The Ultimate Day Trading Guide (Full Training Chapters 1 - 10)

0:00 [Music] in today's episode I'm going to teach you how to start day trading and I'm going to share with you a trading strategy that you can Implement in your own trading starting today this is a strategy that I think is one of the best for beginner Traders and the reason is because the rules of this strategy that dictates the type of stocks to trade where to buy where to sell and how to manage your risk these rules are simple and easy to understand so here's my goal for you today through this class you will learn all the basics of how to start trading how to perform technical analysis how to find strong stocks to trade and at the end of the class you will walk away with a strategy you can Implement in your own trading starting today I ask you one thing to practice this new strategy you're learning in a

0:46 simulated environment a stock market simulator that way you can test yourself and see if you can actually trade it profitably before putting real money on the line and don't worry I will show you not only how to use a stock market simulator I will give you a couple suggestions of ones that you can use some that are free others that you pay for depending on what works best for you so let's start this class by jumping into the slide deck I've got a whiteboard we've got a slide deck and we've got a lot to cover and I want to begin with a little quiz to set the stage and kind of see where you're at at the beginning of this class we will do another quiz at the end of the class so you can see how much you've learned here today so here's the question should I buy this stock right now now you may look at this and already feel a little over your head and don't worry I'll fill

1:32 in all the blanks of what's going on in this chart but let's just see where you're at so we have a stock right now this clearly moved up quite a bit we've got some nice big green candlesticks then it pulled back it rallied up again and now it's pulled back again so what do you think it's going to do The Logical answer probably is that it's going to Rally up one more time oh boy you're dead wrong no that's not what's going to happen here hey look that's okay that's why you're in class so this chart actually gave me a signal that told me it was not going to go higher that signal was very subtle but it was clear as day on the chart for me and it was this indicator right here Crossing into the negative when that blue line crossed right there that told me this stock most likely was not going to move

2:20 higher and in fact it did not it sold off so something that I find really interesting is that there was a clear sell signal there you didn't see it yet because your eye probably hasn't been trained to to pick up on those subtle cues this is the language of the financial Market is the language of technical analysis and as you immerse yourself in a community like here on YouTube of people that are speaking this language you will learn it it takes time just like reading any other language or learning another language but to me it's fascinating and the reward for learning it is tremendous if you can really get it dialed in because something you're going to learn is that the trade traders who make the most money are the traders who are able to nearly see into the future they can predict what's going to

3:06 happen next on the chart so let's look at this well now I I bet you know the answer probably the first thing you checked was right down here and you see that this is negative good job all right so if you answered this is going to fail you were correct let's look at another example so now you're probably saying oh this is going to work look the macd is open wow wrong again okay all right no look it's okay it's okay this we all earned somewhere so so here I tricked you and I did this because I want you to know that there's another indicator that we have to check and it's the volume right here so this had a different warning signal the warning signal was that there was high volume selling on these red candles and that means in total there were more people that were selling the stock than were buying the stock these are two of the of the

3:53 indicators that I look at before I take any trade and if just one of them say no I don't take the trade they both have to say yes for me to take a trade so the volume said no even though the macd which is an indicator you'll learn more about through this class said yes so the answer was no one no means no now here's another example this one I think you can already guess the answer the macd is coming down it's still positive but it's coming down but the volume is going to tell us go and that's correct now let's look at this finally we've got something to work with or do we is there is this another trick well let's see let's look we've got high volume and the volume is on green candles the macd is positive is there anything telling me no I don't think so this is a good entry

4:38 I should buy right here and therefore look at that squeeze right we get that nice squeeze these indicators were giving us positive signals they weren't saying no we had light volume selling the macd was positive and the entry is right here as that first candle makes a new High versus the high of the last one that's the setup I'm going to teach you as we go through this class now what about this uh this chart here so this one uh to me is a pretty clear no the issue is the mati is flat and there's a hide candle so this is not a good setup we wouldn't take that trade one of the reasons a lot of beginner Traders lose money is because number one they don't have a strategy they're following so they're just shooting from the hip and number two they're not trading the right stock so they get themselves sidetracked trading stocks that don't have enough

5:24 volume they don't have enough volatility and they just get chopped up trading stocks in the wrong places let's look at this one here should I buy here well macd is positive I don't see any warning on the volume uh bars here so the answer would be yes this is a trade that I should take every trade carries risk and what we're trying to do is we're trying to manage our risk where we can take a position where the amount that we're risking is as little as possible the amount we can make is more than what we're risking and where we feel where we've got an 80% chance of this working even the perfect setup occasionally will not work so I'm going to tell you right now there's no such thing as a strategy that works 100% of the time but if you have a strategy that over the course of 100 trades is giving you profit 60% of the

6:09 time 70% of the time that can be enough to be a very profitable Trader as long as you learn to cut your losses quickly I'll teach you how to do that today all right so now you've looked at a couple examples of a few different chart patterns this is also going to be a yes we've got a nice volume profile macd is open so everything about this looks good all right so what are the topics that we're going to cover today we've got 10 big topics we're going to cover and this I sort of picture this as helping lay the foundation so because I want to keep this class concise and make sure I give you as much value as I can for your time I'm not going to go into a huge amount of depth on each one of these topics but they're pillars of the foundation this is your starting point and as you learn

6:56 all of these Concepts what we can do in additional classes that you can watch here on YouTube and or you could uh watch it where you're trading is we will fill in more depth around these so you're going to learn that this each one of these topics can be expanded upon with a lot more depth but of course rather than starting with a tremendous amount of depth and overwhelming you I want to start with laying a solid foundation of making sure you understand the basic concepts necessary to be a Trader okay so let's go ahead and you know what I I want want to start by just saying one thing there's a lot of people out there on YouTube and on social media who talk a big game and I want to thank you for tuning in to this episode right here but you may be wondering what does

7:41 this guy know about trading in a small account what does this guy know about growing a small account and so I'm going to show you in 2017 I funded an account with $583 15 with the goal of seeing how quickly I could grow that account to 100,000 bucks at the time I thought it might take me a full year in fact I did it in just 45 days and so since I achieved the goal so quickly it was only March I decided to just keep trading in that account by December I had grown the account to $335,000 the next year I made almost half a million dollars the year after that I crossed over a million dollars and during the pandemic the stock market boomed and I ended up crossing over $10 million in fully verified trading

8:28 profits now I'm one of the few Traders out there that's actually had all of my trading profits subjected to an independent third-party accountants audit so I'll show you the audit results in just a second but for those of you guys who are considering trading in a small account I want you to know that I've put my money where my mouth is I actually traded the strategy that I'm going to share with you with a small account and this is the small account challenge I'm best known for but I've done more small account challenges than I can count I just set up an account with 500 bucks or a th000 bucks I'll grow it spend a month doing it you know it's a fun Challenge and then I'll do it again 6 months later whatever the case is so you'll notice if you look at the calendar that each one of these days I only took two trades two trades two trades two trades two trades I keep it

9:14 focused and this was just the first uh the first month the first month of uh first maybe first 20 days so these are the audit results right here uh this verifies that I started with $583 15 and by the end of December in 2023 my account was at 10,719 th000 now 2024 it's been a fantastic year the account is currently sitting at just over $ 12.3 million of verified trading profits the 2024 uh trading year will be audited in early January of 2025 so if you want to learn how to trade what I'm telling you is that you've come to the right place not only do I know how to day trade I know specifically how to grow a really small account so as we begin this class I'm

10:01 going to give you some PDFs that you guys can download you can print them out you can put them on your desk you can use them in your own trading and you can follow along through this class with these PDFs so I will have a link it'll be pinned at the top of the comments and Linked In the description where you can download my small account worksheet so it's my small account strategy worksheet and where you can download my trading plan this is the plan that I want you to implement in your own trading but in a simulated environment to prove that you you have what it takes to trade my strategy here's something I'm going to tell you I will share my strategy with you I have no problem doing that I'll put it all on the table but success will only come from traders who have the discipline to follow the rules of the strategy so that's where the ball is in

10:48 your court all right so this is very important now I'll teach you some tips and tricks to being a more disciplined Trader all right so hopefully you guys have already downloaded these PDFs these worksheets there'll be a selection in uh the download so I'm going to give a bunch of them to you for free and you can utilize them and Implement them in your own trading and follow along through this class with those PDFs all right so topic number one your choice of platform there are literally dozens and dozens of different trading platforms out there and it can make it a little overwhelming for a beginner Trader to know which one to use now one of the things that I said early on is that I want you to trade in a simulator before you put real money on the line so that means first you need to figure out which simulator you're going to use now

11:36 if you set that as sort of your first goal what is ultimately going to happen is you're going to eliminate another a number of these Brokers because they don't even offer simulated trading so for instance Robin Hood they don't offer a simulator so boom they're off the list now to me you might think it's crazy why don't these Brokers offer a stock market simulator so their clients can practice practice the market and of course if they practice they're probably more likely to be successful long term and therefore be successful clients who are then making the broker a lot of money the answer lies in asking the question of how do the Brokers actually make money in the first place and the way commission-free Brokers make money is by selling your order flow to institutional

12:23 trading firms so the institutional trading firm actually buys all of the order flow from that broker and what they do is they they essentially scalp every trade that the clients place for a fraction of a penny just a fraction of a penny and so what happens is you're able to get free commissions because you're losing a fraction of a penny to that institutional trading firm on every single trade that you take and the broker they get a cut of that and this is to the tune of billions of dollars per year but here's the problem if you're trading in a simulator there's no order flow to sell so they make no money if you're trading in the simulator so when you're in the simulator you're using real-time Market data which costs

13:09 them money you're using their platform which has server loads and everything else you might even be emailing customer support they're making no money off of you so a lot of Brokers just simply don't offer simulated trading but you know what's even more annoying is the Brokers that do offer simulated trading a lot of them don't include include the same features that are offered when you trade with real money man that is annoying so let's talk about what to look for in a broker high level if you're going to trade the strategy that I trade every single day which is a momentum trading strategy meaning I'm looking for stocks moving higher I like to buy those pullbacks and sell as they squeeze up to the next level what I need is a reliable trading platform that is fast and I think it's great if it's

13:55 popular among Big Money traders because I like to see that other Traders out there six figure seven figure maybe even eight figure Traders are showing that this is a platform that they like and that they're comfortable using to make good money so if you look at an obscure platform and you don't know of anyone else that's using it that by itself itself kind of makes me question whether or not that's the right platform to use so a trading platform that's reliable and is popular among Big Money traders number one number two you need a platform that has fast order execution which is the time between where you press the buy button and when you get your shares filled now in this day and age with highspeed internet it should be almost instantaneous and it is for a

14:40 number of Brokers but there are other Brokers that for various reasons for the way they've set up their platform and this and that their order routing is slower and unfortunately that means you'll be slower to buy and you'll be slower to sell and that's not an advantage when you're trading so we've got to make sure you're choosing a broker that has fast order execution you're also going to need full level two Market data you may not know what that is yet but you're going to learn about that in today's class you're also going to need a broker that offers hot keys for Rapid entries and exits hot keys are when with the Press of a button shift one shift two you can buy 100 shares or buy 200 shares this is an old keyboard that I've used and you can see it's gotten used quite a bit and the way I trade is by pressing shift 1 shift two

15:26 and then if I want to get out of a trade I press contrl z contr x contr C I've pressed that one a lot contrl C is to sell a quarter of my position so these hot keys are incredibly important because they allow you to move into the market just like that you don't have to point and click you don't have to type in the share amount or the numbers or the price you just press a button and your order is in or it's out easy and you want it to be easy number five you really want a platform that allows Sim trading so you can practice before going live when you're learning how to drive you want to learn how to drive on the car that you're going to take your driving test on if you can right now if you take your test on a car that's totally different from what you're training on the day you're taking the test and you've got a parallel park

16:11 imagine you learn how to tra or you learn how to drive on a tiny little car and then you take your driver's test in a full length SUV parallel parking it's completely different so why go through that transition with trading that's unnecessary learn to trade in the same software that you're going to use with real money that way it'll translate right that's the right way to approach this so that means it's really important that we choose a broker that does allow simulated trading a stock market simulator okay so I'm going to narrow it down to what I think right now are the three best stock market simulators thinker swim Weeble and Warrior trading Warrior trading does have a simulator now you're going to think I'm biased and I I am a little bit on this but for my strategy I really think it's a great platform but thinker swim and Weeble are

16:57 pretty good as well but here's the thing that I find really interesting about both thinker swim and Weeble at so so right now the Market opens at 4:00 a.m. and it closes at 8:00 p.m. that's the full trading day but at think or Swim their simulator doesn't work before 9:30 a.m. it only works starting at 9:30 and that's a problem because there's a lot of stocks that are moving early in the morning 7: a.m. 8: a.m. 9:00 a.m. you can't trade them in their simulator why I have no idea and then Weeble on the other hand their simulator doesn't allow you to use hot Keys you can use hotkeys with real money but not in the simulator why I have no idea and what makes matters worse is

17:42 that both platforms and I've tested them both side by side when I press the buy button in Weeble I have to wait one two I'm just waiting and waiting and waiting until finally the order fills I did the same thing at thinker swim I I open the platform I press the buy button and waiting and waiting until it finally fills so if you want to use either thinker swim or Weeble there is a workaround both of these platforms are commission free which means if you fund an account even just with a couple hundred dollars you could trade with one share you're trading low price stocks that are $2 $3 a share so you could take tons of Trades one share per trade and

18:28 ENT ually you are simulated you're doing simulated trading you're doing it with real money but you're only doing it with one share now the broker likes that cuz now they get to sell your order flow but they're not going to make much money on you when you're only trading with one share but they unlock the instant execution both Weeble and thinker swim your execution is a lot faster when you're with real money you don't have to sit and wait it's it's like night and day their simulator is slow and then real money is fast so thinker swim and Weeble you can use them with to you can Sim do simulate trading there quote but it's really you have to fund an account with a couple hundred dollar and trade with one share if you do that with thinker swim then you'll be able to trade extended hours so let's look at these seven kind of bullet points of of

19:13 my comparison and I'll hide my video here for you for a second so uh so the first question is is the platform better with real money and the qu the answer is yes it is with thinker swim yes it is with Weeble and Warrior trading we're not a broker dealer so we don't have a real money platform which so by the way we don't have payment for orderflow the way the big Brokers do because we don't we're not a broker dealer so the only way that we make money on the simulator is by selling it as a software selling it as a service so we do have our simulator that we sell but it's not free because we don't make money on the payment for orderflow the other Brokers do so just as a heads up on that but thinker swim um is better with real money and so is Weeble extended hours no with the simulator on thinker Swift but

19:59 yes with with the real money account and Weeble does offer the simulator uh in in extended hours but it's still better to use real money there in my opinion all three offer level two data uh only Weeble and Warrior trading offer Advanced hotkeys and again with Weeble you only get those Advanced hotkeys asteris when you fund a real money account now thinker swim does not offer Advanced hot Keys even with real money halt lels you're going to learn about HAL level halt levels today and thinker swim does not display them but Weeble does with real money and the warrior trading Sim does as well resumption quotes you won't get those with thinker swim but you can with Weeble and you can with Warrior trading trading metrics you don't get them

20:44 either at thinker swim or Weeble but Warrior trading does have them now in terms of price The Thinker swim uh simulator is totally free and if you fund it with real money it's also free you just have to put you know a couple hundred dollars in so you could take one trade uh one share of every trade you take Weeble cost $10 a month and that's a sort of a discounted rate but it is $10 a month the warrior trading Sim is uh free for 90 days for warrior Pro members which we think is enough time for you to use it but then after that it's $100 a month so we have to cover our Market data costs our server costs and all of that stuff because we don't have the commissions and pay for order flow that would make up for it uh however if you wanted metrics you'd have to pay $50 a month uh at with thinker swim or Weeble and you would be using

21:31 the platform right over here that I use which is Trader viiew so this platform is $50 a month however at the warrior trading Sim we integrate that type of data and Reporting inside our platform so it's included so at the end of the day I think your best bet if you're on a budget is going to be Weeble right down here and you really need your metrics and I'll explain why as we go through this class but this is going to be your best bet so you're about $60 a month the warrior Trading s it's going to be $100 a month but free for the first 90 days so it's up to you if you trade in it longer than that but I do want you to make the commitment to sim trade only and with the asterisk that if you trade with one share of real money I would consider that the equivalent of sim trading and it would be acceptable so I

22:17 want you to do simulated trading only until you've proven that you can be a profitable Trader now as we go through this course I'm going to show you examples of students at Warrior Trading who have followed the trading plan that I'm going to share with you then sent me their p&l of their calendar showing sort of like how they performed in those that first month of following the plan and I think that that'll be inspiring for you to see so I really want to encourage you not to put real money on the line until you've proven you can make money in the Sim how much money do I need to start with so most retail Brokers at this point do not have minimum deposit requirements could fund an account Robin Hood or Weeble with a 100 bucks a 10

23:02 bucks doesn't matter but here's the thing if you're trying to grow an account you have to be realistic with the amount of money you're starting with so I'm going to what I'm going to do is kind of talk about profit goals and how that relates to how much money I would start trading with in my experience in a cash only account I can realistically grow the account by 10% on a on a really good day so that means if I had an account with 100 bucks in it I could grow the account by $10 on a really good day although most days would probably be in the range of $3 to5 now some of you will say Ross $3 to5 obviously not enough to cover my cost of living and I get it but one thing that I'll tell you is that one of my students his name is Danny I recently

23:49 did an interview with him and that interview is published here on YouTube he traded um for about 6 months with a daily goal of $10 but what he knew was is that if he could consistently make $10 a day with small share size that the only difference between $10 a day and $20 a day was increasing his share size but he wouldn't do it until he first had proven that he had a track record of being consistent of being able to trade profitably so he was able to scale his trading from what was initially a daily goal of $10 a day he's scaled up and he's now at about $350,000 on the year that's incredible and it started with a $10 daily goal so I don't want you to be too um you know dismissive of oh $3 to5 a day is not good because if if that's your proof of

24:36 concept and it's part of the plan that you're following then I think that that's fantastic now realistically starting with a $100 account is is a very small amount of money while you could do it you would have to be content with making very small progress so naturally if I start with you know $1,000 or 10,000 my daily goals would scale up but I also would caution against saying oh well I'll just start with $100,000 because that's too much money to start with you start with a lot of money like that and what's going to happen is you're not going to believe the emotional response you're going to have to having both big Winners but certainly big losers and that emotional response can sort of send you into a spiral where if you take a big loss next thing you know you're feeling anger

25:21 frustration disappointment and that feeling is so strong that you seek to get rid of it as quickly as possible and so the action that you take to to make that emotion go away is to take another trade because your your mind is thinking if I take another trade and I can make back what I just lost I don't have to feel terrible anymore unfortunately as a beginner Trader when you get into that place of being desperate you go into a downward spiral so it's always better to start with a small account and build it up slowly as your track record supports so if you start with $1,000 and you trade in that account for a few months and then you're doing well it's like okay okay I'm going to add a couple more ,000 I'm going to go up to $3,000 I'm going to go up to$ 5,000 and of course you're making a little bit of profit along the way and then you make your way up to$ 10,000 to 15,000 and we'll talk

26:08 about different account types uh that you can use for this challenge so I would start with a small account I think that that's the best way even if you have a lot of money I think it's better to start with a small account okay so the account types include cash uh only accounts which are probably going to be the most popular accounts for most of you guys tuning in uh to this episode when you open a brokerage account there are two types that you can open it's a cash account or a margin account a cash account will allow you to trade with the cash that you've deposited but once you've traded all the available cash you have to wait until the trade settle before taking additional trades and trades don't settle until overnight so that means if you deposit into your account let's just say for the sake of

26:54 argument you have $100 in there and then you take you you trade a $1 stock um so it's a $1 stock and you buy one share of it so you could do that times a 100 you could take a 100 trades in one day you've used up your $100 and so now you've got $ Z available that's left but you had 100 trades And1 $100 worth of trading the next day that'll reset to 100 and it'll be plus or minus your profit or loss so the nice thing about a cash account is that you can day trade in it but you will run out of of of cash eventually so if you're going to try to day trade and make a lot of money and use big positions you probably wouldn't want to use a cash account but as a beginner getting started I think a cash

27:39 account is terrific now the big thing that changed this was within the last year um we had a change in the settlement time to being overnight it used to be three days so if you traded on Monday you couldn't trade again until um Thursday and then they changed it to two days so it was Wednesday and now it's just changed to one day so it's Tuesday so now it's fantastic because you could trade every single day but when you run out of cash you're locked up until the next day now the margin account is is what I use at this point and most traders who have accounts that are larger will use margin accounts so a margin account uh allows unlimited trading you don't run out of cash you could just keep trading and trading and Tra you could trade a million times in one day if you want to but there's a rule that you have to have at least

28:26 $25,000 in the account that has to be your minimum cash balance now it can be a combination of stock Holdings and cash but you have to have at least 25,000 in your account now this is only for us broker dealers International Brokers do not enforce this minimum balance requirement so it's only for us Brokers and US residents so if a US resident opens an international broker account which would be some do it's kind of a workaround but if let's say you had $110,000 say I'm going to go open an account with a broker in the Bahamas and there's a bunch of these offshore Brokers that cater to us Traders you could actually have margin uh even though you're under 25,000 so some people will do that and

29:12 and that's fine it's a it's kind of a risk reward ratio decision for you does this make sense for me to open this account do I need that additional ability to buy and trade more frequently and I think you do if your metrics support it but if you're a beginner that's not the right place to start at this point thanks to the T1 settlement time so at this point it makes more sense just to fund an account with a US broker if you're us resident and just focus on a cash account and growing it slowly through proof of concept and just slowly grow that account that's the right way to set to sort of lay a solid foundation if you're an international Trader opening an international account yes you would be able to trade more frequently but that's not necessarily a good thing I think it's good to take it slow okay so the minimum amount of money

29:58 you need to start an account to open an account I mean it the fact is there's really no minimum it's just the most that you can kind of put in and feel comfortable with because you know trading is of course risky and making sure that you do have enough buying power where you could trade every day all right so now um number two so the real goal here is focusing on consistency prove that you can be consistently profitable in a simulator again whether it's trade uh thinker swim or uh Weeble and you're using just one share or you're using the warrior trading simulator that's fine as well but you want to focus on this being your proof of concept period it's not about making a lot of money you don't need a lot of money in the account just build your track record that's what's important right now so this is how I

30:44 analyze performance for uh for Traders for certainly a student Warrior trading and and certainly for myself I use this software Trader view where I can actually import all of my trades now if you're using the warrior trading Sim all of your we aggregate your data for you so you can see similar reports but if you were using Weeble or thinker swim then you would want to import your trades um into a platform like this or in fact Trader viiew itself now I'll just say I don't have by the way any affiliate relationship with Weeble thinker swim or Trader viiew so if you use them use them if you want if you don't want to it doesn't make any difference for me I I don't need the money to have an affiliate relationship with these platforms so I just am sharing with you what I think really are pretty much the best uh tools out there and Brokers that are available right now for the Strat that I'm trading now I will also say that uh the broker that I

31:31 use on a day-to-day basis is Light Speed trading which is a broker in New York and it checks all of the boxes with the exception that they charge Commission on every trade you take they're not a commission-free broker and so for that reason it's not appealing for beginner traders who are wanting to take one trade a day or you know one trade with one share because you're going to you're going to lose money in commission so it's it doesn't really make sense for beginners but it can make sense after you've traded for 6 months or a year with a commission free broker and you want to unlock some of the features that come with a a bit of a more professional platform like light speed okay so when it comes to analyzing metrics what I focus on for anyone that's going through

32:19 the trading plan that you're going to be following is first and foremost what is your net profit now the reason we look at net profit even with one sh I want to see that you're green so if you're not green then that by itself tells me all right you got to keep studying you got to keep getting experience so we look at your net profit what's your profit right up here the next thing I look at is the relationship of your average winners and your average losers you can see that mine are about even they're within like $19 $18 of each other so $1,300 average winners $1,300 average losers and that means that I have to be right 50% of the time in in order to break even so now I want to check to see what your accuracy is and right here my accuracy is showing at 66% which is why I'm up $12.3 million

33:07 If I Only Had 50% accuracy this wouldn't be there if I had 75% accuracy or 80% accuracy that number would probably be bigger but nonetheless it is what it is so I look at these metrics because these tell a story they paint a picture of what you're trading so first we look at the total profit your average winners your average losers and your accuracy that's the first tier the next level down is getting dialed in at what's the price of the stocks that you're trading what is the time of day that you're trading and are there some patterns or hints or clues that we can gleam that would tell us what we could do to to be even better so let me show you an example of a month that I didn't trade very well so this was um March let's see so we'll do the the whole month of March

33:54 here I'm going to go apply so this was a month where only only made 10,000 bucks this was not a great month for me you can see my average winners were $10,000 sorry um my average winers were $700 my average losers were $11,000 my accuracy was 61% and when I looked at um price and volume I noticed that I was losing money on stocks I was trading above $10 now that's not typically the case for me but it was the case during this period so what do you think I did in April in April I said all right based on this data right here I need to to make a change I need to change the price that I'm focusing on and so going into the month of April I told myself focus on stocks between 2 and 10 that's where you've been doing better so in April I made

34:39 $36,000 it was a better month and look at the profitability it's all on stocks between 2 and 10 I traded a couple of stocks that were more expensive but not much I really stayed focused on the price range where I knew I was doing better so if you're a beginner Trader and you maybe have been trading for some time and you don't know your own metrics that to me is a huge mistake you've got to learn your metrics because there will be hints and clues in those metrics at what you're doing that works and what doesn't work now let me tell you a story when I was learning how to trade I went through this long process where I didn't have someone like me that I was able to learn from I was in Vermont I'm self-taught so I had to figure out everything the hard way now this was also in a period of time where the accessibility for Education like this

35:24 just wasn't the same as what it is today so it is what it is but that was the situation that I was in so I spent my first year learning how to trade experiencing a little bit of beginner's luck and maybe it was the market maybe I don't know what it was but I made some money in my first year it was remember it was 25,000 or 30,000 it was right in that area which was not bad and then what happened in the second year was I lost that amount of money I went down $30,000 so I had made 2530 and then I gave it right back in the second year and in August of that second year I had this this this terrible experience where I on the first week of the new month I lost $5,000 and that put my account where I couldn't take any more trades unless I added more money into it and I

36:10 was devastated this was a time in my life where I was broke I didn't have another job I I needed to make money from Trading to pay my bills and so I was so devastated I was so frustrated I I couldn't trade and I I remember at first I just went outside and I was chopping wood I had this wood shed had a wood stove in my house and I was just like so frustrated but I got some energy out and then I came back inside and I said there has to be something here if you've seen that movie Apollo 13 there's a scene when they realize down at Command Center okay we got to figure out how we're going to save these astronauts and they said this is what we have we've got to just figure it out and they start trying to figure out you know how to get the oxygen working again quiet down

36:55 let's work the problem people let's not make things worse by guessing and I kind of did something similar where I went up into my little area where I was trading my little desk and I looked at all my trading records and I printed them out and one thing that I had been really good about was I wasn't using software like this back then I was using an actual um Excel sheet so in Excel I was tracking each trade I was taking but I did that and so I printed out and then I started on the computer sorting the data by biggest winners biggest losers and I was trying to find a Rel relationship you know something like a hint of what might help me get out of this funk and get back into the right direction and I actually discovered that all of my big Winners had a common denominator they were on a very specific type of stock

37:43 and these losers I was taking these outlier losses the these were just unnecessary trades that were outside that kind of core of what was really working for me and I realized well you know actually over the last 18 months if if I had eliminated all of these outliers I'd actually would have been doing really well so then I thought well what if I can do that starting today and moving forward so I then began the process of selling stuff in my barn to fund my account so I could trade in it again and then when I had the account back up and running I was so disciplined that I would only trade these setups and ultimately the setup that I'm going to share with you today is that setup that was my turning point it was that big that even now all these years later I

38:29 still trade it so been collecting my metrics I wouldn't have been able to figure out what was actually working for me I just would have been overwhelmed with the losses and had nowhere to look so that's why it's so important for you to track your metrics and and it's it's worth the $50 a month to do it number three let's talk about how to manage risk we know that trading is risky and it's especially risk risky because anyone can open an account and begin trading the barrier to entry is very low but just because you can open an account doesn't mean you have the skill or strategy to produce consistent profits as we well know most Traders come into the market they fund an account with real money and the inevitable happens what is that they

39:15 take a big loss they don't know what they're doing they lose money and the loss of money creates emotion so now they're emo they're all upset and that creates desperation which actually increases the quantity of bad trades and what does that result in losing more money and when they lose more money they get more emotional and then they trade even more you can see where we're going here this is a death spiral and this is what happens to a lot of beginner Traders they go into this downward spiral they come into the market and then they are quickly escorted right out and you know what's sad is that a lot of those Traders might have had the potential to actually become successful If Only They had slowed down and approach this the right way so let's learn from the mistakes that these other

40:02 Traders have made before us and for you right now set a commitment that I'm going to focus on learning this and learning to do this the right way and that means learning a strategy and trading it in a Sim before you put real money on the line so that's the first step to managing your risk of course but um so we trade in simulator until proven profitable and and I always ask what is my exit price on this trade so if I'm going to take take a trade if I don't know what I stand to lose then in my opinion that's a gamble that's not a trade the only way it becomes a trade is if you're managing your risk against your reward so the way I like to trade is that I'll risk $100 to make a reward which is a risk to

40:47 reward ratio of 200 oops whatever 200 so risk to reward 200 uh 100 200 which would give us a ratio of a profit to loss profit to loss ratio of 2: one and this is this is important because if you have a 2:1 profit loss ratio you actually only need to be right 33% of the time in order to be break even one to one is 50% so I would like you to look at a trade and say all right this is how much I'm going to risk and the amount that I stand to gain is at least 2x what I'm risking and if you could do that on every trade then you're thinking about risk and reward the right way as a beginner your intuition is going to be p because you you're new and that's okay it's to be expected that means your accuracy is going to be lower so you're going to take trades and you're going to

41:32 have losers but you're looking at the right things and asking the right questions when it comes to profit and loss ratio and risk versus reward so you've got to monitor your metrics and understand your average winners and your average losers in dollar amount and you've got to monitor your accuracy so you know what percentage of the time you're successful you have to analyze your metrics to begin to understand the type of stocks you trade the best and the worst and at that point you focus on the winning stocks and you avoid the type you lose on so this ties into the importance of having this uh these metrics the downward spiral of many beginner Traders begins with poor accuracy poor accuracy creates a poor track record which creates poor self-confidence and increased losses and

42:19 it just keeps going so how do you break this downward spiral now hopefully none of you are in this downward spiral but let's just let's just say maybe maybe one of you right now is in this downward spiral how do we break out of that downward spiral we break out of it by understanding that the cause of this downward spiral is an emotional response and that in fact one of the most important keys to success in trading is having the right mindset mindset is so important so how do you cultivate the mindset of success especially if you're a beginner Trader who is not yet successful well first of all we bring the stakes down big time by trading in a

43:06 simulator that way if you lose money in a simulator it doesn't trigger an emotional spiral that's important so number one trading in a simulator number two we focus on accuracy that's how we break that negative feedback loop so what it means is that by focusing on accuracy you're Trading high quality stocks now remember today I'm going to share with you the five pillars of stock selection the five pillars of stock selection are also in the collection of PDF resources that hopefully you guys have already downloaded but if not the link is pinned at the top of the comments and in the description so you have to trade a quality setups by trading a quality setups you won't eliminate your losers but you will reduce the losers because you're trading the right type of stocks so a quality

43:54 setups increases accuracy accuracy going up will improve your profit to loss ratio because a poor profit to loss ratio is typically caused by a few outlier trades that are huge losses that drag down your entire profit loss ratio and it's devastating but that's the reality so by increasing accuracy you'll increase your profit loss ratio and that then leads into consistency more green days more green weeks now you have more green days more green weeks what does that mean now you're building a strong track record a strong track record increases self-confidence increased self-confidence means you're going to increase the total number of Trades you're taking you're going to feel confident increasing your share size and

44:39 that means increasing profitability and now you're on a positive feedback loop this is the right way to start so let me tell you this if you've already traded with real money if you've already been on the negative feedback loop I was there too and I was able to break that cycle it is not easy you have to be incredibly disciplined so the step to Breaking the cycle is putting yourself into what I call Trader rehab Trader rehab is when you bring your share size all the way down so you're trading at a level that does not trigger emotional response when you lose you bring it way down now if you have to go in a simulator that's fine or if you're trading with real money you go down to one share or 10 shares or whatever basically is is right at the point where you're not feeling an emotional response

45:25 but you also are treating it like real money and and taking it seriously you focus on doing that for a minimum of 10 days 10 days that's two weeks two trading weeks right so you do that for two weeks and I'm telling you if you could do that for two weeks you will feel like a different person at the end of it even if at the end of it you're green only four of the days all of a sudden you're going to feel this weight off your shoulder like wow I brought the temperature down so much and now when the temperature comes down you're able just to focus on building your strategy building your experience taking the highest quality setups and everything else kind of Fades it's it's incredible how much those emotions stay with us like if you have a

46:11 big loss today then tomorrow the next day the next day like it just it takes a week it could take two weeks for it to kind of go to the Wayside but it needs to so you can reset your brain and get focused on building that positive feedback loop it begins with accuracy highest quality setups improve profit loss ratio improv consistency improve confidence and that's where it begins you've got to be thinking well gosh Ross how do I find the right stocks to trade let's get let's get into it right so I'm going to teach you how to set up scanners because stock scanners are one of the most valuable tools that Traders use this software searches the market in real time for stocks that meet certain sets of criteria now you choose

46:59 the criteria and you tell the scanner to look for it most Brokers offer some basic scanning technology a simple scanner such as the leading percentage Gainer on the day we'll give you a list of the stocks that are up the most on the day and in fact I get these notifications all the time from Brokers telling me which stocks are up the most today why are they doing that why are they pushing these stocks because they want you to have little fomo they want you to trade them because they make money when you trade the payment for orderflow model so now the stocks are up the most each day they do get a lot of attention they have a lot of people paying attention looking at the charts and trading them and that gives them more volume which can be a good thing so I'm going to give you my scanner criteria and this this is going to

47:45 introduce the concept of supply and demand as it pertains to active trading so what we look for is an imbalance between supply and demand that's what allows a stock to go up 50% 75% 100% in one day I mean these can be absolutely incredible moves now let me show you just as an example here um I've got a stock here that is up uh about 139% right now so it's 139% that's a huge move it's impressive and so how did this stock go up that much now this is my platform here we haven't we haven't really gotten into charts too much yet except for the very beginning but you can clearly see that this is a stock that's up a lot so what happened with this company was they put out breaking

48:30 news this morning it was right down here they put out this breaking news headline the news came out that they were launching a satellite with SpaceX and immediately the stock went from 350 all the way up to six bucks it pulled back and then it rallied up to eight it pulled back and it rallied up to just under nine so this company put out news that was so strong every Trader that saw it more or less was like I want to get a piece of this AC and so what happened was it began with number three which was a news Catalyst there was a news event that the company put out and that immediately brought in volume so the way it starts is the news comes out early traders who subscribe to

49:16 data feeds that give them the news and I'm one of those Traders see it and immediately read it and are like wow this is strong and the stock almost instantaneously when the news comes out the news comes out and the stock almost immediately starts squeezing up right here so as it pops up right here it begins triggering my alerts that my scanners use so all of a sudden the stock is up 10% let's just say in 5 minutes so my scanner is telling me hey Ross even if I haven't seen the news yet my scanner is going to tell me hey Ross there's a stock right now up 10% in 5 minutes you should check you should check it out pay attention to it es and that's going to be especially true if the stock is between the prices of 2 and 20 now we know 2 and 10 is a little bit

50:02 better but 2 and 20 so if it's in that range and it's spiking up my scanners are going to tell me with an audio alert bing bing bing bing bing and they're going to show me the stock and I'm going to pull it up I'm going to see the news and I'm going to realize this is why the stock is moving higher so that that's how we find these stocks so what I know is that when a stock has a news event when it's priced between approximately $2 $320 that it's already up 30% on the day that it has five times higher volume than average that these are the common denominators among my biggest winning trades so this is the profile of the type of stocks I make money on and that's not just opinion that I I think that I actually know that I know that in

50:50 my data this is over $12 million of trading profit well no not right here we've got to filter it we were in just a month of April but we'll go back to the total so um so right here we'll go to um so we know the price uh we can go to instrument and this is loading a lot there's thousands and thousands of trades in here um but this is going to show me that I make more money on stocks that have higher volume that I do better when the stock has five times relative volume now why would a stock have five times higher volume today than what is average for that stock it's the news catalyst so all of these um these items in green here are indicators of high demand a stock between three and 20 is going to have higher demand than a stock at $300 a share it just is it's more

51:36 affordable more people are going to trade it a stock with news event is going to be more uh in demand a stock already up 30% people are going to be attracted to it I know it's up a lot but people are like it could go higher and we've certainly seen that a stock with high relative volume has got high demand so these are all of the elements and characteristics of demand but what about Supply so there's only one element of supply and that is the float the float is a term that means the number of shares available to trade so when a company does an initial public offering they do an IPO they sell shares onto the open market so let's just say a company decides to sell 10 million shares they sell 10 million shares as an in their IPO and the IPO is just priced at let's say $8 a share so at $8 a share I'm

52:23 going to change my marker here they're going to raise how much money 10 * 8 $80 million it's a lot of money all right so they're raising $80 million in their IPO and from that point forward the stock begins trading at $8 and they have 10 million shares that are available to trade that equals the float and so when we see a stock that has 10 million shares available to trade we know that the amount of shares is relatively limited so to give you context a company like Bank of America has a float of I think it's 10 billion shares 10 billion shares why have they sold so many shares they had to sell shares in order to build out the company in order to build all of the banks all the locations in order to have the capital to do all the lending they needed that money and so they sold the shares in order to raise

53:09 that money smaller companies will sell fewer shares to raise money they don't need billions of dollars and they wouldn't be able to raise that money even if they wanted to because investors would be like wait what do you need all that money for what are you going to do with it the it just wouldn't make sense to value a tiny company at the amount of money to raise you know that kind of that kind of cash and so what ends up being the case is that most of the stocks between 2 and 20 not all of them but a lot of them between 2 and2 the lower price stocks also have relatively lower floats the number of shares available at trade is limited and so when we have the initial public offering that's the IPO these are the shares that are available from that point forward that's the shares that are available to trade unless a couple of things happen one is a buyback so sometimes a company will do a

53:56 a buyback and they'll say you know what we're going to buy back 2 million shares so if they did that their float's going to go to 8 million or they could do what's called a um a secondary offering so a secondary offering will sell more shares onto the market so a secondary offering this is an initial public offering this is a secondary offering so here they sell another let's say 5 million shares and that would bring their float up to 15 million and that's not uncommon they would raise that 5 million uh sell that 5 million shares and maybe they sell it $8 the same as their IPO maybe they sell it for Less depends on what the current market is for the company but they would sell those shares they would raise more money and then it would bring the total Capital raise to the new dollar amount and of course the hope would be that they take that money they invest in in

54:43 in the company and are able to make the company worth more that's not always the case with low price stocks they're usually lower price because they're underperforming um Market expectations in one way or another but that can also present an opportunity where you got something that's been really beaten up it's lower priced and then when they come out with some great news you could have the stock that goes you know 300% off the lows from $3 to $9 or $10 or 12 or 15 I mean we've seen it I I'll show you an example right here of a stock uh this was just a couple weeks ago where we had a stock that literally came out with news and I can't remember what the Catalyst was on this but I want to say it was um a catalyst with Nvidia um but but I could be wrong in any case this

55:28 this stock went in a matter of I mean it happened so fast it went from $6 a share to $50 a share in like 15 minutes now it came back down a lot but this was like an unbelievable move off the lows um this is another stock drug that we um that I traded this year this one went up um couple th% from about $2 a share all the way to $80 it's still holding at 40 $40 a share it's incredible these are huge moves so these are companies it's got a 6.9 million share float so the number of shares available to trade is is pretty limited the company put out news it's a biotech company it was good news well received by the market and you know off it goes so now what I've done is I've

56:14 taken the data that again is not opinion but it's fact about the type of stocks I make the most money on and I have programmed that into my scanners so I created a custombuilt scanner to help give me an edge in the market this scanner uses the data from more than a decade of my own trading history to search for the type of stocks I statistically make the most money on when a stock hits my scanner I immediately analyze the news headline and begin performing a combination of fundamental and technical analysis and so this software right here is what I'm using this is called day trade Dash and I actually hired a development team to build out this software for me I use it in my own trading every single day exclusively and members at Warrior

56:59 trading my warrior Pro students they have access to it as well now people can also subscribe to it just on our website but this is a software that I use to search for stocks that are moving what I love about the software is that our goal was to create a UniFi dashboard that had the charts the scanners the news feed the chat room everything in one place so you don't have to go toggling between four or five different platforms so we tried to make it pretty easy I think we've done a pretty good job of that so I don't need that up so all right now let's go ahead and um jump in here to oh well let me show you this so when I have the scanners um coming up each stock that hits the scanner right here this is my top gainers scan so I'll just do it on here it's a little bit more clear so

57:46 this top gainers scanner is showing me the top leading percentage gainers in the entire market and the flame is telling me if it has news a red flame is hot hot hot that means the news was in within the last 2 hours the orange flame the news is uh between 2 and 12 hours and the yellow flame is between 12 and 24 hours so I like to see stocks with red and orange Flames which means I'm hopefully trading the very beginning of a breaking news squeeze and I'm I'm in it on the early side now in real time this scanner called the small cap highay momentum scanner will trigger audio alerts when a stock meets the criteria that I've trained the scanner to search for so it's almost like radar in real time going bing bing bing this stock meets the criteria and what I get is the

58:33 time of the alert the ticker for the stock the price the the amount of volume the stock is traded today the float the number of shares available trade the relative volume the stock is currently experiencing so wkey had relative volume of 96 that one traded 96 Times Higher volume today than its average which is huge um and then we also it tells us how much the stock was gapping up and how much it was up from the previous day's close which was um 66% actually has Peak and the these are the names of the different scanners that I have and then I can set the audio alerts to which scanner I want to trigger the Bell that way I only hear the scanners that I really like and the running up scanners the similar uh scans slight variation of that so this is the

59:21 tool that I used to find the best stocks to trade and in the PDF handout of the Five Pillars of stock selection you will have um you will have access to each of those criteria and some expanded uh definitions and and um details about that let's talk about how to set up your charts once you found a stock you like on the scanners you need to know how to analyze that chart so we have a stock and we'll just use the example of wkey it hits the scanner boom there it is on the scanner so now we're pulling up our charts all right so I click on the stock it'll update the charts it'll update the news feed and everything else so now we're looking at the charts and this is where we're getting into the language of

1:00:06 technical analysis which is the universal language of the financial markets all right so you found a stock on scanner that you like how do we analyze it let's go ahead and jump in here this is the basics of candlesticks now some of you may already be familiar with this and this will just be a quick brush up but for others this is brand new so the candlesticks are uh the type of chart that we use and if we look at um the the actual trading software up

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