in this video I'm going to show you what I would do if I had to start my whole entire day trading Journey over again and I'm self-taught so I've made every single mistake in the book that cost me a tremendous amount of money but most importantly Wasted Years of my life so if you're coming with some experience or you have zero trading experience this video is going to be a boiled down checklist of all the most important things that you need to focus on to set yourself up for Success okay so we're going to talk about softwares tools custom spreadsheets that I'm going to share with you how to access Capital starting with a small amount of money to be able to take big positions and I'm going to show you tips and tricks along the way so that by the end of this video you're going to have a clear cut path to start your day trading career without wasting unnecessary time and money so if that sounds good make sure you hit the like button on the video subscribe to our Channel if you like trading and investing follow us on Tick Tock Instagram Discord okay guys we just fired up a tick tock so make sure you check out our Tick Tock and see the content that we're dropping uniquely on there so in order to figure out what we should be focusing on as a beginner Trader or someone that needs to revamp their trading we first need to identify what we shouldn't be focusing on and I'm going to identify a common trap that most beginner Traders run into they will basically halt your progress and basically put you into what I call the spin cycle okay so let's talk about that trap and how to avoid it okay so when people first start trading the first thing that they're going to do typically is get onto an exchange maybe try to find a pattern online and start trading it okay most of the time because you don't know the risk implied you're actually able to be braver than most people and you're probably going to make some money off the Jump and think wow you know I'm actually getting really good at this whole trading thing I should continue doing this maybe with more money okay the next phase is going to be when you take a position and all of a sudden it goes dramatically against you and you're like oh wow I'm down a lot of money I can't sell this position because I don't want to realize a loss okay so you end up waiting for the position to come back position comes back to your entry you take some profit off and you reinforce that idea that says oh all I have to do is wait on my my position if it's going against me it will come back and you'll be able to make money and not realize a loss so you'll carry that psychology forward until phase three which is what I call a catastrophic loss this is when the position goes against you you deploy the same tactic of holding that position but then the trade doesn't turn around back in your favor and the loss is so significant that you're forced to take a huge chunk out of your account this is where beginners go into the discovery phase where they think that they need to acquire all sorts of new information and this is where the Trap starts if you don't understand trading and you fall down this trap it's going to be very hard for you to recover without switching your mindset and how that psychology is actually wrong okay the intuition that makes you successful in normal life deployed in trading will actually make you the worst Trader in the world which is why roughly 90 of Traders fail because they can't rewire their mindset so let's get into the math behind trading it's really really simple once you understand it okay so when we're talking about trading it comes down to two basic statistics average risk reward an average winning percentage so how many times are you winning trades versus losing trades and how much money are you making on the trades you do win versus how much you're risking on the trade that's going to be your risk reward calculation so let's pull up a calculator so that we can see this actual Concept in action and then I'm going to show it to you on a chart so that we can understand how this works so say we have a 500 account and we're risking one percent of our account per trade and we have a one to two point five risk reward meaning if we're risking a hundred dollars in the trade we're making 250 when we're winning the trade and let's say our winning percentage let's say it's 35 35 is pretty low but as you understand these stats you're going to realize that it actually doesn't matter too much okay so starting with the 500 account over a hundred trades right with these statistics being wrong 65 of the time we've increased our account by 37 this is why you need to understand these stats it has nothing to do with being right all the time it all comes down to the math behind this so let's understand risk factors let's say that we wanted to take a position in the market right at this level if we are wrong and the market continues to push down into this level here this is going to be our one unit of risk meaning if this trade comes up and hits this level we're going to be making three risk factors which is going to give us a 300 profit if we're risking a hundred dollars that's what we mean by risk reward so if we know that this can happen 35 percent of the time we can be wrong 65 percent of the time and still grow our account by 37 as humans we're wired from children to be taught that being wrong and losing money are two behaviors that need to be corrected what we teach to our premium students is the fact that when you're taking trades the risk that you're putting on the table as long as it's uniform and contained is simply opportunity cost to get into the market to be able to exploit this exact Edge okay so as you become a better Trader say your 50 win rate so you're right about your trades half the time look at the profit potential that you can make even on a small account and something that I always emphasize with my premium team is the fact that it's really about generating a consistent process with a small amount of money if we can make 156 percent with a 500 account I'm going to show you this a little bit later in the video but with leverage we're going to be able to use fifty thousand dollars pretty easily starting with you know 500 account right so if we're confident in our process and we run this calculation over a hundred trades you can profit sixty five thousand dollars so say we're taking a hundred trades over that period say we can take two trades a day that's going to be 50 days so if we divide that over 50 days if we're following the stats we're averaging thirteen hundred dollars per trade and this is the exact concept that I deploy when I'm able to make two three four thousand dollars on each trade that I'm taking it's about mastering a small process and then figuring out how to scale that so that you're following the same system with larger numbers okay so let's go over finding a setup where we think the market is going to make a move let's talk about positioning ourselves so that we have UNIF form risk when we're doing that so that we can keep our risk rewards static and then I'm going to show you a free resource for you to be able to review your own trades and improve your process okay the software that I'm using is called trading view I can put this in the description of the video if you're not already using it but basically it's very clean cut and with my main style of trading I'm really not using any indicators all right so there's areas on the chart where I can identify where we're probably going to get reversals in the market which are going to allow me to be able to use that risk reward in winning percentage map put myself in a high probability situation to get the reward that I want okay so what I'm doing here is using Fibonacci analysis to be able to figure out where the tops of markets is going to be we can see 161 8 is the exact top there this is a process called a35a I have plenty of videos on this that you can watch afterwards I'm not going to go into the detail I'm just going to kind of walk through what I'm doing to show you that it does work okay so then I'm basically taking a Fibonacci retracement off of this level here into this level and then we're going to be taking a short position off of here so I can basically set up my position so that now I'll be figuring out how much profit I can be able to make and where I need to position myself to be able to take the proper size position so in this situation we're going to be making a 3.56 risk reward ratio which means that if we risk 100 on this we're making 356 dollars on the trade so the next thing that we're going to do is figure out how to position size into this how much money it's going to take how many units we need to look at so this is where we're going to use a trade position calculator I'm going to put this in the description for you guys and I'll show you how to use it right here if our entry level is going to be at 1920 our Target is going to be at 18.74. stop loss is going to be at 19.33. hit enter that's going to automatically configure the amount of units that we need to use on this trade so we can see if we're able to enter with 1.92 ethereum we can risk 25 on the trade to make 88 dollars in potential profit using 3692 dollars now you might be saying 30 692 dollars is a lot of money to be using in a position I don't have that type of money that's exactly why crypto trading is beautiful because we have leveraged exchanges which allows us to keep the same dollar amount risk but use way more money with the position so that we don't need to use that much of our own Capital to take these trades and be able to accelerate our trading process so I'm going to show you exactly how that works okay so we use femx by the way we're using five bit before but they changed some of their restriction stuff femx's user experience is very similar to buy bit and it has all the leverage capability coin selection that we need to take these types of Trades okay so I'm going to show you exactly how this works now all we have to do is go over and pull up our trade calculator here and input all of our orders okay so we can put our limit price at 1920 here we're gonna go with 1.92 okay and that's going to show us that 3 688 dollars required for the position next thing that we're going to do is put our take profit level here which is our Target price like that we're gonna place our stop loss here 1933 okay so now we have our entire order input and you can see this is still costing us 3688 for the entire position size but if we look we can change the amount of Leverage that we can use on the trade so if I increase this to 50x leverage we're essentially dividing the capital requirement on the position by 50. we can see now this position went from costing us thirty six hundred dollars to costing us seventy eight dollars we're still only risking 25 on this trade okay so something that's really important is using this calculator right here and calculating something called liquidation price so I'm going to go to sell I'm going to put in the size of eth that we were using entry price okay and I'm going to click calculate this is going to show me the liquidation price on the chart for the amount of Leverage that I'm using which is 19.48 so I can go back over into my chart find 1948 okay so this is going to be my liquidation level you can see my stop loss where we're going to close the trade if we're wrong is going to get triggered before our liquid station level which means our position is safe if we were to increase this to a hundred X leverage and we were to do that same exact calculation with 100x leverage it's going to give us 1929. so if we look at our our liquidation level 1929 is inside the stop loss threshold which means that this is too much leverage to use so we could probably use 75 okay so if I wanted to increase this to 75 this is only going to cost me 57 to take this position in my potential profit is still 88 and my risk is still 25 okay so that's how you're going to position size all right and that's how you can let your Edge shine through the next step that's really really important for doing this is testing your system and inputting the criteria onto a back testing sheet this is where you study your own information and you look at what's working what's not and how you're performing as a Trader so I set this sheet up this is going to show you the date the ticker whether it's short or long and the profit you make on the trade so if I were to make a hundred dollars in profit this is going to switch to green and it's going to register stir it as a winner if it's negative it's going to be registered as a loser and you can see this is going to give you your total account stats over here if we flip to Tab 2 this is going to show you all of your longing statistics including your average win average loss average trade p l the totals that you're taking in each the information that input is registering as shorts and showing us all of our data on that I'll put this in the description so if you want to use this yourselves you can go for it it's important to note that as you add more trades just make sure you're copying this cell if it's a short and then putting it into here so that it works on the other sheet over here and then basically just screenshot your charts and you'll be able to test your own information okay something that's really helpful is once you have a pattern that you're trying to trade once you have your system that you're testing okay you can go back in time and you can use this feature on trading view called bar replay and you can click at a random area where now you don't remember what happened over here and you can play this forward and you can try trading your system without having to wait for it to happen in real time so you can see whether what you're doing is work we would go take a screenshot of this copy this over and then click over here and paste this into our back tester so you can see what your results would be over say taking 30 to 40 theoretical trades that way you're not wasting your own time you're not wasting your own money okay and you're going to be able to know exactly where you stand very quickly the beauty of using back testing is after you have all of your winners and losers you can aggregate all of the winning charts and all of the losing charts separately onto different pages take a look at all your wins take a look at all your losses and see all the similarities amongst the winners and all the similarities amongst losers you can tweak the way you're approaching these trades not do certain things to increase your winning percentage so if you're able to get from 50 to a 65 win rate you can make a significant amount of money so in this instance it's about a 97 000 gain in a hundred trades so doing this entire process is going to save you time money and allow you to get where you need to go without getting confused and falling into traps alright this is exactly what our private trading team members are doing they've learned all these systems and they're being able to deploy all these tactics we can see Jared the course teaches you how to hit profits like this 3.14 in a few hours 100 recommend okay so he's already understanding the risk reward factors and depending on how much money he was risking on this trade he was able to make 3x when he was risking and like I was mentioning earlier in the video the mindset is really really important and we can see one of our private members really changing the world I really feel like this is to change the internet and people's mindsets and how they see trading and then we had another person comment which was really cool to be fair I got the course and since then there's not been a day where I'm losing money on a 24 hour basis but anyways guys I just wanted to make this video to put together a clean cut process to cut out all the BS on the internet prevent you from falling into those traps and wasting your own time and money and give you some resources to get started the right way if you enjoyed this video and you found value make sure you hit the like button subscribe to the channel if you're new and you like trading and investing don't forget to check out our Tick Tock okay we just launched our Tick Tock we're trying to grow in there so check it out if you want to help us so and that's basically all I have for today guys shout out I'm fancy Joe for these neon and never trade signs absolutely love it until next time guys I will see you all in the next video [Music] down