How to Trade Safely (and grow your account!)
let's talk how to trade safely and grow your account now right off the get go i want to be just very upfront here that a great way to grow your account is to not lose what you already have right a penny saved is a penny earned and depending on where you're at in your journey if you have even really just a little bit of experience if you're anything like me i'm sure you've been there where you've had gains you've made money and then something happens you get greedy you get stupid and then all of a sudden hey where did my gains go and that's not how you're going to grow your account right part of growing your account is holding on to the gains that you already have so i want to get that that's what i mean by grow your account part of growing is playing defense and is playing it safe and what i want to do here is just walk you through a step-by-step process that you can go through too in your trading that's going to keep you safe that's going to help you hold on to your gains and then by default help you grow your account over the long haul now i've already actually gone through this example in one of my live training videos from a few weeks ago but in that video because those are live i'm just kind of quickly going through things and i can totally understand especially if you're a beginner just getting started we're like whoa whoa what wait wait what why did you wait i saw that i get it so i want to revisit that and just go through all this like i said on the chalkboard step by step and then i'll also show you the trade that actually played out so that way you can see what i take from here the step-by-step process that i would highly encourage you to do and then see how it really translated into the world real world of trading so first off before anything else this is how to play things safe right you grow your account by protecting you play it safe by protecting the gains that you've already made so in that situation obviously you actually need some gains now in this situation and actually i'll put a screenshot down below so if you're at claytrader.com down below the video i'll put a screenshot of this month so you can see where i was at at that point in time but at this point my gains for the month were five thousand two hundred forty four so those are my gains and the next part is i guess like first part you have to have some gains right and i should also note that this could be for any time period that you could be doing this at an end of a day right you have gains at the end of the day but maybe you want to make one more trade maybe you have gains at the end of the week and you want to make you know what i'm going to the last day of the week it's friday you could apply it here in my situation it was the last day of the month so for me it was the situation of i have my gains for the month and now i need to play it safe right i want to continue to grow my account by maintaining protecting some of the gains i already have so for me this was at the end of the month but the question whether it be at the end of the day the end of the week the end of the month becomes well you know what you're what i'll call your i want factor meaning well how much do you actually want minimum that will make you happy that won't make you insane that won't make you think you screwed up that'll just keep you a peace of mind so for example if it's on a friday what what number do you want that'll keep you happy all weekend long right that yeah you know i took a loss but you know i still made what i wanted so who cares that i took a loss on that last trade of on friday because i still made what i want so you need to have your watt number and for me my want number was you know what i wanted to close the month with at least five thousand dollars and the five thousand dollars was coming from for me that would imply that i grew my account uh right around the 10 mark and then because i usually trade only 30 minutes on average a day and then you do the math i would have broken down about 500 per hour of my time that i did with trading so that's where that number comes from for me so after you have your gains and you have your i want number very straightforward all you're going to do subtract them out and whatever that number is in this situation the number was 244 and in this situation i now know how much i could lose that last day of the month i can only lose 244 dollars but there's also sometimes things get a little crazy things can get a little whoa i didn't see that coming so i always like to kind of bake in a little airfact or you know a little wiggle room there so for me i didn't say 244 i said you know what let's just make this 200 right that way if something goes crazy and it ends cost me 220 for example well at least i'm still overall above that 5 000 mark so for me it was 200 and that's telling me how much i could lose at max in a trade so eventually i went and found and you're gonna see this trade but i found ticker symbol nio and based on the setup based on what i was seeing via the technical chart i knew that you know what if i'm wrong i'm going to lose so i don't know that's supposed to be a minus let's just let's do it this way i knew that if i was wrong i might lose 50 cents per share so 50 cents per share if i'm wrong that is what i would lose so the question now becomes okay well how many shares should i be taking should i be taking a thousand share position hopefully you're saying well no clay that's not that would be bad because if you have 1 000 shares and you just said that you could lose 50 cents per share that would be 500 that you just lost on that trade but your number was only 200 so that that would be 300 over what you wanted exactly very good what happens if i told you 500 shares well again if you're doing the math like okay well if clay if you think you could you if you want to do 500 shares but you know your loss could potentially be 50 cents per share well that would still be a loss of 250 dollars which again that 250 is larger than 200 so again in this situation no i can't do 500 shares what about 300 shares well 300 shares you multiply that by 50 cents and that would equal what will that equal 150 ah okay so this one would actually be approved because 150 is less than 200. for me though i chose 200 shares i could have i could have in hindsight i should have done 300 because spoiler alert the trade works out nicely but i could have done the 300 share or 300 shares but i just went with 200 shares and again 200 shares why well because if i did 200 shares and if i was wrong and if it cost me 50 cents per share well that would have been 100 loss and that's what's auto intelligence but 100 is less than 200 so again that was approved but you see how by working backwards you can all of a sudden determine your position size and that's what gets a lot of people is the whole money management side of things where they they overlook they take too big of a size of a position and they're not factoring in though well what if i'm wrong and then you combine that with the position size and before they know it oh i didn't protect my profits i'm not trading safely like i just gave things away i give way too much away i mean when i was new i just gave away all my gains right you you're on a streak you're on a streak you're on a streak and then one trade where'd all my profits go you know maybe i'm the only person that's been there but uh if you've been there then you can definitely relate so that is why when you see the trade on nio you'll see that i have 200 shares but this is the exact reasoning behind how i arrived at that number and this is what i would really really encourage you to do and it doesn't have to be at the end of a month it could be at the end of a day it could i mean really you could do this whenever because if you have gains and then you can start to okay i'm at gains and i want to at least have and then you just go through all that so i don't want to make it seem like it's you can only do this method if it's at the end of a day or at the end of a week or at the end of a month really if you make a first profitable trade and you make 500 bucks and then you know you want to make several trades after that well now at least you know for trade number two that when you apply whatever that is you can still figure out whatever your position size should be from going that point forward so now let's move from the blackboard you'll see how i arrive at that 200 share size and i'll show you how the actual trade played out i like this a lot 53 stop will be up around 53.50 so even if i'm wrong about a hundred dollar loss which is fine by me it's working its way down around that area that's why i want to wait for confirmation more so 53 15. if that falls and i'm gonna hit then i'll hop in here well no i can't now let's see it push up some more good 53.25 now
yep let's see if 53 25 can come into play or maybe this is a truly strong bounce and this thing's just going to keep on grinding higher and higher which is why waiting for confirmation is always uh a wise move 53.35 now will be my entry point if it even comes into play again like i said making a way down it's definitely strong all right i'm gonna go ahead and pause for now and wow spy is just getting destroyed right now yet this one's bouncing upwards look at this spy right now and yet this one continues to grind higher and higher so this one doesn't apparently care what's really going 5335 though in there at 53 47 stop will be up over 54. so let's see what it wants to do here again in 200 shares this thing either wants to continue to bounce upwards or it wants to roll over here i love the rvr i can't even think about taking profits until it gets down to at least 53. but like i said this thing's either
gonna roll back over or it's going to keep on grinding higher and if it does then i'm looking at you know give or take 100 loss so that's the choice right now it's quite simple i'm either right that this thing wants to roll back over here or i'm wrong and this thing just wants to keep on grinding higher and higher and you know that's just kind of the way the cookie will crumble but i love the setup nice wrist first reward and not just a matter of am i right or am i wrong and i'm not going to sit here and expect you to wait to see the every tick by tick so i'll just go ahead and pause and it looks like i'm going to be able to pull off some profits or if it looks like it's going to uh stop me out then i'll get the video rolling but yeah right now it's just totally in decision making mother all right well there we go kind of and bounce right off the v wap so yeah 53 25 looking like it's gonna be that key level that'll need to break down through so i'm gonna go ahead and pause but i'll keep you updated all right it's moving down like i said my profit target area is at 53. so it's getting close to my profit target area can't it hit it that's the question oh so close there we go fantastic so i got out a portion of my shares would like to see this thing get some more momentum to the downside if we could get down and there we go get down through these 52 90s though yeah 5290 hidden buyer in there right now there we go took out another 50 shares right there and now this is going to be could this thing really get down to 52.50 on this push looks like it's got a chance but it sure is getting overextended you know let's just let's just live a little merry life here so now worst case it's a winning trade no matter what because i will stop out of my final shares in fact let me do this stop 53 16. so now absolute worst case scenario i'm making money on the trade because even if i get stopped out all right let me move this down here so now it's this is the best spot to be in all i'm doing is moving down my stop so quite literally the worst possible thing that could happen right now is i make money by getting out so i mean when it comes to stress-free trading this is what but but it was already stress-free trade in the first place how because i knew what i was comfortable losing i knew what would keep me fine keep me happy on the month and wow did that make just sitting through that trade more than easy remember at the beginning there were some patients required i needed to sit there wait to see what was going to happen all right now it's bouncing up again if it goes up over 53 i'll be out but i need to sit there okay what's gonna happen is it gonna roll back over well and you know there's there's unknowns there but it was easy super easy to just sit through there be patient why because i was totally totally okay with the amount i was gonna lose if i was wrong and look like and i'm stopped out there so there we are made a hundred seven dollars and and then this is the voice that always shows up because it's showing up right now clay you idiot why don't you just do 500 shares if you had done 500 shares that number would be so much bigger and you'd have a you'd have such a cool youtube video right now clay and that's true had i gone bigger you're right that number would have been much bigger than what it was had but i only went 200 shares but you know what that's because i was right had i been wrong what would i be sitting here saying oh clay good thing you only did 200 shares good job buddy but that was not the uh that was you know that was not the plan going in and that right there is how you protect your profits you go in and you do you play a little defensive and you play defensive and if you're right like i was here you're gonna make money but not as much money but you got to remember you can't let that voice show up oh clay if you had just gone bigger size you would have made so much more money don't listen to that because you got to remember your game plan going in and you know my game plan i spent probably about seven minutes or so explaining that and that's everything that played out here so i mean it's just another nice hundred i mean and let's also be honest it's uh i got out of that trade at 9 42. so let's just call it 943 to make the math easy so 13 minutes i made 107 where in the world can you make even 100 per hour let alone 107 in 15 minutes so when you when you twist it like that yeah that's still a respectable gain but you know like i said it's the end of the month and i got a bunch of other stuff i want to do today so i just need to move on regardless but yeah as far as how to protect your profits whether that be at the end of a day and so for example right now if i want to keep on trading now how much can i lose well now i can lose what 300 right because if i could only lose 200 going in but now i'm up 100 we'll factor in commissions now i can if i wanted to keep trading at least now i know the most i could lose is 300 so there's all ways you could do it but you always gotta be asking yourself if i'm wrong how much is it gonna cost me and i'm am i okay with that amount so in terms of how do you protect your profits this is how you do it now before you go though a few things first off if you enjoy these live trade videos and especially if you like how i kind of built in a learning lesson at the beginning then a very quick easy way to communicate that to me just hit that like button or a comment down below even better even if it's just a thanks clay a thumbs up emoji a smiley emoji any comment comments and likes really go a long way because these live trade videos they're not the easiest to make i have to talk i have to make alerts in the chat room i have to you know think for myself i have to you know there's a lot going on so it's not it's totally doable it's just not easy but like i said if you you know enjoy these and want me to keep making them then just please communicate that to me and nothing drastic just either a like like or better yet the like comment combo even if the comment is just a thumbs up fantastic that goes a long way and then check out the rest of the channel lots of videos hopefully you decide to hit that subscribe button yeah this is how you protect your profits kind of go in with a negative attitude if i'm wrong how much am i going to lose and then from there as you saw you can adjust everything from that point forward but yeah hopefully this helps and uh hopefully you all had a great november so yeah i actually i mean this sounds kind of cocky but i i nailed it that was great i was right the thing rolled back over and then of course the voice that always shows up is oh clay you should have done a thousand shares you should have done 500 shares but remember what was the goal going in the goal was to trade safe the goal was to protect your profits so just because i mean yes in hindsight i should have done 10 000 shares that would have been fantastic but at the time when you don't have hindsight what if i was wrong which is a possibility which is a possibility for you nobody's ever going to be right all the time that's just not possible in the world of trading but when you are into this defensive mindset and you're looking to trade safe because again you understand that by trading safe that you are going to grow your account over the long haul by protecting profits then you know when that voice shows up it makes it easier to just say yeah i know i could have shoulda woulda but at the point when i was putting together the trade plan i didn't know that i was gonna be you know that right but this is how you are going to trade safe this is how you are going to grow your account over the long term is by acknowledging these numbers and that main number is the i want how much do you want and then from there as you see here everything will bleed together and it can lead you right to what your position size should be on any trade that you're about to make if you found this video helpful a couple things from me real quick first off quick quick easy way to communicate that you want me to keep making videos like this hit that like button better yet a quick little comment below even if it's just a thumbs up emoji a smiley face emoji little comments like that go a long way just saying yeah clay i'm enjoying these videos please keep making them also check out the channel as a whole there's a good variety of videos there's uh if you like the live trade section on of this video there's an entire playlist of all live trade videos so you can go watch more of those but hopefully you decide to ultimately hit that subscribe button as i would love to have you as a subscriber to the channel but yeah get out there go through this process trade safe and grow your account 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
2020-12-18 11:24
