TECHNICAL ANALYSIS 3 Secrets That Saved My Trading Career... (And may save yours)

"by the end of this video you're going to know the four technical factors that I've seen work the best throughout my decade of trading experience"

"we're going to do is combine all four of these technical factors in order to create a strategy"

"these are the technical factors that work best and they are number one Trend number two major levels of structure number three chart patents and number four Candlestick patterns"

"we're actually going to build an entire strategy based around those four technical factors and we're going to use c-e-s-t in order to do that"

"number one on the list of technical factors for conditions for me is going to be Trend I'm going to look for Trend when trading this specific strategy every single time"

"for condition number one for me I would want to see price below the 50 EMA and price creating a new lower low so that would be condition number one"

"condition number two for me after trend is gonna be a major level of structure now I identify major levels of structure in a very specific way the major level of structure for me needs to be the latest level that was broken in this downtrend which is right here and it must be a level that's been tested multiple times"

"I'm actually ready to start looking for an entry reason now the two types of Entry reasons that I personally use for strategies like this are I like to use chart patterns or Candlestick patterns"

"for stops on this specific trade and with this specific strategy I like to do about one times the ATR indicator"

"I wanted to hold the second part of my position until we got to the next major structure level again that's a technical factor I use all the time for taking targets"

"if it gets hit around a 1.8 to 1 on the second part of the position"

"we have C conditions Trend and at a major level of structure as I've defined it we have e for an entry reason which is going to be either sharp patterns for a conservative approach or Candlestick patterns four a more aggressive approach then we have S which stands for our stop loss and for me that's going to be one ATR above the entry candle then we have t which stands for targets which is going to be at the next major level of structure"

"in this case I can give you a bonus technical factor that I love to use so let's do this again on the 15 minute chart but on this chart we're looking at this as more of a reversal we did actually get a double top here so again chart patterns here's my double top but what I want to show you on this chart though is a bonus tactical factor and that bonus technical factor is RSI Divergence"

"whenever I see RSI Divergence it is another technical factor that I will consider using for an extra condition with a strategy"

"technical analysis will never fix your mindset no matter how good you get at technical analysis no matter how good you are at analyzing a chart knowing technical analysis will never ever fix that space that's right above your eyes where hopefully your brain is right between your ears the mindset you have when you're trading your discipline your ability to stay disciplined to a strategy take discipline to a risk management plan your ability to keep from switching strategies to keep removing your stops and targets your mindset around trading will never be fixed with technical analysis but here's what will fits it good trading psychology and a good trading mindset is not something you're just born with it's not something that comes natural but it's something that you can learn and if you want to be a profitable Trader it's something you must learn"

"every profitable Trader including myself at some point was losing money due to having bad trading psychology and eventually they made the realization that trading psychology is just as or more important than the strategy that you trade"

"I was consistently switching strategies from one to the other on almost a daily or at best weekly basis I never stuck to any of the rules I had in place including where my stop loss was supposed to go if I started losing a trade I would just keep moving my stop loss down because I was terrified of actually losing money because I had a bad trading mindset I also would move my target up if I thought the market would keep going but what does that even mean I thought the market would keep going that's called trading based on emotions"

"trading is a way to build wealth over time and it can help you become wealthy it can but not as fast as most people think it can so understanding what trading is which is a way to get wealthy over a long period of time not a way to get rich super fast"

"it is really really really unlikely and nearly impossible for me to be making a hundred percent a week 100 a month would be wildly nearly impossible 100 a year now we're getting closer to something that's doable"

"my results over the past about eight months of 2023. as you can see we have about a 61 return and if we do the math on that 61 divided by it's not quite eight months but we'll go eight months it is seven point six percent per month if I multiply that by 12 and if everything continues as planned I'll make about 91 this year"

"back test your trading strategy in order to increase belief if you're trading a system or a strategy or God forbid you're just trading without a system and placing buy and sell orders based on emotions like I did at the beginning of my career you definitely got to stop doing that but if you're trading just based on strategy you've never tested you're just believing what somebody else said that taught it to you or you're just placing trades based on what you think may work and you've never tested it in historic data you're going have a really hard time sticking to that strategy"

"you must back test that strategy to see that it's at least worked in the past that's going to increase your belief which in turn will increase your discipline and help you with your mindset help you with your trading psychology the more you believe in this strategy the easier it's going to be for you to handle losses and for you to handle inevitable drawdowns when we're trading"

"trading not based on the fact that we know what the Market's going to do we're trading based on a statistic advantage that we have over a long period of time by trading a strategy that we've made or learned that's proven to give an edge through the back testing process"

"understanding and managing risk correctly so just understanding the risks involved in trading is the first part of that you need to know that you're going to have losses no matter how good you get at trading you could understand technical analysis like the back of your hand you could understand the strategy you're trading like the back of your hand and you will still have losing trades you will still go through drawdowns I've been trading for a decade I still have drawdowns"

"instead of risking ten percent per trade it's way better to manage risk correctly for me I risk between one and two percent of my account value"

"don't be expecting a thousand percent a week trading is not something where you you know exactly what the market is going to do and that's why you're a profitable Trader trading is having statistic advantage that plays out over time"

"back test your trading strategy take the rules you've created or learned for a trading strategy and look at them through historic data for at least 100 trades no matter how long it takes to find that 100 trades you want to do that so you can prove to yourself that it's a strategy worth trading so you can increase your belief"

"understand the risks involved in trading and manage those risks accordingly by applying a risk management plan that keeps you comfortable even during losing trades that keeps you comfortable even during periods of drawdown which are inevitable and will happen"