YT YouTube2Text

YouTube2Text → Transcripts → This SIMPLE Trading Strategy Paid for My Mercedes (Beginner Friendly)

This SIMPLE Trading Strategy Paid for My Mercedes (Beginner Friendly) — Transcript

by The Rumers · 3,583 words · 490 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00Two weeks ago, I bought my brand new
0:03Mercedes AMG.
0:07All for my trading profits and all
0:10because of the simple strategy that I'm
0:12about to share with you now. But look,
0:14I'm not sharing that with you in any way
0:16to brag. I just want to show you what's
0:19possible when you refuse to quit,
0:21regardless of how hard things seem to be
0:24right now. Because you know what? It
0:26wasn't easy. I've been trading for 13
0:29years now. And the first three years of
0:31my trading career were brutal. I went
0:34through endless ups and downs, not only
0:37on my account, but also mentally and
0:39emotionally. I've seen nothing but
0:42losses for three straight years in a
0:45row. And honestly, for the longest time,
0:47I felt like the dumbest trader alive,
0:50spending my entire weekends and holidays
0:53staring at the chart, studying price
0:56action just to walk away with nothing
0:59but losses. Even my ex told me I'm
1:01wasting my time and I should quit. Now,
1:04luckily, I didn't listen and luckily
1:06he's my ex. But, you know, there was
1:08something good about these hard times.
1:10Those painful ears made me strip
1:13everything to the basics until I finally
1:16discovered the one strategy that
1:18clicked. It was actually the exact
1:20opposite of what everyone else teaches.
1:23And honestly, this is why this strategy
1:25means so much to me. It pulled me out of
1:28a losing cycle and finally gave me a
1:31taste of consistency and profits. This
1:34is the exact framework that helps me get
1:36into trades before everyone else. And it
1:39also allows me to catch big reversals
1:42before the pattern actually develops. It
1:45is built around how the market traps
1:47retail traders and smart money steps in
1:50to reverse it. And the best part, you
1:52don't need years of experience to use
1:54it. It's straightforward and very easy
1:57to follow. Now, let's get into the
1:59details of the unsharp strategy. And as
2:01always, I'm going to share with you a
2:03few live trades that I took live in our
2:06trading community. So, step number one
2:08is identifying the sucker move. But what
2:11exactly is the sucker move? The sucker
2:14move is an emotional move that sucks
2:16traders in and traps them on the wrong
2:19side. Think of like stop-loss hunting.
2:22Let's take a look at the charts. As we
2:24can see on this chart, we have lower
2:25lows, lower highs. Everything looks
2:28pretty bearish. So, if you're about to
2:30open a trade, you would probably think
2:32this is a short and you would be
2:33positioned on the short side. But let's
2:35see what happens next. The markets
2:38trapped everyone in on the short side
2:41just to reverse and continue further
2:43higher. Let's take a look now at another
2:46example. This chart right here looks
2:48extremely bullish. Higher highs, higher
2:51lows, and we see here a very nice flag
2:54formation. And most traders would think
2:56that this is going to continue further
2:58higher and would open a long position.
3:01But here is what would happen next.
3:04Boom. The market reverses straight to
3:07the downside. So if you put your stop
3:09loss here or even here, you would be
3:12already stopped out and again trapped on
3:16the wrong side. A typical example of a
3:18sucker move. Let's take a look at one
3:21more example. As we can see on this
3:23example, this chart looks extremely
3:26bearish. Lower lows, lower highs. But
3:29let me replay and show you what happens
3:31actually next. Boom. The market trapped
3:35new traders in, sucked them in here to
3:38open a short position, making you think
3:41that this is extremely bearish and just
3:44to grab your stops, grab liquidity and
3:48reversed straight in the other
3:50direction. So now our job as traders is
3:52to find out where these reversals and
3:55traps happen and to trade them in the
3:58right direction, to trade them with
4:01smart money and be positioned on the
4:03right side. We're no longer going to be
4:05chasing breakouts and breakdowns. We're
4:08going to be looking for these trap
4:10situations and execute in the right
4:12direction. Which leads me to step number
4:15two, finding key levels and reversal
4:19zones. Because all these traps don't
4:21just happen random in the middle of the
4:23chart. Most of them happen around key
4:26pivotal reversal points. So how do we
4:29find these zones? So when you open up
4:32the chart, you want to figure out first
4:34where is the previous high and low? As
4:37we can see, this is the previous high
4:39and this right here is the previous low.
4:42Now, we're going to box in these zones
4:45just like that. And the rules are
4:48extremely simple. We want to be buying
4:51at the lower part of the box and we want
4:53to be selling at the upper part of the
4:56box. We do not chase flags or breakouts
5:00in the middle of the box. But why do we
5:02focus on the highs and lows? The lows
5:06represent the biggest and most committed
5:08buyers. This is like a line in the sand
5:11and buyers are ready to protect this
5:13zone. Step in and place buy orders.
5:16Also, these are liquidity zones for
5:19smart money because this is where most
5:22retail traders are putting their stop-
5:25losses. And this is what smart money
5:28uses to execute their orders. This is
5:31why most of the time you're getting
5:34trapped on the wrong side because
5:36institutional money needs your orders to
5:39be able to execute large positions. On
5:42the other hand, the highs represent the
5:45biggest amount of sellers. The most
5:48committed sellers. This is where smart
5:50money is locking in profits from long
5:52trades and defending this resistance
5:55zone. So, let's replay now and see
5:57exactly what happens. As we can see, the
6:00price goes straight to the lower part to
6:03this low right here that we marked. And
6:05as we can see, this is a pretty
6:07emotional move. Huge big red candle.
6:11Again, just enough to make you think
6:13that the market is going to continue
6:16lower. But here is what happens next.
6:18See how the market grabbed liquidity and
6:21just went slightly below this low and
6:25immediately reversed to the upside.
6:28going straight into the upper part of
6:31our box end range. This is the power of
6:35key premium zones. And by the way, you
6:38can use that on any time frame. 5 minute
6:41chart, 1 hour chart, 4hour chart, daily
6:44chart, it does not matter. Just remember
6:47one thing. The higher the time frame,
6:49the more accurate the setup and the more
6:53premium the zones. Let's take a look at
6:55one more example. Once we open up the
6:58chart, we're looking at the previous
6:59high and the previous low. And again, we
7:02want to box in these zones just like
7:05that. And remember our rule, we want to
7:08buy at the lower part of the box and
7:10sell at the upper part of the box. So
7:12now I'm going to replay just to see what
7:15happens around these zones.
7:23As we can see, the market was heading
7:25towards the upper part of our box and
7:28then immediately reversed off this zone.
7:31Obviously, there were enough sellers to
7:33push the price lower and then went
7:35straight into the lower part of the box.
7:38So again, if we followed our rule to buy
7:41at the lower part of this liquidity
7:43zone, we would be in a pretty good shape
7:45because this zone was defended a few
7:48times and eventually the market reversed
7:50straight to the upside. But how do we
7:53know that it's actually time to pull the
7:56trigger? And how do we know that we're
7:58not catching the falling knife? Because
8:01let's face it, sometimes the market will
8:03break out of these zones and will just
8:04continue further higher or lower. That's
8:07where step three comes in. Looking for a
8:11very specific candlestick formation. I
8:13call it the pitchfork. So, what exactly
8:16is the pitchfork candlestick formation?
8:18If we're looking for a long, the sucker
8:20move represents typically three to five
8:23red candlesticks in the row straight
8:25into a reversal zone. So, what we want
8:28to see next is one green candlestick. As
8:31soon as we have one green candlestick,
8:34our entry happens on the second
8:37candlestick. The second green candle
8:40must go above the high of our first
8:43green candle. This is going to be our
8:46entry and the stop loss can be placed
8:49slightly below. On the flip side, if
8:52we're looking for a short setup, the
8:54sucker move would represent normally
8:57three to five green candlesticks in a
8:59row straight into a resistance key
9:02reversal zone. And then in this case, we
9:04would be looking for one red candlestick
9:07first. And as soon as the price starts
9:10going below the low of that red
9:12candlestick, this is going to be our
9:15entry. So now let's go ahead and see
9:18some live examples that I took live in
9:20our trading community on different time
9:22frames and different assets. So that
9:25right here is the NASDAQ ENQ futures and
9:28the 1 hour chart. And the reason I want
9:30to start with that trade is because I'm
9:33already in this trade. I just open it
9:35today and I'm still in it live. So I
9:38just want to walk you through the
9:39overall process and how I plan to manage
9:43that trade. So, as soon as I woke up and
9:45I was on my computer on the screens, I
9:48was looking at the chart and I connected
9:50this high and the low. And as we
9:53discussed, the first thing we want to do
9:55is look for the sucker move. And if I
9:59zoom out on this chart, you see that
10:01this area was a previous high as well.
10:05So, this zone was tested already and
10:08actually we broke slightly above. So, we
10:10see the exact sucker move in real time.
10:13A lot of green candles, small breakout
10:17right here, as we can see, just enough
10:20to suck people in on the wrong side, on
10:23the long side. But again, if you zoom
10:25out and you connect the highs and the
10:27lows, you see that we're at the top of
10:30the range. And again, this was right
10:32here a previous resistance zone.
10:35Therefore, I was expecting more sellers
10:38to start stepping in around this zone.
10:41And remember what we discussed, we want
10:43to sell at the upper part of our box and
10:46buy at the lower part of the box. And
10:48because we went straight up, I was
10:51looking for a short entry. So, in our
10:54example, we had our criteria filled. We
10:57have the top of the range, top of the
11:00box. We have our sucker move, a bunch of
11:03green candles in a row. We have a failed
11:06breakout and my entry happened right
11:10here below this candlestick. So I was
11:13waiting for one red candlestick first
11:16which happened as we can see right here.
11:19This was our Johnw week candlestick with
11:22a wick on the top indicating that there
11:25are more sellers stepping in and
11:28rejecting this resistance zone and high
11:31of our box. And so as soon as the next
11:35candlestick started taking the lows
11:38right here, this was my entry. And my
11:41mental stop-loss was placed just above
11:44this candlestick right here. So, this is
11:47a typical example for the sucker move.
11:50And this is not a replay trade, like I
11:52said, because I'm right now in it. And
11:55the way I manage that, as soon as we
11:58started dropping below this low, I went
12:01ahead and closed some of my position.
12:04And right now, I just want to observe
12:06the current price action. And I would
12:09use these candlesticks here to trail
12:12down my stop. So, how does that work? As
12:16the price progresses, I will observe how
12:18these candlestick close. And if I zoom
12:21out, you see this was here a breakout
12:24zone which represents also by the way
12:26the middle of my box. This is my target.
12:30So I want to see if I can get more out
12:32of this trade. And if we come all the
12:35way down to this zone, I'm just going to
12:37close the trade. But if the market
12:40decides to continue further higher and
12:43reverses, I'm going to trail my stop.
12:46Meaning, if this candlestick right now
12:49closes like that, I'm going to move my
12:51stop loss right here. And observe how
12:54the price action continues afterward.
12:57And if it reverses, it's going to take
12:59me out and I'm going to close this trade
13:01for this beautiful profit right here. So
13:04that's the current plan. This is the
13:06overall execution. Again, we have the
13:09upper part of our box. We have the
13:11sucker move, which is a few green
13:13candlesticks straight into the
13:15resistance zone, straight into the upper
13:17part of our box. We have one big red
13:21candlestick and it has a week on the top
13:24indicating more sellers stepped in and
13:27the entry happened right below. Now,
13:30let's go ahead and check another
13:32example, another time frame, a trade
13:34that I took on Friday. I'm going to
13:36replay that one. So, this right here is
13:38the S&P 500, the ES futures, and the
13:42five minute chart. And I am going to
13:45walk you through the exact trade that I
13:47took live in our trading community 2
13:49days ago on Friday. And I'm going to
13:52show you how I exactly managed that
13:54trade. So, the first thing I did as soon
13:57as I opened the charts was to box in the
14:00previous highs and lows just like that.
14:03And my plan was to long around this area
14:06because again this is the lower part of
14:09the box which represents the biggest
14:11amount of buyers. Also if you zoom out
14:14we see that this zone was tested a few
14:17times. So sellers were trying to take
14:20control and had the attempt of taking
14:23control a few times but obviously buyers
14:26stepped in and protected this zone and
14:29pushed the price higher. As we can see,
14:31this was a low here that was bought up.
14:34And we see here a few more times, this
14:36low was bought up again. And then again,
14:39this similar zone right here, a little
14:41higher, was bought up again. So, this
14:44indicates for me that there are more
14:46buyers stepping in. Therefore, I was
14:48looking to long around this area. Now,
14:51I'm going to replay and show you how
14:54that exactly looked like.
14:59So, initially the price broke out. I was
15:02not chasing here at the top of our box.
15:05I was patiently waiting to see if we're
15:08going to get a pullback straight into
15:10the lower part of our box. And this is
15:12exactly what happened. We went straight
15:15from the upper part of our box towards
15:18the lower part of the box. Exact the
15:21area that was tested before. And if you
15:24were fast enough, you could have
15:26actually also shorted this upper part of
15:28the box again. But my plan initially was
15:31to look for longs because we had a very
15:34nice support zone and liquidity area
15:36here. So remember the second rule is to
15:39watch for first green candlestick. And
15:42so we had our first green candlestick.
15:45We tested the lows. Therefore, I went
15:47ahead and longed right at the top of
15:50this candlestick. My stop loss was
15:53placed slightly below here just to leave
15:55it some more room and take profit was
15:58placed around these highs. Now I'm going
16:01to replay again so that we see what
16:03happened next.
16:05So initially the price started going
16:07against me and at the beginning I was a
16:09little worried if this is going to break
16:11the zone but again this was a pretty
16:13solid zone that was tested multiple
16:15times. So I just decided to stick to my
16:18rules and keep my position open.
16:23As soon as we started breaking out of
16:25this zone here, I was in profit and
16:27because it was Friday, I just decided to
16:30go ahead and close half of my position.
16:39Eventually, we continued further higher
16:41and I started seeing a little bit of a
16:43rejection here. we were at the upper
16:46part of our box and so I just decided to
16:49go ahead and close even more of my
16:51position. Again, it was Friday and I
16:53just didn't want to leave way too much
16:55size over the weekend.
16:59So, I closed some more because I was
17:01already in profit. I just decided to
17:03trail my stop and just let the position
17:06go over the weekend and see if I can get
17:08some more out of it and, you know, close
17:10the remainder on Monday. So, right after
17:13I came to my computer on Monday morning,
17:15I saw that I'm really nice in profit and
17:18then I closed everything that I had and
17:20I was done for the day and done with
17:22that trade. So, sometimes I start these
17:25positions on the 5-minut chart, but if I
17:27see that there is more potential and I
17:29booked some profits, I leave some open
17:32and just want to take a little bigger
17:34swing out of them, let them go for a
17:36little longer. So that right here is the
17:39NASDAQ, the ENQ futures, and the one
17:42hour chart. And most of the time I
17:44prefer to stick with the 1 hour chart
17:46because the setups are so much more
17:48accurate and the charts look so much
17:51cleaner. So now I'm going to walk you
17:54through the trade that I took live in
17:56our trading community. So as we can see,
17:58this looks here very much like a sucker
18:01move. We see a few green candles
18:04straight in a row to the upside and we
18:07see a tight consolidation. And as a
18:10completely newbie 12 years ago, I would
18:12totally long that. I would buy at the
18:15high and then just not understand what
18:18happens as soon as the market reverses.
18:20But remember what we said, we're boxing
18:23the highs and the lows. And so now we
18:26don't want to be buying at the top.
18:27Instead, we want to be looking for a
18:30short right here. And we want to be
18:32looking for longs here. This is our
18:35rules. I was also looking at the 25,000
18:38area which is a whole number and acts as
18:41a psychological number and resistance
18:44zone. We can also observe that the price
18:47was trying to break out a few times
18:49building that base. It had one attempt
18:52to break out right here. It didn't
18:54happen. dropped and again all that is
18:57indicating that there are more sellers
18:59stepping in and potentially more sellers
19:01would step in but how do I know that
19:04this is going to happen and the market
19:06won't continue further higher so for
19:09that I just want to see one red
19:12candlestick first and most importantly I
19:15wanted to see that we're breaking the
19:17lows right here so now I'm going to
19:19replay and show you how the entry looked
19:22like and how the overall trade
19:24management ment looked like. So as soon
19:26as the price started taking these lows,
19:28I opened my short trade and I was
19:31looking at the low of the box as a
19:34potential target area and takerit area.
19:37My stop loss was right above here and
19:41I'm going to pull that stop loss right
19:43there so that I show you how that
19:45exactly looks like. This is the high and
19:48again the 25,000 whole number
19:51psychological number. So, if I'm wrong,
19:53I'm going to be stopped out and then I
19:56will look for another entry. Now, I'm
19:59going to replay and show you how I
20:01exactly managed that trade.
20:05So, initially the price went slightly
20:07sideways. It didn't quite go straight in
20:10my direction, but eventually it broke
20:13this zone right here and flushed
20:15straight towards the lower part of the
20:17box. And if I zoom out again, this right
20:20here is an important area because this
20:22was a previous breakout area acting as
20:26an important liquidity zone. Therefore,
20:28I went ahead and closed most of my
20:31position around this area. And then I
20:33only had a few contracts left and I was
20:35observing how the price is going to
20:38react around this zone, which is the low
20:40of our box and the previous support. For
20:43that, I'm going to replay and show you
20:45what exactly happened. So, as soon as
20:47the price started going above this zone
20:50right here and I started seeing this
20:53first green candlestick, I decided to go
20:56ahead and close my trades for a profit
20:59because chances were that we're going to
21:01bounce of this zone and I just didn't
21:03want to risk to give back more of my
21:06profits again. So, I hope that trade
21:08explained a little bit how to look at
21:10these zones in terms of buyers, sellers,
21:13and the sucker move. And I hope you
21:16enjoyed this video. Let me know if you
21:18have any questions in the comments
21:20below. And by the way, if you have not
21:22subscribed for our weekly gains guide,
21:24we're sending each week our in-depth
21:27analysis of the futures, the most
21:30important liquidity zones, and growth
21:32stocks. Feel free to do so. The link is
21:34right in the description below. Thank
21:36you so much for watching, and I cannot
21:38wait to see you back here on our channel
21:40again. Bye for now.

About this transcript

This page contains the full transcript of This SIMPLE Trading Strategy Paid for My Mercedes (Beginner Friendly) by The Rumers, generated from the public captions YouTube serves with the video. The transcript has 3,583 words across 490 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to translate the transcript into 100+ languages.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, translation to 100+ languages, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.