5 Facts Of Day Trading

hey it's clay at claytrader.com let's talk five facts about day trading that you need to know whether you're a beginner day trader whether you have a lot of experience as a day trader these are dynamics that always need to be kept and focused in one way or another and right up front there's gonna be no theory here this is not gonna be a situation where you know i think this is how it's supposed to go because i read it in a book once but nothing like that i will be using my personal training results to illustrate each of these ideas here and that way we know that there is practical application from it because i'm not a big fan of reading things in theory like okay that's great that's how it's supposed to work but does it actually work and this is going to be on the side of things where yeah these things actually matter they actually work so we're gonna be putting the realm of theory behind us and we're gonna be looking at everything from real practical point of view so let's get to fact number one fact number one super obvious but also super tricky zero guarantees there are no guarantees and i realize you're probably saying all right i'm about to turn this video off if this is like as obvious as these facts are going to be but think about it how many stupid things have you done over your career so far in journey where you look back and you say to yourself wait what was i thinking why would i have done that why why would i have thought that way whether the market offers no guarantees i mean i've done it multiple times and if you're honest with yourself you've probably done it too if you haven't just good job so far but always remember at the forefront of your mind there are no guarantees stock market options market crypto market none of the markets offer a guarantee and it can be very tricky because like i said sometimes you could be on the edge of behaving in a way where if you just stop take a step back and say wait i'm thinking about doing that why because i mean that doesn't make any sense within the context and with the fact that the market makes no guarantees and all the other facts as you'll see you know trickles down from this one but just understand realize there are no guarantees fact number two only one question matters now yes there are lots of questions out there there are lots of considerations that you need to be always going through as a trader as an investor but when you strip everything away when you boil it all down they all center around this one question what do i think is going to happen next whether it be towards a stock towards a forex pairing towards a cryptocurrency towards anything what do i think's going to happen next and that's all that matters so you better have a tool that you feel comfortable with that's going to help you answer that question because if you don't have a tool that will help you with that question well you're not going to be very good at answering the question and if you're not very good at answering that question you're going to have a very small trading career okay for me i use technical analysis i'm a technical trader but it would be very deceitful for me to sit here and say and the fact of the matter is hey you have to use charts you have to use technical analysis or else there's no hope for you that's just not how it works there are other means fundamental analysis those two kind of butt heads big debate out there and i'm not going to say that fundamental analysis doesn't work but for me from a time component which you'll see comes into play later on with fact number five i just prefer technical analysis but at the end of the day like i said putting those both aside they all boil down to once again doesn't really matter it's up to you what you feel best with and i think i'm gonna make a good case and why you know technical charting is such a powerful tool but at the end of the day it still revolves around the question of you know what you better be good at answering that one question because there really is only one question that matters what do i think is gonna happen next fact number three things change markets change dynamics change hot sectors change all sorts of things can always be changing what what causes them why do they occur i mean that nobody knows there's a bunch of opinions but the only opinion that everybody can agree on is that you know what yeah things have changed why they have changed well that's where all the opinions come into play but the fact of the matter is things do change and on the screen here you see you know like i said i'm using my personal results here but the previous month was just very frustrating it was very just choppy it was a very it was a big struggle and i'll put the link down to this video uh below that if you want to go and watch and get full contacts but i i can also try to save your time and just let you know that in that video you know previous month very very difficult very very choppy i did still walk away making some money but i do know a lot of other traders lost money for that month but it was just it just something had changed the market was not like it used to be and things do change but when things change that's why you have to be able to adapt and you have to be able to go and do new things and what i did was i just changed just like that to options trading normally i trade stocks but literally in just you know the like that i was trading options and you'll see my results in fact number five sometimes well how did that go and you will see but the dynamic here is you better be prepared you better have a tool that's gonna guide you and assist you whenever those things whenever those times do change and that's where we go back to fact number two and technical charts is they allowed me to change i don't want to say very smoothly but i mean as you see the results i'm very happy with them because to think that i was trading stocks and then all of a sudden with just a decision saying what i need to transition to a different asset class and chain or trade options you know you got to be able to do that you got to be able to maneuver you got to have flexibility in the markets and because of fact number two and using and having a quality tool such as technical analysis and technical charts i was able to do that not perfectly of course not but i was able to do it and i was able to do it i think quite efficiently again as i'll talk to you in fact number five there but point here being is you better always realize that just because you have a sweet spot just because you have a groove just because you feel like things are going great that is fantastic and i want you to milk that cash cow for as long as possible whether that be a strategy whether that be a sector whether that be an asset class i don't care just keep milking it as long as that cash cow is producing then go with it but just realize things will change why they change how they change you know that's where the opinions come into play but they will change so things change times change and when you realize that when you understand that you're not going to be totally caught off guard for it and you'll be prepared to maneuver just like i had to do fact number four boring equals big money because believe it or not the money in trading is made with the boring topics and i'm not quite sure there could get anything more boring than talking about risk management risk control i mean let's all agree i can agree wholeheartedly talking about big gains talking about wins talking about how much money you can make talking about all the cool stuff you can buy with that money yes yes let's talk about that that is the good stuff and i have like is that no problem you know debating against that at all but you know what that's not what actually matters and that's why a lot of people fail because they fall into what is exciting they fall into you know just the stuff that the brain wants you know that the dopamine wants to have you know your brain loves that dopamine kick and surge and when you're looking at fancy stuff and you know that fancy stuff came from trading and all the money you can make yes but you know what that does not matter boring is what matters boring topics boring dynamics is what's ultimately going to make you that big money now it doesn't necessarily make you the money per se because well making the money makes you all that but it's going to keep the money you've made it's going to protect the money that you've made how many times have you been there right you're making money making money hey where did it all go or wow that i just lost a massive chunk of it you know like i said you trade long enough you're going to actually get there so boring is where the big money comes into play and i know clay you said you're going to use like your real life results we're on fact four and all we've seen is a chalkboard chalkboard in theory so far fair point but let's get to it right now so i'm gonna show you exactly how this concept of boring you know risk management risk controlled ultimately played out to play a big role in this previous month's results so on the screen here you see some of my results or not some of you see my results for the previous month that just wrapped up and you can see that ultimately turned out to be a good solid month very happy made over four thousand dollars in fact number five will help quantify that a little bit better but like i said think about it i literally was trading options but because things changed fact number three i was like wow i need to transition options and i transition to options so just like that i'm very happy with how things turned around or turned out just because it was technically a new op or new asset class that i was all of a sudden uh trading but what i really want to focus on is well well two points we'll look back here at this day but this day right here last day of the month you can see right there ultimately lost 785 dollars and the key dynamic here was the boring stuff and here's an example here's the practical purpose of being boring in terms of risk management so what i did and what i would encourage you to do is because it was the last day of the month i was looking and i was up basically five thousand dollars and i'm asking myself and i want you to do the same thing and i should note this could be done at the end of a month it could be done at the end of a week at the end of any time but you're looking at your gains and i want you to ask yourself the question what am i going to be happy with what am i going to be okay with and in this situation i was going to be okay with you know given all the contacts that i've already talked about i'm just trading options i mean this has been a fantastic month for just trading something new all of a sudden i want to have at least four thousand dollars and if i was up five thousand well then you know and i'm not trying to talk to your intelligence really showing you how boring this is but how powerful and easy well if i was up 5000 and i wanted to have at least 4 000 then what what is that number right there how much could i lose you know so solve for x who remembers algebra well pretty easy right there right that means that i could lose up to one thousand dollars so going into the last day of the month i knew that i could you know i could take on some risk i could ultimately take a risk you know get out there maybe throw some and still be okay even if i lost 1 000 and you can see that it ultimately played out and i'm going to take you through the trade that did that but you know what i was willing to lose a thousand less i lost less than that so still came out ahead of where i was totally comfortable with you know with my month being but think about that where did that come from that came from me saying you know what instead of focusing on hey how much money can i make for the last day of the month the fun stuff what did i do i went to the boring side of things i thought all right well if i lose how much money am i okay losing and from there i worked backwards and i protected the month right how many times have you been there i've been there many times where you focus on how much money i'm gonna make and then the last day of the week the last trade of the day the last trade you know the day last day of the month and you just go and wreck things i mean i've been there i've done videos on it it's just not not a good thing when you're focused on the fun stuff how much money am i gonna make make make no no let's get boring because that's where the big money's at because you know what it's hard to make money if you keep on losing it or if you make it make it make it and then you give it all back right that's to be that's not sustainable but when you focus on boring it is but yeah let's take a look at that day there so you can see another function of risk management because yeah sometimes it can be super super frustrating so the trade was on amc and what we're looking at here is the one minute time frame so just each of these candlesticks is known or as they're known as worth one minute and this is a technical chart so i'm a technical trader this is where the decision process was coming from and right here i'm thinking you know i like this pattern working its way upwards had the nice area right across ascending triangle pattern i like it so i bought right here because i'm thinking this thing wants to get going up and i i like the chances of especially the history of the day was already making big movements so i thought if it breaks here i think it's got a great chance to at least get up to the 3650 mark if not even higher than that because i mean this thing had a lot of momentum it was setting up nicely pulled back bounced pulled back again that pullback was much smaller started to come back up so i'm thinking here we go i i think the party's about to start so got in and then just like that the next minute boom all the way down there but you know what risk management matters and you holding and hoping right well diamond hands it'll go back up no no no if you want to be a long-term day trader now i'm not talking investor okay if you're buying amc because you think in the next 20 years they're gonna be fine that's fine there's nothing wrong with that but i'm just trying to you know build context of the perspective i'm a day trader these are facts about day trading per the title but as a day trader you just buy you know hold and hope hold it hold it'll go back up it'll go back up oh that is a very very risky thing so i had to get out i realized the loss it is what it is and then it gets extra extra cruel because look at that hey look it decided to go right back up have you been there before you're disciplined you focused on the boring stuff you focused on risk control you get out you take the loss like you're supposed to do and then the price just goes in your favor hey you know what it happens it will always happen that's just part of it and then you can see right there ultimately made a huge move up it it never necessarily got to where i thought but yes you could play the game clay see you should have held you should have see everything always goes back up have you heard that before hey just buy and hold because everything all goes back up but what was fact number one again what was fact number one there are no guarantees you know i've heard it all the time well just buy and haul because everything will eventually go back up there are no guarantees so let's just play the game again let's say that there is a trader that bought just anywhere around here you know what they bought and again this was a nice little setup there they bought there maybe they bought there who knows maybe they bought down here but they bought here and this was a very nasty move though because it did break out however then the price dropped all the way back down but again well yeah yeah that was a great move it'll come back up right it'll come back up so pointer beam let's say that i had bought made the move up but you know it never really got to where i thought it was and at that point this thing was going going going going going so why would i sell there i mean that thing was just booming and then all of a sudden it comes back down so i'm thinking well i'll give another try i'll hold and hope right diamond hands let's diamond hands this thing and let's see what happens well i'm gonna speed things up here and you can see that it did not go back up in fact let's squeeze this down it did not go up at all in fact it dropped all the way down look at that all the way down below 25 and a bit of a bounce there and you can see let's keep it all on screen here that ultimately there we go end of the day at 26 now to be fair could amc go back up as of the time this recording it could and could i where i bought right there and held and hoped held and hoped held and helped could other people that bought right there held and hoped could they be eventually bailed out they could but i'm telling you this right now if you're tr day trading again day trading strategy is all about allowing positions to move ten dollars against you that's a massive flaw that's that's going to bite you at some point and it might be biting people right here again i don't know what's going to happen next but as of right now people that deployed the uh it'll go back up ah let me just hold and hope let me not honor risk that's a very bad situation for me personally again i'm not talking in theory that 700 yeah that 700 loss looks amazing right now because had i held and hoped held in hope that could have easily easily wiped out my entire month gone just like that as it continued to drop and i could see probably selling right around i don't know there because i could see okay here's the bounce good it's finally turning oh no oh i can't stand this i'm not gonna let this uh and goes back down so again and and who knows maybe i would have wanted maybe that would have suckered me in before that plunge maybe that would have suckered me before but point being that think about that people that held and hoped people that just didn't have any they're not focusing on the boring stuff they're focusing on no no i'm not going to sell because i'm going to make money and if i hold long enough if i hold and hope if i diamond hands it i will make money well we'll see what happens here but this was as real as it gets and i'll tell you what sometimes losses feel good that loss feels very very good because to see that big surge up what a cruel move i mean amc just blasted up got right there and then from there just slow slow slow bleed over ten dollars that was basically about a 12 move over the course of a couple hours basically trending downwards downwards downwards that could have been very bad but i also now want to focus on more boring but just the power of risk management so i mentioned earlier this initial actually the first day of the month so let's click on that and we'll see something specific here but down here you can see my results for that day uh so my picture's in the way but traded uh btx and tesla which you can see here uh but pointer being is this right there being down the 1900 was on three separate trades and it was just i lost okay out okay loss okay let me and it just things were rough things were rough on that day but then you know i you got to stay with it and i saw another setup come in this one and you see the results of it but btx for 2 000 so in other words on that day three losing trades but then just one just one trade so think about it i was right 25 of the time i was wrong 75 of the time but because i focused on the boring stuff because i focus on risk management risk control which again fact number four you better be doing i was able to actually salvage the day and walk away with essentially 44. so that is the power of focusing on the boring i know i spent quite a bit of time on this one uh but this is a very very important fact uh because remember holding and hoping it's as obvious as fact number one there are no guarantees that is one of the things i see all the time as obvious as people say well i know that there's no guarantees in the market and then you there and then they tell you what and i'm holding and hoping it's like wait a second you just said there's no guarantees in the market yet your theory on this is diamond hands holding hope like that what everything goes back up well you just told me that there's no guarantee so how can that statement make any logical sense it doesn't but that's what i mean the human brain is a bizarre bizarre place so fact number four boring equals big money fact number five side hustle efficiency i understand i had the same impression well trading takes a lot of time you got to be sitting there i mean the the stock market for example is open over six hours a day so i gotta be i gotta be there for six hours but i have a day job uh you know crypto markets are open all the time so like i have do i have to be like how much time do i have to be devote none of that none of that trading now let me take a step back trading can certainly be some sort of full-time income stream if you wanted to to be that but for me and for many others it's a side hustle it's just one stream of income amongst many other streams of income which is a whole nother video but in terms of wealth creation i believe in multiple streams of income ups and for me trading is one of them and it's essentially a side hustle and it can be a side hustle for you because there's not a whole lot of time that is required now let me also preface that by when you're new and a beginner well yeah there is time required because you have to study you have to learn like any skill you have to put in the time to learn about the skill fine tune the skill and get good at the skill so but yeah so that does take time but after you have that out of the way you don't need a whole lot of time at all you can you can you can but that's by no means required it is a very very efficient way to make money once again and i know i'm repeating myself but i want to drive home after you put in the time upfront of learning about practicing fine tuning and mastering and crafting the skill but once you get that a very time efficient way to make money and again no theory here let's go back to my results so the way i approach trading now at this point in my career um and everybody's different for me just background so this kind of approach makes a little bit more sense but i'm a father of four kids one is actually at the time of this recording do any time now so who knows maybe buying this goes public i'll have five kids but right now i have four one more do it anytime but pointer being i'm a dad i don't want to be changing my computer all day long i don't want to be changing my phone all day long all day long no i want to spend time with my kids with my family with my wife all of that okay and so for me i'm not looking to do this because i want a rolex watch collection i'm not doing it because i want a private jet or a yacht or anything like that if that is your goal if that is if that is your why then that's fine i'm not judging you i hope you get that rolex watch collection i hope you get the private jet but for me my why is freedom of time so for me i'm looking to be done what i call now the be done and 30 approach meaning on average i want to be done after 30 minutes every day and the one thing that's been awesome about options is it has allowed me to get that down very very closely now some days yeah i did trade for more than 30 minutes but some days i was done and i have a live trade segment and you can go and watch those but sometimes i was done after like two minutes five minutes uh 10 minutes so point being though i'm happy with that i'm not looking to make a bunch of money like i said for those reasons so i want to just go through the efficiency of trading so how does that work well again on average and really it was below 30 minutes but just to keep the math easy and for argument's sake let's just say it was 30 minutes per day so there were 20 days in this month here so 20 hopefully i can do the math and not get too nervous and if i was doing 30 minutes each day that comes out to 600 minutes per month that i devoted towards the side hustle towards trading well how many hours are in minutes well 60 right so let's divide that by 60 and that means that i was at it for 10 hours so total time a little less than 10 hours but let's just call it 10 hours that i devoted to it towards trading towards this side hustle which again a lot of people say 10 hours i thought it was like 6 hours per day what are you talking about 10 hours in a month that's what i mean you don't have to put in a bunch of time in order to get at least for me worthwhile results now if you this next number if you look at that and you're like no that's not worth my time then i mean well done to you i i'm i'm not envious of you i'm not jealous of you i'm inspired by you so let me know what you do for a living because that's pretty cool that if if these results would not be worth your time but for me as a side hustle 30 minutes per day on average they're worth my time so here we go 10 hours in a day and what did we say my results were well down here again 41.32 so 41 32 divided by 10 hours right because that's how many hours we just determined 413 dollars per hour doing this side hustle i'm more than happy with that again if you look at that number you're like no 400 per hour is not worth my time then hey all the power to you let me know what you do in the comment section below because i'm inspired by you that's awesome good for you but for me hey that is more than worth it and that hopefully goes to illustrate fact five that yeah learn the side hustle do the side hustle it can be super super efficient from a time perspective now if you want a lot more money if you want that private jet then yeah i don't think you're going to be able to accomplish that in 30 minutes i i could be wrong but you're probably are going to need to devote more time to it than that uh but for me and my situation which i've already explained i am more than happy making over four hundred dollars per hour so those are the five facts focus on them always keep them in mind and you know just reflect on them and you'll see how they all connect in one way or another the big connection i'll just stay with this is hey as obvious it is there's no guarantees and then all of a sudden with rule number or fact number four hold and hope because everything goes back up just the ultimate contradiction that i see all the time so just keep those things in mind and i think they're going to not think it will it will help you i can't sit here and say make millions upon millions of dollars but it will help you survive in the markets and that's the first step to having any sort of successes you got to survive in order to thrive and if you focus on that boring stuff if you find yourself a good tool to answer that one question that matters if you're always prepared that things change time changes you realize that there's no guarantee and you just realize that hey you know what this can be a very time efficient way to go about making money if you're going to it with the right framework then you are setting yourself up for not guaranteed success because hey there are no guarantees but you're putting yourself on a pathway you're putting yourself in a frame of mind that i think gives you a very very realistic chance and making some worthwhile money whether it be a side hustle or some sort of full-time job so those are the five facts if you enjoyed this video if you want me to do more like this then let me know in the comment section down below or better yet a very time efficient way to communicate to me that hey this is worth my time you would enjoy more hit that like button leave a simple comment and the comment can be something as basic as a thumbs up emoji maybe give me the diamond hands emoji but any sort of emoji along with hitting that like button goes a very long way and then also check out the channel as a whole i'm not a big fan of people asking you to subscribe after like a video so all i'll say is please check out other videos there's a bunch of live trade videos and if you like what you see at that point yeah please i'd love to have you subscribe but overall get out there keep in mind those five facts and i'm very confident they'll put you on the pathway that you want to be on first off thanks so much for watching the entire video real quick before you go i want to invite you to a live webinar web class training workshop online event whatever you want to call it but it will be me live revealing to you what i discovered that has allowed me to transform myself from being an employee to being my own boss including how i had only one losing day out of 73 days in total i'm going to cover three keys that have helped me unlock profitable consistency within the markets the first key is super weird but in a productive type of way the second key is super awesome because it quite literally is wired into our dna as humans making it very easy to use but in a cruel way this becomes a pitfall for many traders i'll explain it all though including how to avoid the pitfall that it creates for some and yeah the third key when you hear it sounds way too good way too good to be true but it's not and i'll show you how it all works then at the end i open it up for a question and answer session that is again totally live even if you can't make the live session please still sign up as it will be recorded and you can go back and watch the replay that i will send you click the image on the screen or click the link down in the description box so you can get the date and time and claim your spot which i should note is limited due to the fact that this truly is a live event if you have any questions let me know if not i'll be seeing you soon

2021-06-03 12:44

Other news