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If I Wanted to Make $1,000 a Day Trading, I’d Do This — Transcript

by The Rumers · 4,128 words · 553 segments · language en · Watch on YouTube

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0:00Here's the deal. Today, I'm going to
0:01show you a trading strategy that I would
0:03use right now in this market. If I
0:05wanted to start making $1,000 every
0:08single day, even if I was starting out
0:10with zero experience or I had nothing
0:12but frustration to show for my efforts,
0:15this right here would be the strategy I
0:17would go to right now. Now, for a lot of
0:19you, you're probably thinking, "Man, a
0:21strategy like that with that type of
0:23performance, it's got to be complicated.
0:26I'm going to have to spend years trying
0:28to master this thing." Guess what? You
0:30don't have to do any of this because not
0:32only has this strategy helped me become
0:34a 7figure trader, I've had the benefit
0:37of teaching this to so many people from
0:39around the world. Many people who
0:41started with zero experience, many
0:42people who had blown through accounts
0:44and had nothing but frustration to show
0:46for their efforts. I've seen these
0:48people flip the script and become
0:50[music] successful traders using this
0:52strategy. Now, the strategy I want to
0:54talk to you guys about today is called
0:55the box theory. And I truly believe this
0:58is the most simplistic yet effective
1:00trading strategy you're ever going to
1:02see. In fact, since I started posting on
1:04this channel about the box theory over a
1:07year and a half ago, it has become
1:09[music] one of the most widely viewed
1:11trading strategies on the internet. And
1:14don't take my word for it. Just read the
1:16comments. Nothing but simple, stupid,
1:19and effective. So today, what I'm going
1:21to do is show you everything that I've
1:23learned about this box theory over a two
1:25decade trading career. And I'm going to
1:26share with you today many things that I
1:28have not shared in the past videos. And
1:31as always, towards the end of the video,
1:33I'm going to show you a series of live
1:35trades using nothing but this box,
1:37putting those final pieces of the puzzle
1:39together for you. That way, when this
1:40video is over, you can honestly look at
1:42yourself and say, "Man, this thing is
1:45stupid simple and effective." So, let's
1:48go ahead and get started today.
1:51So, here's where we need to start out
1:52with the box today. First and foremost,
1:54we need to make sure that the box is
1:56drawn correctly. Otherwise, all the
1:58data, all the analysis that you get is
2:00going to be slightly off. And nobody
2:02wants to be slightly off. Now, the basic
2:04premise that goes behind the box is a
2:06very simple one. Where we want to start
2:08is by connecting the previous day's high
2:11price point with the previous day's low
2:14price point. And let me show you a
2:16couple of ways to do that. Starting with
2:17the most simplistic, take whatever chart
2:20you are trading. So, for today's
2:21example, I'll be using the stock Apple,
2:23APL. But I don't care what's up here.
2:26Could be anything. But what does matter
2:28is take that asset you're trading, move
2:30it over to a daily chart. Once you've
2:33done that, all you need to do from there
2:35is grab yourself some sort of drawing
2:36tool like Trading View has a box tool
2:39already. Go to the very highest price
2:41point. Highest price point meaning the
2:43highest point you can see with your
2:44eyes, wick included, and connect that
2:47with the lowest price point. Just like
2:49that. And that creates the essence of
2:51your box. Now once you have done that,
2:54you can grab some sort of line or other
2:56drawing tool and put a line right in the
2:59center of that box. Now it doesn't have
3:01to be perfect. Just you know eyeball it.
3:02Whatever is close just like that.
3:04Doesn't even have to be a clean looking
3:05box. Just so you get that box drawn.
3:07Previous days high, previous days low
3:09line in the middle. Now after this you
3:12can switch to a smaller time frame that
3:14you like. So, for example, today I'll be
3:16using my favorite time frame, which is a
3:19five minute, but it doesn't matter what
3:21you're on. That's the beauty of the box.
3:22It'll work on a 1 minute, 5 minute, 1
3:24hour, 30 minutes. It doesn't matter
3:26because the analysis is always going to
3:28be the same. Now, once this box has been
3:30drawn, we can now talk about the
3:31relevance and what this box means. And
3:34the box has three main components to it.
3:36The top part, the bottom part, and the
3:39center part. And let's go over what each
3:40one means. Starting with the very top
3:42part of this box. The very top part of
3:45the box represents the strongest
3:48sellside force. Hence the reason why the
3:51asset had rejected from that price and
3:54sold off aggressively. So easy in
3:56layman's terms. The largest, strongest,
3:59most powerful well-funded seller is
4:02located up here towards the top of the
4:05box. The very bottom of the box
4:07represents the strongest buyside force
4:10or liquidity. Right? Hence the reason
4:13why the stock bounced from there. So the
4:15very top parts of the box represent the
4:18strongest seller. The bottom part of the
4:20box represents the strongest buyer. And
4:23the center of the chart right here
4:25represents nothing at all. It's just
4:28noise, confusion, and indecision. Okay,
4:32that's the essence of the box. So real
4:34quickly, at the top of the box,
4:36strongest seller, bottom of the box,
4:39strongest buyer. center of the box.
4:42Nothing. Okay. Now, with this
4:44information, we can move on to how do
4:47you actually generate a trade from this.
4:50And this is what I love so much about
4:51the box. This is what so many other
4:53people love about the box, and that's
4:55its simplicity. Because there's only
4:57three basic rules to getting this thing
4:59right. And here they are, beginning with
5:00rule number one. If the asset that you
5:03are trading is close to, at, or above
5:06the top of the box, don't buy it. That's
5:08it. just don't buy it at that moment in
5:11time. And the reason for that is what
5:14the top of that box represents the
5:16strongest most wellfunded sellside
5:20dominance. So ask yourself a very simple
5:23question. Why would you want to buy into
5:26a known area that the majority of the
5:29market can clearly see? A seller that
5:31has announced their intentions. Why
5:33would you want to walk into the lion's
5:35den and go head-to-head against a known
5:38large seller? You're going to get
5:40cheesed every time. Rule number two, if
5:43the asset you're trading is close to at
5:45or below the bottom of the box, don't
5:49sell it. Simple, right? Just don't sell
5:52it for the same reasons you wouldn't buy
5:54at the top. The known largest collective
5:58of buyside wellfunded power is located
6:01down there. Again, ask yourself the
6:02question, why do you want to go into the
6:04lion's den? Why do you want to position
6:07yourself to the sell side, right next to
6:10the largest, most wellfunded and
6:12transparent buyer? You're going to get
6:15cheese down there, too. Rule number
6:17three is the center line. This is what
6:19we call do not didd in the middle. And
6:22it's self-explanatory. Just simply don't
6:25trade there. Just don't do it. And
6:27here's why. Because at the top of this
6:30chart, you know, odds are it's going to
6:33be sold. There's probably an 80%
6:36probability that that strong seller will
6:39return. At the bottom of the chart,
6:42there's probably an 80% probability that
6:44the buyer will in fact return. These are
6:47known data points for the market. In the
6:49center, you don't have that information.
6:52So, if you think of it this way, it's
6:54possible if done right, you could have a
6:5670 to 80% win rate at the top of the
6:58box, a 70 to 80% weight at the bottom of
7:01the box, but 50/50 in the middle. You're
7:04going to get confusing, whipsolled, poor
7:06action, and the risk and reward is not
7:08in your favor. Now, I know a lot of you
7:10that are watching this that have a tiny
7:11bit of trading experience is going, you
7:13know what? I've seen some of these
7:15stocks just shoot right up through the
7:16box. I've seen a bunch of these just go
7:18right down, just blow through the box.
7:20What do I do then? I've seen these
7:21things hang around the middle and just
7:23move all over and it just take off up or
7:24down. You know what? I've seen a monkey
7:27ride a bicycle before. But you know what
7:29I haven't seen? I haven't seen a lot of
7:31monkeys riding a bicycle. The key to
7:34being a successful professional trader
7:36is trading probabilities, not
7:38perfection. And over the course of time,
7:41you've got to go with what is most
7:43likely outcome in every scenario.
7:45>> [snorts]
7:45>> And if you're always selling with the
7:47big seller and always buying with the
7:50big buyer and blocking yourself out from
7:53the garbage little breadcrumb scalping,
7:56you're going to go a long way in this
7:58trading business. Nothing will ever be
8:00perfect, but you're going to be a winner
8:02more than you are a loser. Now, this is
8:04all great the way I'm talking it up, but
8:06how about we put this theory to the test
8:09by showing you some real life trades so
8:10you'll learn to trust the power of the
8:12box. So, let's go back to our Apple
8:15chart. You'll see our box is still
8:16drawn. And I want to move to the
8:19previous days open right here and focus
8:21on the very first candle. I'm going to
8:24give you a quiz. This should be a layup
8:25for everyone. But tell me, your hands
8:28are tied behind your back. You're forced
8:30to make a trade. Based off the
8:32information you've collected in this
8:34video, what would you do here? Buy or
8:36sell? Now, hopefully you said sell
8:40because the price of Apple is close to
8:43the top of that box. Now, you might have
8:46been hesitant about saying that because
8:48you see this big green candle and it
8:50looks like that's going to be a
8:52breakout, right? That's the trap. It
8:54looks like it's going to be a breakout.
8:56What kind of fool would short a bar that
8:59looks like that or sell it? Why would
9:00you sell something like that? Well, I'll
9:02tell you why you would sell something.
9:03because we know the largest, most
9:06well-funded known seller is located
9:09there. And what happens? Couple of bars
9:12forward and look smoked. You will get
9:15cheesed every time walking into it. And
9:17for some of you, you've had this very
9:19feeling. And I have too. Now, let me
9:22give you quiz number two here. Where is
9:25it now? You see it here. Is it closer to
9:29the bottom of the box or the top of the
9:30box? The bottom. So, what should you be
9:34thinking again? Hands tied behind your
9:36back, forced to make a trade. What
9:37button do you hit? Buy button, sell
9:40button. It's the buy button. And just
9:43like the previous candle, I know that
9:45didn't look like a sell, but it was. And
9:47I know this doesn't look like a buy, but
9:50I bet that it is. Why? Because you're
9:53now bordering the strongest, most
9:55well-funded, and known transparent
9:58buyer. So, if I just kind of fast
10:00forward this a little bit right here,
10:02you're going to see that's exactly what
10:04happens. It tags the very bottom of that
10:06box and finds a way to move back up into
10:08the center of that range. So, again,
10:10just look at it. You traded from the
10:12very top part of the box. The known
10:15seller came back into the market. You
10:17tested the bottom of the box and it came
10:20right back into the known buyer and then
10:23bounces back up. The key to learning
10:25this and starting with the very best and
10:27most powerful part of the box is it's
10:30also a way to keep you out of trouble to
10:33keep you from walking into the market's
10:35traps. Now, a lot of you might say,
10:37"Well, look, you're cherry-picking some
10:39charts. This doesn't work all the time
10:41or it only works in a certain market."
10:43But let me go ahead and show you what
10:45the next day's action looks like. So, I
10:47went ahead and jump forward to save time
10:49into the next day's action. And what
10:50we're going to do is just scoot our box
10:52over here. Right? And for that day, we
10:55had just a little bit lower price print
10:58right there. So that is our new drawn
11:00box. So again, I want to go back and I
11:02want to just cover the basics. Remember,
11:04keep it simple. So here it is. Apple is
11:07opening up. You tell me where it is. Is
11:11it at the top or is it the bottom? It's
11:13at the bottom. Again, I know this looks
11:17bearish. It looks like a sell. It looks
11:20like it's going to collapse. But by now,
11:23you should know the rules. You tell me
11:26again. Hands behind your back. You got
11:28to make a trade right now. Buy button,
11:30sell button. Which is it? Hopefully by
11:33now you said buy. If you didn't, you're
11:35going to have to rewind the video. What
11:37do you think happens here? Right. Goes
11:40right back up through the top of the
11:42box. Now notice though when you get to
11:44the top of the box even though you
11:47extended slightly what happened it was
11:50never able to hold that momentum over
11:53top of the box. So again you can see
11:55span through several days of activity
11:58it's always managed to test the very top
12:01of the box and the bottom of the box so
12:03quickly as prices get towards the top of
12:06the box we are sell side focused bottom
12:10of the box we are buy side focused. in
12:13the middle. We should do our best to
12:15stay out of that because our accuracy
12:17isn't going to be as good. So, now we're
12:20going to move on to the next part of
12:21drawing boxes, which is alternative
12:23boxes. You're going to need to know this
12:25because I'm sure some of you have this
12:27question right now. What do you do in
12:29those cases when price breaks the box?
12:31When you wake up and the price is way,
12:33way above the previous day's high or way
12:36below the previous day's low. So, I'm
12:37going to show you a couple of ways to
12:38draw some alternative boxes. That way,
12:40you can still continue to use the box
12:42theory. Starting with gap up and gap
12:44downs and how we draw these alternative
12:46boxes. Now to save time, I went ahead
12:48and drew the box from the previous day
12:50connecting the previous day's high with
12:51the previous day's low. I moved that box
12:54into the regular session. And as you can
12:56see now, the ES is trading far above the
12:59previous day's high. In this case, we
13:02need to create new levels and new boxes.
13:05And here's how you do that. When in
13:07doubt, the cheat code for the box is at
13:10any given time, you can always connect
13:12the very highest price point you see
13:15with the lowest price point you see.
13:17That would be right here with the lowest
13:19price point you see. And that creates
13:21your alternative box. So whether it's at
13:24the beginning of the day, the middle of
13:25the day, the end of the day, you can
13:26always create, let's call it, cheater
13:28box and use those levels. And here's why
13:31this is so beautiful. Continuing to
13:33hammer home the power of the box theory.
13:35Because regardless of where that box has
13:38been drawn, the three rules still
13:41remain. You are a seller at the top, a
13:44buyer at the bottom, and you're not
13:45trading in the middle. So, having known
13:48this information, going as far as we
13:50have with this video, while this has
13:52gapped up and it's looks stupid,
13:55what do you think is the odds play here?
13:57You got to push a button. Is it a buy
13:59button? Is it a sell button? You tell
14:01me. I hope you said sell because what
14:04happens is down it goes. Right. And
14:07there it is. Right. Moves down towards
14:09the very base of that box. So here's
14:12what I want to show you though that you
14:13probably don't see too many times on
14:15YouTube videos, but this is very very
14:17important. This goes in in in tandem
14:20with understanding and believing your
14:22technical analysis and understanding the
14:23strategy. First and foremost, just like
14:25the rest of them, it didn't look like a
14:27sell when it was supposed to be a sell.
14:29It doesn't look like a buy when it's
14:31supposed to be a buy. But notice on this
14:33one, it tapped the box and this sneaky
14:35little thing tried to come back up
14:37there. Just try to throw that last
14:39little shade of doubt into the trader's
14:42head. Then it eventually cracks. It
14:44eventually cracks and rolls over because
14:47the largest seller was always there. and
14:51that largest seller would always win out
14:53as the all as the buyer would always win
14:55out. Now, what we're going to do at this
14:57point is I'm going to show you a couple
14:58of live trades using nothing but this
15:01box theory in its simplistic form, which
15:04is selling at the top of the box, buying
15:06at the bottom of the box, and staying
15:08out of the middle. These are recent
15:10trades we took in our live community
15:12that we're running every day. And as I
15:14said, 26 years into this game, I'm still
15:17using the box theory every day. So,
15:19let's take a look at a couple of those
15:20trades. Now, as we go through these live
15:22trades that we made in the community,
15:23I'm going to pick these things apart,
15:25but I just want you to simplify your
15:27focus and think about those three rules.
15:30We are sellers at the top of the box. We
15:33are buyers at the bottom of the box. And
15:34we're just not going to doodle in the
15:36middle, right? Let's just keep it
15:37simple. No indicators, no fancy
15:39candlesticks, no jargon. Let's just keep
15:41it stupid simple. So, let's go through
15:43this YM trade. First and foremost,
15:45drawing the box. So what we do is we
15:47connect the previous day's high with the
15:49previous day's low and we extend that
15:52out right towards the market open.
15:55Right? Very simple. Now knowing what you
15:58know up to this point in this video, it
16:00should be a slam dunk easy peasy answer.
16:03What do you do here? What do you do
16:05here? I mean look where it's at. It's at
16:07the bottom of the box. So while it may
16:09look like a market crash, a super dump,
16:13this is a buy. It's a buy because you
16:16are against a known buyer. And let me
16:18show you what I mean by known. If we go
16:21back and we take a look at this chart,
16:23this buyer was tested once, twice, three
16:27times, four times, and now a fifth time.
16:31So, are you going to tell me that on the
16:34fifth time the buyer is just not going
16:36to show back up? They've been tested.
16:38They've been proven. You're at the
16:40bottom of the box. So, let's go ahead
16:42and open this up and let's see what
16:44happens. Now, as I play this forward,
16:46I'm just going to go one more bar
16:48forward and you'll see we start out with
16:50this very, very nice green. Now, this is
16:52not an entry class or every little
16:54minute detail. But in this case, all I
16:56look for is just one little line of
16:58support and that's enough to go in
17:00because as I said in so many of my other
17:02videos, especially like the unsharp, the
17:04earlier you can get in with the signal,
17:06the less your risk is. So the beautiful
17:08thing about the box is a stop loss goes
17:10right underneath of the low. So the ones
17:13that you do lose on the 15 the 20% that
17:16you lose on the losses are going to be
17:19so much smaller. But here's the beauty.
17:22The risk versus reward is nuts because
17:25the target price is either the center or
17:28the middle of the box. So everything
17:30that you are trading has maximum range.
17:33So if we kind of move this forward,
17:35you'll see what happens is it shoots
17:37right up into that level, right? And
17:40gets rejected. Now take a look at the
17:43rejection. Where did it come from? It
17:46came towards the top of the box. Now
17:50this one was a little shy of the top,
17:51but as you get towards the top of the
17:53box, the philosophy here is you can't
17:56start buying on this candle. You have to
17:58buy on this candle bare minimum that one
18:01at the latest. You cannot start chasing
18:04into those momentum like mo most
18:05strategies do. Now that we have gone
18:08lower, what is most likely going to
18:11happen? Now, I'm going to go ahead and
18:12hit the sell button because that's what
18:14you should be doing here. You should be
18:15looking to sell a position like that off
18:18of the top. Now, in this case, the fill
18:21on this platform is going to be way
18:22later. It should have been right there
18:25at the break of that candle. Stop loss
18:27should be over top of the high of that
18:29candle. target price is moving back
18:31towards the bottom of the box. Okay.
18:34Now, this is a little bit late of a
18:35fill, so it won't be 100% accurate, but
18:37you'll get the message because what
18:39happens is you come back down towards
18:41the bottom of the box. Right now, if we
18:44stop right here where we are, and I just
18:47continue to move this box out, where are
18:52we? We're now slightly below. Now, one
18:55thing to understand about the tops and
18:57the bottoms is we're just talking about
18:58zones. As we get close to, our mind
19:01should shift to selling. As we get close
19:03to, our mind should shift to buying. So,
19:06what we're looking for in this case is a
19:08buy because we are underneath the box.
19:11Now, we do need the candle signal just
19:13to take out the top. So, let's go move
19:15it forward and see what happens. And you
19:17kind of move up. Right there is good
19:19enough. We're going to go ahead and hit
19:21the buy button again. It's almost the
19:24same trade as it was before. targeting
19:26back towards the middle of the range or
19:28even higher, right? And you'll see what
19:31happens is it comes back up again,
19:33right? But notice the pattern over and
19:36over again. Testing the biggest seller,
19:39testing the biggest buyer, returning to
19:42the center of the charts. It constantly
19:44has this momentum over and over and over
19:47again. And you can see using no other
19:49candlesticks, no other theories, no
19:51things that take you 19 million hours to
19:54figure it out, you can actually put some
19:57pretty damn good trades together. You
20:00will be pretty consistent by using this
20:03type of a formula and just those three
20:06rules. So guys, I'm going to end the
20:07video there. It's been my pleasure to
20:09talk about my favorite trading strategy,
20:10which is the box theory. I hope you can
20:12agree with so many others that this is
20:15the stupid simple strategy of a
20:17lifetime. And if you just follow those
20:19three basic principles of being a seller
20:21towards the top, a buyer towards the
20:23bottom, and staying out of the middle,
20:25you should be able to put together some
20:27very nice quality trades. Now, one last
20:30thing I want to remind you of before I
20:32sign off is if you want to see these
20:34types of trades in real time, every day
20:36we trade live in our new squad trading
20:39room. My wife and I just put this thing
20:41together. We've had a great time trading
20:42live. We're going to continue to do this
20:44in front of everybody. So, if you're
20:45looking for a more tailored experience
20:47where you get exactly what you see on
20:49this screen, live navigation, live
20:52trading on screen with narration every
20:55day. No Discord hindsight stuff. Just
20:57real life, real world stuff. Click the
21:00link below or follow the link below in
21:02the description box. That'll take you to
21:03our squad. So, on that note, guys, it's
21:06been my pleasure. Take care. Trade well.

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