Online Trading Explained in Simple English

CashFlow Blueprint

Online Trading Explained in Simple English | Beginner Guide  Do you want to understand online trading in the simplest way possible? In this video, I explain online trading step by step for complete beginners.  You will learn: • What online trading really is • How people make money from financial markets • The difference between stocks, forex, and crypto • What beginners should focus on first • The basic risks you must understand before starting  This video is perfect for beginners who want to make money online and start their trading journey with the right knowledge. Everything is explained in clear and simple English so anyone can understand.  ⚠️ Disclaimer: This video is for educational purposes only. Trading involves financial risk. Always do your own research before investing any money.  Watch till the end to fully understand the basics of trading. Follow for more make money online and trading for beginners content.  #MakeMoneyOnline #OnlineTrading #TradingForBeginners #FinanceEducation #InvestingBasics #EarnMoneyOnline #StockMarket #ForexTrading #CryptoTrading #SideHustle #PassiveIncome  Tags: make money online, online trading explained, trading for beginners, how to start trading, investing basics, stock market for beginners, forex trading basics, crypto trading for beginners, earn money online usa, passive income ideas, finance education, beginner trading guide

Transcript

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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