If you start trading and master it, you can create an income generating machine for yourself. But if you don't have the right foundation, you can spend years losing money, wasting your own time, trying different things only to find yourself more confused. Okay.
The trading world is a very confusing place. There's a million people saying a million different things. Okay.
I've been trading for nearly eight years now and I'm completely self-taught. So whether you have some experience or you have zero trading experience, what I'm going to show you today is a simple process I wish I took from the start. to do things properly.
So I'm gonna explain to you mindset, softwares, charting, custom tools, how to access capital starting with a small amount of money, and most importantly, how to take all of this information, put it into an actionable plan so you can actually just start your trading journey today. Okay, enough of watching different videos waiting to get started. I'm going to make this video so good that you're going to have an entire game plan of exactly how to master trading and start in the process of creating this income generating machine for yourself. So if that sounds good, make sure you hit the like button on the video.
Subscribe to the channel if you like trading and investing so that you know when I put new videos out. Check us out on Instagram and Discord. We have an amazing trading community.
All right, so let's get into lesson one and set the foundation for everything that we're going to learn in this video. Most important thing in trading, especially when you're getting started, is setting your mindset correctly. Okay, if you don't rewire your brain to think differently compared to the way normal successful people in life think, you're actually going to be...
probably the worst trader and you're definitely going to lose money. Things that make sense in the market do not translate over into regular life, which is why 90% of people can't do this. They're not able to separate their emotions from money and the processes that you need to follow.
And this was the biggest aha moment in my trading career. So I'm going to make sure that I'm setting you off straight. And just by knowing this one thing without any of the other information in this video, you're going to be a better trader than like 85% of the entire world, just with this one thing.
So inside of mindset. Let's look at the things that we need and don't need. Okay, oftentimes people think that you need nerves of steel when you're trading things, dealing with money, and a lot of people view trading as pure gambling.
Okay, this is absolutely not true because the only reason you would need nerves is if you don't know your outcome over time, which is exactly what I'm going to explain to you in a second. If you're thinking like this, this is going to put you in a horrible position. All right, let's look at the next thing.
Do we need firm rules? This is 100% yes. Another reason why this becomes irrelevant because when we're trading, we need to be following a set of rules and not always be tense or have these crazy nerves because all we're doing is following our process. Okay, do you need to be a genius? A lot of people look at confusing charts and think traders are these really, really smart people.
Okay, it definitely helps if you're clever and you're an adept person, but actually some of the smartest people that I've met tend to be the most stubborn, the most set in their ways, and the least likely to be able to rewire their mindset and can actually sometimes be the worst traders, whereas people with average intelligence, like myself, can just follow a formulaic process and you're actually probably better off not being a genius at all. and just being hardworking and focusing on discipline. All right, we have set rules on here twice because rules are the most important part of this entire process.
You have to follow your rules, okay? Do we need luck? Okay, sometimes in trading, you are going to get lucky, but it's gonna go both ways. You're gonna get unlucky, you're going to get lucky. The luckiest people that I know in life are the people that focus on the positives and put themselves in positions to be lucky.
This goes a long way with trading. Focusing on being realistic but optimistic and putting yourself in the position to be able to be lucky is going to get you that luck. You need to cultivate that luck.
And I'm going to show you how we're going to do that. Okay, organization is a 100% must. There's a great saying. I always refer to it from Andrew Hanson, who's been working alongside me for several years now on the private side of our trading team and in Inevitrade in general.
And he says, you cannot improve what you don't measure. Okay. This is going to come in super critically, and I'm gonna show you tools to be able to navigate all of this organization in the trading space, okay? But this is one of the most important components.
And then the last thing is execution. You do need to have the nerves to be able to focus and execute under times of pressure. But just like any famous athlete with the clutch gene that always is able to perform under pressure, they say they always rely back to their training.
They block everything out and they focus on the training. If you put in enough reps, you're going to have undeniable evidence that you can perform. the task. And so when you're stressed and distracted, it's going to be second nature to you and it's going to allow you to execute when you need to. Okay, so you don't need nerves, you don't need to be a genius and you don't need luck.
You need to focus on having rules, being organized and practicing your execution and following that exact stringent process. Let's get into lesson two, which is going to be my version of trading simplified. When you ask people how to trade, you can get all sorts of wacky answers. But after all this time, I've been able to boil it down to this very simple three-part process. Okay, so without getting lost in translation, this is all you essentially need to know.
And inside of this framework, of course, it gets infinitely complex and there's a lot of other things to focus on, but this is going to be exactly what you need to know when you're getting into trading. Okay, so anytime we're designing a system, trading a system or starting. Our trading journey, first thing that we need to do is observe something repeatable in the market. Okay, so whether this is a pattern or something that happens during a specific time, we need to have an idea, a creative idea to then start to mathematically break apart to see if we can make this repeatable, then we're quantifying. Okay, so that's going to come into part two, which is going to be hypothesizing our rules.
I don't know if I spelled hop. hypothesizing correctly here, but you guys get what I'm saying. You need to create off of this observation, a set of rules. Okay.
I'm going to show you an example of this on a chart in a second. So once we have our ideas, we now have our rule set. The third step is taking that rule set that you have in finding something called the golden pair.
Okay. So you're going to be collecting the data with practice before we have our proof of concept. We don't want to be actually deploying any money into the market. This is a common thing that people oftentimes forget. The first instinct is like, okay, I want to start trading.
Let's dump money onto an exchange and let's start trading. Trading is a really unique niche because we actually have the luxury, unlike other businesses, to build out an exact proof of concept with data. So we almost have guaranteed results as long as we follow our execution.
If you open up, say, a restaurant or if you open up e-commerce store, there's certain variables you can isolate. So the quality of the product, you can make sure that your website's good. You can make sure that you're setting all of the things in place, but you can't account for whether consumers are going to want to come to your restaurant or if they're going to want to buy your product. With trading, you don't need to rely on any of those things. We can build out our entire infrastructure, our entire process based on data, and it only comes down to you as a trader to be able to.
execute on that so long as you follow your rules. Okay, so we're going to be able to build all this out. But this is really one of the most important things in trading for you to understand. Don't get down the rabbit hole of thinking you can do a million different things. Really, really a simple formulaic process.
Okay, so we're going to touch on this golden pair in section four. But for section three, I want to hop over into the charts now and start digesting a simplified version for you to start doing analysis, finding these repeatable patterns, and just using charting software in general. Because as a beginner, this is all really good foundation.
foundational information, we have to apply it to the charts. All right. So the software that I'm doing my analysis on and that most people in the trading world are using is something called TradingView.
So that's what you see pulled up here. OK, this is a free software to use. Obviously, the paid version is a little bit better. I have a tip for you. The time that I'm shooting this video is in August.
So we have a few months until Black Friday. They always offer like 70% off on Black Friday for the annual subscription to TradingView. So what I do is I just pay monthly and then I buy the annual on Black Friday.
You can save 70% on your subscription. That's something that TradingView does, but basically you can get the desktop app right here. So you can just go onto TradingView, create an account, go into products, and then click on super charts. And this is going to populate just a regular chart.
Okay. I have an amazing video that I'll link at the end of this video, talking about my entire setup process for the software. So if you want to know how I do it and understand all the features, I'll link that in a card at the end of this video. You're not really going to need it for now because this is going to start making sense because what we're going to do is just go over the very basics of starting to find patterns in trade on charts. Okay.
Aside from charting, the main tools that you're going to going to need are a position size calculator. So this Excel tool and all the other tools, which you can find in the description of the video for absolutely free, I put together a trading suite, which essentially gives you everything we've ever built for trading, starting with the most simple tools to more advanced tools with our slightly more advanced trading. Okay.
But this is going to be a position size calculator. Okay. You're going to need something to execute the trades on.
So whether you're trading crypto or you're trading stocks or trading futures. Okay, you need some sort of exchange. So for crypto, I'm usually using Bybit. As of recently, we started to move into the futures market as well. There's options like Topstep and Apex for futures trading, but any sort of means of entering or exiting the market.
And then a trade tracker. So anything for us to be able to input and track the individual trades that we take so that we know where we actually stand so that we can then measure and improve. So right here you can see a chart and all these patterns are showing us is areas where there's people buying and selling and there's something called supply and demand imbalances. So you can see on this chart, I'm in a one minute time frame.
So if we zoom way into our data, we're going to see this on the chart. here, which is essentially a box and whisker plot. If you remember from, you know, like whatever, I think it's like fourth or fifth grade, basically box and whisker plot is going to show us the starting point, the ending point, the high and the low of an individual data set.
And that's exactly how candles work when you're trading. Okay. So you'll see on these white candles, I have my open price here. The price closes here.
The high is right here. And then the low is this lower wick. And then on red candles, take this one, for example, we have the price opening right here, closing.
We have the high. and low at these points. All right.
And we can look at this on all different sorts of timeframes. So we'll notice we're on a one minute timeframe. So every time we get one of these candles, I can see the total amount of price movement that whatever we're looking at is doing over that timeframe.
So if I switch to a daily chart right now, each one of these candles is representing a whole day of buying and selling. So a lot of people have really confusing charts and tons of different indicators. Something that I realize is the more simple I see someone's chart is the better trader they are.
Usually, The amateur traders have a million different indicators all over their chart. They're trying to look at too many things. If you understand supply and demand and the supply and demand imbalances that you can see on the chart, this is basically the rudiments of trading and where everything starts with.
And you should be adding to improve your current simple trading strategy, not trying to find a strategy that doesn't work and then add to it to try to make it work, right? That's where you run yourself down a rabbit hole. Make sure you keep it simple.
Find something that works. So when we see all these squiggly lines all over our chart, this is actually just a visual representation of mass human psychology where people are buying and selling on the open market. Okay, it's institutions, it's retail, it's algorithms all moving the price around. Okay, so in an area where the price is moving down, this is considered a downtrend.
This is where the supply is exceeding the demand. So because the demand isn't as high, the price is going to drop until that homeostasis is found until that can switch. then as we have enough demand to outweigh the current supply, the price will continue to move up until areas where there's not enough demand to outweigh the supply, and then the price will continue to reset.
So you're really looking at supply and demand imbalances. All right, and we can actually do analysis to predict where these zones will go, which is oftentimes what's going to drive the very beginning and end of movements. Okay, so the simplest way to start looking at these is by using something called a trend line.
Okay, in this trend line tool, we can start visualizing these supply and demand zones. So for example, if I see the price bouncing here, bouncing here and bouncing here, I can click here and drag a straight line from these two or three points, one, two, three. And now we'll be able to tell two major things.
Firstly, where the price is likely to make a continuation and bounce. And if it doesn't, where the beginning of a new downtrend is likely to form. Okay, you'll notice I can also draw a trend line along these highs. All right, so for example, if we looked at a pattern like this, we can identify that we had a break in this overall trend.
So we can take this low over here. We can take this high period right here, and I can draw my lower trend line and say, this is where we're at currently in the chart. As soon as we see a break in this trend line and we have this established low.
Now we can start drawing a new trend, right? So I like to use something called a parallel channel, and then I'll click along these lows, something like this, go off of these high points here. So once again, choosing an area where the demand outweighs the supply, supply starts to outweigh demand.
And now we can start looking at potential areas where the supply will once again start outweighing the demand, which can open up opportunities for us to be able to buy into these trends and make profits off of short-term price movements. Okay. And we'll get a little bit more into this in a second, but you can see, then the price comes up, touches, this top area once again has resistance and then continues to drop down okay so if we were to take a position here anticipating that we get it to reverse it's ideas like this that we can start using to find those creative angles in the market find repeatable patterns set our rules up and then test the data okay if you want insight on the exact systems that i trade i'm now on a 23 win streak absolutely crushing it as well as our team is trading a wide variety of our systems i'll put a video explaining exactly how we trade also at the end of this video. So you can dive into a little bit more system specific once you have this full framework. All right, so now that we have the proper mindset, we know that we're looking for a repeatable pattern in the market and we have the tools and softwares to start finding those.
We need to understand. the golden pair in trading math in order to see when we can go to the next phase of your trading. All right, so once you find this repeatable pattern, the next thing that we need to focus on are two main factors.
Okay, the first thing is going to be your average risk reward, and the second thing is going to be your average winning percentage. All right, so let's reference our previous example before. If we had a rule set, it would tell us we could take a position at, say, this point. We could then enter the market here, put a contained amount of risk outside where we think the price is going to go.
then shoot for our profit target to be somewhere in the direction we think the market can move. Okay, a lot of people don't know this. You can trade the market in both directions. So just because something isn't moving up doesn't mean you can't make money on it trading.
A large percentage of the trades that I take are actually short positions to the downside, which is really important, especially when the markets are continually moving down or continually moving up. We can be making profit day in and day out while other people are just waiting, sitting around doing nothing. One of the beautiful parts about being a trader.
Okay, but you'll see in this example, if this trade comes up and hits this line, that's going to be my contained loss. But if it comes down to this line first, that's going to be my full profit. And so in this situation, if it does hit what's called my stop loss, I'm going to lose one unit of risk. And you'll see there's this three here that will get either bigger or smaller depending on where I set my take profit.
But if this is to move in my direction. and get me out for full profit, that's going to allow me to make three times the amount of money that I'm risking. So once again, this is our risk area and this is our potential reward. So you'll notice in our risk zone, if we have three times the amount of risk up to our take profit, that's going to get us three positive risk factors and will give us a risk reward ratio. And this process will allow us to make three times what we're risking.
So once we have that first data point, the second data point is the percentage of the time that it comes to our full take profit instead of our stock. loss. And this is where being able to do analysis and being able to position size is going to come in extremely important.
Okay. So in order to achieve this level of consistency, you need to understand the formula. We also have a custom indicator that I can give to you that you can use right on trading view as well. But in order to be successful with these two metrics, we also need to be paying attention to making this risk amount pretty much the same every time we take a trade. Okay.
Because say, for example, I risk $100 one time. and the trade goes up and hits my full profit. So I make $300.
But then the next time I take a trade, I risk $300 and it comes down and hits my full stop loss. That means that even though I made 3X what I was risking the first time, which is a great risk reward, if you're not being consistent about your risk, you're never going to be able to be consistent. And this metric is completely removed from the equation and will screw up the entire process.
So the way we can keep this consistent is by following this formula right here. It's really not that confusing once you understand the math behind it. So if we take the dollar amount we want to risk per trade, all we need to do is divide that by our entry minus our stop loss value. Okay, so let's go back to our example over here. All right, so this is our entry point.
So 10.03, we subtract it by our stop loss, which is 10.088. That's going to give us 0.058. Say we want to risk $100 on this. We would take 100 divided by 0.058. That's going to give us 1,724.
All right, so if we enter the market here with 1,724 units, that means that if it goes up to my stop loss, I'm going to be losing exactly that $100 because all the price has to do is travel this distance because if we have this many units and it travels this distance, which is 0.058, that's going to get us almost perfectly to $100 risk. And that's going to allow us to evaluate these metrics together and find a winning process. So depending on the system, I'll either do this quickly with a calculator or I'll use a tool.
Okay, something that can be really helpful for you guys that you can find in the tools in the description of this video is something called the Inevitrade Position Size Calculator, where you can essentially click on your risk, click on your take profit, Click on your stop loss. Say you want to risk $100. You can hit enter. And that's going to give you a little box over here to show you the risk, show you the quantities that you need to use, show you all your specific levels, as well as your profit expectation and your risk reward on the current metrics on your chart.
All right. And if you want to move them around or change them, all you have to do is grab onto these, drop it, and it's going to automatically adjust all the data on the chart for you. Once we have all these metrics put together, this is going to show us the profitability table.
where we can look at different risk reward ratios. So if we're risking $100 to make $100, risking $100 to make $200, $100 to make $300, $400, $500, etc. We can look at the percentage of the time we need to be correct and for it to hit full profit in order for us to either be not profitable, break even, or profitable with our strategy. So you can start to see how all of these things work in tandem.
But this is sort of your machine once you have your pattern or you have your style where then you can start gathering all this information and seeing if that combination is going to leave you profitable. This is exactly why I built an entire trading desk for myself and I've shared it with you guys completely for free on YouTube. Not only is this going to take me through an exact process that I like to follow each day throughout my trading sessions, but it's also going to allow me to collect every single piece of data that I need to know about my each individual trades.
So that anytime I want to look at my performance or improve this, I have everything there. You'll notice I like to keep screenshots of my exact trade. So this tracker is going to allow me full access to all the information that I need, as well as my P&L for the amount of time, my winning percentage, how many trades I've taken, and any other data that I need to collect. All right, so getting that whole notion out of your head, or if you lose money on a trade that it's bad, this actually has nothing to do with trading, and you'll end up screwing yourself over if you think like that. I know a lot of times people will say, oh, how was your trading session today?
and I'll say, oh, I lost money. And they'll be like, oh, that's awful. What could you do better to improve next time? And I say, nothing. It was perfect.
I had a perfect trading session. And they say, well, how could that be? You lost money. That's exactly how you can tell if people either have rewired their mind or they haven't.
Because inside this system, the only two things that I care about is on average, how much profit am I making versus my risk and what percentage of the time am I getting that result? Once we test that over hundreds and hundreds of pieces of data to figure out which- process we can follow that's going to confirm with this exact table. It only comes down to execution and being wrong or right on each individual trade has no importance at all, which is once again why you don't need nerves of steel.
If you know it only comes down to execution, why you need firm rules. You don't need to be a genius. You don't need to rely on luck.
You need to have rules. You need to have organization and you need to practice execution. All right. So the final step before we put all of this together and I showcase you an example of starting your own trading process today, we need to talk about how to access capital.
This is one of the biggest limitations for. for retail traders. Okay.
And this is one of the most misunderstood parts of trading as well. Okay. So I'm going to talk about leverage.
I'm going to talk about. the capital requirements for taking these types of trades. Okay, so let's go back once again to this trade example here.
We knew that if we wanted to risk $100 on this trade, okay, entry. take profit, stop loss, $100 worth of risk. We now know we need to enter with about 1,974 units.
Now, considering this at our entry price is about $10 per unit, that's going to mean that 1,974 times 10 is going to require us in order to even risk $100 on this trade, we need to have almost $20,000 in our account if we're just trying to trade on a normal account with ourselves. So once again, in order to only risk $100, you need to $20,000 worth of capital to be able to take these smaller range trades. This is where leverage or firms that allow you to trade with capital come into play. Okay.
So for example, a lot of people think that using leverage adds more risk to your trading, but when I'm trading cryptocurrency and I'm using a cryptocurrency exchange, we can actually use up to a hundred X. Okay. So say on this, say on this same example, I used something like something like 50 X leverage. That would then allow me to take the entire capital requirement.
This position size divided by 50, which is going to be about $400 of required capital. So now the capital requirement of the position is nearly $400. And we're still keeping the same exact risk as before at $100. This and fees is the. only thing that is going to change as far as your risk implication on your trade.
The only reason I'm using leverage is to reduce the amount of capital requirement for the trade while still being able to risk normal amounts. Okay, another solution, which is something that we're moving into as of recently is a prop firm where essentially they'll give you 50k, 100k, 150k in buying power. which all you have to do is prove your statistical profitability to them, and they will allow you to trade with this capital. Okay, this is very similar to using leverage. Once again, we're keeping our risk uniform, but we're able to actually take these positions.
Okay, so access to capital is actually a lot easier than you think. And as long as you're following your rules, you're not really adding any risk to your trade. All right, so now let's take everything that we've learned together, and I'm going to show you what my process looks like when I'm designing a system, when I'm practicing to go implement and start actually trading a system that you can take whatever idea you're going to use, put it inside this framework with everything that we've learned so that you can start actually trading today.
Okay, this isn't a system that I'm pursuing, but I want to show you the general concepts of things that I do look for in ways that I like to approach the chart to find systems that we're developing. Okay, so below here, we have something called the Inevitrade ProPlus indicator. Okay, this is a custom indicator.
indicator that we've designed. But basically, you'll see when the market has big dips, we get a highlight tool. And when it has big moves up, it also has a highlight on the top to say my observation would be anytime I'm getting a highlight on a one minute time frame, I buy in at that level, put a stop loss below and then wait for me to get a highlight up here in order to sell.
Once again, this is not a system that we're trading, but this is to show you an example of the thoughts that go in when you're setting up these rules. So I can put these rules right on my chart, wait for highlight, put stop. loss slightly below wait to sell at top highlight and say i wanted to try to sell once i got 3x the amount that i was risking okay so if i started here i'd put my entry right about here stop loss slightly down here i would get my one to three and then i could just mark this off plus three risk factors okay then i just go on to the next scenario okay so position somewhere in here stop loss over the high targeting three risk factors this would stop us out right here so negative one you risk factors.
Okay. Then I would set up a short position somewhere in here during this highlight stop loss over the high positive three risk factors buy in somewhere around here with the stop loss below this below negative one risk factor. Cause we're calculating the risk per trade to be very precise.
Okay. Next highlight we get is right here. So we'd buy in at this zone, stop loss below our low plus three risk factors sell at this highlight positive three risk factors. And you can either do this by looking at it to get the general concept to make sure that you're following your rules, or you can actually click on this button in bar replay it and play it forward in real time so that you're making the decisions as you would more so in real time to know more accurately where you stand.
OK, but once you have a general understanding that this system. would theoretically work. So if you have three, six, nine, 12 risk factors, and you have negative one, two, that would leave you with a net positive of 10 risk factors during this trading session. So then you can do this over a larger period of data within your tester to see what the amount of profit would be if you're following this rule set and you're keeping your size consistent.
Okay. So you've accomplished this part. You make sure that the data is hitting your golden pair and you're following your trading math, that your system is agreeing with the profitability table.
Then you need to get access to the capital. Once you have the proof of concept, you've tested it out and then you start playing this into the future. And every system that we're trading has gone through this process.
This is how I'm on a 23 and counting win streak, how I'm able to make several thousand dollars of profit each day. And this is the things that we focus on on the private side of our trading team. You can see one of our private team members, Rocky tracking everything up 5,200.
in one week. Okay. Snutorious also tracking and following a vigilant process with 5k profit in 60 days. Big shout out to you.
Okay. You can see this member basically only counting risk factors. So even though they're making $200 in one single trade, you can see they're talking about ending with four risk factors because they're following this formulaic trading process. See Rocky once again with a $344 in profit. Looks like he's trading in some cool locations.
But anyways, guys, this is the framework that you can follow to get started on the right foot. not waste a ton of time, treat trading like a business and be able to create that income generating machine for yourself. Okay.
If this video is valuable for you, let me know in the comments. Also make sure you hit the like button on the video so that we can push this out to as many people as possible. Okay.
We need to correct the trading space and make sure that people are learning from other successful people. Okay. Subscribe to the channel if you like trading and investing. So, you know, when we drop videos, okay, make sure you're taking advantage of our discord, all the free resources below, but until next time, guys, I will see you all in the next video.