hello everybody thank you very much for joining me again welcome back to day trading The Beginner's Guide this is going to be part five where we're going to be talking about developing strategy in this many stories of mine the ultimate goal is to answer a lot of the questions that newer or inexperienced Traders may have when they're in the market already or if you're thinking of entering the market it's really important to do diligence when you're gonna start something new especially when it comes to something as complex as trading where it requires a vast set of skills and I think that if you do research ahead of time you're going to be better equipped to handle the market and you're going to have a good guide of what to learn and what to focus on so let's get started and let's talk about the day trading beginner's guide developing strategy part five in this part five we're gonna go over how to start your day how to find the coin how to develop a profitable strategy discovering new coins for long-term holds planning your trade and my strategy scalping when you become a day trader and that's your focus full time and you plan to be on the computer for 8 to 16 hours a day however volatile the market is there's an unlimited amount of potential because there's so many coins out there that could be volatile especially in a bullish Market unlike traditional markets they're only open about nine to five normally and for crypto markets they're open 24 hours a day so depending on where you are in the world you may be luckier than other people in other places in the world because a specific coin could be mooning when you're actually sleeping or vice versa if you're unlucky as well there have been many times where my alerts have been going off in the middle of the night at three four five in the morning people like myself will wake up to catch these opportunities I'm used to these hours not only that I really enjoyed trading in general so I'm not forcing myself to get up this is something that I genuinely want to do because I enjoy the thrill of it I enjoy being able to help out my Discord group and sharing what I know so hopefully we can find trades together and there's people in my Discord group from everywhere in the world as well and then there's other people who are gonna set a set schedule where they say say hey I'm only going to work nine till five and this is all that I'm gonna trade I'm going to cool down my account so even if I wanted to try trading after nine to five I'm not going to be able to myself I've got a sofa in the back in case I stay up really late then I don't want to go to the bedroom to wake up my wife so it works out really well to have a super comfortable bed here as well so the way that I start my day is generally depending on how late I'm up one of the biggest advices I can give to you as a day trader that's going to be sitting on the computer for up to 16 hours a day depending on your schedule is to always get some good exercise no matter what when I move to Turkey I ended up getting a tremendous amount of weight with the combination of my wife who's a phenomenal cook and also Turkish kebabs right you can't go wrong with them so lately on a two-month plan I've been on a major diet and also exercising every day and I found that it improved my productivity throughout the day and also kept my energy up as well I'm not some sort of health professional or a fitness person but my best advice I can give to you is try to get that circulation going and it's really good to get some exercise before you commit to a full day and I've lost about 20 pounds already so I'm extremely proud of that and I find myself with so much energy throughout the day that I can actually work for 8 to 12 hours without feeling tired it also really helps that I have an under the desk elliptical another thing that I do every single day before I get on the computer is I do stretching with my hands like this and like that and I just do other basic stretches to make sure that my body is not too stiff so thinking about the health aspects of training that's really important before you actually jump on the desk especially if you're younger in like in your 20s for example and you're just starting out to sit on the computer for a long period of time it's going to be very beneficial to you years down the road for my for example myself I'm 38 years old and it definitely caught up to me because I didn't care too much about focusing on taking care of my body and my health when on the computer for 12 hours a day so definitely stretch get some basic exercise get your heart going some basic tips I can give you that's hey might even benefit you in other aspects of your life as well after getting the X decides out of the way I turn on the computer and as soon as I turn it on everything is already set up because my Chrome automatically loads everything in exactly where it needs to be so there's not much that needs to be done here I set up all my charts here I set up my let's get back to the other screen now here okay so I set up my charts to my social media over here and email and on the top here is my Discord group that I'm always going to be managing this screen right here on the bottom is used for OBS which is the recording software over here it's used for my main tactical analysis and I load up binance here as well so I'm always logged in on binance and my technical analysis is always done on this screen never any other screen on this screen up here I'm generally having it on a different time frame for in case there's volatility but most of the times there's some show that's randomly playing on the background because there's not too much volatility right now in the market so because of that I'm able to enjoy some other luxuries and not have to stress out too much about always looking at different time frames and on the bottom right I always have a Bitcoin chart on a higher time frame such as a four hour or one hour just so I can observe the movements of Bitcoin and what it's doing at every single time of the day I know what it's up to that's important because if there's a move on bitcoin there's going to be a move on other coins as well and then on the top right that's where I've got my screener going and this screener is crucial to my success because every time a coin is moving it's gonna notify me on these charts right away so the best advice I can give you when it comes to just starting your day just get all of your applications already get it started have a chart for Bitcoin that's readily available that you can see at all times and then the next thing that you do would be step number two and that would be finding a coin and the biggest question that I always ask is how do you find a Coin to trade for that day so there are many different methods that I would recommend using to find the coin for that day one of the basic lessons that I always give to people is use the trading view scanner that you have here in front of you you're able to adjust the charts here moving it up and down and you can see use some of the hot gainers for the day so the way that you would set this up is fairly basic I would encourage you to put the last and then the change percentage and then the ticker and the logo on there just those four things is what you need you don't need to change here because the change tells you the amount that it's actually changed not in terms of percentage so you don't need that and the volume is useless because it tells you the volume and the actual coin traded so you don't need that and those are all that you need and that's all that you need you need the last the change the logo and the ticker and this is going to help you another thing I would always recommend doing go to sandwich dot finance and sandwich. finance is a site where you can download your watch list you can let's say you're trading on binance and you trade only in the Futures Market you can actually click on here and then it downloads it into a text file just like this so it's got every single tradable coin on binance so what you can do is you can click on the top Arrow over here and it drops down and then you can go to import list and then you can go to your documents and you can look for it here and if you double clicked on it it would actually load up every single coin on here this way it saves you from having to input every single coin manually one by one and that would be very tedious so the first thing that I do after I have a set list is I look for the change percentage up and down I click on the change here to see what has moved up a lot and then what has moved down a lot so the way this 24 hour change percentage works is based off of the daily close so the daily close for myself is at 3 A. M turkey time so 3 A.
M turkey time I think is about 6 p. m in Central Standard Time in North America in Canada and United States so the times can vary I find that during the daily close is often when you get the most success for finding an extremely volatile coin and that's the reason why I'm up at very odd hours in Turkey because I'm waiting for that daily close to happen I do miss working from Canada because I was able to catch it at a fairly normal period during the day which was slightly after dinner so this operates off of the daily close which is at 3am for my time so then it tells you how much it's moved after it resets at the daily close so at 3am it goes to zero zero for every single coin at zero percent move and then if it starts to move and then it's going to tell you exactly the percentage move so you might want to go towards a coin that's very volatile so to find the coin to trade that involves developing a strategy and how people find the coin to trade is going to be very different than how other people find coins to trade so for example if you know a lot about patterns and those are some of the trade setups that you're always taking you might want to go through each one of these one by one and hunt for a pattern you might want to ask yourself some questions like what kind of trade setups am I looking for what patterns exactly am I looking for am I looking for a bullish flag a bearish flag ascending triangles descending triangles symmetric triangles and then you would spend the majority of your time hunting for these and keep in mind that you may be able to find big patterns on higher time frames and also smaller patterns on the smaller time frames as well so patterns can occur on all time frames depending on which one you're looking at and especially what type of Trader you are so it's really important to first of all ask yourself what kind of Trader do you want to be and what kind of Trader you are finding a coin to trade depends on the kind of Trader that you are if you're a scalper like myself I'm looking for short-term volatility if you're a day trader that maybe takes one two trades a day over a higher time frame you're probably going to look on a higher time frame you're probably going to look for maybe a 15 minute to a one hour a time frame each day if you're a swing Trader you're probably going to look for anywhere between a four hour up to even a daily chart if you're an investor for much longer term you're probably going to be looking at the weekly charts and up so it really comes down to what solid trading you are and how you want to find the profit in the market not everybody is going to have the very same and identical style of trading or bringing profit from the market myself I'm a scalper so those small short time frames are extremely important to me and that volatility is important to me as well so the way that I gauge I criteria to find the coin to trade it's going to be much more different than yours as well another example of how people may find a Coin to trade depending on what time frame they're trading is the RSI our size the commonly used indicator that's going to gauge the strength of the coin some people may find oversold and overbought conditions so you can use for example crypto screener even over here and that you can go to your filters for RSI relative strength index so relative strength index you can look for a coin that's below 30 or above 70 using the crypto scanner that's built into here having a criteria to find a Coin to trade that comes after developing a strategy and developing a strategy that comes with a lot of Trials and errors and fixing and fine-tuning mistakes but generally since this is just an introduction finding a coin to trade will heavily depend on the strategy that you're using and the indicators that you're using if you're using RSI you're definitely going to be looking for bullishly diverging RSI or bearishly diverging RSI or oversold or overbought conditions myself I love to trade for example with Elliot wave theory so I always look and hunt for impulsive waves that seem to make sense that's going to give me an opportunity to either long or short a coin depending on the conditions of the market you may also use different strategies as well to hunt for a coin to trade for example if a macd is trending extremely high you might want to consider shorting it if there's other confluent reasons as well and other people might use EMAs or moving averages exponential or simple moving averages they're going to be hunting for specific key breaks in the EMA other people might also use strategies such as an ETR hunt where they're looking for an ATR break of some sort of resistance or support and the next question is how do you develop a profitable strategy so let me just tell you about the way that I developed it and it can give you a sense of the direction and the projection of developing a strategy so when I first started trading I had no idea what I was doing and on poloniex they had their moving average and RSI defaulted on the charts and they also had macd on there as well I believe and that's how I got into it so because it was the first place I was exposed to I started researching a lot about RSI macd and also moving averages and after hundreds of hours of research you eventually start to understand the mechanics of it you start to learn for example you're hunting for bearishly diverging RSI if you're starting to short or bullishly diverging our side if you want to log it you're looking for oversold overbought conditions for RSI macd you wanted to hover high above the X line low above the above the X line so you can longer to short it EMAs you want it to Trend above certain numbers so this way it's proving to be a consistent Trend going to One Direction I was mixing up a lot of different strategies when trying to enter long or short and I didn't really know what I was doing and ultimately it resulted in so many different losses and then over time with those losses you start to really understand why you lost but the only way you can do that is if you're documenting it you're understanding why you lose at the end of each trade you get to look back on it and you get to say oh I did this I could have done this differently and you start to pick apart your trades you start to do case studies audit you start to dissect it and really analyze the trades that were detrimental to your success so if you don't document how are you going to know what you're doing wrong I find that a lot of Traders what they do is they just trade and they don't document and they say to themselves oh yeah if they lost oh yeah I lost because of this I will do it again but how do you know you're not going to do it again and how do you commit to that how do you stay disciplined to not repeat these mistakes then the best way to do it is to document if you're recording everything you do and you can see it back later whether it's a win or a loss and you keep statistics on the trades that you take your wins your losses the strategies you use eventually you're going to be able to pick apart and dissect exactly what went wrong so you can fine tune them and improve from them and I have the background of an engineer who likes to reiterate so every time you reiterate a design it just improves it and makes it better and I would also recommend to treat trading the exact same way or any aspect in life where you want to improve on a skill you have to remember it you have to practice you have to analyze what you did wrong and ultimately you're going to develop a strategy that's going to work for you my strategy may not work for you actually it probably won't work for you because of several reasons such as I have more time and also have more experience and I have a different personality trait than yourself probably and the strategies that you end up developing they really cater towards person that you are some people have a tendency to want to buy on a dip a lot more and start accumulating for a long swing position whereas myself I don't swing so I only scalp and I day trade so it's not appealing to me to hold positions for a longer period of time yourself you may not like to trade these very small and short time frames that are under one minute sometimes I'll be trading on the 15 second in chart and it's really volatile and it also requires a tremendous amount of skill and Stress Management and multitasking as well so without the skills where you can make decisions really quickly you definitely wouldn't be able to implement the strategies that I'm using now so it's important to progress with the strategies that you're learning and eventually you develop this ultimate strategy another thing that I recommend to people is don't try to do too many things at once try to stick to one thing that you're doing and then fine tune that and pick it apart until it's better and don't be scared if it goes really wrong and you happen to have a major losing streak it's all right to change strategy but before you have any right to change strategies it's important for you to give it a shot for at least three months in my opinion 90 days if you're doing something right you're gonna know after 90 days if you're doing something wrong it's going to show the numbers as well so you have a choice of either refining that strategy and picking it apart and finding out exactly what you're doing wrong that's the root cause of these losses or you can drop it entirely and start doing something new and trying something new that you may work and trying something new that may work for yourself so don't be discouraged when you're developing a strategy you will find it eventually just comes down to what kind of Trader you are what kind of indicators you're using how much testing you're doing with it as well and ultimately you'll find out when you're fine-tuning it if it's gonna work or not so give it time and it will come so there's many ways to extract money from the market so you can be profitable one way is day trading like myself swing trading there's also the mining part of it there's staking there's investing long term which brings us to our new topic discovering new coins to hold for long term personally myself I only day trade the top 100 coins or any coin that has over 100 million dollars in volume and it's a coin that's not a not a crap coin I don't want to trade a coin that has a really low market cap where people are pumping and dumping it I also only hold coins that I firmly believe are gonna do very well but these coins need to be in in the top 50. I don't hold any coins that are below the top 50 I want to make sure that they're fairly well established they have a really good reputation and the last thing I want is to hold a coin that's an unknown it's too speculative for me so as an investor if you want to look for coins that are hot and they're like in the top bottom 500 or something but you believe that it could Skyrocket one day that's another choice for you to make as well and the best way to do that is to read a lot about their white paper to research the team behind it find comparable projects to it and see how well they're doing and that requires a tremendous amount of fundamental analysis which is completely outside of my expertise but I thought I would answer it anyways because somebody on Twitter asked me that question so ask yourself do you want to spend a lot of time doing fundamental research buying a coin at a really low price and hoping one day that it skyrockets and that choice only you can make it and if you choose to do that know that it will take a tremendous amount of time myself I focus my time on actually day trading and the technical analysis part and I leave out the fundamental side entirely so if you choose to do that once again it is a lot of work and I don't know a lot of people that do that I've tried it like six years ago it just didn't work out for me I didn't like the time that I needed to invest most of the coins that you put your money into you have to either wait years for it or you find out that it's just a horrible coin it's going nowhere and you end up losing all of the money that you put into it the next topic that we're gonna talk about is planning your trade and the way that you plan your trade would have a lot to do with first of all picking your coin and also it's gonna have to do with the strategies that you've had implemented already so when you plan your trade make sure that you know exactly what you want to do before you enter the trade your risk to reward ratio needs to be set your stop loss needs to be set before you enter it needs to have a minimum criteria for you to enter this trade whether it be volume or confluent reasons such as the prices at a support level here year it's out of Fibonacci retracement level that I'm interested in the RSI has to be load maybe the Fibonacci retracement level is at a low point maybe the RSI needs to be at a certain number or the nafti has to look a certain way or it needs to form a specific pattern so when you plan your trade it's crucial for you to know exactly what kind of trade that you're going to take and especially your stop loss I can't emphasize that enough you need to know where you're going to exit this trade at your stop loss it can be dynamic it doesn't need to be the set stop loss there every single time I always use a trilling stop loss every time the price moves in my favor I move my stop loss upwards this way it guarantees that I'm in profit when I exit out of my position so planning your trade is so important and if you plan your trade ahead in advance it's going to reduce a lot of the stress when you're actually in the trade it's going to allow you to have more time to focus on the technical analysis so you could actually manage the trade as well so yes I always recommend planning your trade it's going to alleviate a lot of the pressure that you have you're going to know your set targets ahead of time and you're going to know what to expect from this coin and your bias is now set so if it does go against your bias and now it's proven that your bias was wrong then you know that you can exit your trade immediately and the last thing that we're going to talk about is my strategy which is scalping that involves trading extremely volatile markets on low time frames it requires a high level of skill and multitasking and also the ability to handle stress when you're under tremendous pressure it's definitely not recommended for beginners it's a type of trading where I recommend you practice day trading on a higher time frame first so then you can eventually graduate to trading on a lower time frame and the reason why I like scalping is because it also relates to my real life where it's very fast paced I'm a very energetic person with my personality I'm a go-getter so I love to trade it for the adrenaline and I'm also able to critically think when it comes to working under pressure in terms of looking at Price action using EMAs looking at RSI macd and especially Elliot wave theory as well it's a strategy that took a tremendous amount of time to build over seven eight years now that involves a combination of reading price action Elliott wave theory nacti Fibonacci RSI and now I'm also incorporating ATR and the chandelier exit as well EMAs are also one of my favorite tools to use especially with trend lines so my strategy mainly involves shorting on the fifth wave where I can scalp a percentage I would rather trade a really large position size and Scout one to two percent then take a large position size and try to swing it I'm not a good swing Trader I've tried it before it doesn't work for me because my patience is not there and it's too slow paced for me I'd rather do something exciting something really fun but scalping it's just not for everybody a lot of people that have done it before they said that it's complicated or they've lost money or it doesn't work the people that say doesn't work it's usually because their skill level is not up there so my trades could be anywhere between 30 seconds up to maybe a few hours depending on the actual coin but the key ingredient of the trades that I take is it needs to be volatile it needs to be moving there needs to be something going on with the coin the type of Trades I don't take are the ones that are consolidating in like a sideways pattern and maybe it's going to break out maybe it's not but the last thing that I'd like to do is put my money into a coin where I'm not sure of a breakout and I will also scale patterns such as triangles descending triangles ascending triangles I like the short the fifth LV and wave theory I like to look for bounces in the golden ratio if it actually adds up to an Elliott wave count that makes sense I love to hunt for a bullishly and bearishly diverging RSI and I'd love to look for oversold conditions when it comes to macd that's hovering too high and also too low so there's a variety of different strategies out there and mine may not be for you once again and yours may not be for mine and It ultimately comes down to learning a lot about the indicators that you want to use so first of all commit to that there's thousands of indicators out there and depending on the indicator that you use it's going to eventually formulate the strategy that you use for trading which will come with time and only if you start documenting and you write down your mistakes after you lose the trade and then you criticize them and then you analyze them and then you tweak them and try to prevent them from happening again this will be the end of the video thank you very much for joining me for episode 5 of how to develop a trading strategy I hope that you've enjoyed it if you haven't already make sure you're hitting the like and the notification button and if you do see to the end of this video I'll offer you a great deal if you would like to get into my day Traders group it's a slow time right now so I'm more than happy to provide a discount for you because when the bull market does come trust me it's going to be the group that you want to be in my day trades are going to be live I've always been profitable in the bull market we've got hundreds of people in the group with like-minded goals that ultimately want to learn and also be profitable in the market so take a look at the link below and visit daytraders.
