Daytrading From Scratch

Habits First!

Markets often allure individuals as they tempt with the prospect of quick gains. Leveraging, coupled with significant volatility, makes the endeavor seemingly very profitable. However, it usually becomes apparent quite quickly that day trading isn’t a path to success, but rather a route to dramatic failure.

The issue is, individuals who experience this repeatedly tend to blame the lack of an effective strategy for their failures. At the same time, they overlook fundamental issues that remain unresolved, which pertain not so much to technique but to their mindset and discipline.

Cutting profits short, holding onto losses, or over-leveraging are not merely symptoms of a lack of plan but often manifest the absence of the right habits, which are hard to cultivate outside the trading arena. Unfortunately, this stage cannot be bypassed by reading books or attending lectures. The only way forward is through repetition and practice.

Small Steps

Certainly, even the best habits cannot be developed if we continuously employ strategies that never yield profits. Similarly, we won’t suddenly appreciate the virtue of patience in trading if we start by attempting to hold positions in profit for many hours or days.

It’s essential to begin with small steps, with the aim not only to prove to oneself the ability to stick to a plan, but more importantly, to reveal the truth about the market and the reality of what trading is – especially day trading. It’s nothing more than capitalizing on a slight statistical advantage, which, with the right habits, can yield profits over a sufficiently large number of repetitions.

So what’s the plan?

My proposal, aiming to fulfill the above criteria of instilling good habits while potentially earning, involves minimizing screen time to maximize the focus needed for strategy execution. Additionally, the strategy itself must be as simple as possible, active for a few minutes (no more than 5) at a consistent, specified time during the trading session.

I emphasize that the primary goal here is not to realize financial dreams of freedom and such fantasies. The objective is to lay a foundation for further development as a day trader and to make some money along the way.

The Challange Strategy

The strategy I recommend starting with is tailored for those ready to throw in the towel, as well as those who believe they are on the right track – consider this as a challenge. Give it some time, it’s hard to lose money so the risk is minimal, especially if you utilize prop trading futures, which I will also touch upon in the video material (I have no affiliation with prop firms).

The necessary indicators will be available for free on TradingView or Sierra, but essentially they can be replicated anywhere. In the video material, I will explain the rules in detail, which as mentioned earlier are simple, yet in this case sufficiently effective.

Below you can take a look at automated system designed to backtest ground rules of the strategy in TradingView. Yes, you will get the source code so you can always compare your performance to benchmark. 

Note, this strategy is trading only 2 minutes at specific time of RTH session!

Additional Content

Simple Orderflow Techniques That Work.

Order flow techniques have grown into myths over recent years, but the truth is, they are really simple matters, simple as long as they are clearly explained. In this part, I will strive to introduce you to a basic and my favorite order flow technique, absorption. 

The Real Secret to Market Profile

Certainly, it sounds clickbaity but it would be beneficial if people could finally overcome their fear of Market Profile, which is a brilliant way to look at market supply and demand. The key or secret, in my belief, lies in the repeatability of the Market Profile analysis process. The market can only be in two states, value or seeking new value. It seems simple, yet it appears that the number of Market Profile users equals the number of interpretations.

The truth is, Market Profile is a straightforward technique. Of course, if one wishes to introduce an endless amount of nuances, they are welcome to do so, but the core essence of this market analysis method remains unchanged and clear.

In this additional segment, I will show you once and for all how to step-by-step analyze any market using Market Profile, precisely pinpoint the Value, and indicate the best entry points into the market, with no unnecessary fluff. And no, it’s not about POC or VAH/VAL you see on your profile chart. The best part is, it won’t take a multi-hour course but rather a few minutes at most of my anemic explanation – it’s worth watching at x1.5 speed 😉

In conclusion, a remark, or rather an observation. Online, one can find literally hundreds of elaborations on this topic. Most of them are repetitions of the same content, or snippets from Steidlmayer or Dalton. While I recognize that one can find many valuable details in these authors’ works, I haven’t come across the approach I will present here in any publication.

As you have probably noticed by now, I strive to only publish content that you won’t find anywhere else, and that represents my original ideas.

What’s included:

  • Tutorial videos
  • TradingView and Sierrachart studies and templates
  • TradingView Strategy Source Code

*Complete set of materials will be released in October 2023

Autumn Alpha Drop