00:00I have 11 minutes to explain day trading, so naturally I'm going to put $60,000 of my own
00:05money on the line. What could possibly go wrong? A lot. A lot can go wrong. Day trading is basically
00:11a game of patient people taking money from impatient people, but it's also a game of
00:16chance. To understand this game of chance, I'm personally putting $60,000 of my own money on
00:22one single trade using this exact strategy I'm about to share with you. Will my own strategy
00:28actually succeed? Or will I lose $60,000 in a matter of seconds? Either way, I guess it's
00:34content. It's now Wednesday. I woke up at 7.30am today. I'm in Texas. Texas. So market opens
00:41in one hour. I make sure I'm zooted on caffeine, and then I proceed to spend the entire morning
00:46scrolling through my trading scanner. Until I find the one. I set up all my strategy parameters.
00:54tactics, tactics, tactics. I precisely set my limit order, then I do the most important
00:59step, and that is to wait patiently until price hits my order. Holy f**k it just hit my order.
01:05Waterfill, waterfill, waterfill, waterfill, waterfill, waterfill.
01:09You see, day trading isn't easy money. I'm sure the only reason you're even watching this
01:14video right now is because you saw some rich TikToker talking from a helicopter about his
01:19Lamborghini that he got from trading stocks. But let me tell you something you already
01:27know. The world ain't all sunshine and rainbows. In fact, most day traders actually lose money.
01:32What? People lose money while day trading? Well, yeah, the majority do. It's a known
01:37statistic that only 3% of day traders make a profit, and only 1% actually do it consistently.
01:43So, in order to make money, you have to become part of the 1% of traders. And how do
01:48you become
01:48part of the 1% of traders, you may ask? Doing exactly opposite of what the 99% are doing.
01:54You
01:54see, it's pretty simple, actually. If 99% of traders are not profitable, that means if you do
01:59the exact opposite of what they are doing, you'll make money. It sounds stupid, but it's true. In
02:05order to do this, we are going to use one of the core concepts in our strategy, and that is
02:10liquidity. In order to understand liquidity, we first have to understand how the big billion
02:15dollar institutions trade, or in other words, the 1%. Now, unlike you and me, where we can
02:21simply just buy wherever we want, big institutions can't really do that. They are dealing with
02:26so much money while trading, there are simply not enough sellers at the price where they want
02:32to buy at. So, what do they do? They create the sellers themselves.
02:40But, how did they do that? By doing a little thing called manipulation. Have you ever seen
02:46this happen? Price is coming down to a recent low, a key support area. Now, what's happening
02:51at this low is very simple. Normal retail traders like you and me are seeing this as a key support,
02:57and enter when price comes down to here. Thinking the price will bounce up from the support,
03:02so where better to place your stop loss than right below this recent low? That's a pretty
03:07normal trade. As being the normal retail trader you are, you would assume if price crossed this
03:12low, it would be considered a downtrend, lose all of its momentum, and keep crashing downward.
03:17Now, the institutions own this stock already, but they want to buy more of it. But since they
03:22are trading with hundreds of millions of dollars, there are simply not enough sellers at this
03:27price for them to buy from. So, they need to create the sellers themselves. So, what they'll
03:33do is start selling their own shares to artificially drive the price down. They will make it seem
03:38like the stock is losing lots of momentum crashing downwards, when in reality it's not, which
03:44other retail traders will see this and start selling as well, which in turn drives the price
03:50down even more. It will do this to the extent of passing this recent low, which will trigger
03:55all of the stop losses that we were talking about before. So, now there are tons of people
04:01selling trying to get rid of what they are holding, which means the institutions can now
04:06enter at the price they want, since there are so many sellers. Price hits these stop losses,
04:11institutions buy a fuckload of shares, and price starts heading in the original direction it
04:16was meant to, making institutions billions of dollars. That is liquidity. Now, the trade
04:22we just took broke all-time highs, then reversed back downwards. So, instead of sell-side liquidity,
04:28like the last example, this time we got buy-side liquidity. It's the same concept, just reverse.
04:33So, this is why we are looking to short. If you don't know, instead of making money while
04:38the price is going up, shorting is where you make money as the price goes down. Price breaking
04:42this all-time high is our liquidity. And actually, all-time highs are usually the most aggressive
04:48types of liquidity. And this is part of the puzzle of how we become part of the 1%. But just
04:55because
04:55we find liquidity, that doesn't necessarily mean we found a good trade. Now, the 1% not only know how
05:01to find liquidity and even target liquidity, but they also know how to find perfect spots to enter the
05:07trades. In order to know where they enter, we have to understand one key thing. Retail traders don't
05:13move the price. The institutions do. Now, sure, me and your pennies could possibly move the stock price
05:19a smidge in the grand scheme of things. But the majority of price movement comes from hedge funds,
05:24banks, and institutions. That's where the price really moves. We can find where they're entering by
05:29finding key levels of supply and demand. To do this, go to the 4-hour timeframe. Find the start of
05:35a
05:35strong move. Mark the low to the high of the candle that started this move. This is your area of
05:41demand.
05:41You can do the exact same thing with areas of supply. Find a strong move downwards. Find the
05:46first candle that started that move. Mark the low and the high of that candle. This is your area of
05:52supply. The reason we are doing this is because we want to be entering where the big institutions are
05:56entering. And if price spiked up strong from this price, that means the institutions are probably
06:02entering here. So we would wait for price to come back down to the zone, enter here, where price is
06:08likely to spike up again, and we make all the profit. So if we go back to our trade, we
06:13already
06:13grab the liquidity at the all-time highs. Next, we need to mark our area of supply. We mark the
06:18first
06:18candle that started the downwards move. This is our area of supply. And we must wait for price to enter
06:24into the zone again, and we enter our short trade. Now, just because we have liquidity and supply,
06:30that doesn't necessarily mean price will follow exactly what we think it'll do. You need another
06:36layer of confirmation, and that confirmation is a narrative. Now narratives come in all shapes and
06:41sizes. It could be a sector that has a lot of potential, like AI. It could be good economic news,
06:47Trump makes another tweet, or it could be overhyped. Now this play is QBTS,
06:53and they are a quantum computing company. It's been going crazy this past month or so,
06:58with all the AI hype going on recently. Now, to be completely honest, I really do believe in this
07:03company. I think quantum computing is the future, and I think it's a really good company for that.
07:08And I actually traded this exact stock a couple months ago, but the last trade I was in a long
07:13trade. I used this exact same strategy, just flipped around, I entered in around $4, and sold around $18.
07:21It was my biggest trade to date, and I posted it live in my discord group. But with that said,
07:27I think it's extremely overpriced at the moment. For example, this company is still in its early
07:32stages. They are actually losing money at the making of this video. Now sure, they could be
07:37reinvesting into the company to make it stronger for the future, and just because they don't have a
07:42net profit, doesn't necessarily mean it's a bad company. At the making of this video, AI stocks are
07:47going absolutely bonkers, and anything related to that is going up along with it, even if the
07:53company isn't necessarily making money. Like, just look at this chart. This screams speculation,
07:59and on top of that, it's valued at $5.3 billion, with a B. So yeah, I think this stock
08:06is overvalued
08:07at this point. I don't think this is a long-term short in any way, but I do believe at
08:11this very
08:12moment, it's a speculation play for buyers, and speculators get scared very, very easily.
08:18And if buyers are freaking out as the chart goes down, that'll just add the momentum of the stock
08:24to plummet, which in return, our short trade makes money. So we found three main things, liquidity,
08:30an area of supply, then a narrative. So now that we know how I'm trading the stock, now is the
08:36time
08:36to put my money where my mouth is, and enter into the short trade for $60,000. Here's the plan.
08:43Like I've stated, we were patient enough to not only find this play, but to get a liquidity grab
08:48and a key strong area of supply with this candle right here. As I'm editing this now, it's now
08:54Wednesday. Price just entered into our area of supply, so we can finally enter into this trade.
09:00To be completely honest, I'm kind of nervous. This is definitely a more volatile stock,
09:05meaning when it goes up and down, it goes up and down a lot. But I'm going to stick with
09:10the ideal
09:10facts and play the game of probabilities and enter into this trade with $60,000. We're going to set
09:16our stop loss above these highs. Our entry price was $19.13. So if price decides to go up from
09:23here,
09:23we'll lose around 7%, which is roughly around $4,200. I could buy a lot of cool things with $4
09:30,200.
09:30But if this trade goes in the other direction, we'll play it safe and are going to sell 50%
09:37of our position at this area of demand right here. And we'll sell the other 50% of our position
09:42if price
09:42breaks these lows and targets these previous highs. If price hits our first target, we'll make around
09:4824%. And if we're selling only 50% of our shares at this point, we'll make around $7,500.
09:54If price goes all the way down to our second take profit, we'll make an additional $9,000.
10:02So if this trade plays out correctly, we could make a total of $16,500 in one single trade.
10:09Let's see what happens. It hit our take profit. Price is now at our area of demand and we sold
10:1450% of our position for a profit of around $7,500. I'll be posting this video now while I'm
10:21still in the
10:21trade. For now, we're in the profit and hopefully price can hit our second target.
10:25If you're watching this video as I upload it, in no way am I saying you should short
10:30this stock now. It's probably too late. If you want to see all of my trades live,
10:34I posted this exact trade and many others just like it live in my discord group as I'm entering
10:40into them. I give where I'm entering, where I'm exiting, and basically all the information
10:44of why I'm entering into the stock in the first place. So yeah, there's that. If you're interested,
10:49I'll leave a link to my discord in the description. But yeah, that's how you trade stocks. Try it out.
10:55See you next time.
10:55Here in my garage, just bought this new Lamborghini here.
10:59Knowledge.
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