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How To Start Day Trading As A Beginner In 2026 (Full Course) — Transcript

by Craig Percoco · 8,479 words · 1,157 segments · language en · Watch on YouTube

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0:00In this video, I'm going to show you the
0:01exact learning path that I would follow
0:03to start my day trading career from the
0:05beginning if I was to start over knowing
0:07what I know now. Okay, I've been day
0:08trading full-time for about 7 years now.
0:11And before developing my entire process,
0:13my foundations that give me
0:14opportunities to make three, five,
0:16sometimes $10,000 in single sessions, I
0:19wasted years of my 20s [music] and
0:21thousands of dollars that I didn't need
0:23to spend. Had I have just had the
0:24information that I'm going to share with
0:26you today. So, I'm going to start off
0:27with core trading fundamentals to clear
0:29out any confusion and show you how to
0:31first look at trading [music] with
0:33simplicity. Then I'm going to show you
0:34the tools you're going to need to get
0:35started. We're going to get into trading
0:37psychology, which requires pretty much
0:39an entire brain rewire that most people
0:42never realize. I'm going to go into
0:43trading math, do a full technical
0:45[music]
0:45analysis crash course, and show you
0:47exactly how I analyze the markets, how
0:49to build and test your own systems to
0:51prove profitability. Then I'll show you
0:52the foundational models that I use every
0:54day to place my trades. Then at the end,
0:56we're going to take everything that I've
0:58showed you. I'm going to show you me
0:59applying it in real [music] time. So,
1:00you can basically follow along and have
1:02a consolidated learning path to starting
1:04your day trading career. Okay, so in
1:06this video, I'm going to sort of just
1:07talk as if you're my friend and I'm
1:09teaching you everything that I know
1:10about trading from my 9 years of doing
1:12this and 6 years of doing it full-time.
1:14And I think it's important to start by
1:15zooming out and looking at trading in
1:17its simplest form. It's really easy to
1:19get bogged down with information
1:21overload. There's a million different
1:22things online. Starting by understanding
1:25it in its simplest form is going to
1:26allow you to add when necessary but not
1:29over add and confuse yourself, which is
1:31what happens to most people who are
1:32starting out and most people in general.
1:34Okay, so to look at trading in its
1:35simplest form, we have to understand
1:37what we're looking at with the chart.
1:38When we're looking at a chart, what
1:40we're seeing is a visual representation
1:42of mass human psychology. Okay, so
1:43there's periods where the chart is
1:44moving down and there's periods where
1:46the chart is moving up. And all we're
1:47looking at is basically a battle between
1:49buyers and sellers to determine what a
1:51fair price is. And all that we're seeing
1:54with these moves are supply and demand
1:56imbalances. So, in this example where
1:58price is moving down, that means that
2:00there was more supply than demand until
2:02this level was hit where the buyers
2:04stepped in and the demand started to
2:06outweigh the supply to drive the price
2:09up until a major period where the supply
2:11started to outweigh the demand again and
2:13allowing the price to fall back down to
2:16those levels. All we're doing is
2:17basically seeking equilibrium and this
2:19is a representation of what people are
2:21willing to buy and sell for in real
2:23time. Okay, what we're trying to achieve
2:25as traders is basically figuring out
2:27positions on this chart where we can
2:28enter in with say, for this example, one
2:31unit of something that costs $100. So,
2:33we're purchasing something that's $100,
2:35allowing that to increase over time, and
2:37then later sell it for a higher
2:39valuation, which would mean that we're
2:40investing, in this example, that one
2:42unit $100, selling it for 110, and
2:44collecting 110 in profit. And the way
2:47we're going to do this is by figuring
2:49out, by doing analysis and finding
2:50patterns, areas where we have a high
2:52probability of being able to enter in,
2:54keep our risk contained, and then later
2:56sell that where we're able to make five,
2:58six X what we're risking if we're wrong.
3:01So, in order to explain exactly how day
3:02trading works, I want to use a chart
3:04here of the S&P 500. Now, this is the
3:06overall stock market and what we're
3:08looking at is a full year's worth of its
3:10data. Okay, so say we took $100 and we
3:12wanted to buy in at this price and we
3:14allow one year to pass. Now, you can see
3:17this year was really good. Sometimes
3:18it's 10%, sometimes it's 30%, sometimes
3:20it's negative. But, this past year,
3:22that's 26%, meaning that our $100 that
3:25we invested after waiting one year is
3:27now going to be worth $126. That's great
3:30if we're dealing with a large amount of
3:32capital and it's great for investing.
3:33But, as far as daily opportunities, it's
3:35not going to give us that much upside.
3:37And technically, on this position, our
3:39implied risk is the S&P 500 going all
3:43the way down to zero. In that case, our
3:44risk is called risking off of
3:46liquidation and our risk is our entire
3:48position of $100 here. So, we're risking
3:50$100 for upside of $126.
3:54So, our risk is at $100. Now, like I
3:56said, that's great, but to make $26 in
3:58the year isn't going to be something
4:00that's going to give us opportunities
4:01for daily income. Now, if we're looking
4:03at this same chart, but we zoom in
4:05instead of being on a weekly chart to a
4:081-minute chart, you'll see on an
4:09individual daily basis when the market
4:12opens, there's multiple opportunities to
4:14be able to position ourselves. But now,
4:15instead of waiting an entire year to
4:17make $26, we can put $100 worth of risk
4:21on to be able to have the potential, in
4:23this case, to make $527
4:26of profit if we're able to pick areas
4:28where price is more likely to move up to
4:30this level before moving down to this
4:32level. But now, obviously, the question
4:33becomes figuring out these areas of
4:35opportunity. Okay, and as we zoom in on
4:37this process, the math becomes more and
4:39more important to be able to nail this
4:41properly. And obviously, we need to be
4:43able to figure out areas in the first
4:45place to be able to position ourselves
4:46to predict where the market is going to
4:48reverse and allow us to take advantage
4:50of these opportunities. Okay, but our
4:51jobs as traders is to be able to figure
4:53out these specific areas. And you can
4:54see, as an example, this is exactly what
4:57I do when I'm day trading. So, you can
4:58see, I enter a position here. I position
5:00myself so that I have more upside and my
5:02risk is contained. You can see I'm up
5:045,000, nearly 6,000, and then price
5:07shoots in my direction, and I'm able to
5:09figure out these very specific areas.
5:11Okay, and I'm not showing this to brag
5:12to you. I'm showing you that these are
5:13the opportunities at hand if we're able
5:15to master the skill and figure out how
5:18to execute this on a daily basis. And
5:20obviously, we don't have a crystal ball,
5:21but it's about putting ourselves in the
5:23right positions to allow this to play
5:24out. But before we get into that, first
5:26we need to go over all of the tools and
5:29softwares that you're going to need to
5:30start this process. So, first thing that
5:32you're going to need is TradingView,
5:33which is where we're going to be doing
5:35all of our charting and analysis. Okay,
5:37the second thing you're going to need is
5:38a broker or an exchange to actually be
5:40able to execute [music] these trades.
5:42Okay, when I'm trading crypto, I'm using
5:43either BlowFin here or Bybit. Okay, and
5:45for traders on the team that are trading
5:47stocks. Okay, a lot of us like to use
5:48Tradeify or Topstep to be able to get
5:50access to capital and be able to execute
5:53these trades. Okay, and the third thing
5:54that we're going to need is a trade
5:55journal to be able to document and
5:57record all of our trading information to
5:59be able to see our results over time.
6:01Okay, I'm going to share this one with
6:02you guys so you can follow along, but
6:04more on that later. Okay, so let's start
6:05off with TradingView. When you get to
6:07the homepage here, you're going to want
6:08to go to products and then you're going
6:09to want to click here on super chart.
6:11What this is going to do is pull up a
6:13basic chart. Okay, before we're looking
6:15at this chart in a line graph, we click
6:17on this button right here. We can click
6:18on candles and that's going to show us
6:20the same data, but just in candlestick
6:22form, which is going to be very, very
6:23helpful for us to be able to look at
6:25charts simply. Okay, when we're on
6:26TradingView, what this is allowing us to
6:28do is see this visual representation on
6:31any pair that we're looking to trade.
6:33Now, you can see if I click up into this
6:35button here, I'll be able to type in
6:36basically anything that I want to look
6:38at. Okay, so say I want to look at
6:40Solana. What this is going to show me is
6:42basically the price of Solana compared
6:44to the US dollar. So, as Solana's value
6:46increases compared to the dollar, we'll
6:48be able to see when the chart is
6:49increasing and when it decreases, we're
6:51also going to be able to see that visual
6:53representation of all of these
6:55instruments compared to the dollar or
6:57whatever currency that you're using.
6:58Okay, when we're looking at this chart,
7:00there's a lot of important information
7:02that we can pull out of this. But at
7:03first, it's important to understand what
7:04we're actually looking at when we're
7:06looking at these candlestick charts.
7:07Okay, so here's how we look at this
7:08data. Whenever we see a red candle,
7:10okay, this is showing us a few things.
7:12It's showing us the open price, the
7:14close price, and then the low and the
7:16high. Because price opened at this level
7:18and closed lower, this candle is going
7:20to be red. So, that's showing us a net
7:22decrease in movement with our highs and
7:25lows over that time frame. If we're
7:27looking at a green candle or a bullish
7:29candle, price opened here and closed
7:31higher, leaving us with a green candle
7:34and we still have our highs and lows
7:36being showed by these wicks right here.
7:38So, that's going to show us how price
7:39has moved over that period and we can
7:41study how this responds in order to
7:43dictate how we're going to place our
7:45trade. So, if you go up to TradingView,
7:47there's going to be a top menu right
7:48here where you can basically select any
7:50sort of time frame that you want to look
7:51at. So, on my chart right here, I have
7:53it so that each one of these candles is
7:55showing me 1 minute worth of price move.
7:57Okay, so if we look, this candle showed
7:59me the open and the close, considering
8:01it's a black candle, I have mine in
8:03black, that's showing me a bearish
8:04candle, and then it's showing me the low
8:06and the high over that period. In the
8:08opposite direction, we see our open, our
8:10close, our high, and our low right here.
8:13Okay, so we can see, if we take 1 hour
8:15worth of data, right, I'll have 60
8:17candles at a 1 minute time frame right
8:19here. Again, if we look at the 15-minute
8:21chart, you can see we have 1 2 3 4
8:24candles at 15 is 60 total minutes, but
8:26now we're looking at 15-minute candles
8:28as opposed to 60 1-minute candles. Okay,
8:31and I'm going to show you exactly how we
8:32can look at these simultaneously to be
8:34able to give us an advantage in the
8:36market. It's really, really cool. Okay,
8:37and the reason that this is important,
8:38and I'm going to go back to my live
8:40trade example here, is because we can
8:41find areas on a 15-minute chart that
8:44agree with our 1-minute chart to be able
8:46to give us double layers of confidence.
8:49If we're seeing the same things on a
8:50really zoomed-out perspective and a
8:52really zoomed-in perspective to allow us
8:54to play into the bigger picture, but be
8:56very, very accurate on our entry, which
8:58can allow us to make substantially more
8:59profit. Okay, I was targeting this area
9:01on my 15 and this on my 1, which both
9:04aligned, and you can see I was able to
9:05use that to make 5 6x what I was
9:07risking. Okay, so basically, we can take
9:09all of these pairs and all of these time
9:11frames. Okay, and say I want to build a
9:13list of things that I like to look at
9:15and trade all the time. We're going to
9:16go ahead and click on this button here
9:17on TradingView. We can click on this
9:19plus button here, and we can add
9:20basically anything that we want to trade
9:22on a continued basis into a watch list
9:25by clicking on this plus button. And now
9:26we can organize this so we can always
9:28have access to be able to quickly go and
9:30look at what we want to trade for the
9:32day. Okay, but before we can get into
9:34actually taking trades and looking at
9:35analysis, we need to fully understand
9:38trading psychology. Okay, and this is
9:39one of the most important parts that is
9:41usually glazed over by traders in the
9:43beginning, but without this, I promise
9:45you, it's going to be nearly impossible
9:47to be able to figure this out. If you're
9:48able to master this mental rewire that
9:50I'm going to explain to you right now,
9:52you're going to leave this video
9:53immediately better than like 90% of
9:55retail traders. Okay, so as human
9:57beings, we're designed a certain way
9:58that is actually the exact opposite way
10:00that we need to act while we're trading
10:02in order to be successful. Okay, and
10:04this explains why 90% of people struggle
10:06to become traders. As humans, we're
10:08predisposed to thinking that being wrong
10:10and losing money are things that need
10:12correctional changes. Means that
10:13something is wrong. Okay, and typically,
10:15whenever we're doing something that is
10:16making us money, we view this as good.
10:19But in trading, this is the exact
10:20opposite way [music] that you need to
10:22think about it. Whenever we're entering
10:23a trade, say we're entering a trade
10:25right here, only one of two things is
10:27going to happen. Either price is going
10:29to continue to move through our unit of
10:31risk, giving us -1 unit of risk, or
10:33price is going to move in our direction,
10:35giving us +4 units of R. Okay, the
10:38reason that we put this automatic line
10:41right here to be able to exit a position
10:43if we are wrong is already coming to
10:45terms and agreeing that we're fully
10:46comfortable and confident to be able to
10:48take a calculated loss. The reason we're
10:51taking calculated losses as traders is
10:53because the market is somewhat random.
10:55Even though we have reason to believe
10:57that the market is going to move in our
10:59direction, it is pre-built into any
11:01successful trading plan to account for
11:03those losses. long as we're following a
11:06simple strategy that we know it works
11:08and we're executing on that strategy,
11:10we're accounting for those losses to be
11:12able to give us the opportunity to have
11:15these wins. So, any loss should be
11:17considered opportunity cost. Okay, and
11:18the reason this is so important is
11:20because all we're trying to do is boil
11:22trading down into basically two simple
11:24data points. Say for entering a trade
11:26here, we have one unit of risk at our
11:29stop loss, and what we're trying to do
11:31is make, in this case, 1 2 3 4 units of
11:34gain for one unit of risk. Assuming we
11:37can pick an area where price is more
11:39likely to move in this direction before
11:41it moves in this direction. The way that
11:42we're doing that is by positioning
11:44ourselves so we can calculate exactly
11:46how much we want to risk every single
11:48time we take a trade so that our risk is
11:50always perfectly calculated, which is
11:52then going to allow everything to be
11:53very calculatable. So, if we're risking
11:55-1R, we can ensure this is going to be
11:58+4R. And say we want to risk $100. All
12:02we have to do is take the price we're
12:03entering at or the price that we want to
12:05buy at, say it's 85, subtract it by the
12:07stop-loss value, which say is 84. Okay,
12:10in this case, it's going to give us one.
12:12So, if we literally want to risk $100,
12:14we're taking the dollar amount we want
12:16to risk divided by $1, and that's going
12:18to give us the amount of units that we
12:20need to enter with in order to risk the
12:22same exact dollar amount. Okay, so let's
12:24take an exact example on the chart.
12:26Okay, so if we go back over to
12:27TradingView, say I wanted to buy in here
12:29at exactly 85. I want to set my risk.
12:31So, if price goes down to 84, I'm
12:33getting out. I can click and drag my
12:35take profit to be exactly four times
12:37what I want to risk. And you'll see if I
12:38double-click into this, I can literally
12:40input 100, and that's going to show me I
12:43need exact quantity of 100 units at this
12:45price to be able to buy in in at this
12:47price because if this moves down by $1
12:50in price times 100 units, that's going
12:53to equal $100 worth of risk. So, this is
12:55extremely important because all we're
12:57trying to do in trading is figure out
12:59basically two key metrics. One, what
13:01percentage of the time are you winning
13:03versus losing? So, your winning
13:04percentage or your losing percentage,
13:06and how much money are you making when
13:07you're right versus when you're wrong.
13:09So, let's take this as an example. This
13:11ties back into trading psychology again,
13:13where people constantly think that they
13:14need to be right in order to be good
13:16traders. Trading has nothing to do with
13:18being right or wrong. In trading, you
13:19get paid to be profitable. You don't get
13:21paid to be right. And this is going to
13:23explain that exact scenario. So, let's
13:25take a scenario where we lose 70% of the
13:28trades that we take. Okay, so every time
13:29that we're entering in the market
13:31expecting for price to come up to this
13:33level before coming down to our
13:35stop-loss, 70% of the time we're wrong.
13:38On a surface level, people would think,
13:40"Oh, you're wrong, so that's inherently
13:41bad. That strategy doesn't work." Now,
13:43let me explain why that's the exact
13:45opposite way that you need to think.
13:46Okay, so let's take all of our losses
13:48and all of our wins. Okay, so over here
13:49we have 1 2 3 4 5 6 7 losses for a sum
13:53of -7R
13:54and an average loss of -1R. Once again,
13:58that's why it's so important to be able
13:59to calculate our position sizing
14:02extremely precisely because without
14:04that, all of these metrics that we're
14:05going over in order to make it
14:07calculatable based off of the winning
14:09percentage in the average risk-reward is
14:11completely thrown out the window if we
14:13start changing the amount that we're
14:14entering on trades with arbitrarily. So,
14:16this is going to give us a loss rate of
14:1870%. Now, let's go over to our winners
14:20here. You can see, we have 1 2 3
14:22winners. Say we have 5.2R on one winner,
14:252.5R and 3.1 on the other. So, that's
14:29going to give us a sum total of 10.8R.
14:32Once again, when I'm talking about R,
14:33I'm talking about the risk we're putting
14:35on the table in the multiples of how
14:37much we're able to make in reward if
14:39we're right about the directional bias
14:41of the trade. These are my positive risk
14:43units, these are my negative risk units.
14:44This is going to give us a sum total of
14:4610.8 positive risk factors. Our average
14:49amount of R on our winners in the
14:51winning percentage of 30. Okay, so if we
14:53take our 10.8 over 10 trades, subtract
14:56it by 7R, that's going to leave us with
14:59positive 3.8R.
15:01So, if we're risking $100 on the trade,
15:03that means that that's going to be 100 *
15:06our 3.8R and it's going to leave us up
15:09$380
15:10in profit being wrong 70% of the time.
15:13One piece of advice that I will give to
15:15you is don't tell people when you start
15:17trading. Don't talk about it with people
15:19who don't understand trading cuz if you
15:21come into a session and say, "Oh, you
15:22know, I lost money today. I lost few
15:24trades and I lost $200." They're going
15:26to be like, "What happened? What can you
15:27do differently? How can you improve for
15:29next time?" And the truth of the matter
15:30is, sometimes there is zero things to
15:32improve. Sometimes you just need to
15:34understand to trust that process. You
15:36need to trust that your strategy
15:38actually works, which makes it so that
15:40having a good, simple, profitable system
15:43is super important. We're going to get
15:44into that in a second. But, to also
15:46understand that losing money is not
15:47inherently bad. Being wrong is not bad.
15:50And if you make money on a trade by
15:52doing something really stupid, they can
15:54compromise you losing a bunch of money,
15:56but it ends up making you money. All
15:58you're going to do is reinforce bad
16:00habits. But, people in the outside world
16:01are going to tell you everything's
16:02great. That's amazing. You made a lot of
16:04money on a trade. Keep doing that. So,
16:05it's a literally the game I just showed
16:07you. It has nothing to do with how you
16:09feel about winning trades or anything to
16:11do with ego about being right. That is
16:13how you rewire your mind for trading.
16:14Okay, so now let's get into actually
16:16analyzing charts. And I'm going to show
16:17you exactly, very simply, how I start to
16:20find patterns and start to put ourselves
16:22in high-probability situations by
16:24looking at price action. And I'm going
16:26to start really simple, and then I'm
16:27going to continue to go advanced. So,
16:29throughout this process, it should make
16:31sense to you even if you're a beginner,
16:32but we are going to go into some more
16:34advanced topics. And I'm going to show
16:35you how I'm actually able to pick these
16:38really key areas and set myself up so I
16:40can set my risk at a fixed amount, but
16:42I'm able to predict large market moves.
16:44Say I'm starting on a 5-minute chart.
16:45And all we're looking at is our
16:46candlesticks. The first thing that I
16:48want to do is understand something
16:49called market structure. And the first
16:51element of understanding market
16:53structure is simply to look at trend
16:55levels. Okay, so what a trend is is
16:57basically when price is generally moving
16:59in one direction or the other, whether
17:00that's up or down. Okay, and there's a
17:02few unique identifying factors that we
17:04can use to determine whether the price
17:06is generally moving up or down. And if
17:08we can determine price is generally
17:10moving up, we tend to want to take
17:11trades in that direction. And if price
17:13is generally moving down, we don't want
17:15to fight that trend, and we want to go
17:17in that direction. Okay, and so what I
17:18can do is click on this tool right here.
17:20Immediately, I can start identifying
17:22high points and low points of price that
17:24is generally moving in an up direction.
17:26You'll see price is generally moving
17:28down here and up over here. Okay, and I
17:30can go ahead and click on this trend
17:31line tool here. And all I'm doing is
17:33clicking off of this lowest point here
17:35of price that is generally moving in an
17:37up direction. Okay, and all I want to do
17:38is draw a line here that comes in
17:40contact with as many of these low levels
17:43as I possibly can get. can right click
17:45on this and click on clone and then move
17:47this one up to that high period and see
17:49where the top part of my range is. Okay,
17:51this is basically showing me now the
17:53upper and lower portions of this move.
17:55And it's going to give me a lot of
17:56information the further that we analyze
17:58this. Okay, but the most important part
17:59to understand about these trend levels
18:01is it basically what it's showing us is
18:03these visual levels of where these
18:05supply and demand levels are. Price is
18:08pushing down to this area, pushing up,
18:10coming down to this area where the
18:12demand continues to outweigh the supply.
18:15Where the buyers continually start to
18:16outweigh the sellers. Okay, so here
18:18buyers win, here sellers start to win,
18:20here the buyers are holding this key
18:22level. Okay, supply starts to outweigh
18:24demand here. Price comes back down to
18:27test this level again, attempts to push
18:30higher than this level, but instead
18:32comes back down to test it again, and
18:34then eventually starts to break below
18:36that value. These trend areas are going
18:37to show us a few things. First off, if
18:39we can figure out where price has
18:41responded off of before, we can start to
18:43anticipate and build positions off of
18:45these low levels. Okay, so that even if
18:47we are wrong and price ends up moving
18:49lower through that level, we're still
18:50putting ourselves in a position where if
18:52we are right and demand continues to
18:54outweigh supply where it has before, we
18:57now are in an opportunity to play all
18:58the way up to the top of the range and
19:00potentially make eight times what we're
19:02risking if we're wrong. Okay,
19:03additionally, if price is generally
19:05trending up right here, and then all of
19:07a sudden price drops below these levels,
19:09whenever price comes up to contact that
19:12on the opposite side is usually a high
19:14impact area for a high probability of
19:17price to come up contact that level and
19:19then continue moving down in an opposite
19:22direction range. So you can see once
19:24again if we could position ourselves up
19:25here, this is the last point that price
19:27went before making a continuation all
19:29the way in the opposite direction. So
19:31this is going to allow us to be able to
19:32get in mid-trend and start to position
19:34ourselves in higher conviction areas to
19:37go in our direction. Okay, so I'm going
19:38to go a step deeper now into analyzing
19:41the way price moves in trend. So in
19:43order to establish an uptrend, we need
19:46to figure out where the previous
19:47downtrend was. Okay, so whenever we're
19:49looking at trends, here is really what
19:51we want to focus on. If price is
19:52generally moving say in a direction like
19:55this, okay, this is once again forming
19:57that uptrend. We have a few unique
19:58identifiers which is going to show us
20:00how this market is structured. Okay, in
20:02order for us to technically have an
20:04uptrend, we need to have a push up, a
20:06low, a higher high, and a higher low,
20:08and then we need something called of
20:10structure. Now whenever I say break of
20:12structure, that means that price has
20:14made a secondary low and pushed up over
20:16that secondary high and that's
20:18confirming that we have a higher high,
20:20higher low, higher high, higher low.
20:22That's confirming an uptrend. Now say
20:24price now makes a move down to this low
20:27level again, but instead of continuing
20:29to move up through this high, it now
20:31pushes through this level. I'm going to
20:32take the last confirmed higher low with
20:35a confirmed break of structure and this
20:37is going to be something called a change
20:38of character. Now the change of
20:40character is showing us that we're no
20:42longer holding this level and no longer
20:44breaking to fresh highs with new breaks
20:47of structure and this is our first sign
20:49of weakness saying that we could
20:50potentially be at the very beginning of
20:53a new trend that is now broken below
20:55these levels, can come up and then
20:57continue to do the same thing in the
20:59opposite direction. Now creating bearish
21:01breaks of structure to the downside.
21:03Okay, and this becomes very important
21:04because this is going to allow us to
21:06look at charts relatively quickly and
21:08understand whether we're in an uptrend
21:10or a downtrend and it's going to allow
21:12us to time entries a lot better. So,
21:13let's take an example here. If I'm
21:14looking at this chart, I'm seeing that
21:16price is generally moving down. You can
21:18see before price was moving up here, but
21:20instead of breaking over that new high,
21:22you can see we almost broke over that
21:23new high and started to close, but then
21:25broke below this level. That's
21:26confirming a change of character. We get
21:28a push down, push up. That's a break of
21:30structure to the downside. Pull up,
21:32break of structure to the downside. Now,
21:33we get a push down, a push up, a final
21:36low here. So, that's my bearish break of
21:38structure until we get this move right
21:40here, which you can see closed above
21:43this previous swing point before our
21:45low. And what this is telling me, if we
21:46get a candle close here, is this is the
21:48exact point where we're getting our
21:50change of character. Okay, so like I
21:52said before in our example, the first
21:53potential area where the trend could be
21:55showing indications of reversals, which
21:58tells us this level could be the last
22:00push if we are going to make a move in
22:02the opposite direction or have a bullish
22:04uptrend that this low level is important
22:07and that we're potentially in the
22:08beginning of a new uptrend. Now, as
22:10price starts to trade back into this
22:12area, it becomes very obvious to us that
22:14it's either price is going to break
22:17below this level or we're going to
22:19establish a brand new uptrend. Okay, in
22:21which case we can start to set ourselves
22:23up to be able to risk underneath that
22:25low, but if it does create a new trend
22:26in the new direction, we can make four
22:28times what we're risking. I'm going to
22:29go a little bit deeper now. That's
22:31generally how I'm reading the visuals in
22:33the market. Now, the next tool that I
22:35want to talk about is something called
22:36the Fibonacci sequence. Okay, and the
22:38Fibonacci sequence is a ratio that is
22:41naturally occurring. We can see it in
22:42seashells, trees, nature, facial
22:44symmetry. This is basically how the
22:46universe is coded and we can actually
22:48see this showing up in tendencies in
22:51mass human psychology. People tend to do
22:53it, institutions, the way price tends to
22:55move tends to follow this key ratio. So,
22:57this is exactly how it works. So, say we
22:59have a point where price is moving up
23:01like this. What we want to do is we want
23:03to go over to this tool right here and
23:05click on Fibonacci retracement and then
23:07we're going to click on the beginning of
23:09our trend and put this up to the highest
23:11point. So, we're going to cover the
23:12entire range. Now, you're going to see
23:14these numerical values here. We're going
23:15to see 78.6, 61.8, 50 level, 38.2, 23.6.
23:21What we really want to focus most of our
23:22attention on is this green level right
23:24here. That's going to be the 61.8. This
23:27is considered the golden ratio. Now,
23:29typically what will happen is if price
23:31is going to continue to move in a
23:32direction, if it pulls down and comes in
23:35contact with this area, there's a high
23:37probability, if there's going to be a
23:38continuation, the price is going to come
23:40back down to this area, complete a full
23:42retracement and then continue moving in
23:44that direction. So, let's go back over
23:46to our chart here and take an example
23:48look here. So, we have our confirmed
23:49change of character over this level. So,
23:51let's take our Fibonacci tool, go from
23:54this low to the high that is produced
23:56and you'll see that's exactly where
23:58price pulls at its lowest level, also
24:00coming in line with this area that
24:03wasn't broken before. So, the demand was
24:05outweighing the supply here. So, if we
24:07wanted to say we want to position right
24:10here, now this can allow us to be even
24:11more precise on how we're positioning
24:13ourselves because we're seeing the price
24:16is coming in contact with this low
24:17level. Let's take a look at this working
24:19again. So, let's say we wanted to trade
24:21in the opposite direction, okay? So, we
24:23have our break of structure here, small
24:25break of structures up here and then a
24:26push and then we notice price fails to
24:28break over this level. Okay, as price
24:31trades back down to this level that was
24:33previously contacted, you see this is
24:35where we get an aggressive push below
24:38and a push down. So, if we take our fib
24:40from this swing point down to this exact
24:43point over here, you'll see this is the
24:45exact point that price came back up to
24:47into that golden ratio again from this
24:50entire range, also into the opposite
24:52side of where the buyers used to be
24:55beating the sellers or the demand was
24:57outweighing the supply broke below it
24:59and now the supply here outweigh the
25:01demand right at that 61.8 area again
25:04allowing us to more precisely be able to
25:07enter and play to the downside. Okay, so
25:09this fib you can see examples of this
25:10literally happening everywhere. What I
25:12like to keep in mind while I'm using my
25:14fib and to find areas where it's going
25:16to be very impactful to use them. What I
25:18want to see is if the price leading into
25:20that direction on that range is
25:22responding off of these key levels. If
25:25price is responding on its way up,
25:27there's a higher probability that price
25:29is going to respond on the way down and
25:31allow us to capture off of these moves.
25:33If we're disrespecting it on the front
25:34end, I don't really expect it to be able
25:36to respond to it on the opposite side.
25:38But if it's working in harmony with
25:40these levels, these are good pullback
25:41areas that we can match up with other
25:43pieces of analysis to be able to assist
25:45us in finding good areas to trade. Okay,
25:47the next piece of technical analysis
25:49that I want to share with you guys is
25:50using something called the Inevitable
25:52Pro Plus. Now this is an indicator that
25:54we built uses something called a cloud
25:57highlight RSI. Now an RSI stands for
26:00relative strength index and you can see
26:02on this indicator when price is in these
26:04big drawdowns, we start to see red
26:06highlights. Okay, when price is
26:08generally in these overbought
26:10territories, this is where we're going
26:11to start to see these green highlights.
26:13So you can see we had a green highlight
26:14at the very peak of this price action.
26:16This isn't going to be some sort of
26:17magical indicator, but what it does do
26:19is allows me to check to see where we
26:22generally are with price and if we are,
26:24like we can see right here, in a
26:25generally oversold area to get a little
26:28bit of a boost in the opposite
26:29direction. You can see as price is at
26:31its low here, we're highlighting it red
26:33and anytime it's relatively overvalued,
26:35it's going to be highlighted in green.
26:37It's going to be a layer of extra
26:38evidence to be able to put me in
26:40generally good areas. If you want access
26:42to this or any of the other indicators
26:44that I use, okay, that and a bunch of
26:45other resources are in the description.
26:47Okay, so the next thing that I like to
26:48look at with my chart is something
26:50called a fair value gap. What a fair
26:51value gap is is a sequence of three
26:54candles where the high wick of the first
26:56candle does not overlap with the low
26:58wick of the third candle. And what it
26:59does is leaves behind an area here,
27:01which we're going to call a fair value
27:03gap. All right, in this case, this is a
27:05bullish fair value gap where we have
27:06three bullish candles here and we'll
27:08notice this is typically where price
27:10will pull back into before continuing to
27:12make an expansive move the upside. Same
27:14thing in the opposite direction. If we
27:15have one, two, three candles moving
27:17generally down, if we take the first
27:19wick and the third wick, this is where
27:21price tends to move up into into the
27:23midpoint or the 50% of this move before
27:25continuing to move in the opposite
27:27direction. Okay, so if we go back to our
27:29example from before, there's lots of
27:31gaps in this price action, but we're not
27:33exactly sure which gaps we need to be
27:35closely paying attention to. Okay, we
27:36can see there's a gap here if it aligns
27:38with my other general analysis. So, take
27:41this as an example, we have our change
27:43of character level here, we have our
27:45trend break here, we have a change of
27:47character where we're closing lower than
27:49this previous level. We also notice that
27:51price significantly pushes through this
27:54area and leaves behind a gap right here.
27:56Okay, we have a smaller gap, which if we
27:58zoom in right here, was produced and
28:00you'll see that was the last area before
28:02price took a massive sell-off. We take
28:04this gap from this three candle sequence
28:07and the candle that pushed directly
28:08through that level, price came up to
28:10this midpoint, aligned perfectly with
28:12the 61.8 level and on the opposite side
28:15of this trend level, and this was the
28:17last area that it pushed before making a
28:19substantial move to the downside. Okay,
28:21so these are the building blocks that
28:23I'm using to be able to put into
28:25data-tested strategies to be able to
28:27take what seems to be completely random
28:29data and random information and we can
28:31start to very quickly filter out all of
28:33the noise and put ourselves into
28:35high-probability situations to be able
28:37to enter the market, keep our risk
28:39contained and allow our wins to be
28:40open-ended. Okay, but in order to do
28:42this, we need to build an exact strategy
28:44and then and able to test it to
28:46effectively build a trading strategy and
28:48build trading into a trading model.
28:50Okay, so that's what we're going to get
28:51into now. Here's exactly how I've been
28:53able to build my trading into a business
28:55model and exactly how you can start and
28:57build an actual game plan for yourself
28:59to test it to have proof of concept
29:01instead of just jumping into the markets
29:03trying to do things randomly, which is
29:04what most people make a mistake on.
29:06Okay, so the first thing that we're
29:07doing is finding a trading strategy
29:09concept and how we're going to do this
29:11is by literally just looking at the
29:12chart and looking for observations of
29:15things that tend to happen. Okay, so if
29:17we go back to our example over here, we
29:18can basically conclude that if we get a
29:21change of character, a push down, price
29:23coming back into a trend level, into our
29:2561.8 level, and into a fair value gap,
29:28this has a high probability for us to be
29:30able to set our risk up and get five
29:32times what we're risking. Okay, and I'm
29:34just scratching the surface of general
29:35technical analysis. I have an amazing
29:37video going over not only TradingView,
29:40but also how to do a bunch of different
29:42technical analysis. I'm going to link
29:43that at the end of the video so you can
29:45dive in a little bit deeper. So, the
29:46first step is literally just to observe
29:48what is happening in the market. Okay,
29:49the second thing that we're going to do
29:51is actually define exact rules that
29:53we're going to follow. So, observation
29:55is the creativity phase. The second
29:57thing is defining rules, 1 2 3 4 etc.
30:00rules that we're actually only going to
30:02enter the market if these things line
30:04up. Now, it's very important to start
30:06fairly simply because the more variables
30:08that you add into this, the more
30:09difficult it's going to be to collect
30:11the data and observe it and then to be
30:13able to determine what is actually
30:15leading to the success or not of the
30:17trades. Okay, and what this is going to
30:18allow us to do is basically pull up our
30:20chart on the left side, pull up our
30:21trade journal on the right side, and go
30:23through scenarios in the market that fit
30:25our criteria. Okay, so on TradingView,
30:27you can go to this top part right here,
30:29click on this bar replay button, click
30:31on this menu and select bar, and you can
30:33literally click and drag and rewind the
30:35price and then use this play button to
30:37play the bars forward to be able to make
30:39decisions of what you would do in real
30:41time. Okay, so as the market is
30:43developing. So in our situation, if
30:45we're just waiting for a change of
30:46character, waiting for a fib level in
30:48our fair value gap. Okay, here we're
30:50getting our change of character. I can
30:51immediately set up my Fibonacci level,
30:53add in my fair value gap level, and then
30:55set up my take profit value, play it
30:57forward to see how the trade plays out,
30:59and then basically I can input the exact
31:01date. Okay, so this was the 14th day of
31:04the week, what I was trading, the
31:05strategy that I'm testing, you can add
31:07your own, the time frame that you're
31:08trading on, whether it was a long or a
31:10short position, whether it was a win or
31:12a loss. In this case was a win, and the
31:14P&L that you would have made on this
31:16trade. So, we click into here and set
31:17our risk at a 100. So, if I set up my
31:19position so that I'm risking a $100,
31:21this trade would be $500 in profit.
31:24Okay, so say we play this forward. Okay,
31:26I wait for my next change of character
31:28level. I have my fair value gap here and
31:30my 61.8 and my golden ratio level. So, I
31:33set up my position, can put in my next
31:35trade here. Okay, and say we have a loss
31:36in here as well. So, say we lose $125.
31:39This is going to now show us our winning
31:41percentage here, as well as all the
31:42money we've made over a certain amount
31:44of testing. We can click into this sum
31:46value here, click on more options in
31:48average, and that's going to show us our
31:50average profit. If I can click on this
31:52filter and click on wins are checked.
31:53And so, that way when we go into
31:55averages, it's going to show me how much
31:56money I'm making on my average winning
31:58trades. If I want to uncheck this, it's
32:00going to show me my total average of all
32:03of my trades, whether it's a win or a
32:04loss. And this is going to allow you to
32:06get your winning percentage and your
32:08average risk reward. Okay, so we've
32:10identified a strategy with observation,
32:12we've set up rules and defined them, and
32:14then we've evaluated the outcome and
32:16figured out our winning percentage and
32:18our average win and loss size. Okay, and
32:20all we're trying to do with this process
32:21is basically make it so that we're on
32:24the green side of this table. So, in
32:26that case [music] of our strategy, our
32:28average position size was 5 to 1.
32:30Technically, we had a 100% win rate, but
32:32if we were to do that over enough data,
32:34all we would have to do is be able to
32:35find situations where two out of 10
32:38times we're able to find that exact
32:40scenario and that's going to put us into
32:42a profitable state. If we can get even
32:44better at it and we can do it 30% of the
32:46time by improving our analysis, that is
32:48going to put us at a highly profitable
32:50state and that's going to allow us to
32:52move to the next stage. But anyone
32:54starting off with trading who's not
32:55doing this process first and is jumping
32:58into live markets is going to be wasting
33:00their time. You want to have the proof
33:01of concept first. Trading is the only
33:03business that you can really come into
33:05and be able to have full proof of
33:06concept without putting any money into
33:08the market. Okay, so this is step one of
33:10the process. Here is the next steps to
33:12actually start with no money and get to
33:13the point of trading with a live
33:15account. So first thing that you want to
33:16do is observe on chart to find the idea.
33:18Okay, we replayed it and put all of the
33:20information into our journal. When
33:22you're ideating, you don't need to
33:23replay, you just want to look for stuff,
33:25see what happens with all of the
33:26indicators and processes that you're
33:28adding to your chart and see if that's
33:30going to give you a positive outcome
33:32over time. I would say 30 to 40 trades
33:34over a few months is going to give you a
33:37pretty good idea of how you can expect
33:38that trading strategy to work over the
33:40long term. Next thing that you're going
33:41to do is go in and actually paper trade
33:44this strategy by executing it with
33:46simulated capital on a real exchange.
33:48Okay, so keep in mind this process is
33:50going to be diminishing over time.
33:52Meaning that each time you go through
33:54one of these stages, the profitability
33:56is going to continue to drop, but the
33:58goal is to be able to start with such a
34:00good concept that by the time you get
34:02through actually executing it and then
34:03bringing it to a live account, you're
34:05still well in the profitable stage to be
34:07able to trade and deploy this with real
34:09capital. Okay, so let's take this next
34:11trade that we would be taking as an
34:12example. So we have a break, a change of
34:14character, our fair value gap, we set up
34:17our Fibonacci level. Okay, price is
34:18coming up. Let's say we wanted to
34:20actually execute this trade. Okay, so if
34:21this is on Solana, I'm going to click
34:23into my pair here on BlowFin, click on
34:26Solana USDT, right? So that's Solana
34:28against the dollar like we said. We're
34:30We're to click on this button right
34:31here, click on where we want our entry,
34:33where we want to set our risk, where we
34:35want our take profit. Okay, I'm going to
34:36double click into this and click on $100
34:39worth of risk. That's going to give me
34:41344 units that I need to enter it. So,
34:44I'm going to go in, add the entry price,
34:45which you can see is 9158, and I'm going
34:48to type in 344 units. And you're going
34:50to see underneath here, we have a cost.
34:52Technically, this position is going to
34:54cost $31,500.
34:56Now, unless you have $31,000 in your
34:59account to risk $100 on a trade, this
35:01isn't really going to be feasible. So,
35:03if we go up to this button right here,
35:04you'll see we can actually adjust the
35:06amount of leverage. Now, if I go up to
35:08100, click on that 100, that is dividing
35:10the actual capital requirement of the
35:12position by 10, which is now requiring
35:14only 3150. If I go up to say something
35:17like 50, now the cost of this position
35:19is only $630.
35:21So, I can go in, click on my take
35:23profit, 9031, 9187, and you'll see I'm
35:27inputting these exact values, and that's
35:28going to give me $100 almost exactly of
35:32risk and the probable [music]
35:33outcome of this trade being that $500
35:35amount. Then, considering we want price
35:37to go down, I would click on the short
35:39button here, and that would allow me to
35:40be able to capitalize on this trade,
35:42play it to the downside, and then all
35:44I'm doing is entering this data into my
35:46trade journal. Okay, and I'm only
35:47scratching the surface of what we can do
35:49with trading strategies and common TA.
35:52While keeping it fair to the private
35:53side of the trading team, I can't get
35:55into every single thing that I'm doing
35:56day-to-day while I'm trading, but I
35:58wanted to be able to show you analysis
36:00and show you things that you can start
36:01using to get a base level of
36:03profitability, see the proof of concept,
36:05and start off your trading. But, you can
36:06see as an example of a trade that I was
36:08taking, I'm finding the trend that we're
36:10currently playing into. I'm looking at
36:12fair value gaps, all of these things
36:13that I started sharing with you guys. I
36:15added this proprietary indicator here on
36:17my chart, which is indicating a buy
36:19level, so that's exactly where I bought
36:21in. You can see I'm in my position right
36:23here, and then I was able to trail this
36:24up for for much the entire session.
36:26Okay, you can see him up 5,000 over
36:28here. I've already locked in 3,000, and
36:29then I close out my entire position.
36:31Again, the goal with trading is to be
36:32able to find multiple opportunities to
36:34do this during the day. Follow the
36:36systematized report what works for you,
36:38and then be able to add capital to it
36:40over time. Okay, but I really wanted to
36:41make this video to show you exactly how
36:43I wish I started to hopefully be able to
36:45expedite your guys' journey and give you
36:47an opportunity to join a team if you
36:48want to take it to the next level. You
36:49can check out these videos as promised
36:51right here. Make sure you hit the like
36:52button and subscribe to the channel if
36:54you like trading and investing.
36:55Resources are all in the description,
36:57but until next time, guys, I will see
36:58you all in the next video.

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