My Day Trading Strategy - How I Make Money Online

i get this question all the time now tell me if this is you hey quick question i've been using this strategy and it was successful for two weeks and now it's got four back-to-back losses then they go into asking me which strategy i use and what the percentage win and loss is on it i don't trade one specific strategy i know pretty much everything about day trading and in my experience that's the only thing that's going to get you to become a profitable professional day trader so in this video i'm gonna break down everything so make sure you got enough time because this is probably a 20 to 30 minute video [Music] welcome back to the channel everybody my name's artie and this is the moving average a show where we discuss everything day trading to keep you profitable this is the issue with people learning how to day trade through youtube videos they get one like hyped video about this strategy makes this percent all the time and it's a little bit of an exaggeration i like the fact that through my day trading journey i've lost a lot and every time i lost a trade i wrote down what happened so that i can learn why during that situation i lost that trade because of that i continue my education and constantly think about new concepts new ideas learn new price action strategies all of it and so this video is for those people asking what strategy i trade i'm going to give you a full breakdown of how i start my analysis how i can identify price action movements how i drop my support and resistance which confluences i use the whole shebang so let's get into the charts and i'm gonna show you exactly what i'm talking about okay so right here we're looking at gbp usd on a one hour time frame from here i've already drawn up the most recent support and resistance levels what you need to do is find these levels where the price rejects or bounces off of and then draw a line the horizontal line tool is right here for those of you that don't know when you drop these horizontal lines you will tend to see that these prices right here are usually even numbers if you can adjust it just a little bit to be those even numbers these are what is known as psychological price levels for some reason at this price point the price reversed or stayed in the period of consolidation but again some of them do not do that like this one right here and i will explain this one a little bit later once you've drawn up your support and resistance on the one hour because it's probably closest to the time frame that you're going to be trading whether you're on the 5 minute or the 15 minute what i want you to do is jump to a higher time frame like the daily once you put it on the daily you'll be able to see that yes a lot of these support and resistance levels match up over a long period of time you're seeing a lot of rejections off of these exact same levels whereas i only did my analysis to about october 13th 2021 whereas this chart goes all the way back to may 2016. you can see these support and resistance levels are very static and tend to have the same occurrences over time now again guys this is before i put any indicators on here i want to get a good overview of what this exact market is doing this is why i suggest only focusing on one pair and until you've mastered that do not go on to another one the next thing that i want you to look at is the direction of the price is the price moving down or is the price moving up that is known as a trend and within that trend is what's called market structure the price will go down it will go up it will create a lower low a lower high a lower low a lower high a lower low that is the basics of market structure once market structure is broken and instead of creating a lower high it creates a higher high and then a higher low and a higher high that is previously broken market structure so you're looking for a new trend then continuing on you can see the price made a higher low but failed to make that higher high breaking that market structure showing a reversal of the price now as price goes down and starts to form this market structure this usually isn't random zigzagging staircase patterns of the price the price had a lot of momentum going down and then shot back up this movement back up against the original movement is known as a retracement a vast majority of these retracements you can use a fibonacci retracement tool to look at what percentage of that movement the price retraced so this is your fibonacci tool if you would like to know good optimal settings just take a screenshot of this and adjust yours later but essentially from top to bottom of that move you're looking for one clean long movement then when the price retraces this is the most ideal zone this is known as the gold zone between the 0.5 and the 0.618 that means that of this entire movement it went backwards 50 or 61.8 percent when it does that it's almost assured to go down to the same level that it was and if it continues these are your two different price targets the negative 0.382 and the negative 0.618 a 38.2 forward movement from that original movement or a 61 percent forward movement from that original movement the reason why this should be your take profit one right here meaning that it may not continue after that is the possibility of a double bottom at this point so if it rejects off of that level you're looking at a double bottom if you do see one of these you should also be looking for an accompanying rsi divergence so the rsi was say massively overbought at a 20 level right here and then right here it was at 37. so even though the price was at the same level here the rsi is showing you a discrepancy there and indicating that an upwards movement from that point is possible so using that exact same concept if you take the fibonacci tool and you take it across this big fat movement that happened we're basically retracing here at the 50 level which is also a known level of support and resistance once that happens your price target 1 should be here and then you can use the other two for long term price targets or you can simply target the next support and resistance level all of these options are dependent on the strength of the trend as you can see the original movement was extremely strong and violent so the likelihood of a continuation is higher again even when the market structure was broken down here this move from this support level up to this resistance level is that one continuous movement and the price shot down in one one hour candle perfectly to the 0.5 nice fibonacci gold zone and continued up now how do you know where these pivot points are what is the indication of it and it is all candle formations groups of candles together or one specific candle that tell you a story and you need to literally study all different types of candle formations sometimes it's easiest to print it out and have it right next to your screen so you have a visual representation of all of these candle formations before you can actually memorize them so like right here you can see a perfectly rounded top ending in a big fat engulfing candle and again a very sharp movement like that is likely to retrace at a lower fibonacci level like a 382 as opposed to a 0.5 or a 0.618 like we saw in the previous example because that move was less aggressive this was just cascading down like a mother now candle formations i've covered in previous videos with price action candle formations i made the video you can see the thumbnail right here if you want to search it later or you can just google price action candle formations now because i'd be trading on a 15 minute time frame because it is becoming my most favorite time frame because the candle formations and the structure of the price and how everything goes keeps me relatively in tune with the higher time frames so for example this one the big engulfing candle started the movement down brought it down to here we had a 382 retracement and then it continued down but even if you're not using the fibonacci tool if you know price action structure you can see a wedge pattern being formed big move down wedge breakout continuation and another thing that you can tell because of long hours studying all of this is a tweezer top so you get this rounding top starting to form and then you get this perfect tweezer top zooming in right there you can see the closing of one candle was the exact opening of the next candle and they have the exact same candle wick length this is a tweezer top so that tweezer top right there was a signifier that that movement is just going to drop down right there then when you're looking at your price targets you want to always keep in mind these support and resistance levels they are the easiest price targets to hit this 382 retracement was closest to this support and resistance level so i would have gone with that support and resistance level instead of a little bit further to that and if you're one of those people that wants to swing trade swing traders do one thing very very well and that is a trailing stop loss they are able to hold trades longer because they keep moving their stop loss up to the retracement level so for example with this movement they entered in here price came up and retraced they moved their stop loss from here to here as the price continued and made a new lower high they moved their stop loss to there kept going down retraced they moved their stop loss to here kept going down and broke market structure right here so this stop loss was their take profit they did not get the entire move their stop loss was hit because they trailed it the entire time so unlike a normal person scalping for 20 or 30 pips a swing trader adjusting and trailing their stop loss got a 419 pip movement on this the issue is it took 15 days i can't do that i'm not capable of it it's just not my style of trading but everybody has their own style of trading now once you've done all of this and you've decided that this is your entry but you want a little bit more confidence in your trade you want some more confluences at this point and only at this point should you start using indicators to give you that confluence so what i'm looking for here is either an engulfing candle or it rejecting off of a moving average seeing an overbought territory in a stochastic rsi or a divergence on a traditional rsi so now we can start using those things so this is my indicator the tma overlay and you can see we have the 200 moving average the 50 moving average and the 21 moving average these are all smoothed moving averages they're the ones that i prefer i've changed the settings a bit just to do this just to show me three line strikes and the 21 the 50 and the 200 everything else is unticked so as you can see the price is retracing up to that 382 level and then we get a three line strike three consecutive candles in one direction and then one engulfing candle in the opposite direction and that happens exactly at a 21 period moving average so how many confluences is that trade right there you've already got a fibonacci retracement that's one you have a three line strike engulfing candle formation exactly at that level that's two at that level is also the 21 period moving average that's three now if we draw a vertical line on that candle right there and pull up a stochastic rsi you can see that the stochastic rsi is crossing over and going in the downwards direction we are in an overbought territory and stochastic is crossing over that is confluence number four this is what that trade looks like in a live scenario so say you're live trading the markets right here you see this big movement down a move up to the 382 and then boom you get a three line strike it's rejecting off of the 21. it's a 382 retracement you're getting a stochastic crossover right here that is your entry you're taking your short position and you're laying it right there your stop loss is going to be the next moving average up maximum if this were a less violent move down i would move my stop loss up here because i would be expecting a gold zone retracement but because it's retracing at the 382 the next moving average up is completely fine you can even do the 50 level on the fibonacci tool on a 15 minute time frame that's a 17 pip stop loss and that is perfectly acceptable now before you actually enter your trade you need to see if your take profit area is going to be good enough to actually take the trade if you're only looking to get 11 pips out of it you're not getting a good risk to reward ratio so if you're targeting the previous low right here you're looking at a 1 to 2.19 trade right here this is plenty especially if that's being your take profit one area but because this move was so violent you have a lot of momentum in that direction so you can actually look to ideally take it to that 382 forward fibonacci level which is also a known level of support and resistance so out of this trade you're getting a 1 to 4.3 risk to reward ratio which is amazing and if you use those trailing stop loss techniques that i showed you earlier you can actually close 90 of your trade here if that's your main income and that's the way you normally trade and you can train yourself to take the other 10 of that remaining trade that's still active and trailing stop loss it to get more accustomed with swing trading and just as a reminder for most of you guys that already know how i like to trade i like to primarily go off of the 200 period moving average i like to get that first move off of it in one direction whether i'm getting in early or a little bit after it crosses over once i see a nice movement past the 200 i'm out i'm done with the trade because i'm assuming the price is too far away from the 200 and is going to go back to it and as you can see there it went back up to test the 200 trying to fight this level of support right here and continued up breaking the previous market structure boom right there previous market structure was completely broken all downtrend is null and void until this new up market structure is broken and again touching on divergences you would have seen that you hit this level and this level right on the rsi you can see it created a low here at 29 and then created a higher low at 33 that's your divergence to give you an indication that the price might break its previous market structure and reverse now there's regular divergences and there's hidden divergences hidden divergences are trend continuation divergences and you can see that the market structure right here we created a lower low a higher low and then went down right here at this point this point is still lower than this point so this is a lower high but you can see on the rsi it was here and then here it's the opposite this one's going down this one's going up this is a hidden bearish divergence rejecting off of the 200. all of these things that i'm showing you guys are ways that i trade i see all of this all of the time every time i look at the charts i see a hundred different scenarios i see a hundred different price action things because of the amount of time i've spent staring at the charts now if somebody leaned over my shoulder and saw this he'd be like dude what the are you doing but in my brain all of this makes sense i'm gonna clear it up because you can't have this on your charts all the time you will get confused that's why it's good to do analysis on naked charts just use your fundamentals and your price action day trading is not for the faint of heart and if you're one of those people that can't commit you know eight six five hours a day for the next six months a year or two years to learning every single aspect of this then don't expect to get high win rates and high profits you're not going to replace your income unless you know this type of information or if you're freakishly lucky luck and day trading happen just like in gambling and day trading some people are just luckier than other people but i would not bank on that now just to show you guys this because i know that a lot of you guys have full-time jobs you can't be day trading all day you don't have the time to commit to learning all of this this is where those indicator strategies come in really really handy but you have to expect a lower percentage gain a lower win rate because algorithmic trading models do not take into account the fomo mentality or fear of missing out or the fud mentality fear uncertainty and doubt for example the last week or two has been absolutely catastrophic for algorithmic trading styles because it doesn't take into account you know massive inflation people panic selling the crypto markets being crazy mass shootings in a certain area the war going on those things influence the price more than you know and the way that you can be a successful day trader during those periods is knowing the price action stuff that i was just talking about for the last 45 minutes but again if you don't have time and you just want to have a notification from trading view come into your phone or on your email or whatever or on your laptop while you're actually doing work you can set up these trading styles using three indicators and get a little beep look at it enter a trade accordance to the rules set your take profit set your stop loss and then close it so just as an example i'm going to show you quickly this is one of the strategies that we have on the new project that i built the trading floor this strategy is called the outback it's a one minute strategy and statistically with back testing between 40 and 55 maybe 60 win rate but it's mindlessly easy you have your chart set up the way that we have it set up you're in the office doing work you set up your time frame for london session only and then you get a beep you look at the charts you got a kangaroo on top of the candle so that means you're going short you enter your trade right here your stop loss is above the atr bands and you're targeting a one to five risk to reward ratio you get that signal four times in a row right here so that's four trades each one of them played out this whole process of these four trades would have taken you a total of 15 minutes this was may second you had four back-back wins with a six percent profit in your account next day you had two wins three percent next day you had one win 1.5 percent next day no trades no signals next day again no trades and no signals next day you had three back-to-back losses minus three percent because your risk is only one percent per trade next day 1.5 percent and this is from may 2nd to may 10th so between may 2nd and may 10th you did amazing you got a 9 profit with literally probably 37 minutes worth of actually opening up your charts entering your trade take profit stop loss closing it and getting back to work but i'm not gonna lie to you guys sometimes this thing sucks for example on may 17th you had a signal a signal and another signal right here all three of these were losers you're losing another three percent right here that takes your nine percent down to six percent right here you had four back-to-back signals telling you to go long that's an additional 4 down and then more no trading days so you can see it's extremely slow going but you're still in profit because of the risk to reward ratio the 1 to 1.5 and it's mindlessly easy and you can do it with a full-time job and five kids only being able to trade tokyo session or new york or london session like this makes it mindlessly easy for those that do not have time the only trade-off is you're going to make less money and have a lower win rate this is like buying bread at 7-eleven versus walmart same exact bread except 7-eleven has a convenience tax and the price is tripled so what are the things that you should have to be a good trader to have all of the tools in your tool belt to have all the education that you need the first thing that i suggest that helped me out a lot when i was first starting because i thought i knew everything but i ended up not knowing you gotta find a good community i don't care if you use ours or somebody else's you need other human beings to talk to social interaction is good as well as people that have the same mindset as you that want that financial freedom that no day trading and that's why we started the trading floor it is literally the primary aspect of this entire project that we built out is the discord community free of scammers because it is a paid service on our team it's me christy and brutus all professional traders we also hired a staff of about six people all professional traders every single one of them is in one way shape or form on here 24 hours a day to answer every single one of your questions the general chat is like meme city but then you can see here on the left we have london chat so only trading chats during the london session the new york session and the tokyo session and if you specialize in one specific category like forex indices or crypto or commodities you can do that here this is gonna be the thing that helps you the most when you're lost and you're unsure about your trade ask the community have somebody that's a professional trader answer you period end of story you'll get more confidence and more confluence from that one trade that you've already analyzed now with this project that we built the trading floor i'm i'm not selling you on it like that's the last thing i want you to do is feel pressured into doing this i'm just telling you we've consolidated all of the information on the internet which you can find for free on investopedia on baby pips on all different resources on the internet it's just spending hundreds of hours looking through the scattered information which we've already consolidated for you and that's the whole concept we have everything in one place for you so all of the price action strategies everything that i talked about price action wise within this video is all explained here in depth fibonacci levels trend lines psychological price levels confluences and one of the most important things is traitor psychology being able to learn traitor psychology from christy i mean i respect her a lot as a day trader the things that she discusses in this video will help you stop emotionally trading and trade more like a machine looking at numbers and statistics only even in the discord group we have a mindset chat for people really struggling with the trading mindset overcoming specific obstacles that they're having we have a bunch of coaches in here helping you get through that process the secret ingredient of day trading the secret ingredient is nothing it is practice it is experience it's time spent on the charts it's watching these things happen in replay mode and it's watching these things happen live it's being able to react and commit to a trade it's it's being able to do all of that analysis and then hop on to mt4 and enter a trade knowing that you just had a fib retracement right here put in a sell position adjust your stop loss to right above that level and enter your trade the quicker you can do that and the quicker you can do your analysis and be confident in it the better entries you're going to get in on your trades and i forgot to mention this risk calculator is awesome you can automatic it automagically does everything for you and it's a part of the group package like you get the community you get the chats you get all the lessons you get all the psychology you get the risk calculator you get the indicators and the strategies and we just wanted to build a place that has everything and it's there i really tried to cover everything that i could off the top of my head but there's probably seven or eight things that i left out if you feel like i missed something and you want more clarification on something please leave a comment down below and i will make a follow-up video on that i really hope that you guys enjoyed this video and got some value out of it if you want to get in on this the link is down below it's thetradefloor.comtrdfloor.com we would absolutely love to have you and get you from where you are now to where you want to be i'm done talking thank you so much and we will see you in the next video

Channel: The Moving Average

Views: 182,458

Keywords: day trading strategy, day trading strategies, day trading, day trading for beginners, day trading cryptocurrency, day trading live, day trading crypto, day trading bitcoin, day trading stocks, day trading setup, how to day trade, day trade like a pro, day trading system, advanced day trading, scalping strategy, 1 minute scalping strategy, 5 minute scalping strategy, 15 minute strategy, how to trade, forex trading strategy, learn to trade, trading strategy, arty, TMA

Id: LW5WGbzCPAE

Length: 25min 43sec (1543 seconds)

Published: Wed May 18 2022