hi this is cotton candy ta and welcome to the beginner's course remastered lesson one the setup in this series i'm gonna be helping you become a day trader whether you're brand new someone who's just checking out the career or maybe you've been around for 10 or more years this will help you build the strongest foundation and i've designed it so that it can be completed in one afternoon okay let's start this off by talking about choosing your education whenever you're learning something new in life or trying to reinvent yourself it's really important to craft the best possible path going forward the worst thing anybody can do is learn from five six seven eight different sources and just kind of give themselves a knowledge overflow the reality is is that there's right information and wrong information so in order to set yourself up for the most amount of success you have to make sure whatever education you choose to pursue is going to be the best quality possible i'm a strong believer of this i spent 11 years in university and i don't regret a minute of it even though i'm not doing anything with my university degrees now i'm a day trader and i've been doing it a long time very successfully so i'm a strong believer that choosing the right path of education is ground zero the first thing we're going to be talking about is the types of traders there are so there are three types there are scalp traders there are swing traders and there are position traders the first one being a scalp trader this is somebody who trades low time frames so when i say low time frames i mean it could be anything from a one minute trade to an hour-long trade so this is what they call a scalp trader it's somebody who scalps the market and trades in these short time frames next up on the list is a swing trader a swing trader can be defined by somebody who trades a little bit of a longer time frame not quite holding on to a position for multiple days at a time but maybe trading anywhere from a 15 minute trade to maybe an hour long trade to four hours and maybe even eight or 12 hours on the extreme side of things so a swing trader is someone who's in a position a little longer than a scalp trader but not quite as long to say they're holding positions overnight the third type of trader on our list is going to be a position trader this is somebody who holds a position hence the name for a longer period of time typically you're going to see a position trader hold something for four hours to begin with and maybe even a couple days by the time they're done with their trade this is somebody who can leave a trade open overnight and take maybe five six even seven days to complete their trade and the last one we're going to talk about is an investor this is somebody who's not a day trader at all rather they pick a position and they hold it for a long period of time this could be anywhere from seven days to multiple years this is not day trading so this is a very important distinction to make right from the get-go if you are wanting to be somebody who is holding a position for years on end or weeks on end or months on and kind of set it and forget it you're not a day trader at all you're actually an investor so this is a really important definition when you first start learning about day trading to get right off the hop investors are people who take trades and they leave those trades open for unannounced periods of times again it could be a week it could be two weeks it could be a month it could be three five months it could be 12 months it could be a year could be two could be five could be ten it's an undefined period of time where they are investing in something based not on technical analysis but on something else maybe fundamental analysis and they are holding that position for a long period of time again this is crucial to understand from the start because i have a lot of people who come to me and say hey cotton should i hold this for a few weeks well this is more of an investor standpoint and not day trading at all as day traders we simply look to make an income whether it's through scalp trading swing trading or position trading we have a set amount of money we want to make each day and we don't actually hold these positions for these big periods of time okay so now let's jump into one of the most important parts of your entire day trading career the tools you will need to day trade we are only ever going to use a few different things in day trading four to be exact accumulation and distribution well we should say three because we can consider that one so accumulation and distribution which is two different things but we're calling it one term trends and levels no matter how far you go in day trading no matter whether you are just beginning and this is your first lesson ever or you've gone through all 10 or 15 of my courses and you're at the very highest level making millions of dollars a year day trading you will only ever use these three things again three or four however you want to call it accumulation and distribution which we'll learn in another lesson levels again we'll learn that in another lesson as well and trends these are the three crucial founding pieces of technical analysis and day trading you're also going to want to set up your software i use and recommend trading view and throughout the series of this course and my other courses we're not adding any other software so you don't need to worry about what are you missing out on there's no software that i would recommend outside of trading view and nothing that i add on to increase my experience there is no further and better software's out there simply put if you are using other softwares you're kind of doing it wrong you really only need a few things in trading and that's trends levels accumulation distribution and your charting software everything else is a complete fallacy and myth you don't need it so don't even install it because i'll just tell you to uninstall it later just a quick tip as well when you're using trading view i recommend changing the colors of your candles that move up and down to something other than red and green red and green is too subconscious and we're kind of pre-programmed as human beings to see red is stop and green is go right we're kind of taught this from a young age and it's embedded into your mind psychologically when you look at charts and you see red and green it kind of triggers some emotions that aren't very beneficial to our experience for this reason i use blue and yellow or maybe like a beige color something that's very neutral in tone and doesn't really give me an emotional reaction or subconscious trigger that makes me think or react in a very specific way again just a quick little tip maybe consider changing the colors of your candles that move up and down okay now that you're set up properly let's talk about training view and the only things you're ever going to need to use with it the first one being your horizontal ray tool you're going to use this to mark out your levels the next one the ray tool this one's going to be used to mark out your trends the crosshair tool which simply takes you off of the first two selected and the text tool which allows you to label information these are the only things you'll ever need and you're just simply going to activate them by expanding the menus out and clicking the start to add them to this nice movable bar right here you'll never need anything else in trading view or when you're trading these simple tools no matter again let me repeat this whether you're making 10 million dollars a year and i have students who make that kind of money or whether you're just starting out this is all that everybody uses there is no you get better you add a ton of stuff that doesn't exist these are the only tools we need we keep it simple and we trade science and data points that make sense and we use logic to make the decisions that's it nothing else we're going to talk about indicators for a moment we will never ever be touching them and never using them despite what you may hear in the industry about indicators whether it's macd rsi convergence moving averages hmas smas i've heard them all i've seen them all i've used them all i've worked with hedge funds that use them i've worked with family offices that use them i've worked all throughout this industry with people who swear by them and live and die by them yet they all ask me for my expertise everybody asks me what's your take on indicators they are not useful at all there are simply data points on our chart that communicate all of the sciences that happen and everything that goes on in the in the industry and that's it we will never be adding indicators in fact if you use them take them away if you refuse to take them away and think that they can help you in some way stop this course right here you've spent probably eight or ten minutes watching this video turn it off go somewhere else because i will devoutly tell you that indicators are a waste of time useless and not used by the top traders in the world take it from me and accept the fact that indicators don't work as if they were some kind of magical button to untapped wealth simply add this indicator put it on your screen and follow along to make unlimited amounts of money not very logical when we say it out loud is it we've now completed our setup started to develop our foundation and created our path forward i'll see you on the next lesson where we'll deep dive into accumulation and distribution