- 4 months ago
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00:00Guys, I'm going to talk about some master rules from a day trader, and I got these from NoBSTrades on Twitter.
00:08You guys could go follow him and check him out, but let's go ahead and see what he's sharing.
00:15He's talking about some day trading secrets, okay, and I think this is pretty cool.
00:20So let's go ahead and take a look at these.
00:23Let's see if I can zoom up a little bit.
00:27Okay, a little bit.
00:28All right, so rule number one is take one day at a time and try not to have a losing day.
00:35I mean, that's really awesome.
00:37And by the way, I'm going to show you some stuff on the charts after this is over, but that's like, wow, not having a losing day.
00:44I mean, obviously, you're going to have losing days, but if you can do that every day and make money, that's a good deal.
00:50So I love that, okay?
00:51Okay, number two, take only those trades where you can control the risk, finding out if you're right or not with a six-tick stop loss.
01:03Okay, so now ticks are in futures.
01:07So we can say that if we're in futures, we're going to talk about ticks.
01:11If we're going to be in shares of stocks, maybe you're talking cents.
01:17If you're talking Forex, you're going to talk pips.
01:22Whatever it is, it just basically means a very, very tight stop loss so that you know if you're right or wrong fast.
01:31And the way to do that is that's momentum trading.
01:35That means you've got the momentum on your side.
01:38Okay, step number one, you've got your momentum on your side, and you're going to take advantage of that momentum.
01:46And if you're wrong, you're wrong.
01:47And you know fast.
01:50Now, with that type of trading, you're going to have a higher losing percentage, so you just got to remember that.
01:55But you're going to, if you make money every day, who cares?
01:58Just forget about the winning percentage and just know like, okay, I'm wrong on this trade.
02:02I'm wrong on this trade.
02:03I'm wrong on this trade.
02:05And then when you're finally right, boom, it goes, and it might go 30 points, and you're there.
02:10Okay, and so you might lose 10 trying it out, 10, 15, and then boom, when you're right, you're right big.
02:17Okay, so number three, take only trades where you have three good price action reasons.
02:24Okay, so you want to build a case.
02:27I talk about this a lot.
02:28I even talk about it in my book.
02:30Build a case.
02:31So I'll say, okay, trend, reason number one.
02:33Strong level, reason number two.
02:36Price action pattern, candlestick, reason number three.
02:40Right, so he's talking three reasons.
02:42And then you could say, okay, trend line, reason number four.
02:44Moving average, reason number five.
02:46I mean, there's a lot of different reasons you can plug in, but at least three.
02:50If the trading master says three, then, you know, that's probably good advice.
03:00Okay, number four.
03:01Take profits when the market shows signs of adjusting back the other way.
03:06You'll never go broke taking a profit.
03:09Now, this is from a master trader.
03:10You're never going to go broke taking a profit.
03:13So that's pretty good advice.
03:16Okay, next one.
03:19So that means just go up.
03:20Not next one.
03:21I'm going to hit that in just a second.
03:22So that means when it's going up, hey, ride it.
03:29But as soon as it starts to reverse, get out.
03:32Okay, number five.
03:34Enter in the direction of the current trend whenever a continuation pattern is signaled.
03:38Now, that's really awesome.
03:39I love that you get a trend, you get a pullback, and then it starts going back.
03:44There you go.
03:46You get in.
03:46And that's really the whole concept of my strategy in my book.
03:49And I'll link to that.
03:50I'll also link to this post here as well.
03:54Number six.
03:55Be prepared to sit on the sidelines for hours on end until everything becomes clear to you.
04:02If you're not sure, you know, no FOMO stuff.
04:06Don't take a trade wishing, you know, one of my good friends, Tim, said, don't take a trade wishing that you were out afterwards, right?
04:15Just sit on your hands, wait, be responsible, and be patient.
04:20And that's not exactly how Tim said it, but he had his maxims.
04:25I should go dig those out and find those someday.
04:28I know they're in my files.
04:30If anybody's interested, let me know.
04:33Tim used to do videos for this channel.
04:35So, okay, number seven.
04:39Make your goal each week to make a net of 25 points.
04:44And when you have done that, take a rest.
04:46Okay, so that's 25 points a week.
04:50That's actually not bad because considering he's doing a six-pip stop, okay, I wonder if he would do that on one trade.
04:58What if you did a six-pip stop, your first trade, you hit your 25.
05:02Are you going to take the week off?
05:04Maybe.
05:05That's pretty cool.
05:06I like that.
05:07Give yourself a rest.
05:08That's pretty good.
05:09Have a daily target to make if conditions go your way.
05:13And once it's achieved, close the shop.
05:14So, again, he's saying close up, take early.
05:17So, if you've got 25, right, and you're doing five a day, that's 25 a week.
05:23So, only get five points a day.
05:26And I'm going to go to the charts and show you that too.
05:29And, you know, since I talk a lot about currency trading, that'd be five pips a day.
05:34That's not bad.
05:36Number nine, only trade from the opening bell when you have at least one hour of prep time with the news and the overall chart patterns before the open.
05:46It means do your homework.
05:48And that's really good.
05:49So, what if you do an hour of prep and then an hour of trading?
05:54That's two hours a day, right?
05:55You get your five pips.
05:57You just study.
05:58Like, he only traded one thing, you know?
06:00He traded the ES, which is S&P 500.
06:02That's it.
06:05Take your time, okay?
06:07Number 10, take some time off each month and review your progress.
06:11Look at your weaknesses and your strength and then go back and concentrate on your strengths.
06:15What are you good at?
06:17Find it and maximize it.
06:19That's the 80-20 principle.
06:21Go for it.
06:22Number 11, when in doubt, stay out.
06:24That's kind of a repeat of sitting on the sidelines.
06:27You know, FOMO, don't do it.
06:29Only be confident.
06:31And then number 12 is only trade what you see and not your opinion.
06:34Boy, that's a really good one.
06:36I love that.
06:38And that means if the charts are showing an uptrend, don't say, oh, it's got to turn around.
06:43No, you trade what you see until you're done, right?
06:47Until it does turn around.
06:49Most of all, never hold or add on to a losing position.
06:51And this is a good one, too, because those losing positions will wreck your account.
06:56They'll destroy you.
06:57They'll destroy your life.
06:59They'll destroy everything.
06:59Do not add to a losing position for day traders that are trading this type of style, right?
07:07Now, there are some times when you can hold on to trades and build.
07:10You know, I do it all the time with my dollar cost average strategy.
07:13But this is specifically this guy, his strategy.
07:17He's a day trader.
07:18But if you're going to be day trading and you're going to be going for it, then, you know, follow this, right?
07:25And those are his rules, 13 rules, pretty good.
07:28Now, he's got a little bit of explaining at the end.
07:31And he said, if you make, and I'm going to expound on this in the chat or on a chart.
07:37But he says, if you can make 25 points in a week, you can remain, consider yourself an A grade trader.
07:45You can reach the goal.
07:47If you can reach the goal, you're a novice until you reach that goal.
07:52Now, 25 point over 30 weeks trading per year is $37,000.
07:59Okay.
07:59Now, that's 30 weeks.
08:00There's 52 weeks in a year.
08:01So, 25 points, and that means you only got to work 30 weeks.
08:06$37,000.
08:08So, your limitation rests with the number of contracts.
08:11So, if you start with one contract, you make 37.
08:14You do that a while.
08:16You go to two.
08:16You automatically double your revenue, right?
08:19That's the key.
08:21Just double your revenue by increasing size.
08:24But don't do it until you prove to yourself.
08:26So, some trades are worth more than your basic sample, and you can plan to trade higher numbers
08:35on opportunities that have more reasons behind them.
08:38If you follow this plan, you'll make money.
08:40If you don't, you'll end up a loser.
08:42Okay.
08:43Now, so, that's a really big one, too, is when you're really confident, you want to go in a
08:48little bit more, right?
08:49But you've got to prove to yourself that you know what you're doing first, because if you're
08:53really confident, you go in a little bit more, and you lose more, it's going to hurt.
08:58So, I wanted to now break this down here, and I'm going to make sure I retweet this, because
09:03this is good, and I'm just going to say, good stuff.
09:07Good stuff.
09:11Okay.
09:12Now, what I want to do now is go and look at the charts.
09:18Okay.
09:18So, this is the euro dollar, and you can see we're in a downtrend, right?
09:22So, well, actually, we're in an uptrend, but if we go on day trading, scalping, we're in a downtrend,
09:28right?
09:28So, I like to trade the bigger trends for swings, but if I'm day trading, you've got to go with the
09:33daily candle.
09:34All right.
09:35So, let's go now.
09:36Let's just, if you're going to do a six pipper, let's do the, let's do a very tight stop loss.
09:45Okay.
09:46So, right here, you're going to see a couple things.
09:48Number one is you've got opportunities.
09:53If you're looking for shorts, you've got opportunities here.
09:56And I mean, this is just today.
09:58We've had several trade opportunities.
10:00Now, there was some, maybe some false trades that might have worked, some that didn't.
10:04Here's one.
10:05Maybe you've got to break even right here.
10:07Okay.
10:08And I'm just looking for pops and retests.
10:10That's what I'm looking for.
10:11Pops and retests.
10:12So, here's one over here.
10:14Okay.
10:15And so, here's one over here.
10:16Now, if we're going for five pips a day, right?
10:22We're studying, we're studying, you're studying.
10:24Let's do the calculations here and see if this would have actually qualified, right?
10:29So, right here, we'll draw a line.
10:32We'll say, okay, this is our entry.
10:34We got the pin and the entry.
10:35This is actually pretty amazing and there's not a lot of volatility on this.
10:40But look at this move.
10:42Boom.
10:43Right?
10:43What's your stop right here?
10:45Remember, he says you've got to get a six pip stop.
10:47So, I'm going to now check this and actually see what my stop would be.
10:53Okay.
10:54So, if our entry was right here and let's run that little.
11:00Okay.
11:01This is a six pip stop right there.
11:03What would be the possible target?
11:0620, right?
11:07Now, that's what this type of trading is all about.
11:10You got most of your week's profit right there.
11:13But let's say he gets out when he crosses the moving average, 18.
11:17And so, what would have got him into this trade?
11:19Well, number one, the trend is down.
11:22Okay.
11:22That's number one.
11:23Number two, we just had a nice price action candlestick.
11:27You know, this is an evening star pattern.
11:29You know, number three, the moving average is pointing down.
11:32So, we want to go down.
11:33And then, I would say the last one is, is this on a level, right?
11:37Is this on a level, right?
11:39So, you got a consolidation over here.
11:42And there's a possible level, right?
11:45Look at that.
11:46Boom.
11:47Right there is your level.
11:48So, with that being said, you just do that.
11:53You could have your five pips, your 20 pips, and then you're done.
11:57You're literally done for the day.
11:59Okay.
11:59Now, let's just do a little bit of calculations here.
12:03If you can do, you don't have to get rich quick, but you just have to get consistent.
12:08And my podcast that I'm going to talk about tomorrow is all about consistency.
12:14But let's take a look at this.
12:16You do 25 pips, okay, a week.
12:23Well, 25 pips is $10 a pip.
12:27So, what is that if you're doing standard lots?
12:3125 times 10, okay?
12:3425 times 10, 25 times 10 equals $250.
12:43That's $250 a week.
12:46Okay.
12:46Now, we'll times that by 52 weeks.
12:49Okay.
12:50That's $13,000.
12:52That's not bad, right?
12:54$13,000 isn't bad.
12:56But, yeah, you know what?
12:57That's still not amazing.
12:59But, see, it's all about consistency because now you do that 25 and you do 10 lots at a time.
13:05You're going to go 25 times 100, okay, equals – or no, I just did it wrong.
13:1225 times 100 equals 2,500 times 52.
13:20Okay.
13:21Now, we're at $130,000.
13:22Now, we're talking somewhere, okay?
13:24And so – but you can't get there without building up your track record, without building up your muscles.
13:31It's like exercise.
13:32You've got to work out.
13:34You've got to get your – first do it and make 250 a week.
13:37Then do it and make 250 a week and just keep doing that.
13:43You know, when you do it five weeks in a row, say, hey, I've arrived.
13:46And then you bump it up and you just slowly increase and you build up those muscles.
13:50Okay, so that's it for this.
13:54I hope these tips were helpful.
13:56Let me know in the comments if you want to see me do some more day trading in here.
14:02And maybe we could do some live day trading or give you some examples.
14:05Remember, I still have my plan.
14:07I didn't actually put day trading in it.
14:09But I'm going to continue to reevaluate my yearly stats and all of that good stuff.
14:15But, hey, thanks for watching, and we'll see you in the next video.
14:18We'll see you in the next video.
14:18We'll see you in the next video.
14:18We'll see you in the next video.
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