The (Honest) Secret to Making Money Day Trading Stocks [With Proof]
Let's, talk trading. Secrets. Unfortunately. Though I don't mean secrets, in the, sense of Oh everything's. In his magical, mystical and you have this little pill and you swallow it and then all of a sudden it's, as easy as that now we're gonna talk honest, secrets here and what, it really takes to make money as a day trader and this, is probably, the biggest lesson. That I could show you that I can teach you and that you need to be able to master because, if you cannot master or. What you know the way this kind of mindset sets. You up for failure then, well you're just gonna fail, you're not gonna have success and, I, want you to be successful as a trader and this is one of the biggest hurdles that exists, out there and again the truth of the matter here the secret is that even. If and I'll just use my my questions let's say you invest into my class you go through my training even, with all that I'm. Sorry this probably, not the best thing from a sales point, of view from a marketing. Standpoint but. If you were to even go through all of my stuff then, what, I'm going to show you here I mean. It's still gonna be up to you it's still gonna be what's going on it's a mental battle it's, a mental challenge that, you're gonna have to overcome and I, wish there was some sort of like I said just take my classes and it'll, completely, fix you now if you take the classes I would argue that it'll make overcoming. This challenge easier but. It is so gonna be a challenge, nonetheless so, to set this up and just so you know I'm not gonna be sitting here talking in theory the rest of the video I'm gonna show you two, different live, trades and that. Way you can see kind of the comparison. And contrast of, just, how dangerous and, how this trap. Kind of sets itself up for you so let's first go over a trade and I, want you to show you you. Know how it played out so let's go to this and again this is a real-life, trade that actually happened to me so let's go to my desktop and watch alright. Well I am at this point gonna go ahead and pause and, if. It looks like it wants to recover back up or give some sort of entry point and I'll get the video rollin all right I'm gonna go ahead and get long here at 5325. I. Think. This thing wants to make, a movement back to the upside here now. So. In that, 5325. There's, the break of 5325. Can't get up through 5350. That's what I'm very curious about. It's, working, its way up there kind of. So, let's see what this thing wants to do here. Well. At this point I might go ahead and just pause the video as I kind of just, go. Sideways at this area. So. I will do that I'll go ahead and pause and then I'll get the video rolling. If. It looks like it wants to actually make a move I still. Like the overall, movement here so just add another 500. More because. I still like the overall trend here I. Think. It still has a good chance of getting back above 53. So. Let's see if it can do that. So, I have a thousand, shares at, 5282. Average. Like. I said I'm looking for that break back above 53. So, still just trying to consolidate out here. So. Working its way up kind, of working its way up to 53, at, this point I think that if it does breakthrough 53, it'll pop very, very nicely. Pop. Meaning move rapidly, to, the upside. But. It really does seem to be consolidating. Out here nicely. All. Right I'm going to go ahead and pause for the time being. Okay. Added, some more down there at 52. So, my average is 52:55. With. 1,500, shares. But. Like I said I'm still bullish on this thing. So, I took some off at 5265.
Let's, See if this thing wants to make another go back to the upside here. So. I did lock in some profits there. 5250. Needs to get out of the way. So, can it work his way back up to do battle of fifty to fifty now, is. The. Question. It's, trying to. Well, the 52 30s now seem to be the. The. Annoying part here. It. Can't get through the 52 30s now. So, it's got me thinking if it can get through the 52 30s, it's, got a good chance. So, once again 52:35. That general area really seems to be the. Key, area of resistance. Yeah, look at this ridiculous. Can, I get through the 52 30s. All, right all out they're not gonna fool around with it anymore so unfortunately, a loss of $700. I gave it plenty of time to try to work with me, it just didn't want to so. It is what it is yeah, so got, stopped out there but now let's go to my desktop and let's see what actually happened. After, I was disciplined, after I honored, my rules honored the strategy, and took the loss but, what happened next let, me take you back to the desktop and I'll show you what happened, so. This should look somewhat. Familiar that's, right where I got stopped out of that trade but let's see what happened next and you, can see as embarrassing, as it is that very next candle, the very next minute got, a green candle, and then, got an even bigger green candle, and then. Got even more green, candles, and up it went not. Only did it go up to where I originally thought it would get to it just kept on going and even got up over. $54. So, quite literally. Sold. Right. Before. It. Turned, in my favor not, a pleasant experience at, all, but, the key dynamic, here was I honored, my stop-loss I honored my risk but, yes not, pleasant, not something, I would wish on my greatest enemy but you know what it should happen every now and then as a trader assuming, of course you're honoring, stop losses and managing, risk, yeah. Totally. Totally. Frustrating. You get stopped out and then it, goes in your favor in fact I almost, sold the bottom I didn't quite sell the bottom but, I got stopped out basically. At the bottom of that move before, it went right in my favor which, is you know where I thought it was gonna go plus it actually even went higher than where I went but that's the trap because, now going. Forward as a trader and I and I this, happened to me too so I'm talking. To myself just as much as I'm trying to warn you whether you're a new, trader or you have a lot of experience, but the trap has been set the trap is what the trap is hey. Remember. Remember that one trade we were you sold and then, it went your favor and, your. Mind is going to always be pushing that towards the forefront, towards, the forefront of your mind and you're, always gonna remember that well remember when I was. I act I mean I broke the rule but by, breaking the rule actually, my favor that's. What's gonna be at the forefront your, mind is gonna try to always shove that forward your mind is gonna try to use that as some sort of justification as some sort of excuse on why -, just just break your rules at one time just, don't honor your risk management protocol. At one time, so, that's how the trap is set now, it's gonna be my, voices your voice we're gonna be so focused on this one super, super annoying, trade I mean, all, those trades are the worst but now it's gonna be sitting, there and those, voice in your head are gonna be using that kind of dangling that as the carrot but, let's take now a look at a second, trade here so let's go into my desktop and let's take a look at this trade I think Boeing, is wanting, to eventually, pull, back down here a little bit more. So. In five hundred shares at two 2077.
So. We'll see what it wants to do here. Wondering. If I should have waited a little bit more clearly I should have now but at the time where I got in I still felt good about it but. Yeah like I said. Let's. See if we can get it back down to 220. And. Better, yet even maybe break down through to 20. But, as of right now I'm not looking so good. If we could get a nice kennel here with the upper, shadow that'd be very very. Nice actually, so. I do like that candle but still work to be done here. It. Gets up over to 23, I will have to be out. I'd, love to see the markets roll over here a little bit that would be. That. Would be helpful. It's, got to get back down below and, there we go I was, gonna say it's got to get back down below to 21 to have a chance, I. Mean. It's trying. But. A breakdown below 221, would represent basically a failed bounce here which would be great but as you can see now, that's. Like I. Shouldn't. Say I failed bounce a failed move to the upside. But. As of now yeah it's uh. It. Was a failed breakdown, which is not good for me I want to see a breakdown, play. So that's what that 221, is representing. But. As of right now looking like this thing might actually just want to break out so. I'm. Mentally prepared now to probably, gonna, be taking a loss on this one. And, gotta get out there so, loss, of, $1100. Not a great way to start off so. Yeah once again took, the loss not, pleasant to take losses not, an enjoyable experience. But. I once again had to take the loss so what happened next with this one well again let's go back to my desktop and I'm gonna show you what, happened next hopefully. This looks familiar here that is right where I got stopped out and had to take that $1100. Loss but the key just to set up the context here to keep the math as simple as possible but I owned five hundred chairs so. That was my position size meaning. For every dollar. The. Stock moved that. Would equate to how much well hope you're saying well that's five hundred dollars then if you, own five hundred chairs and it, moves a dollar that would equal a five hundred dollar either profit, or a five hundred dollar loss if you don't follow that math not a big deal that's just kind of a good mile marker that within, your trading education you, have quite a bit of ways to go which is fine again no judgments on my part we all start off brand new and that's, one of those things you got to understand is the math there but if you're like yeah clay I got that math perfect, I would say that now you're not a professional trader but you're definitely well on your way so that's how it's set up here so keep in mind and that white line there represents, where I got you. Know got out of the trade so for every dollar this, moves upwards, that, would have been another $500. Loss, so. Let's see how this plays. So. Right there, goes. Against me that much more. Consolidates. Out a little bit consolidates, out and then boom that, much more so at this point it's essentially, going up to 227. So, I got out again at 223. So. As far as the math is concerned that's another $4, move against, me so four dollars, and if every dollar represents. A 500 dollar loss that's, another right here already two, thousand, dollar loss extra. On to. My trade. That's. Terrible handwriting but that's supposed to be two thousand okay so there's another two thousand, dollars extra. Well. Went up even more, went. Up even more. Consolidates. Pulls back her a little bit acts like it might want to roll you know again if it goes back to that line at least that would be break-even at this point or excuse me that wouldn't be break-even that would still be a loss so even to get back to that that loss of a thousand, you. Can see that it, acts like it's gonna go down there but. Nope look at that now. It's up at 2:30. So. Just for. Time sake continues, on up and you can see it is not coming back down it is doing the exact opposite, of that first example we saw and then, right there check it out goes. Even, higher and. At. Least at the recording of this video because I'm doing this the same day it's gone up as high as I think. Three to thirty 450 but let's just call it 234. So what is the math on that well it went up as high is like, I said 234. And if. I was undisciplined, about, it and meaning, I did, not get out at 223.
Well. That's a difference, of eleven dollars right so. That's an eleven dollar difference where. Again. Because I was disciplined. I got out. And. I'm gonna actually make this green because, of that. That's very good that I got it at 223, so eleven, dollar difference and what, did we say every, dollar, represented. Well, every dollar represents, five hundred dollars so 11. Times. Five. Hundred equals. What that, would be an additional, loss. Of. Fifty, five hundred. Dollars. Which. Would make the, los. $6,500. So. Let me say that again by. Not being disciplined, by letting the previous example. Kind of corrupt my mind that, would have potentially, cost me very very realistic. And who knows maybe even more I mean maybe Boeing, on this day is gonna go up that much higher but as of right now as of the recording, we're, already looking at a potential. Additional. $5,500. Loss. So. When you look at it like that you know getting. Out at that - or that 223, mark good, job it's, a good thing you did that yeah absolutely I. Realize. It might have rolled, back in my favor and I could have been playing the game again but you as a trader you need to understand, that this sort of thing could also happen, where, it doesn't go in your favor and it just continues, to go further and further and, further in the opposite, direction that, you wanted to go but, in this situation, by just being disciplined by, honoring the stop-loss I was able to keep, the loss at $1,000, compared, to like I said potentially. $6,500. Isn't. That crazy a potentially. $6,500. Loss. $6,500. Compared, to, the loss that I took on it I mean, that that's crazy but. You see how these two things conflict. That first trade all clay, remember, the last time you honored, your stop-loss, you, would have had a green time well, all it takes is for one of these types of trades where, you listen to that voice and you, break your, rules and boom, you're. Down $6,500. Or you're down some sort of big amount relative.
To You know everything that else that you could have been down so, I get, it you're not alone it happens to everybody whether or not they want to admit it and show it on YouTube that's a different story but I assure you people you, are gonna sell the top you're gonna get stopped out at some point and the other things gonna go in your favor and you're gonna sit there and be like I should. Have could have what up but. Now we're just remember the trap has been set so, going forward just be aware of this trap because I want you to be aware and I'm. Trying to scare you through not theory but through a real-life result that was literally a trade that happened, and it kind of bring this full circle by. Taking, that loss at, the end of the day and I'll put this screen shot up right now you can see that I actually was able to close green on the day by. $275. So by honoring, that stop loss by keeping, my risk under control it allowed me to actually still, have a green day, whereas, imagine fighting to climb out of a $6,500. Hole that's, probably not gonna happen or I'm. Gonna just make the hole even bigger because I would increase my position, size to try to have to get dig out because now I need a massive shovel, and the, wheels fall off the bus and now I'm sudden instead, of a $6,500. Hole it's a $10,000, hole or something crazy like that I mean have you been there before where. You make a trade and it's bigger than what it should have been and then I'll send me shirts to try to overcompensate, and your revenge trading and forcing trades and then that hole gets even bigger I mean I've, been there so if, you've been there you're, not alone but we got to avoid it and in many cases these big, old nasty days, come. From if you trace back kind of the history, of them the evolution, of them they come from some sort of trade that happened where the first one is where you're you're disciplined, you honor your system, and then, all of a sudden you stop out and it goes in your favor and then that sets the groundwork the trap that, you know eventually engulfs, a lot of people but I want to just offer you motivation and inspiration and hopefully maybe scare you a little bit about please, overcome. The challenge by stayin discipline, all overcome, the challenging, by realizing, just, how nasty, things can get so I hope this helps I hope this just lets you know that you, know what as day traders it's not easy it's a big mental game and the mental game can be cruel and these two trades I thought did a fantastic job, of kind of just like I said how the evolution. Of a big nasty day happens, a good, discipline, trade all of a sudden morphs. Into and, his justification for. Breaking rules and then all it takes, is one rule break and then things can really fall, off the the, wheels can fall off the bus very very quickly so, if you enjoyed the video and want me to make more of these types of videos a very easy quick way to communicate that to me please hit that like button also leave a comment question suggestion, elbow have you can you relate to any of this I mean anything in the video can you relate let me know and that way maybe traders, that are new or just getting started they can realize that yeah this, stuff is real. Now hopefully they already know that given I show to real-life examples, but I mean if we get some more feedback down below from other traders that can experience like I said any of these sorts of things that I think that would help everybody out which is the point. And then finally check out the channel as a whole if you enjoyed those live trade videos that I showed snippets from I actually have an entire playlist on, the channel so be sure to check those out and hopefully you decide to hit that subscribe button so yeah get out there understand, how your mind works understand, how these mental traps are laid and when you understand that you're gonna have a much better chance to avoid them in its entirety and that's what we want sometimes the best way to make money it's, just simply avoiding the dumb things in the first place first.
Off Thanks so much for watching the entire video real quick before you go I want, to invite you to a live webinar web class training, workshop, online event whatever, you want to call it but it will be me live, revealing. To you what I discovered. That has allowed me to transform, myself from being an employee to, being my own boss, including, how I had only one losing day out of 73, days in total I'm going to cover three keys that have helped me unlock, profitable. Consistency, within the markets the first key is super-weird but, in a productive type of way the second, key is super, awesome because it quite, literally is wired into our DNA as humans making, it very easy to use but, in a cruel way this, becomes a pitfall for many traders I'll explain it although including. How to avoid the pitfall that it creates for some and yeah the third key when you hear it sounds way to get way too good to be true but it's not and I'll show you how, it all works then at the end I open it up for a question-and-answer, session that is again, totally. Live even if you can't make the live session, please, still sign up as it will be recorded, and you can go back and watch the replay then I will send you click, the image on the screen or click the link down in the description box, so you can get the date and time and, claim your spot which, I should know is limited. Due to the fact that this truly is a live event if, you have any questions, let, me know if not I'll, be seeing you soon.