$500 to $10,000 Using This Simple Strategy (Explained) — Transcript

Full transcript

1. 0:00In this video, I'm going to show you
2. 0:02guys the exact strategy I used to grow
3. 0:05an account from $500 to 10K.
4. 0:10Before we jump into it, if you guys
5. 0:12could do me a huge favor, I'd greatly
6. 0:13appreciate it. Please like this video
7. 0:15and subscribe to my channel. I'm trying
8. 0:17to grow to a measly 5,000 subscribers on
9. 0:20this channel and um it would really
10. 0:23really help me. So, without further ado,
11. 0:25let's jump right into things. Okay, so
12. 0:28here um we're looking at the S&P 500 um
13. 0:33on the fiveminute chart. Um 99% of my
14. 0:37trades, you know, through this process
15. 0:40came directly from the S&P 500. Um
16. 0:44and I don't know about 80 to 90% of my
17. 0:47analysis came from the five minute chart
18. 0:50um on the S&P.
19. 0:53Um, and how you're looking at my screen
20. 0:55right now is exactly how I have my
21. 0:57screen set up every single day in the
22. 1:00market. No crazy indicators, no crazy
23. 1:03nothing. And I think it'll make a lot of
24. 1:04sense to you guys here in a second. The
25. 1:07biggest thing that I kind of want to
26. 1:09emphasize before we jump right into
27. 1:11things is I'm going to show you guys the
28. 1:13last three trading days in the market.
29. 1:16Uh, I'm not going to cherrypick a bunch
30. 1:18of information. um each and every day
31. 1:20this strategy generally speaking works.
32. 1:23Of course, no strategy wins a 100% of
33. 1:25the time, but you know, over the past
34. 1:28three days, you know, I'm going to show
35. 1:30you all three examples and you know,
36. 1:33this strategy works consistently over a
37. 1:36period of time and you get opportunities
38. 1:39consistently each and every day. So,
39. 1:42let's jump into things.
40. 1:44First and foremost, okay,
41. 1:47the biggest thing to understand
42. 1:51is that in the morning, the market tends
43. 1:56to what I call range. Okay? And this is
44. 2:01not a strategy of some people are
45. 2:04familiar with the orb or opening range
46. 2:07breakout. This is not that. But this is
47. 2:10a system where you are anticipating that
48. 2:13the market is going to range in the
49. 2:14morning. So first and foremost, what is
50. 2:17a range? How is a range defined? A range
51. 2:20is when price trades in between two
52. 2:23points. And it can look like a lot of
53. 2:25things. So what I mean by that is if
54. 2:26current price is here, that is current
55. 2:29price. It's trading between two points,
56. 2:32a high point and a low point. Okay? And
57. 2:36to to be super specific, okay,
58. 2:40a range can look like a lot of different
59. 2:42things in the morning. It could look
60. 2:44like something like this where the open
61. 2:46is the high and then you have the low
62. 2:48and then you have current price here.
63. 2:50That's a range. Uh it could look
64. 2:52something like this. Okay, we see this a
65. 2:55lot where you know the low is very close
66. 2:58to where current price is and your range
67. 3:01may look like something like like this.
68. 3:04Okay, can look like a lot of things. The
69. 3:06most important thing is that current
70. 3:08price is in between the high point and
71. 3:11the low point. Okay, so let's look at
72. 3:15actual price and I'll show you numerous
73. 3:18examples where this kind of comes into
74. 3:20play. Okay. So, when we see the market
75. 3:25open, okay, so we see 8:30 my time, the
76. 3:28market opens, we see price move up, come
77. 3:31down, move back up.
78. 3:34It's going to make a lot more sense if I
79. 3:36kind of show a replay mode that looks
80. 3:38something like this. Okay, we have our
81. 3:41high point, we have our low point. Okay,
82. 3:43one extremely important aspect that is
83. 3:48really important is I actually don't
84. 3:51bring into account the candle wicks. So
85. 3:55the wicks up here, the wicks down here.
86. 3:57That's for a later video as to why. Um
87. 4:01but I only look at candle body highs and
88. 4:04candle body lows. So that looks
89. 4:06something like this. Okay, this is what
90. 4:09a range would look like. Okay, price is
91. 4:12currently between the high and low in
92. 4:15this box. This is my no trading zone.
93. 4:18Okay, so I take no trades in this box
94. 4:21here. This is for watching. This is for
95. 4:24waiting. Okay, when I'm looking to take
96. 4:27a trade, it's either whether price
97. 4:30breaks and closes above, okay, or breaks
98. 4:35and closes below. I'm not trying to
99. 4:39predict. I'm simply trying to react. And
100. 4:43I'm going to explain what that looks
101. 4:44like here in a second. And then there's
102. 4:46another aspect of the strategy that I'm
103. 4:48also going to dive into as a form of
104. 4:51confluence to make this a even higher
105. 4:53probability setup.
106. 4:56Okay,
107. 4:58for this example, we see price break
108. 5:01over and close over. Okay, for example,
109. 5:06this could be a very strong entry point
110. 5:09for me that we see price break over the
111. 5:12range, close over the range. And given
112. 5:16how price action functions, this is a
113. 5:19high probability setup, okay, for price
114. 5:23to continue to the upside and trend,
115. 5:26okay? And I'll show you guys how this
116. 5:29thing plays out. you know, more or less
117. 5:32you guys get the picture. We see price
118. 5:34trend up pretty aggressively,
119. 5:37keeps going, keeps going, like pretty
120. 5:39much all day. Okay, we see price trend
121. 5:42up. The problem most traders run into,
122. 5:46to be totally honest, when they're
123. 5:48trying to build a strategy or trying to
124. 5:50build a system is they're so fixated on
125. 5:54trying to predict where the bottom is
126. 5:56and all these trends. So, like they're
127. 5:58they're trying to buy at the bottom or
128. 6:00buy at the bottom here. And in
129. 6:02retrospect, like back testing a strategy
130. 6:05or just looking back at time, like you
131. 6:06can trick yourself into believing you
132. 6:08can actually find these on a consistent
133. 6:10basis, these like bottoms. It looks easy
134. 6:14in retrospect. It's not so easy
135. 6:18uh in real time. And so a lot of brand
136. 6:20new traders or even experienced traders
137. 6:22like trick themselves into thinking they
138. 6:25can identify these perfect dips every
139. 6:27single time. Um and the reality is is
140. 6:30you know in my opinion you can't. Um and
141. 6:33more importantly my focus is not to do
142. 6:35that. My focus is to actually trade
143. 6:37trend continuation and trend structure
144. 6:39to the upside using these ranges. Okay.
145. 6:42Now let's dive into kind of part two on
146. 6:45what makes these trades even stronger.
147. 6:48I'm going to use this same example right
148. 6:49here, but we're we're going to go again
149. 6:51back a couple days too and I'm going to
150. 6:53show you some other examples, but by
151. 6:55then you'll kind of have a good idea of
152. 6:56how it works. But with this example, I
153. 6:58want to explain the full strategy start
154. 7:00to finish. Okay. The other aspect of the
155. 7:06strategy and what makes it higher
156. 7:08probability is actually using these two
157. 7:10lines you see here on your ch or excuse
158. 7:12me, you see on my chart. Um, these are
159. 7:17the 20-day moving average and the 50-day
160. 7:20moving average. Um,
161. 7:23I could make a uh much bigger kind of
162. 7:28deep dive into these EMAs, how they
163. 7:30actually work in a future video if you
164. 7:32guys want. Um, but just to keep it
165. 7:36extremely simple, this is the average
166. 7:39price over a period of time. So again,
167. 7:42you're looking at the 20 EMA and the 50
168. 7:44EMA. The 20 is the blue, the 50 is the
169. 7:46red. Okay? And I'm going to give you
170. 7:49guys the cliffnotes version in 30
171. 7:52seconds on how I use it. Okay? How I use
172. 7:54this is if the 20 EMA is over the 50 and
173. 7:59price is also over both of those. So
174. 8:03this situation here and then let's go
175. 8:05back very quickly to that entry point.
176. 8:09It might be hard to see,
177. 8:12but if the 20 is over the 50, so the
178. 8:16blue is over the red, check, and then
179. 8:19price is over the blue as well and the
180. 8:22red, check, that means I'm only looking
181. 8:25for upside trades. Okay? So, I'm only
182. 8:28looking to trade upwards. So, for
183. 8:29example, if this was happening
184. 8:32and you know, let's say the 20 was over
185. 8:35the 50,
186. 8:37you know, but price was, you know,
187. 8:40breaking below or whatever, I'm not
188. 8:42taking the trade. Um, so I need both of
189. 8:44these to kind of align perfectly for me
190. 8:46to take a trade. In this example, we see
191. 8:48a perfect alignment and then we see
192. 8:50price take off. Okay, we saw a breakout.
193. 8:54We see those EMAs the way I want them to
194. 8:57be. Boom. Breakout. Okay.
195. 9:01Uh let's look at another example here.
196. 9:04Um
197. 9:07let's go back to let's say the prior day
198. 9:11and let's kind of look at the same sort
199. 9:14of idea. So we see price trend down for
200. 9:17the day, right? So we see price trend
201. 9:19down. Here's an example of why I need
202. 9:22both to align for me to take a trade.
203. 9:27Okay, let's look at our range. And we
204. 9:31can see our range looks like this,
205. 9:32right? We talked about numerous ways a
206. 9:34range can look. And this is kind of a
207. 9:37new one. Um, this is how I would have it
208. 9:40drawn up. Okay? And the important thing
209. 9:43to understand here is this is the EMAs
210. 9:48and how they're lined up would be
211. 9:49considered in my opinion a bullish
212. 9:51setup. We see the 20 over the 50. So in
213. 9:53this situation, I'm only looking for
214. 9:55upside trades. Okay,
215. 9:58but we see price break below.
216. 10:01Okay, I think this is still a signal
217. 10:04that we could see a downtrend in price,
218. 10:06but this is not one that I would trade.
219. 10:08Okay, and it's important to have that
220. 10:11discrepancy in your mindset, in your
221. 10:13trading psychology that you can believe
222. 10:16something to happen. It doesn't mean
223. 10:17you're going to trade it. I believe
224. 10:19price will probably trend down, but it
225. 10:21doesn't mean I'm going to take that
226. 10:22trade. and we see price start to move
227. 10:26back up. Okay, so I'm not taking that
228. 10:29trade here. And we see price move back
229. 10:31up because we got mixed signals. All
230. 10:34right, so I'm waiting. I'm waiting. I'm
231. 10:36waiting.
232. 10:39Okay, let me back up just really
233. 10:41quickly.
234. 10:43In this situation,
235. 10:46what I can do is now roll
236. 10:50my range down to the bottom because
237. 10:52remember this is a range. We have a low
238. 10:54and a high. Price is trading between it.
239. 10:57So it could look something like this.
240. 11:00And now we start to see price break
241. 11:02below,
242. 11:04cross below.
243. 11:07This could signal now an entry short to
244. 11:10the downside. Okay.
245. 11:14And we see price trend down. Takes a
246. 11:17minute. Takes some time. Ultimately, we
247. 11:20see price trend down. Okay. Might not
248. 11:23have been as aggressive as
249. 11:26uh the the example we just looked at,
250. 11:29but we see price trend down. Our entry
251. 11:32is over here. We see price move down
252. 11:34over a period of time. Okay. Um, and it
253. 11:37also shows you the most important thing
254. 11:39of this example as well is showing you
255. 11:41when the more opportune time to trade is
256. 11:43with the combination of those two
257. 11:44metrics versus here where then we see
258. 11:48price move back up. And the important
259. 11:50thing to understand here, I didn't don't
260. 11:52think I made clear, is this move could
261. 11:54very well stop out a lot of you traders,
262. 11:57okay? Where you're stopped out of your
263. 11:58trade, price moves up, stops you out,
264. 12:01and all those traders who enter here got
265. 12:03stopped out. Then the traders who are
266. 12:05more patient, waited for proper
267. 12:07confluence, are up on the trade. Might
268. 12:09not have been a huge huge winning trade,
269. 12:12but there's two things kind of to
270. 12:15understand here. Number one, in this
271. 12:16example, you're avoiding a losing trade.
272. 12:19Okay? So that's you're you're in a way
273. 12:22you're saving money in your account.
274. 12:23You're avoiding having a losing trade.
275. 12:25And then while the actual trade may not
276. 12:27have been as huge as the first example
277. 12:29we looked at, you're still making profit
278. 12:31on that trade. So you're avoiding bad
279. 12:33trades and you're making profit on your
280. 12:36current trades. So
281. 12:38real quick, we'll look at one more
282. 12:40example.
283. 12:44Um
284. 12:46the very next day or the prior day, same
285. 12:49sort of idea. We'll run through this one
286. 12:52pretty quickly.
287. 12:54Okay, market opens. We've established a
288. 12:57high and low. We see our EMAs are
289. 13:00actually kind of in a bearish standpoint
290. 13:03where we have the 20 below the 50. So,
291. 13:06I'm only looking for downward trades.
292. 13:10See if we get one. We actually see price
293. 13:12break over here, but we have not quite
294. 13:15yet crossed on those EMAs just yet.
295. 13:20Let's see what happens if the EMAs
296. 13:23cross.
297. 13:24Okay, now we get the EMAs crossing. Now
298. 13:28we get price breaking over. Now this
299. 13:31could be an entry to the upside here at
300. 13:33this point.
301. 13:37And we see price pushing up aggressively
302. 13:41to the upside.
303. 13:43Pretty simple stuff. Um nothing overly
304. 13:46complicated. Um very very simple
305. 13:50strategy. Um, and the most important
306. 13:54thing that I want to get across to you
307. 13:56guys is this strategy is really great at
308. 14:00ideally avoiding bad trades
309. 14:04and also positioning yourself to take
310. 14:08advantage of good setups, really good
311. 14:11opportunities. Of course, no strategy is
312. 14:14a 100% win rate, but this is a very good
313. 14:17strategy with a very strong win rate.
314. 14:20Okay.
315. 14:22All right.
316. 14:24Last thing I want to mention at the end
317. 14:26of this call, I am going to link a one
318. 14:31on a free completely free one-on-one
319. 14:33call with me in the description. If you
320. 14:36guys want to have a strategy call where
321. 14:39we talk about my strategy, we even deep
322. 14:42dive on your strategy, identify blind
323. 14:44spots in your strategy, and work help
324. 14:47you work to become the trader that you
325. 14:49want to be.
326. 14:50Go ahead, click the link in the
327. 14:52description, book a one-on-one call with
328. 14:54me, completely free, and I will see you
329. 14:58guys on that one-on-one call. Okay? All
330. 15:01right, guys. Until next time. Peace.