Learn How to Day Trade Successfully

Today’s quick day trading lesson is going to be all about how you can earn $100 more in less than 15 minutes of day trading. I know this sounds a little bit crazy and unrealistic, but once you understand how the market moves and how to day trade you’ll be amazed about how it can be done.

It’s not an easy process. Don’t get me wrong, and it is a lot of work to do. As in studying and understanding what the market is all about. But it’s the same thing as when you learn how to speak a new language.

You practice words for a long time until it becomes a normal way of talking. It becomes natural. At this point, watching the market for me is quite natural. I understand right away and get the gist of what’s happening.

So here is the breakdown of this particular trade.

But before, remember that the text is only a support for what is said in the video, so you might not understand it completely until you finish watching it.

It all comes down to learning what the market is telling you, the different language of the market, which is The Indicators, The Patterns, The Movements.

OK, so first we’re going to go back to the basics. to do that go to my day trading lingo class first. We will be putting all of those into practice here.

Now take a look at this chart this is pretty much an entire day of the market.

It’s nice to see what’s been going on, but it’s not too important because we like to look at the overall movement that is happening right now.

The market runs in three ways. In this case, you can see that there is a sideways market here and then it goes into a downtrend. We don’t have an uptrend coming here at all.

There are also areas that the market hits over and over and over again. These particular areas are very important to watch and they are not good to trade in because it’s so uncertain.

So I mentioned that the market hits an area at the top several times in this case. It’s right here.

This is called a resistance area. And then the market hits an area at the bottom and that’s called a support area, and the overall movement here is a sideways trend.

So when we see a sideways trend, we know, it’s not a good place to enter because, in sideways markets, the probability of it going where you wanted to go is really low. So you don’t wanna get into the sideways market. When I see sideways movement, I sit back. I do not do anything.

Then, as the market goes down, we start to see a definite break in the area. (You never want to speculate when the break is going to happen, that is the kiss of death for day trading.)

Another thing that we can see here, and this always happens, a trend never just runs down. There will always be a run, a retracement, and a continuation. How far the continuation is? We don’t know. So the market is showing me that it’s running down and then it retraces, so the retracement is what I look for my entry.

Now let’s move to indicators. I use two indicators. In the previous images, you see two lines, a yellow one and a burgundy one. These lines are actually one sort of an indicator for different timeframes.

Then at the bottom you see a red dotted line, these are the MACDs. This indicator shows me strength in the market.

Now I’m going to show you my trading system.

Just a good idea when you think of archery. When you have a target when you want to shoot your bow into the bull’s eye. You need a place to stand, right. If you can’t just do it from wherever. And how to day trade. You need a place to take your trades.

My system is the solid burgundy line. This is where I stand for my trade entries. When it hits all of my green lights. And this is where I entered. I entered with two contracts. It just gives me a little bit more money entry.

Now I want you to notice the grid on the background of the chart. The little white boxes. These are points, each point when trading futures represents $50 per contract.

Then I set up my risk, I usually do a point or a little more. This means that if the market hits that spot, I am out. It keeps me from losing too much money. Then I set my goal lines, one contract is the same as the risk but in the other direction and the second one gets a little more space.

Eventually, the market hit both of my reward points. In the first one, I came out with $62, and immediately moved my risk line down to the point where I originally entered the market. This ensures that I don’t lose money in case the market turns back around.

Now, my second target, (you really need to have your targets in place because greed can get you) is placed a little over where the last pivot happened. When it got filled, I had almost two points. That is $87.50. This is when I got out of the last contract.

I entered at 10:05 and by 10:24 when I exited the last contract, I had already made a little over $100.

As you can see, I am a very conservative trader, I don’t take many trades.

If you want to learn more about my journey and how I started day trading you can read it here or you can watch on my YouTube channel.

If you want to learn how to day trade with ease and confidence — Sign up for the FREE Mini Course.

So if you have any questions you can always ask me at traderchick.com and if you want to learn day trading basics — check out Day Trading Courses.