Transcript for:
Effective Day Trading Strategies for 2025

this is going to be your blueprint and a quick Road rrap for you to get started to day trade profitably in 2025 so over the last 8 years I've definitely gone through a huge trial and error process and I want to really quick compile all of the data that I've gathered up in my brain and working with hundreds of students over the last few years and give that to you guys in just five quick steps on how you can immediately prove your day trading and how you could start becoming a profitable Trader this year if you start implementing each and every one of these wait till the end because the end is going to be the most important one so the number one and first thing that I want you guys to focus on is building a trading system and a trading Foundation that solely relies on price action and supply and demand in my beginning years I struggled a lot finding consistency in my trading because I was relying on so many different indicators and you'll see so many people online using all these different indicators indicators when they get in the markets when they get out of the markets even how long you should be holding a trade for me what complicated my trading was focusing on all these different entry signals that these indicators are giving you and I can never really find an accurate entry or I would actually be hesting on taking a trade because one signal may be telling me to go long while the other signal may be telling me to go short so first if you're using any buy or sell signals completely get rid of them the only indicators that I like to use are very simple it is going to be the vwap and the moving average I use a 9 and 21 EMA close settings by the way for me to continue to hold my positions it's as simple as if price action breaks above my 921 EMA if I'm in a position that is a great sign for me to Exit my position and if price action does break above these EMAs then we could expect this Ste pull back into vwap and then if price breaks the vwap most likely we are completely switching the overall trend that's just a quick guideline on how I actually like to use those indicators but those are the only indicators I use now my main trading strategy and the foundation of my trading strategy is solely based off of price action and supply and demand you need to be able to identify the current market structure overall and take trades based off of Market structure and how the specific price action or whatever instrument you're actually looking at is reacting to certain key levels if you see price actions consolidating around a certain key level that may be an indication that we could see a possible reversal at that specific area if we're seeing a lot of buying pressure fail to push price through that specific key level so I want you guys to just focus on price action supply and demand and like I said previously the only indicators I use are my moving averages but that's just to let me know when to actually exit a position if I'm looking for some form of longer term swing trade where I'm expecting to hold the position for probably 2 or 3 days or so but for my intraday price action trading that is all I focus on now when I actually talk about trading based off of price action I'm not necessarily talking about these price action patterns that you see all over the Internet such as double tops Head and Shoulders inverted Head and Shoulders double bottoms I'm not talking about any of that what I'm specifically talking about is just reading the candlesticks and what the cand Chan six are actually doing at our key levels while also identifying the market structure so if you see that price action knows overall in a bullish Trend with Market structure is continuously making higher highs and higher lows when you see price actions maybe pulled back into a previous higher high point and you see price action starting to consolidate at that range you see a lot of rejection towards the upside that could be a good possible sign for you to look to continue to take Longs the one thing I want you guys to understand when trading price action it is very discretionary so you guys need to build a Playbook based off of specific price action setups that you see in the markets and once you build that Playbook you need to go test it and verify that it does have a positive expectancy over a long period of time now trading price action overall is a skill that can be developed over a period of time and it's a skill that you can become really good at especially when it comes to reading price action because if you can become really good at reading price action you can essentially trade any single instrument that you want whether it's cryptos Futures Forex Commodities stocks it doesn't matter price action is price action at the end of the day but what I also want you guys moving into the second most important thing that I feel like you could definitely Implement into your trading to help you become profitable is order flow so one big reason why I implemented order flow into my trading was to be able to read the interactions between the buyers and sellers once I have a deeper understanding of what's really going on behind the scenes not just understanding the price action I can really formulate a really great hypothesis on the overall Market Direction at least in the short term which that's really all that matters to me I'm not looking to hold the trade for days or weeks on and I'm simply looking to satisfy our multiple now for me I like to shoot for anywhere between like a 2 and a half to a three or multiple on a bare minimum on a daily basis and I don't care if I'm risking 10 points to gain 30 points I don't care if I'm risking 100 points to gain uh 300 points for me it's all about our multiple on a daily basis so giving me the understanding of the interactions between the buyers and sellers has really been able to give me that extra Edge inside the markets because I have a deeper understanding of what's actually going on and funny enough once you actually start getting into orderflow a lot of my students have also said that they feel like they're trading completely naked when they're not using any of these orderflow tools so now when it actually comes to the orderflow softwares and tools and charts that I actually look at the very first one is going to be the footprint charts so when it actually comes to the footprint charts what I mainly look at is the volume and the Delta I used to actually look at the bid in the ask but nowadays I'm mainly looking at the delta and the volume the footprint chart setups that I'm mainly looking for is absorption I'm also looking for different setups when price action pushes into an area of resistance I'm no longer thinking okay well are we going to see a bounce off of this resistance range and potentially a reversal my mindset behind as price action is pushing into a key level is okay well let's see are the sellers present here are there buyers present here if there is buyers trying to push through this area of resistance are we seeing any follow through those buyers are those buyers being rewarded vice versa when it comes to the sellers so when price action gets to specific specific key level that is my key level of interest for me to actually look for a setup now if we're overall in a bearish trend and I see price actions pulled back up into a previous low what I'm going to be looking at the footprint charts for overall is going to be a negative Delta pickup volume in aggressive selling and the majority of the volume being traded is from aggressive selling and I want to see those sellers get rewarded before I actually execute myself into a position because it gives me that much of a higher probability for Price action actually move and play out in my favor over a short period of time at least now the second tool that I like to use when it comes to order flow is going to be the heat map so when it comes to the heat map you know you'll see a lot of people online talking about liquidity and they're saying you know liquidity is above this specific high or liquidity is under this specific low but you can't verify that without looking at either like a Dom or you're looking at a heat map when actually looking at the heat map you'll be actually able to see a visual representation of where the real resting liquidity is sitting inside of the markets typically what you'll see are red and green bubbles those are going to be the aggressive participants inside of the market so anybody executing at a market order and then you're going to see the resting liquidity which is just going to be basically orange and red zones so for me I have my heat map contrast turned up all the way because I want to focus on the areas that there's just a ton of liquidity sitting if you see wrestling liquidity is sitting above current price action on the order book then typically those are going to be sell positions if you see price if you see wrestling liquidity sitting under price action on the order book and typically those are going to be buying positions buy limits so those are going to be your passive participants inside of the markets which for me if I see price action is pushing up into let's call it I'm trading es and I see es is pushing up into 6,000 which is going to be an are of resistance but we have resting liquidity sitting at 6,010 then I actually want to see price action break above my resistance range fill those orders sitting at 6,010 and then if we see aggressive sing come in and no follow through with any buyers for me that is a perfect execution for my bounce play so I'll actually build and base my main Playbook setups off of price action but for me to actually execute on those Playbook setups I need to verify that I actually have't edged based off what's going on in the order book and based off of what's going on in my order full tools while it's either the heat map or the footprint charts so now this goes on to my third point which you need to have a concrete and solid trading plan moving into this year if you don't have one already after working with literally thousands of Traders over the last eight years of my trading career the majority of traders that I see that are consistently losing money in the markets is comes down to a simple Factor they do not have a trading plan if you don't have a trading plan you're not going to have a consistent approach to the markets and if you don't have a consistent approach to the markets how are you going to expect to have a consistent p&l so different things that you should incorporate into your trading plan are number one your pre-market analysis times number two your postmarket review times number three your end of week review times and number four for your end of quarter review and you need to have a structure on how you can actually review those things now also when it comes down to your trading plan you want to build out a watch list so for those of you guys that always ask me yo Ro you know what do you think I should trade what instrument should I get into I want to see es because you're trading es I want to trade NQ because you're trading NQ for me it doesn't necessarily matter what you should be trading what you should look at is overall how much volatility there is in a specific Market every single day so over the last 10 years what I've done research on is the average percentage move of a specific instrument on a daily basis so the markets that move the less from a percentage standpoint on a daily basis are going to be Forex Commodities and Futures so typically es and Q gold and silver and then any currency pairs they move anywhere between half a% to 1% on a daily basis so this tells you is you shouldn't really expect 2 3 4 5% moves on these types of instruments just because the average daily basis of that percentage move is only between half a per to 1% for that instrument to move over the last 10 years so something that's actually going to move these specific instruments on a 2 3% basis on that specific day there going to be some form of economic data whether it's interest rates CPI uh fomc or even NFP those are going to be the days where these specific instruments do do move at a 2 3% rate so if you're somebody who's day trading or maybe even swing trading you should already have in the back of your mind that on average these specific instruments only move between half a per to 1% on a daily basis so if you're expecting like a 3% move just know that it could potentially take a few days to play out and not just play out on that one specific day which is something that was huge for me because as you guys know if you guys go back into my YouTube channel I was having back to back 100K days and the thing that was most dominant on those days and what stood out to me the most was the Catalyst behind as to why the market was moving so much the Federal Reserve continuously kept raising interest rates because the inflation was super high which is what caused the markets to move 3 4% in a specific day allowing me to make that type of money in those types of markets at that time now the issue that I had and where the big losing streak came in for me was that I had a failure to actually adapt to New Market conditions when the market started chopping around and an average day in the market look like a half a perent or 1% move on ES I was expecting again another 3 4% move so I'd be giving back a lot of profits of of Trades that I would potentially be in i' be holding trades for way too long and holding in draw Downs for way too long when I should have been out of that specific trade earlier because the move for the day was already done and there was no possible potential for Price action to recover on that day because it had already moved half a percent or 1% in price action just kept consolidating for the rest of the day now I want you guys to also think about this from a long-term perspective if you you guys are trading these super efficient markets such as Forex Commodities uh Futures as well that only move half a percent to 1% a day it's going to be a lot easier for you to make money on individual assets that move maybe 2 to 5% to 6% to even 10% on a daily basis and you're going to find that in individual stocks so what I want you guys to do is open up your watch list at the end of the day we're Traders we're here to make money off of markets not just trade markets that are popular so again you can have like a good variety of just solely of just stocks that you're going to be trading that do move 3 4 5% almost on a daily basis such as Tesla MST even Nvidia and then you can also have you know your futures portfolio you can have your Commodities portfolio but what you want to do again is build a watch list so what I want you guys to do immediately right away to incorporate into your trading plan and build your watch list is go look at different instruments that move a lot on a daily basis because if you have big moves in the markets on a daily basis I mean there are multiple opportunities some of these markets is just going to be absolutely incredible compared to other markets now the thing is you have to keep in mind the majority of the times if you guys feel like you know you're going through a really great winning streak and all of a sudden you're just losing and losing and losing and price action is ranging and ranging and ranging that's just because you're trading markets that range the majority of the times when you're really good at Trend trading so you have to go out and identify what those markets are and typically you're going to find them in individual stocks a lot of the times now am I saying that there's not enough opportunity in just Futures alone to get you there no that's not what I'm saying at all if I could go back 8 years in my trading and change one thing that I could from the very beginning is I would actually broaden up my watch list not just focus on two or three different instruments because when you're focusing on two or three different instruments alone there's a great probability that that instrument is probably going to be ranging the majority of the time especially if it's a currency pair if it's commodity or if it's even like an ETF such as spy or or QQQ so or or again even Futures es or NQ so I would definitely open up that watch list incorporate cryptos to day trade incorporate stocks to day trade as well and I want to give you guys this here because this literally took me a few years just to find out alone so to finally touch up on the watch list my own personal watchlist now has a combination of five different individual stocks that are consistently moving over the last few days anything over 3% it has my two main features that I trade which is going to be esnn Q while also trading SPX as well then I also trade spy QQ as well and then I also have Commodities which I do trade gold and crude oil as well so I've definitely opened up my watch list moving into 2025 and in December I didn't trade as much and even like in the beginning of 2025 I didn't trade as much because I was going through my quarterly and yearly review and one thing that I found was my trading system specifically lost its Edge in specific times throughout the year because the markets were just ranging so I instead of just trying to trade ranging markets I want to trade markets that are trending the majority of the time which is why I'm letting you guys know this now because definitely if I can save myself a few years by helping you guys save yourself a few years and that's something that I want you guys to do because I want you guys to exceed in trading and I want you guys to succeed and this is definitely a shortcut by trading multiple different assets that are actually trending instead of focusing on one or two assets that may be trending and then ranging and try to trade inside of that R range and get chopped around so now after you built your watch list inside of your trading plan different things that you want to incorporate as well again are going to be your pre-market analysis times your postmarket analysis times your active trading time of course your watch list but then also you want to incorporate in your trading plan is how many trades you're going to take in a specific day so this is the rules we set in place to stop us from making mistakes I know a lot of you guys are really great Traders but the mistakes that you make are overtrading and over risking so we set these rules in place to stop us from those downfalls to stop us from overtrading to stop us from over risking so we need to set a limit of Trades that we're going to take in a day depending on you know if you're a scalper a swing Trader or a day trader that's going to vary Trader to Trader for me normally once I start to surpass three or four trades in a day I know the probability for me to make money significantly starts to decrease because if I start off my day and I already take two trades in a row for me to execute my third trade with the same accuracy and precision without thinking emotionally is going to be very difficult so this is why I want you guys to set a max number of Trades you could take in a specific date also I want you guys to have your max t tolerance for the day two just like in the evaluation firms they give you a max daily loss on the day which by the way if you want to start off your fresh new year make sure you check out this promo code here for leveled up Traders where you guys can get daily payouts and get to the point where you're actually going to be trading real funds inside of the markets not just a demo account that's your funded account you want to set a Max tolerance for yourself on a specific day where if you do hit that Max tolerance you're automatically done for the trading date for everybody and everybody's portfolios are going to look very different from for me I like to set a Max tolerance of 10% on the day if I lose 10% of my trading account on that specific day I'm done trading for that day no matter if it was one trade or two trades if I lose 10% of my own personal capital on that day then I'm done trading for the day so you guys need to set a Max tolerance as well and then you guys also need to set a stop limit in terms of draw down so if you guys are losing 9 10 12 trades in a row you need to completely stop trading and you need to immediately review what's going on in your trading for me if I lose more than eight trades in a row and that's when I know that hey you know what I'm messing up somewhere am I making emotional mistakes am I not following my trading plan am I breaking my rules or am I falling a trading plan or am I just trading a ranging markets you know have the market conditions changed do I need to adapt to New Market conditions so for me I like to set it after eight losses in a row then I know I need to completely stop trading because I'm doing something wrong and I need to review and I need to improve on what's going on and those are just different things you can Implement into your trading plan so the fourth thing that I want to get into with you guys is something that is very overlook looked at and it's something that I feel like is very neglected inside of the markets but if you guys don't have this then you can never expect to have a consistent PML and that's going to be having a consistent approach to the markets now when I talk about a consistent approach to the markets this also kind of goes back to our trading plan where we talk about you know what trading sessions we're going to be trading what times we're going to be actively trading when we're going to stop trading you know different things along those lines but we need to consistently follow that plan and your approach to the markets has to be consistent you need to follow that approach every single day just like if you going to be going to the gym if you maybe one day you know break your diet or maybe one day you decide to slack off in the gym and you're not putting in the right type of work then you're never going to see consistent results and you're never ultimately going to grow or maybe you can see some form of results but they're not the results that you're expecting out of the market so this is why you need to have a consistent approach to the markets so if one day you know you're building your trading plan you decide to trade New York and your premarket analysis time is going to be 8:30 in the morning and your active trading time is going to be 9:30 a.m. then you have no business trading the Asian session you have no business trading after hours you have no business trading the London session if you set out that my trading session is going to be the New York session I'm going to actively trade from 9:30 a.m. all the way to 12:00 p.m. then you cannot trade outside of that window and that's just part of following a consistent approach to the markets and having that every single day if you set it for yourself my post market review is going to be every single day at 2 p.m. and you don't do that you're not consistently following your plan again if you worked a corporate job and you follow followed outside of the guidelines that that corporate job provided you to do at your bare minimum requirements you're going to be fired and you're going to be out of a job because most likely by following out of those guidelines by following out of those rules and by not being consistent with your corporate job you're going to be costing that money thousands if not tens of thousands of dollars and you're going to be out of a job and it's the same exact thing with trading if you do not have a consistent approach to the markets you're only going to be costing yourself money in a long period of time and again you're not going to be out of a job but since trading is a self-funded business and it is a self-employed business you're not going to be able to notice it until you actually look back on it and it's like hey you know what I've costed myself $220,000 this year $30,000 this year just simply because I decided to Veer out of my trading system and not have that approach to the markets where it's consistent the most consistent results that I found in my trading was when I was very black and white with my Approach I knew what times my pre-market analysis times were I knew what times my active trading times were I knew what I knew how many trades I can only take a Max in a day I knew what my Max tolerance was and when I followed that A through Z white or black this what I found the most consistent results so you guys need to have a consistent approach to the markets you guys need to build a routine around the markets and I want you guys to think about trading as a 9-to-5 job where you have to show up at a specific time and you clock out at a specific time you can't around because again one thing that you may fail to realize or neglect is trading is one of the hardest Industries in the world and an average person is not going to be a Trader an above average person will be a successful Trader so you need to actually follow that plan religiously and incorporate it and make it into a lifestyle trading isn't just some fun and games where you could one day decide you know what I'm just going to go to the beach and trade off of my laptop sure you can manage positions that you're maybe holding overnight or if you're swing trading that's a little bit of a different story you could look at your positions a little bit more mobile and a little bit more remotely but if you're actively day trading and scalping and using all these different tools to your advantage to make the best possible scenarios and to take the most highest probability setups again you have to follow an approach and be religious to that approach you need to live and breathe that approach and I can't stress that enough you guys will be surprised with how many Traders I work with on a one-on-one basis that they're really great Traders but their main downfall is their approach to the markets and their discipline there are so many traders that I work with that I've helped drastically just by helping them identify what period of trade that they hit that meltdown point and they hit that point of no return and it all comes down to overtrading and over leveraging after they hit that three trades in a row and they don't stop is when they give back days weeks or even months worth of profit which is why I'm telling you guys be disciplined and I put this into a specific example so so this is a specific Trader that is in my one-on-one program and after working with him for a few weeks I gave him an analysis and I gave him a report on specifically his overtrading and his overleveraging if he were to have just stopped trading at three trades on a specific day and cut his trading there he would actually be up over 50% for the year on a green p&l on a year-to DAT p&l he'd he'd be up 50% but because he continues to actually trade and give back tons of profit to the market after his third trade in a row where he continues to overtrade he's actually read for the year so in theory yes that Trader could be a profitable Trader just by not overtrading and following those rules which is why I'm stressing this out to you guys because there are so many of you guys who have the potential to become a profitable Trader but you keep giving back your profits to the markets yeah sure it's cool you can make 100 Grand in the markets this month but if you give back 120 next month then there's no point and that was one big issue that I personally faced in my beginning years when I was becoming a profitable Trader was that over trading f is I would make so much money in my trading account month to month quarter to quarter but I would give so much of it back on one day because I literally hit that tilting point and the last point that I want to touch up on and give you guys that will 100% transform your trading this isn't some super sexy like indicator this isn't some super sexy entry method stop-loss method uh takeprofit method it's nothing that is sexy but this is the work that is required for you to become a profitable Trader if you're not doing this I guarantee you're not going to be profitable and that is simply journaling and having a check-in report card so what I mean by this is when you're doing your end of week review when you're doing your end of quarter review and when you're doing your end of year review if you're not journaling any of your trades then you're not going to be progressing because you're not going to be able to jot down your thoughts actively and jot down your current mistakes so if you're not writing down a list of your mistakes then there's no way for you to potentially improve so what I mean by a trading journal and a checking report card is for me personally I'll give you guys my example I actively trade between 9:30 a.m. and 12:00 p.m. Eastern Standard Time every single day Monday through Friday and what I do is every single 30 minutes I check in with myself and I check in with my report card and I write down how my day is going how my trading day is going what I'm thinking about the markets what I'm thinking about price action what I'm thinking about some of the trades that I may have taken already what I'm thinking about some of the trades that I may in or maybe what price action is currently doing and what I'm also thinking about maybe a specific trade that I'm actually looking to take I also write down my emotions as well so from 9:30 to 10:00 10:00 is when I actually start my first check-in on the day I give my opinions on the market open and what the Market's been doing so far and I also write down if I've taken any trades how I feel about those trades and where I can improve based off those trades and I do that every single 30 minutes of the day so again different things for you guys to start implementing this is write down every 30 minutes for those of you guys who are actively day trading every 30 minutes you want to jot down what you think about the price action so far and what price action has been doing what you think about your game plan on the day what you think about how you feel about the price action you know are you feeling greedy are you feeling F on some of the trades do you feel very hesitant to take your trades you also want to write down what you feel and overall give your thoughts and opinions on price action and different things you're doing well on the day so far and different things that you feel like you need to improve on the day so far and you do that every 30 minutes in the markets and of course Implement screenshots of the examples that you're talking about in these check-ins and then last but not least at the end of these check-ins you want to have an end of day report so no matter whether you ended red or whether you ended green you want to talk about if it was a good trading day you want to talk about if it was a bad trading day and why you can keep these short as well you want to list off maybe different things you did really well on and maybe different things that you did pour on and that you need to improve so in that way when you're doing your end of week review so you want to talk about different things that maybe you did really well on whether you did whether you held your trade really well you stuck to your take profit you stuck to your stop loss you waited for Your Right entries you had no greed or emotions throughout any of the trade or you controlled them very well and then you also want to write down different things you did pour on whether you over traded whether you overr R whether you didn't wait for an entry signal you didn't stick to your stops paper cutting your trades whether you ended up closing a trade too early these are different habits that you're going to pick up and that you're immediately going to be able to make improvements on based off of this data that you're Gathering and the thing about this is guys just because you implement this starting tomorrow after watching this video doesn't mean you're going to see results right away but you're going to see results after time progresses and as time progresses you're going to start to see your p&l turn more green now just because you do this method of journaling doesn't necessarily mean that it is going to work for you because you actually have to take action on stop making the mistakes that you're picking up in your journal and in your check-ins as well in your check-ins it's so important to do an end of week review just simply because you're going to be able to see what is actually holding your trading back and what is causing these big red trades now when it comes to making money in the markets a lot of you guys already do make money in the markets by having green trades the goal is to limit the amount of red trades as much as as you possibly can and limi the amount of mistakes as much as you possibly can which will immediately start making you more money and those are the main things that I wanted to discuss with you guys today because these are the main things that is going to help somebody become a profitable Trader now again when it comes to price action trading strategy all of those different things could be worked on over time and all those things all of those different things are not just skills that could be worked on but those are things that can be easily improved over time just by simply back testing but your psychology and your approach to the markets have has to be intact which is why I wanted to discuss that today and I wanted to really emphasize that today with you guys so I really hope you guys enjoyed this video and I really hope you guys take this into consideration and start making changes in trading now I don't want to see you guys making the same mistakes that you did in 2024 it's a new year I'm wishing a new and prosperous year for all of you guys and I want to see you guys succeed and these are five crucial steps for you guys to do so guys don't forget to check me out on social media I have a link down in the description on Instagram at lambor Raul and of course don't forget to check out my educational platform day trading institution which will also be link down in the description and the day training institutions YouTube channel and I'm wishing you guys a prosperous 2025 let me know down in the comments what type of other topics you guys would like to see me talk about and what type of other content you would like to see me produce for this YouTube channel I'm here to provide as much value to you guys as possible nice all right go pick up this G wagon