over the past 8 years of full-time trading I've tried a ton of different strategies and it took me three full years to boil down a process to actually become consistently profitable looking forward to now in a single trading session I can set myself up for $3 to $5,000 profits multiple times per day allowing me to have 20 to $30,000 profit months like I just documented in the last month this isn't done by having an overly complicated strategy or trying to trade a million different things this is done by having one simple strategy following a model and focusing on the right things so in this video I'm going to take everything that I've learned over the past eight years of my trading that allows me to execute on the simple strategy that you'll be able to learn and use to start making money then I'm going to show you real examples of trades using these strategies that I'm going to show you in this video so that you'll have a profitable strategy that you can understand practice that you can start using to make consistent profits so this is going to be a course on the exact steps that we need to take to actually be able to set yourself up to have a repeatable process you can follow each day to have these money-making opportunities and it's not as complicated as you think all right all right and the first important thing to do is understand the basics of trading and have a solid foundation before we're diving into all of these things it is a complicated world there's a lot of nuances in the trading space so we're going to be covering the basics first and then we're going to get into more advanced topics in this strategy that we've been able to develop over the past couple years okay so first thing that you want to focus on is trying to find high probability conditions in the market this is going to start making more sense in a second but what it's important to focus on is we're not trying to force trades we're not trying to enter at any point in the market we need to find high probability conditions that are going to set us up in a position to be able to have really good opportunities okay the second most important thing to focus on when it comes to the basics of trading is having a process to be able to contain your risk and allow the winners to run so one of the biggest things that will hold you back is not being disciplined enough to be able to cut your losses small and also having the discipline to be able to let your winners that are moving in your direction making you money continue to run in that direction often times you'll hear people say "If there's profit on the table take it." And another common thing is just holding positions so that you don't have to actually take a loss these are things that are hardwired into our brain as humans that we need to learn to flip in trading so really focusing on containing risk is one of the biggest things that's going to make or break your trading career the third thing that's extremely important to focus on is to have a solid system and not force trying to find trade opportunities if you set daily goals for yourself as many traders do you'll try to force finding these opportunities and fall into a trap that's called confirmation bias where you're going to try to convince yourself that there's opportunities that aren't there if you're hungry to make money so we have to focus on this exact strategy systematically and let the trades come to us okay and then the fourth thing is finding actual pairs with good liquidity and good volume that's going to give us an opportunity to be able to smoothly get in and out of the market so let's dive a little bit deeper into these critical concepts of day trading so that we approach this properly right so what is a high probability condition okay often times the conditions in the market are not necessarily optimal to try to take a position when price is sort of chopping around aimlessly and isn't either an extreme high or an extreme low if we're forcing trades and we're not being patient this can be an area where there's a lot of confusion and a lot of forced trades and not in areas where we're likely to have big moves either up or down which is going to present opportunity for us all right and this ties directly into being able to contain our risk and allow winners to run when we're taking trades in the market we actually want to play into volatility which means big moves up or down in the market which is going to allow us individual trade opportunities there's not really going to be many opportunities in this sideways chop area to have expansive upside and contained downside because it's mostly just consolidation in chop if we look at this for an example if we're able to identify key points such as these we can position ourselves so that we're risking a contained amount in an area where we're likely to get a reversal in a large move up to allow a big reward but a small contained risk and this plays largely into actually having a proper strategy to put us in positions and to be able to identify these key areas where we could expect big moves to come out of it and one of the most important ways to not enter the market during these bad periods and only selecting these high probability times is to have a system that we trust and once again not trying to force these individual trades okay oftent times I would get into sessions and I see this a lot of times with other traders too and I would start thinking about okay I got to try to find an opportunity or what if this happens or I think this is going to happen so I'm going to change my behavior this is a very important thing to remember with trading this is something that I quoted from a institutional level trader all of the thinking was done in the back testing okay so when the system was being developed that's when you were thinking now we need to go and focus on following the rules rather than trying to be creative in the session the more times you're coming up with ideas on the fly the more changes you'll have in your strategy and the more we can't predict the end result because we're modifying all of the things that we tested that we know to be true and profitable so we're not going to be thinking during sessions we're just going to be focusing on executing and following the rules that we already have and know work and with all of these elements considered we have to focus on pairs that are going to allow us to get in and out of the market and it's going to give us something called good price action now price action is any movement that we're seeing on a chart so when we see charts like this where we have weird candles spiky unpredictable price action this is not going to be something that we want to get involved trading because we're not going to be able to get into the market we're not going to be able to easily anticipate where the price is likely to move or not it's going to be almost impossible to trade these especially as we start increasing with more size conversely if we look at good price action right notice how all of these candles are very very even there's no crazy wicks everything is predictable and moving nice and smooth this is going to allow us to do good analysis be able to actually get in and out of the market and have predictable reliable price action that we can start building these models out on and getting key areas to react the way that we want so having good liquidity and good price action is going to be a critical part and I'm going to show you some of the pairs that I use but also just how to generally look for this on the chart okay and considering all of this information to make sure that we're starting off on the right foot i want to show you the golden foundation model that I use in my trading that's going to set me up in these really really good high probability areas where we're cutting out 80 to 90% of the bad ideas just by following this one thing so the first thing that I'm looking at in general that you can start applying is using an indicator which I'm going to show you a few options where we can see whether the market is considered overvalued or generally undervalued this isn't something that we're going to make full trading decisions on a lot of people when they get into trading they're just like "Oh if I sold here and bought here I'll be able to make infinite amounts of money." That's not how it works you can see we were considered undervalued here and price continued moving down we can't use this by itself but we can use it in conjunction with other things to be able to start off in a good foundation it's starting off in areas where there's indications of being overvalued or undervalued okay can be the first step of generally getting the right idea of where to go with our trade idea okay the second thing in this golden foundational model is something called an oversight or underside retest and this is probably one of the most important anomalies in trading that I've been able to figure out and that I follow and apply to basically every strategy that I use okay these ones and other trading models how this works is as we're seeing a chart making its move there's going to be these key areas where price continues to bounce off of that's what's considered a low part of a trend okay and what often times will happen is you'll get contact here contact here contact here then eventually price is strong enough to be able to break out of that what's called resistance breaks up above it and basically what this is saying to the market is there was not enough demand to break out of this level now there's enough demand to be able to push through that area and often times what will happen is price will eventually come down retest the opposite side and that will be the last exact point before an absolute explosion in the market an explosion in price that used in conjunction with the trading model is going to put you in amazing opportunities to have some massive upside okay and I'm obviously going to show you some examples of me being able to execute this on real time but being able to leverage these overside underside retests and starting off in over or undervalued areas in the market is going to once again cut out 80 or 90% of the general noise of trying to just jump into the market in trading whatever these examples can be found basically everywhere all over charts so let's look at some examples in real life now so that you can understand this concept so once again we're seeing price reacting off of this level reacting notice how we're getting closer and closer reaction points and we finally get a big push down which is now breaking that key level which is creating this really really amazing area right up here price comes up tests that key level look at how sharply it responded before making a further move to the downside okay let's look at another situation okay so we have contact price pushes up above that level responds on the over side of it it responds off of that level again and that's where price starts to get momentum and make a massive move to the upside so let's look at another situation we have a low we have a low price bounces off of that again once again coming in closer and closer contact with it finally has a break underneath it notice this really important area price comes up now on the opposite side of that area and then continues to make its way down okay and so something that's really important to note is when price tends to break down or break out from trends like these these big moves tend to leave behind something called a fair value gap okay and so what a fair value gap is is take one two three candles the first candle's wick and the third candle's wick don't have an overlap which leaves this key area which oftentimes price will come back into have a response off of this area and then have a continuation or a response behind it we're going to see these all over our chart and these are key areas that we want to focus on in our trading okay so considering this golden foundational model even this area right here is generally an optimal area for us to expect a reversal and we can start adding extra evidence of that so like I was showing you overvalued or undervalued periods this is an RSI which you can just type in RSI on Trading View and notice as price was coming back up to test that opposite side we were also in an overvalued area and then lo and behold price comes back down and continues trading down before making a low point over here and then having a move up higher okay so once again we can't use tools like these completely independently but really focusing on these key areas and these key scenarios is going to cut out 80 to 90% of the noise and keep us focused but in order to get that last 10 to 20% we need to have our specific trading models okay so this is where it gets a little bit more complicated into the next level i'm going to go over some profitable day trading models that I've been able to set up considering these elements but using more advanced market mechanics and we're going to take a look and I'm going to explain thoroughly how each one of these works okay so the first is going to be something called a continuation model which is basically finding a trend that's already moving up and trying to enter in that trend and play a continuation and then there's model two which is going to be a reversal model which is going to be geared towards finding a trend that's moving up timing a key area where we're anticipating a reversal and trading it either down or up and playing into these big swings in either direction all right so let's get into the first model which is going to be our continuation model so once again we're playing into a trend that's already moving so first thing that I'm going to do is wait for the New York session to open this is that gray line here this is where trading activity starts to increase on the New York session which is going to open up volatility and opportunity first thing that I'm going to do is identify an area where we have a trend in the opposite direction of what we're trying to trade in this case we're trying to trade up so we want to find kind of a downward trend or an area where price is bouncing off of it next thing I'm going to do is wait for a significant fair value gap producing candle to break out of that trend level create a local high and then have a sell-off the next thing that I'm looking at is I want to see price react off of the oversight here as well as the fair value gap that's produced you can see high here low here it's small but it's right at that same level and I want to see a key candle respond off of that area and have a push upwards as we can see right here so entry would be at that first candle to have a response off of the trend and the fair value gap and then what we're trying to do is trade in the direction of the trend and walk our stop loss up so we can sort of ride in the direction of this trend okay so once again we have trend direction generally moving up we have highs highs responding off of this key level okay we get a candle that pushes over this key level producing a fair value gap we have price push come down retest that trend level and that fair value gap and have a responsive candle off of that level okay this is where I would start building a position okay so I can click on my entry i can click my take profit click on my stop loss say I wanted to risk $100 also if you want this onchart indicator that shows you all of your quantities you can go in the description follow me on Instagram DM me the word tools i'll send over a whole suite as well as this onchart indicator which I love and I use every day when I'm trading okay so now we have our quantity that we know we want to enter in on so I can enter in with that specific amount then the market starts to move in our direction so I'm basically going to trail these fair value gaps so stop would be here now okay fair value gaps here so stop loss is going on this candle below the fair value gap fair value gap's now up here fair value gap's now up here so now we've effectively locked in 10 times the amount we're risking we're up $1,200 fair value gaps now here we move our stop loss up to here okay and that's where we would end up getting stopped out okay so you can see even risking $100 because of finding a specific model like this of course we're not going to get crazy moves up like this every single time but we only need a few of these to be right to be able to make $1,200 risking 100 and we can be wrong say seven or eight different times after that say we're risking $100 and we lose $800 if we get one of these we're still up $400 in total and that's the concept of trading is keeping those risks small allowing the open-endedness of your trade models to really come to fruition and allowing the upside to basically be infinite all right so now let's take a look at the reversal model and this is going to be really similar to the strategy that we were just looking at but sort of in the opposite direction so what we're looking for here is for a trending price action to make its way up we once again have price action pushing underneath a critical level leaving behind a fair value gap that intersects with the underside of this current trend actually fair value gap should be drawn right here but it's okay then we're waiting for price to come up into the intersection point of this fair value gap and the underside retest that we know tends to create these flips in price action off of the trend and we're looking to get in anticipating that the price will end up reversing down moving in our direction allowing us to build out a position and trade in that direction okay so let's look at how this trade would unfold on a real chart so we have the trend level developing you can see it's about 8 a.m right now so the New York Stock Exchange is just about to open we have this trend level is broken from a candle that leaves behind a fair value gap so we have our fair value gap in there price continues to push down then starts to come up to retest so this is where I would start building my position so this time I'm going to be targeting the midpoint of this fair value gap as my entry so I'm going to click there i'm going to put my takeprofit somewhere down here that's going to be set a little bit later then I'm going to be finding the fair value gap producing candle and I'm just going to go a little bit above that candle to set my stop loss so once again risking $100 and once we get to that midpoint we enter our position and notice how price consolidates right at that midpoint and then flips back around okay and this model is going to be a little bit different because the next area that we're paying attention to is this low before our swing high so price continues to move once we get a candle close below this swing low that's where we're going to take our stop loss and we're going to move our stop loss to our entry so now we have a zero risk trade and we're going to set our takerit to 1:4 so we're going to have 1 to4 set right there and once that's achieved we're going to walk our stop loss down to trail the last fair value gap producing candle in this situation we have a swing structure here so I'd probably be moving my stop loss down but you can do any sort of risk reduction trend following process after this so price does make its way up and tag that level which locks in a 1 to3 so a plus $300 win had this have continued to sell off we could have had you know $1,000 plus dollars risking $100 okay so once again finding these critical levels by having a model getting that extra 10 to 20% to be able to put ourselves in positions where we're risking $100 or in my case $500 to try to make three four $5,000 with these setups okay and I know a lot of times on YouTube everything looks great in theory and people can do it in hindsight but what about trading it in reality really doing this i'm going to show you just from my last trading session some of the trades that I took using these concepts and actually a few more proprietary concepts that I take into consideration that we talk about on the private side of our trading team but I'm going to show you what my thought process was taking these trades in real time so you can see we had a broken trend level here heavy resistance fair value gap produced so risking $500 i set up my position notice how the price came into that level now I'm in on a position we get our instantaneous reaction off of that level and then we break below that point so I reduce my risk to break even set my takerit to 1 to4 that 1:4 is tagged i'm up $1,700 risking $500 then we get a continuation of a push i actually set my takerit as a placeholder and never moved it so I accidentally got out for $2,600 obviously I'm not going to complain about that but normally I would be trend following this a lot further down you can see $2,600 risking $500 is about 5.5xing my money that I'm risking okay so let's take a look at another trade example so we have our trend broken here contact point contact point fair value gap producing candle entered at the fair value gap reacted off of our trend level we almost actually got stopped out on this trade price starts to push back into my key area okay we get a break and a close underneath that low so I reduce my risk to break even i'm up 2,000 okay price continuing to push down i set my stop loss over these consolidated highs then I get out for about $1,500 in profit okay you can see even risking $500 on those trades I was able to make over $4,000 in profit now if you watch my live trade videos you'll see I actually miss a lot of the entries and lose quite a bit of the trades but when I'm losing I'm containing that risk down to $500 $600 and letting the wins turn open-ended okay and what I'm showing you is just the tip of the iceberg of what I'm considering when I'm entering into these strategies and these are the exact strategies and concepts that the private side of our trading team focus on to be able to deploy on their own trading you can see one of our private team members Craig told us to hold runners which is what I've been focusing on myself as well you can see he held this he said it would have been $120 R trade i don't know how that's possible but still 18.8R so risking $100 would be $1,800 for him okay we got Isaac showing off his funded trader certificate he said "From the Nev Trade course I finally passed a top step winning the trading combine using the smog strategy which is the more detailed more advanced version of what I just showed you right now." So big shout out to you Isaac that's a big accomplishment you can see Jimmy 4xing his account in 20 days using this framework dstone getting 21 riskreward trades okay so just to show you these aren't things that are happening in theory this is really how you identify key opportunities and key areas to be able to turn your trading into a profitable business if you want to learn more about getting started trading you can check this playlist out don't forget to subscribe to the channel like this video and share it if you found it helpful and until next time I'll see you all in the next video