proven that you can be profitable in a trading simulator you have no business trading with real money don't even don't even start so first proof that you can be profitable for I would generally say at least a month in the training simulator and then once you've done that then switched to real money and start with small share size start with I often say a hundred shares so 100 shares so you if you make $20 with a hundred shares how many cents per share with that how does that work well if you buy a stock at $2 and you buy a hundred shares and you sell it at 220 you've made 20 cents per share so if you had one share you'd make 20 cents if you have ten shares you make $2 and if you have a hundred shares you make 20 bucks and this is where we have the scalability okay so with a hundred shares you're making 20 with a thousand shares your goal is 200 with 2,000 shares your goal is 400 and with 4,000 shares get support and with 4,000 shares your goal is 800 now you might say Ross if you're so successful why would you go up two loops why don't you go up to 40,000 shares up here and do 8,000 what I have found is that as you scale up you start to approach diminishing returns to a certain point it actually will start to decline and the reason is due to liquidity in the market you simply can't buy a hundred million dollars of stock for a day trade you can easily get in with 100 shares 200 shares but you can't get in and out with 40,000 shares with the click of the bottom it's just not reasonable so there is a limit to scalability as a day trader and that's the reason why you know hedge funds and things like that they're not really looking at day trading because they've got hundreds of millions if not billions of dollars to invest the three hundred four hundred five hundred thousand dollars a year from day trading for them would be worth the time but for us it absolutely is worth the time all right so how do you get started well I think the the first step of getting started day trading is realizing that number one this is a career that it's to the discovery that this is a career that that many people are doing that it's actually a profitable venture for some people not for all day trading is risky and it is hard no question about it but there are some people out there that are profitably training so I would say the first step is just simply the discovery that this is a thing that people are doing to make money the market is open Monday through Friday and this is something that may be worth me learning more about alright the next step once you've discovered the day trading is something that's interesting to you is learning really the mechanism of how it works what the platforms are like and how to actually start putting money into the market or start testing a strategy the biggest challenge that most beginner traders have is that is incredibly easy to open a Robin Hood etrade Ameritrade account and jump in there and press the Buy button and by 2000 shares on the stock at $2 right it's super easy almost any single one of you guys could do that tomorrow it doesn't take a lot of effort to do that but most beginner traders with those types of trades just jumping in this or jumping in that will lose money they won't be consistently profitable and so that's when you discover that in order to have an edge in the market in order to walk away consistently profitable I really need to have some type of strategy and a set of rules that I follow every single day for where I get in where I get out how I choose stocks and things like that if the goal is $200 a day in my opinion the easiest way to get that is to focus on a stock that has news and has a reason to move higher that's generally what I focus on stocks that have news it could be news like quarterly earnings it could be news like an FDA announcement clinical trial results anything like that but I like to focus on stocks that have an actual news catalyst and I like to focus on lower priced stocks most of us when we're getting start trading we don't have a lot of money we're starting with relatively small accounts so why don't you type right now in the comments how much money you're planning on trading with if you're gonna start a day trading account just throw a number out there whether it's you know whatever it is just throw it out there and I'll just kind of see where you guys are at in terms of account size twelve hundred dollars five hundred seventeen hundred three thousand fifteen hundred two thousand four thousand six thousand sixty thousand three to five thousand five thousand fifty thousand two thousand forty thousand twenty thousand five hundred so there's a bit of a range all right now this is kind of interesting so many of you guys have heard about the dot-com bubble and I can put up my charts here so if we go back this is the S&P 500 and this goes back right now just check my style template let's say I'm gonna go to 24-hour alright so this right here was the dot-com bubble alright so from 1995 right here and all the way up to the year 2000 and the market was just it was it was on a tear a lot of stocks were ripping up one hundred two hundred three hundred percent the overall market here was up like four hundred percent and then we had then the bubble burst and we had this long period of the market trending down and this went from the year 2002 to and three in 2001 the the regulators decide to do something kind of interesting they were concerned about the number of people who had been day trading using margin during the dot-com bubble and who had lost money and we're in debt to their broker so for those of you guys who don't know how margin works a margin account and you can open a margin account with any broker each rate Ameritrade you know it doesn't matter if you put it in twenty five thousand dollars these brokers will give you four times leverage that's margin and so twenty five thousand dollars times four you actually have one hundred thousand dollars that you can date trade with which honestly is is kind of crazy you can open an account you fill out the margin application they approve most people and just like that your day trading was seventy five thousand dollars and borrowed money and in fact some of the big hedge funds and firms out there during the 2008 financial crisis were investing on margin so if you invest on margin and let's just you know think back to the 2008 financial crisis you invest on margin you've got a hundred thousand dollars in this let's say you buy $100,000 position well if all of a sudden this drops by twenty five percent which you know ultimately would be a significant drop but let's just say that happened then it's only worth $75,000 and your twenty five thousand is worth zero which means the broker closes the position they get back their seventy five thousand and your account is gone it's it's it's gone now if you have a big firm like you know Lehman Brothers or something like that and they're investing on leverage what happens the entire firm goes out of business and so of course there was regulation that came into place after 2008 to prevent from happening again and in 2001 to prevent beginner traders from making that type of mistake February 27th 2001 the PDT rule was put into effect it's the pattern day trader rule and that rule states that if you're gonna date trade more than three times a week with any us broker on margin you need a minimum of 25,000 and so then you have two choices to make three actually you can trade with a cash account and you can day trade with as little as $500 but when you have a cash account you've got to wait two days for every trade to settle so you really can only trade like every other day you can trade with a margin account if it's above 25,000 or you can trade with a offshore account these are three choices I've done each one of these three I've used offshore accounts in the Caribbean that don't enforce this PDT rule I've used cash accounts and I've used a margin account where I'm above 25,000 obviously that's great if you can do that but a lot of folks is a beginner trader are gonna want to put $25,000 on the line if you're in the position where you can then that's terrific but for those that can't really cash or offshore are your two choices so when I did an offshore trading account in just this past December just a few months ago what I did was I funded an account with $500 all right so 500 dollars in the account I didn't have a 25,000 I did a small count challenge and during this challenge I traded three times every day three trades per day and by the end of the month my account had grown to 53,000 dollars from 500 to 53,000 trading 3 trades per day if I had done that same challenge over here I would have only been able to trade probably at most once a day with $250 so I could have set up a $500 account but I would have only been able to trade you $250 every day so you trade with half the balance every day and your waiting always two days out for settlement I grew my account more than five times faster by using offshore broker so this for me made sense it was worth it to grow my account faster but for some you'd say you know I'd rather spend the first 30 days just trading in a simulator just getting a feel for whether or not I can figure this out and then if I'm profitable the end of 30 days then I have to make the decision of do I use a cash account at etrailer Ameritrade do I use a margin account with 25,000 and up or do I use an offshore broker and the choice is 100% yours it's a risk and reward analysis and it's it's one that ultimately we all have to make when we're starting trading so at a curiosity and and those of you guys who are familiar the offshore broker that I used in December is called cmeg cmeg so I'd be curious just to sit here your input of what you think is better using a cash account using a margin account that's below 25,000 which means you could only trade three times a week or using an offshore account so those are your three options if you're below 25,000 what do you guys think makes the most sense again not to put the apple cart ahead of the horse that doesn't sound like the right way to say that but in any case the horse ahead of the wagon because ultimately the the first step is just to prove that you could be profitable and if you can be profitable then well let's handle the next step of making the decision on the brokerage account you know it's it's kind of like sometimes traders will say we Ross I'm thinking about learning how to day trade should I set up an LLC to start day trading with and again that's something that a lot of traders do if you're profitable and you're trying to maximize your write-offs and things like that but let's cross that bridge when we get to it so first go through the simulator prove that you're profitable start actually making some money and then maybe after your first year of being profitable for your second year take the time to set it up if you want to but it's again something that you do when the time is right all right so I wanted to cover the PDT rule and get into a little bit of the broker talk just so because I know that those are two really common questions and in terms of brokers my preferred broker for small counts number one is cm eg number two is TD Ameritrade and number three is three so those are my preferred Robinhood and people I don't like because I don't like trading on my phone I don't like trading on apps I just don't think that there is good as TD or a tray and then cmeg of course is preferable if you have a small account but if you have an account with 25,000 or more then you absolutely one of the bigger brokers okay so I answer the question of which brokers I like I talked a little bit about the pattern day trader rule I think I talked about how much money you need in order to start trading the minimum is $500 and that's that's true with TD Ameritrade and with cmeg I can't remember what each rates minimum is not to say that if you had more money to start with that wouldn't benefit you but I've proven through several small account challenges that even with as little as $500 you can easily you know set up an account the minimum account size is anywhere from 200 to 300 sometimes 500 okay so now the question is in terms of how do I get to started trading how do i with this really tiny account manage risk right that's the challenge you want to make money you want to grow the account you don't want to take a lot of losses so my recommendation of course is to set up an account in the trading simulator whether you use the one that I provide for my students as part of the warrior starter course or the warrior pro course or you use something like TD Ameritrade paper paper money you set up in an account you set it up with $500 and start practicing so in terms of managing risk this is the way I think about it I want to risk $1 to make $2 this is called a profit loss ratio the profit being to profit loss ratio profit loss ratio of two if you use a profit loss ratio of two to one your break-even point is thirty three percent accuracy meaning if you're right 33 percent of the time you will be breaking even okay now so far this month in the last three days my average winners have been a little over two hundred dollars my average losers have been about a hundred and my accuracy has been eighty one percent okay now I have taken about thirty four trades and my net profit right now is about five thousand dollars and that's in just three days the reason that I'm able to make that much money is because of this profit loss ratio if my average losers were three hundred dollars and my average winners are only two hundred I have a negative profit loss ratio and it'd have to be right more than fifty percent of the time just to break even in fact I'd have to be right closer to 60 percent of time in order to break even and that makes the margin for error very small and essentially what you're doing is you're stacking the cards against you so let me pull up my stats here for the month so far I that pulled that off the top of my head but I'll show you the actual statistics here so let's see um we just I got a minimize e signal okay there's a signal here we go okay so these are my metrics here and let's move this over for the month so far alright so actually 247 dollars are my average winners a hundred and four dollars my average loser so the question here is are you comfortable risking 104 dollars to make 247 I'm comfortable with that especially knowing that I'm right almost eighty two percent of the time right here now I'm not using just like cmeg the broker that I use actually should still charges commissions so if you use t v-- ameritrade or you use e trade no commissions but i use a broker that still charges commission and I use that broker because I really like them I've been using them for a really long time the bulk of my profit and I could just pull this out here or well I'll do that in a second but the bulk of my profit has been from using this broker so I don't want to change what's been working so I'd rather just keep paying this commission since it seems to be working well for me so that's five thousand eight hundred sixteen dollars of profit on thirty-two trades so far if I go to price and volume right here the majority the stocks I've been trading have been between $2 and $5 I have a couple of trays that are over five and looks like one trade that was under $2 days and times the bulk of my profit is between 9:30 and 10:00 a.m. so I trade for a really short period of time from about 9:30 to 10:30 and the bulk of the profit is in the first thirty minutes so if you have an extra hour a day over the next few weeks or a few months and you want to watch me trading every single day in the morning you can literally watch over my shoulder as I'm trading I start my watch list around 9:00 9:15 a.m. the bell rings at 9:30 I start trading then and I trade until about 10:30 then I do my midday recap you don't need to trade for seven eight hours a day this is five thousand eight hundred dollars of profit in three days trading for about an hour a day I'm a big advocate of being it simple you don't want to over trade you don't want to overstay your welcome you want to focus on equality setups trade the best leave the rest now of course I have the advantage of many years of experience so the metrics that you're seeing right now I have a lot of confidence in this strategy because I have so much historical data to back it up as a beginner trader how do you develop that same level of confidence this is a really challenging one because there's a beginner trader you know you haven't been trade you have no experience trading you don't have a strategy and so you know you could come in and say well I'm going to you know I'm gonna I'm gonna make sure whenever I take a trade I risk you know ten dollars to make 20 so you know I have the two to one profit loss ratio okay so that's good you're managing your downside risk but you know then the question is how do you find stocks to trade and what are you gonna trade you're gonna trade Apple you can trade Facebook you're gonna trade Alibaba are you gonna trade low priced stocks cuz the thing is most beginner traders you won't know about low price tax will be familiar with that and this was kind of the problem that I had when I was getting started when I was first getting started what were some of the stocks that I knew about I certainly knew about stocks like [Applause] so I knew about stocks like Apple I knew about stocks like ExxonMobil American Electric Power US Steel most of those stocks are priced anywhere from $50 all the way up to at the time $700 all right so if you have a $500 account generally speaking these stocks are too expensive at most what would you be able to buy one share not even of Apple and it was at 700 you wouldn't be able to buy one share of Amazon you could buy 10 shares of you know lower priced stock but you really can't trade with very much share size so what I ended up realizing was that most of my bigger winners were on the lower priced stocks and that the lower priced stocks were really good for growing an account because let's just say for instance and I'll just let's take a quick look at a stock that we traded last week just as an example all right so hopefully you guys can see my chart here yeah caterpillar that was another one Chris yep I was trading caterpillar so this was apop here from last week so here's the day right here and let's just look at this where this stock I mean really unbelievable squeezes from a dollar 50 all the way up to four dollars and sixty two cents now I can dial in and show you the exact place where I'm a buyer exactly where I get in exactly where I get out but to begin with let's just talk about why this is a stock worth trading and how I would have found it all right so this is a stock that's worth trading because it's under $10 so if you put $500 into a into a trade and let's say the stocks at two bucks it goes up to four dollars right you've made five hundred dollars of profit you've doubled your account in one day that is not gonna happen Trading Apple Netflix Facebook Google unless you're trading options but to learn how to trade options is you know it's not it's it's kind of like it's one thing to learn how to ride a bicycle you've got that skill forever it's another to learn how to ride a unicycle a unicycle is gonna be a lot harder take a lot more time a lot of people will just never figure it out or you know trying to learn to ride one of those bikes that has the huge wheel like that and the tiny wheel there you know I'm not saying that there aren't people that can do it but you're trying to learn something that is inherently very very difficult day trading is hard enough without having to try to figure out the derivative markets options so to keep it simple we want to focus on buying stocks and selling them higher for a profit and so what I generally found was that stocks between $2 and $10 are the best for a count grow they're actually incredibly popular among retail traders like us because you can put 500 in and grow your account very quickly you could put 5,000 in 10,000 then you can't really put in $500,000 unfortunately most of the stocks if you were really gonna try to buy $500,000 worth you'd have to take a fair amount of time slowly accumulating shares getting in and a period of time getting out it's just not as easy to get into now and so again that speaks to the sort of scalability of day trading which is that you know you can grow from 100 shares of 200 to 400 to 800 and then up when you get close to 10,000 you start to come down but and either you adapt a secondary strategy that picks up here or you start to decline a profitability now this secondary strategy could be focusing on these higher priced stocks for instance where you could trade with larger amounts of money but most traders that I've found that I've known will really just kind of find their sweet spot somewhere in here where they're maximizing their profit while still keeping emotions low because once you start to get up here of trading with fifteen twenty thirty thousand shares you can be risking ten fifteen thousand dollars in a single day and although you may be able to afford it financially mentally the experience of losing fifteen thousand dollars in one day is difficult for a lot of us to handle and then was a bad was a red streak looked like with this type of share size what happens if you have three red days in a row you're down forty five thousand wears a red Street here three days in a row you might be down four hundred or you might be down maybe four thousand and that for a lot of traders is much more manageable it's easier to handle than the big losses that come with really big share size but again the strategy that you choose and the way you manage risk will be in a lot of ways a reflection of your personality so this is my two cents with with learning how to trade the best approach is to find someone who is a profitable trader to learn their strategy inside and out and start practicing it for yourself you know and this is my experience of learning how to trade was kind of interesting because I didn't have anyone that I was able to learn from I tried learning a little bit from people you know certainly there's YouTube videos out there things like that but you can only learn so much in a YouTube video and a lot of people they only show one side of the coin you know they only show their winners they don't show their losers and even those that might show winners and losers it's hard to really understand exactly what the strategy is until it's been very clearly articulated it's kind of like it's sort of like there's a proven business model for certain things you know if you want to get into the you know the craft brewing beer brewing industry there's a business model for that it will lay out what your profit margins are what your overhead should look like and you know what your balance sheet should look like and so you can measure yourself against others that are already doing it and you kind of have a template that you can work off of and that template will help you understand whether or not it's even feasible to get into this this industry certainly doing something like opening a coffee shop or you know coffee roasting business there is a business template for that this is what it looks like this is what you have to do this is the equipment you need and with day trading its that never really was the case and so that was what I started doing that was very different from what anyone else was doing when I first started teaching I actually put together what is essentially a business plan for how to day trade and so I'm gonna share a little bit of that with you right now again those of you guys just getting logged in there's a link in the description that I want you guys to click and well while you click it so you don't miss anything I'm gonna refill my or grab my drink click that link in the description for the beginners getting started guide it's a kit that I put together specifically for beginner traders that outlines a lot of things that we're discussing now but also goes into more detail which I think you guys will really appreciate all right so you guys who are clicking on that you're not missing anything just walking to get my drink no sitting back down and I'll also just post the link here so you guys can see it there you go it should be right in the description as well okay so in terms of the business plan what you guys want me to cover first thanks Mario two questions on the offshore broker so offshore broker say let's see all right so we've got broker it's pendous works well alright I'll get a couple here and then I'll be good so we're gonna start laying out the basic business plan for getting started training okay so we've got our interests me and I guess this I would say this would be under tools so you've got broker cmeg or t v-- ameritrade those that I'll just put those as my kind of to prefer again if you want to use Interactive Brokers you want use e trade you want use fidelity Charles Schwab and it's probably fine but we'll just put that to start okay let's do equipment one computer and that's I mean that's kind of it I you know I'd like to have external monitors the ones that I have are a hundred dollars each on Amazon so you know grab two monitors two monitors it's 200 bucks maybe you don't do it on day one but you plan to do it you know in a few weeks or a few months so that's kind of your overhead right there it's kind of amazing in terms of last year I made three hundred seventy thousand dollars and my day-trading overhead in terms of equipment a computer with a couple monitors the tools I've got my broker what do I also need most brokerage platforms are going to give you charts and they're going to have scanners built into them and everything else so you don't need to subscribe it anything else there obviously education is important it's not that much different from you know learning any other trade whether it's electrical plumbing welding this is just business that you happen to be able to do from home so you know warrior classes again you can make the decision for yourself which ones you want to take or whatever else so we've got tools education equipment and this right here is sort of how you get the next thing which is strategy and this is kind of also I would say your niche all right let's say you want to be an artist now are you you're naturally artistic and you want to be a painter so it's like okay well well with an artist you know trader okay well what kind of trade are you a futures Forex cryptocurrency are you you know what kind of what kind so artists what kind of art is a sculpture is a pottery is it painting is it draw is a charcoal you know find your niche so what's what's your spot and again that can be sometimes a product of well this was someone I met that helped me develop this part of this niche right so if I happen to be a Forex trader and I was teaching you forex you might be like oh well you know I like this guy Ross he's you know seems like a good teacher so he does forex okay I guess I'll learn forex sometimes it is just the the nature of I had a teacher who was really good and helped me learn this and this happened to be what they were good at so it's what I learned but you got to find your niche because you can't do everything you can't trade forex crypto Futures large cap small cap everything at once you got to have one thing you're good at it's kind of like up in up in New England here a lot of the farmers they do these kind of like boutique you know artisanal you know heirloom tomatoes or something like that because they can't produce tomatoes in the same quantity as the big you know kind of like mass agricultural farms out west and so they they they have their niche and that neechal ask them to do really well so it's kind of the same with trading it's don't don't try to be a jack of all trades and a master of none master one strategy and so once you find that then you have the outline of the strategy so you might have rules and let's just say number one it's stocks between $1 and $20 so lower price let's say number two its we say trading 9:30 to 10:30 a.m. Eastern time only and let's say number three it's risk a hundred to make 250 right so you start putting this together these are the rules of the strategy this is very surface level but this is what I get into depth in the classes so through these classes this is where you'll learn how to find the right stocks of trade because it's like okay well I'm trading stocks between 120 dollars there's a thousand stocks between 120 how do I find ones that work how do I find the one or two each day that I should be trading so that's what I walk you through trade between 9:30 and 10:00 that's straightforward enough risk 100 to make 250 ok that's straightforward enough have max risk and risk parameters Sun your account that's something that's really helpful but this is kind of how you start to develop a strategy and it can be on a surface like this this is the high level and then you get into more detail you know okay well you know a B C right stock between 120 with institutional ownership with less than X amount with outstanding floater less than X amount with the news catalyst with high relative volume with RSI of this with MACD of that right so then you start to fill out the details underneath this trade between 9:30 and 10:00 a.m. however most aggressive between 9:30 9:30 and 10:00 and then trade with smaller size 10 to 10:30 risk 100 to make 250 okay well maybe that risk is different at different times a day or maybe it's different at different times of the week or different times of the month or you adjust this based on the strength of the overall market so these are kind of the nuances within a high-level view and then going deeper down to make it more granular the goal is that you're able to put together a document that outlines your business plan it includes the tools the equipment the education the risk that you're going to take in terms of this endeavor to learn how to trade how much money you're willing to put into it and then the rules of the actual strategy of how to find stocks to trade we know that we can set up an account with as little as $500 we know that you can get computer on Craigslist or it's used for less than thousand bucks if you don't have one already so you know all in here could be a thousand dollars and then you've got the educational programs that we have over or you're trading which you guys can check out and that essentially is your overhead to get started at a minimum one of the reasons that I did those five hundred dollar accounts is because sometimes traders would say Russ you know I have I have three thousand dollars to start trading why should I put $1,000 or $1,500 towards education I should keep all of that money for my broker account and what I wanted to show you was that number one in my opinion it's not about the size of the account that you have to start it's about the education it's about the strategy you can start trading with a fifty thousand dollar account but if you don't have a strategy you're gonna lose money you start trading to three thousand or camp you know the strategy you're gonna lose money and so you need to start first with the development of a strategy with trading in a simulator and the last thing that you should be doing is opening a real money account open a real money account once you've gone through the warrior starter class you've gone through building your strategy you're in the warrior pro class or you've just gotten into it and you're showing proof of concept that you're making money in the sin so you know if you start with opening account first and some traders will say well I'm just gonna take a couple trades and see if I can make money to pay for my education and what usually happens is they lose money because they don't know what they're doing and then they start basically in the hole or they you know with no plan plan to fail right exactly they basically just shoot themselves in the foot before they get started and you know I'm not saying any of this just to be you know hard on you guys or whatever it's just a very fact that when I got started I made all the mistakes I made all those mistakes I didn't have number one I didn't have the right equipment and if the right broker I had no understanding of risk management I just opened my first account and started started trading in it and guess what happened I started losing money and then because I was losing money I started getting really stressed out and you don't have to do it like that I mean you really shouldn't do it like that the way I learned is not is not the best way to learn now yes within the beginning beginners getting started guide I do have a link in there where you guys will be able to download a copy of my book this will help you there's no question about it if you want to learn how to skydive it's probably a good idea to read a couple books about it it's probably a good idea to read a couple horror stories make sure you know what you're getting into but ultimately reading a book is not going to equip you to jump out of an airplane by yourself right there's a process of learning which is converting this knowledge into a skill you guys right now and just in the last hour so that we've been hanging out here some of you who have learned a lot I hope let me know if you think you've learned quite a bit so that's knowledge right you've learned a little bit about the price range of stocks that I trade a little bit about risk management you know a little bit about how to get start trading brokers and things like that but how how do you convert knowledge into a skill it's by practicing it's through experience right and yes please hit that thumbs up button and feel free to share with a friend if you do feel like you've learned quite a bit if you're not already subscribe to the channel I encourage you to subscribe I'll be live-streaming as always tomorrow morning doing my pre market analysis I've got the course that beginners and I'm getting start guide for you guys to go through between now and then but you have to start practicing I mean that's what that it's practice makes perfect sometimes you know people will say who are maybe frustrated Manross must just be really lucky you know he just he must have had some good luck when he first got started and you know he just figured it out along the way but it must have just been luck and if that were true then what it would mean was that the harder I studied the luckier I got so was it luck or was it from studying I think it was from studying you know so I want to encourage you guys to start studying and many of you who are in this situation right now of having a lot more time on your hands dedicate that this period of time to learning a new skill it's a skill that you will have for the rest of your life it's gonna teach you a lot about yourself to get teach you a lot about risk management it's gonna make you better equipped to handle the ups and downs of the market and I think it's a good use of your time you know full disclosure day trading is hard day trading is risky most of you guys watching this right now probably won't go on to really do much with what I've just shared with you or to really take this super seriously or become successful traders but there are there's a small handful of you who will and you'll be able to look back and say Ross and was this is the moment where I took the leap and I learned how to trade and maybe a year from now maybe two years from now you become a member of 100k club at warrior Trading which is a badge of honor that you get in the room every time you're typing just like you guys are commenting right here you'll have a little hundred K Club badge right your name that that shows to everyone else that you're someone who's made more than $100,000 day trading on Friday we did a little session with me and a couple of a couple students that are in the Hunter K Club and we sat down with Ted and Diane who run the trading psychology program at warrior trading and we talked about the fear the fears of missing the fear missing out the fear of missing these big moves in the market and how even after years of trading we still sometimes have it so trading on the one hand is a skill but the ability to be a really good trader every day is a little bit more like a muscle because it's something that if you stop focusing on the things that make you good it'll it'll atrophy and so that's kind of like you know being able to focus on having discipline being calm cool and collected and I can tell you that I have days where I come in and I'm really centered I feel really strong and I have other days where I come in and for whatever reason I'm just not on not on my Center and I don't feel as grounded and those are days that I am much more likely to not be as good of a trader but fortunately through my years of experience I've developed a pretty good sense of awareness about where I am on any given day so I don't get myself into that situation so you just said you want to see my lambo so I would you know I think about that sometimes what is it that makes profitable day traders wanna buy Lamborghinis because you know it seems like there's a lot of traders out there who have become successful and successful as a day trader usually means you've made a million dollars or more so you know let's say you make three million dollars four million dollars five million dollars this day trader and then the first thing you do is go out and buy a Lamborghini I don't know you know the nice Lamborghinis like four hundred five hundred grand so it just seems like a funny thing and I don't know if it's because it's just this culture right now with the Kardashians and everything else that it's just really fun to show people how much money you've got or to be like yeah I've made it I'm rich but you know Kardashian's of course are worth hundreds of millions of dollars so a Lamborghini is literally a drop in the bucket whereas for a day trader who's made five hundred grand well that's pre-tax they pay tax on it and that Lambo you know there are traders made a couple million that Lambo for four hundred grand that's a lot of money percentage-wise I have kind of a different approach on on the car thing I I've had some nice cars and I've kind of I don't know I mean I like it's nice to have a nice car it's nice to have nice things but I I can't help like if I pull up and I see someone in a parking lot let's just say I'm like going through the grocery store and I'm rolling up in like a Lamborghini and they're loading their groceries into the back of like a Subaru it makes me feel like a real jerk like you know that just feels like super insensitive and you know nothing it's my job to be like managing other people's feelings but I just feel like if someone came up to me and did that when I was loading groceries into my Subaru I would just feel like man I really suck I would just it would just make me feel bad about myself and I don't know I mean that so yeah obviously people if you you know you see someone driving Lamborghini you you look and people like maybe getting looked at and you know for marketing and stuff like that obviously I know that there's you know folks that mark it with the Lamborghinis and the Ferraris and that's lifestyle marketing it gets a lot of clicks I'm sure but I don't know I just I can't really I'm not super into it and you know I just I had my red Mercedes that I just sold it got shipped out to the west coast someone out there wanting to buy it and I was kind of like you know I'm sort of over it like it was a fun car but I I don't I don't know it was just like I don't need it so I'll get a new car at some point but I just don't feel the I just don't I don't know I don't feel like I need to rub it in people's faces I don't I mean I you know I know someone when I was growing up who was a multi-millionaire and he drove small old cars needed someone else who when I knew him he was he had almost a billion dollars and he drove a pickup truck so you know I don't know it's it's nice to have nice things but also from the investment standpoint I have a hard time wanting to buy something that's you know four hundred five hundred thousand dollars that will be worth maybe 20% of that in like six years it just it's not a smart way to spend spend your money so the type of cars that I do like are classic cars I like older cars because you know I have a car from 1969 I bought that car it's already 50 years old and it's it's depreciated its depreciation has already happened so now I just get to own it and I could sell it in a year or five years or whatever for probably the same as what I paid for it maybe a little more maybe a little less but you know I I don't that's something that I feel like is more of a an investment than anything else and something I enjoyed so you know I'm okay with that but anyway so let's see um yeah actually I did see a post about Lamborghini making face masks which is pretty cool so that's that's very cool yeah Warren Buffett you see that he likes to drive older cars you know again it's nice to have a safe car I I have a Land Rover that I drive it's a safe car I do like that it's not super flashy it's just a nice safe car it's it's it's like four or five years old but you know I got it new and it's a good car I like it okay it doesn't have chrome you know we're gold rims it's just uh and you see him around it's but it's a nice car so it's nice to have nice cars nice have nice things but you know it's in measure I don't I don't I just find it interesting how so many those date traders out there will just Park that really just ostentatious car and then get those pictures well I have a I have a warranty on the car that I got and when I bought it I got it with a I think it was a six year 100,000 mile warranty whichever comes first so I'll probably trade it in when the warranty comes up so let's see how do you make the transition from paper trading to real money so it's the transition from trading and a simulator trading with real money can be a bumpy one the best thing you can do is when you make that transition to trade with really small share size so you don't get emotional that's the biggest thing you can do because you will make mistakes as you get started there's AB there's just there's no way around it you'll make mistakes everyone makes mistakes so you want to trade a really small share size so those mistakes don't all of a sudden set you in a really bad place that's that's the best way to do it so you start with whether it's 10 shares or 50 or 100 you start with small share size and at the end of each week you increase your share size by a small increment and just slowly increase it slowly increase it it's kind of like dipping your foot in the water you just you go and slow and if you run into issues right away well you know okay it cost me 50 bucks whatever no big deal right but if you go in with 5,000 shares and your first trade you lose five grand all of a sudden you're gonna feel you're gonna feel really devastated so that's the best way to do it but and not until you've had at least one month of profitable trading in the simulator and so this is the simulator and this is my OBS but oops let's see so that's where is it there's so this is the simulator that a lot of our students use and this is a it's software that is used with cmeg and a lot of other brokers but it's pretty straightforward and I show you guys how to use it as part of the classes but you practice here prove you have what it takes to be profitable and then flip the switch all right you guys so um I think I'm gonna let you go and I'll catch up with you all first thing tomorrow morning again free market analysis will be live on YouTube around 9:15 if you haven't already click that link right down below to get the beginners getting started guide do yourself a favor and click it right now and if you're not already subscribed to my youtube channel my facebook channel my Instagram channel and my in Twitter you're seriously throwing your life away so hit that subscribe button alright you guys so that's it for for me for now I'm gonna go get some things done and I will see you all first thing in the morning and some of you guys who manned up to sign and join the classes today I'll see you guys in the classes alright that's it for me see you guys in a little bit bye everyone

Channel: Warrior Trading

Views: 453,163

Rating: 4.9113922 out of 5

Keywords: day trading, day trading strategies, trading strategies, how to day trade, beginner trading strategies, momentum day trading, stocks, trading, how to trade, stock trading, penny stocks, pdt rule, shares, float, volume, candles, profits, Wall St, finance, brokers, Ross Cameron, warrior trading, day trade warrior

Id: U0fmwn7742A

Length: 68min 10sec (4090 seconds)

Published: Sun Apr 05 2020