so a lot of people always ask me what are the exact steps that they need to take to be profitable so in this video I'm going to break it down for you guys step by step I have seven rules that you guys need to follow that you need to stick with to be profitable if you can stick with these seven rules I guarantee you you will be profitable so let's hop right into this I'm going to be writing here and I don't need you guys judging my handwriting I'm a day trader I'm not a freaking English teacher but I did want to have it written out for you guys with that being said let's get on to the first one so these are rules that you guys need to be strict with these are things that you guys need to follow guidelines that you guys need to make I'll give you my suggestions throughout the video that's why I suggest you stick through to the entire video so I'll give you suggestions for each and every one to help you form them correctly But ultimately it's going to be up to you to hold yourself accountable and I'll give you my best kept secret on how to hold yourself accountable to these trading rules at the end of this video so stick around the first one that you're going to need to have in your pocket is what pairs you're allowed to to trade the reason why this is so important I ain't going to lie that's crazy that looks like Paris anyways why this is so [Applause] important why this is so important is because a lot of people like to jump around if you've been a new Trader trading for over 3 months or so you've probably went from 20 different pairs you'll you'll trade NQ you'll lose two trades in a row she like oh maybe I should trade ym you trade ym you lose two trades in a row now you're like ah let me trade natural gas you lose two trades in a row you switch to something else the reason why that is so detrimental to your trading is cuz you never get the chance to actually Master one pair and the reason why that's so important is I like to compare pairs or instruments whatever you're trading whatever you want to call them to people say you're dating right and you have 100 million girlfriends you're going to forget the favorite color of every single one of them versus if you have one girlfriend and you focus on this one you're going to learn what she likes to eat what she likes to do her favorite color her middle name her dad's middle name her mom's middle name you're going to learn everything about them same thing when it comes to trading so you see all these pairs you you'll see NQ you'll see es you'll see ym you'll see natural gas and you think they're all the same but they all have small patterns that they have individually so for example I'll give you guys one thing that I've noticed and this is from me focusing on natural gas you guys know I trade natural gas very heavily but if you notice on natural gas 10:00 Central Standard Time in the morning price likes to reverse NG if it starts at 7:00 a.m. and it's going up it'll probably go up until around 10:00 a.m. Central Standard Time as soon as 10:00 hits it likes to reverse so knowing that you're able to capitalize on that and the only reason I knew that that was a thing is because I spent a lot of time focusing on just one pair so this is why I tell people to clearly Define what pairs you're actually allowed to trade now I suggest you Max this out to two pairs max if you can I would suggest one pair cuz you'll learn a lot more about that you'll learn pair your trading is good with support and resistance or it's better with breakouts or it's better with supply and demand or it's better with smart money Concepts or it's better with trend line breaks or trend line bounces or trend line reversals you'll learn all that by focusing on one pair cuz you'll learn its personality so that's why I said suggest if you can to stay under two pairs one preferably the pairs that I mainly focus on are really going to be NQ and NG and you guys hear me talk about NQ and NG all the time these are my top two ones now I will mark up es ym sometimes that's just cuz in the Inner Circle A lot of people like to trade those pairs so I'll mark it up just to kind of give them my perspective on it if you look at my pnls if you look at all my trades you're going to see majority of them are just these two pairs right here and that's why I've gotten to know their personalities and know how to trade them the best way possible next thing which is extremely important that a lot of people do not pay attention to I ain't going to lie let me pause real quick I don't ever draw this bad I'm just I feel like I'm under pressure right now I feel like it's about to be thousands of people watching me and it's just not this I've never drawn a to like this this look like a freaking hook anyways you're going to want to focus on placing yourself let me redo this too just redo that whole entire clip at this point so the next point that you have to focus on is giving yourself a Time limit the reason why that's so important is a lot of people will lose a lot of money by being bored they'll end up taking bored trades or impulsive trades so what I mean by giving yourself a time limit and the reason why this is so important is have a certain window for when you're allowed to take trades for me it's from around 700 a.m. I ain't going to lie this is kind of crazy through 1230 this is wild through 12 30 at le me know like School wasn't for yeah school if school was my only option man I'd be on the corner and the reason why I have this window is it stops me from taking impulsive trait sometimes in the beginning of my journey I used to be playing video games at freaking 7:00 at night have two screens and one is video games and the other is a chart and I would just see something I would just be bored I'm like dang I'm playing video games it'll be cool if I can make money while I'm playing video games not knowing what the heck happens during that trading session that's Tokyo session if you didn't know not knowing how markets move what type of volume is in there what pairs I should be trading at that time and I would just hop into trades just because I saw something happening and I would lose money and up giving money back to the markets so that's why I tell people to have a set time limit for when you're allowed to trade now that doesn't mean that you have to sit here from 7:00 a.m. to 12:30 p.m. looking for trades that just means if a setup happens during that time you're able to take the setup but as soon as 1:00 hits you guys have watched a bunch of my videos if you're in my inner circle you've seen me talk about this where it's like okay setup is literally happening right now but it's not dir my time window and the reason why I stick to that is cuz I've seen the results of going outside of my time window by trading at just random times whenever I feel like it so that's why it's extremely important that you set yourself a time limit the next thing in it's probably one of the most important things and I try and really dig this into people for them to really get this and understand it for it to get programmed into their mind is strategy right I'm not gonna lie maybe I just can't talk and and write this is the reason why this is so important is a lot of new Traders are switching from strategy to strategy to strategy they'll do good on a strategy for a week they'll lose two three trades in a row they'll switch their entire strategy they'll win $100 on a trade they'll go on social media and see some random Trader made $50,000 using a completely different strategy so then they think their strategy sucks and they'll switch from it just set random setups happening they'll see trend line bounces knowing that they have never back tested trend line trading at all they're only trading support and resistance they'll see a trend line and they're bored during the day so they're like ah let me just take this and they end up giving money to the markets so I tell people please stay strict with the strategies that you're allowed to trade I tell people Max two strategies and the reason why is because you'll learn how to trade those strategies in different market conditions you cannot trade your strategy the same way in every Market condition you know there are multiple Market condition types we have consolidating markets we have trending markets we have ranging markets we have a bunch of different type of markets and your strategy that you trade most of the time isn't going to be able to be traded through every single type of Market condition but when you're focusing on your two strategies Max and like I said before I'd prefer you stick to one strategy because you'd be able to really Master it but a lot of people can't do that so I kind of give leray and say two strategies Max when you do that and you're focusing on these two strategies you're able to see how you can trade your strategy in any Market condition because you're sticking through to it I want to emphasize small tweaks this is not where you're training support and resistance and your support or resistance Trader then as soon as the market shifts you turn into a freaking breakout Trader no you make smaller tweaks like maybe having a longer weight period instead of entering on the first Candlestick you wait for another one or you have a small tweak where it's like okay you add an extra Confluence in there like okay in order for me to hop in a trade I need it to be above the vwap or I need this to happen I need this to happen just small little things that are addition to your strategy not completely changing your strategy so an example of just pivoting your strategy just a little bit would be if you are a support and resistance Trader let's say this is your support zone right down here this is your resistance Zone over here this is price this little squiggly line whatever usually as a support or resistance Trader you'd come right here wait for it to come to your support and youd buy off of here that's how you usually trade it in more consolidating type of Market but imagine the market is trending and we all know what a trending Market looks like it's making higher highs higher lows higher highs higher lows higher highs higher lows a lot of times it's not going to come back down to these support zone so you're not going to be able to trade it the same way you traded it before but how you could adjust is when price is coming here making these higher highs higher lows higher highs higher lows higher highs higher lows instead of taking regular support zones right down here at consolidation you could be taking break and retest zones break and retest zones are simply when price breaks above your previous resistance Zone it comes back down and it turns that resistance Zone into a support Zone and goes back up that's a small minor tweak that you could make in your trading of your strategy strategy to still technically be trading support and resistance at the same time making a tweak where you're able to capitalize on trending markets versus just trading it during consolidating markets and trading it like this you need to be able to capitalize on when it's not consolidating anymore and it's breaking to the upside and trending we' be able to enter right there and that's a great example of making a small tweak to your same exact strategy but being able to trade it in different market conditions all right y'all I just opened up more spots inside of my inner circle if you guys don't know what's included inside my Inner Circle you get access to all of my trades which means you can follow along and hop in every single trade that I take yes the trades where I'm able to make 5 10 20 30 even $60,000 you guys can take the same exact trades you guys also get access to all of my courses which will take you from being a complete beginner to a consistently profitable Trader it teaches you everything I know about trading that'll help you be a profitable Trader I'm also live every single morning in my inner circle live trading live market breakdowns answering questions every single morning I'm really just creating the place that helps you go from being an average person to a consistently profitable Trader it's always filled up but I have opened up some more spots so I suggest you click the link in the description down below right now and claim your spot in Inner Circle but let's continue on with this video you need to have a max amount of Trades that you're able to take what is that Max trades a lot of people will take anything that they see same way if we bring it back to the whole thing of them as people type person that's friends with anybody that will date anybody is not going to have quality friends and is not going to have quality significant others being able to max out the amount of Trades that you're able to take forces you to only want to take the best trades if you say okay I'm only able to take two trades per day every single time you see your setup happen no matter what time of the day it is no matter what pair you're trading you're going to think in the back of your mind do I want to waste my one of two trades on this trade that I'm looking at or maybe I should wait for a better setup a more setup that is more in line with my exact trading plan versus something that could possibly be a good setup but not really too sure about it so that'll help you weed out the bad trades automatically because you know you have a limit my suggestion for most people and it's going to vary depending on if you are a scalper which is someone who's in and out of Trades very fast versus an intraday Trader which is what I am I mean trades roughly between 30 minutes to like 2 3 hours per trade or if you're a swing Trader this is someone who holds them for hours days even weeks sometimes what I would suggest for scalpers realistically is to have a Max of about four trades support per day now if you're an intraday trader TWO is a great number to be at I don't think you have to go past two I think two is a a great number to help your stuff stay selective but also give yourself some freedom in case the first setup doesn't work out the best you can still have a little bit of freedom to make your money back on the next trade after waiting for a perfect trade and as a swing Trader I would then switch it to probably around three or four trades per week Max and that just helps you capitalize and wait for the best setups versus taking anything that comes across your your Charter this one is extremely important for risk management and to ensure that you don't only become profitable but you stay profitable number five max out the amount of money your risking either per trade or or per day now there are two type of people there are people who like to limit the amount of money that they're risking per trade or the type of person that likes to limit the amount of contracts or lot size that they're using per trade I'm personally the type of person that likes to limit the amount of money cuz I like being able to know going into the trade okay the max amount I can lose is $5,000 I'm not going to see anything more than ne5 ,000 versus kind of having a Max contract size that I use but the reason why this is so important is because over the long period of time no matter how high your win percentage is if your max loss can be as big as you want it to be you're not going to stay consistently profitable you could have a winning day a winning trade a winning week a winning month and then throw it all away within two weeks time now you'll hear a lot of people give percentages and things like that I think it really depends on your skill level how long you've been trading and how confident you are on a specific setup I don't really like doing percentages for the most part it's good for beginner Traders but like me personally I just have a set number and my account size just has to be big enough for me to risk that amount basically 10 times and not lose my entire account that number is completely up to you but make sure you have a strict number and don't allow yourself to go over that number at all that's what's going to hold you accountable to actually make you stay consistently profitable and not just become profitable for a week or a month or even two months this one is super important this is probably what saved me from losing a lot of money when I was bored I made a video a long time ago maybe like a year ago where I talked about giving money back to the markets because you're bored a lot of people a lot of people are addicted to trading they're addicted to that dopamine hit that they get as soon as they press buy or sell they just want to see numbers going up or down on the screen and the reason why that is such a huge thing is really because people just want to be in a trade and that's out of boredom and that's impulsive trading impulsive trading in boredom is a very very expensive trait to have when you are trading this sixth step right here of adding entry criteria to every single trade will stop you from taking those boredom trades I'm not going to write criteria here cuz I'm actually running out of space be frank with you I don't want to have to look up how to spell freaking criteria cuz I'm not going to lie I can't just think of it on top of my head I haven't seen it that many times um entry criteria is something important that you need to have now you don't want this to be too strict you do not want to say okay I need to see this this this this and this to take a trade you want a general rule of thumb that you need to see to take any trade that general rule of thumb could be okay I want to see a bullish Candlestick and it's above the vwap the reason why you don't want it to be too strict is because sometimes that could stand in the way of you just hopping into a regular trade you should have at least some type of small entry criteria that stops you from okay I just saw a green candle let me press buy okay I just saw a red candle let me hop in and sell something like that those are boredom kind of tactics that make you lose money forcing yourself to have just a basic in general entry criteria no matter what strategy you're using helps stop yourself from giving money back because you're bored or hopping into random trades because you're bored now the last and final one is the most important one I feel like I said that about three of them already but this one's actually the most important one because who cares if you write all these rules who cares if you go through every single one of these put exactly what it is that you need to see you have your time frames you have the two pairs that you're allowed to trade the two strategies you're allowed to trade but you have nothing to hold you accountable this is where this part comes into you need to give yourself a punishment a punishment for breaking any of these rules what I've learned from Lally coaching thousands of people teaching thousands of people how to become profitable Traders is that most people don't learn from just losing money like a lot of people losing money is not punishment enough for people to stop doing the same stupid mistakes that they keep doing I know you probably watching this video if you've been trading for over 2 three months You' probably seen the same two three mistakes that you continuously keep making that's caused you to stay unprofitable and you keep losing this money losing these funded accounts is not punishment enough to step stop you from overtrading to stop you from moving your stop loss to stop you from overleveraging it's just not punishment enough I'm not going to lie I don't think punishment fits down here but let's just write it here so everybody can see it cuz this is the most important part punish mint boom that's the most important one right there one that works for majority of my students believe it or not is taking cold showers no one likes to take a cold shower obviously it's up to you it's what you don't like to do CU I have people that I've told to take cold showers with then I've told to take cold showers with it's kind of crazy that I've told to take cold showers when they break any of their rules but they're like oh ju beir that doesn't really affect me I wake up and take a freaking ice bath every single morning so obviously if you're that type of person you don't really mind cach showers think of something else I have people that have to take a teaspoon of horseradish I have people that go have to run 3 miles uphill at people that it's really up to you what is one thing to try and help them think of what their punishment should be is think of something that you wouldn't want to do more than two times but these six rules right here will hold you accountable to make sure and help you stay consistently profitable so as long as you can stick to these and using this punishment as the number one source of motivation not to break any of these rules over a long period of time you will be profitable so hopefully you guys got value out of this video hopefully you guys enjoyed my nice art art art stuff on my on my drawing and stuff like that if you guys want me to come to your schools and write on your boards I got you too but in all seriousness I really hope you guys take this information cuz this is literally lifechanging if you stick to this and you really Implement each and every step in here as long as adding a punishment to hold yourself accountable even tell your family your friends or if you you have trading buddies tell them your trading plan your set of rules and your punishment and help them hold you accountable to it because honestly if you can do that like I said before I guarantee you over the long run you will be a consistently profitable Trader if you guys want more videos like this please press the like button and if you enjoyed this video I really think you should watch this video right here it'll show you how to draw the perfect support and resistance zones and get you on track to be able to not only draw the support of resistance zones but make an insane amount of money doing so I'll see you there