ARE YOU READY For What Day Trading Will Look Like in 2025?

"I'm going to share with you the changes that I'm expecting to see in the world of day trading over the next year and I'm going to walk you through step by step how you can optimize and adapt your strategy so you can capitalize on the opportunities that I'm expecting to see."

"and so in 2020 when I would sit down each day my daily routine has been essentially the same for my entire career but the time that I begin my routine has changed and this is an area where I had to evolve and where I expect to see continued changes in the market and so what I would do back in 2019 and in January for instance of 2020 just before we had this change I would sit down at around 9:00 a.m. I would sit down at 9:00 a.m. I would pull up my scanners and I would look to see which stocks were gapping up the most in the market"

"and so back in January of 2020 I would sit down at around 9:00 a.m. and I would see these stocks that were on the scanners except the volume column right here most of the stocks on the scan had volume kind of like this maybe 10,000 shares 15,000 shares there there was simply no volume at that time most Traders didn't even know that you could trade pre-market and if you could they didn't know how to because you had to actually go in and manually change your order type from regular trading hours to extended hours and so if you tried to place an order without changing the order setting your order would just get rejected and most people thought well it's because the market hasn't opened that's why I can't trade yet but then something happened so in 2020 in January"

"so in 2020 during the pandemic all of a sudden we were in the middle of a lockdown right everyone was had to be at home and everyone had to wear masks and da d d da and so a lot of people started trading they were watching the market and so when the bell would ring at 9:30 the stocks that were the leading percentage gainers that had a news Catalyst would get this surge of volume it was unbelievable"

"and then it became such a predictable pattern that some people decided I'm going to get in before the bell rings I'm going to get in at 925 because why I know it's going to happen so I'm going to get in early and I remember the first day it happened the first day it happened I was sitting here and I saw a stock that was already on my watch list I loved it and it started to pull away and I said if I don't get in here I'm going to miss it and so I punched the order and I was just like that trading pre-market I took I broke the ice and took my first trade pre-market and very quickly what happened was Traders realized you know if I'm going to start at 925 I might as well start at 920 might as well start at 915 might as well start at 910"

"so all of a sudden from 8:00 a.m. now the distribution of Trades is moving forward we go another couple weeks so how much was that in total so the first week was 12,000 the second was 23,000 okay so $23,000 and then we go we'll do the next um two weeks do the next two weeks here so it's increasing every two weeks right so now we're going to look at this again 30 minute now all of a sudden I have 58 trades premarket no 75 about 75 trades and this is $119,000 wow in two weeks"

"now imagine if I had chosen not to adapt my strategy I just would have missed out on all of that profit that profit would just be gone I wouldn't have captured it if we go through the rest of the year we'll go through um uh 20 December 31st so December 31st 2020 now all of a sudden this is a year where I have let's see 4 .5 million just from just from June to December that's a six-month window and look at the profit we go by 30 minute window all of a sudden boom there's almost a million dollars of profit pre-market"

"we're continuing to see at 9:30 at that opening bell the algorithms are turning on and those algorithms are making it more and more competitive to try to trade at the 9:30 opening bell until 4 P.M"

"what we're finding is that the cleanest moves are occurring the second the news comes out"

"so this stock right now chsn this is a Chinese stock I'm not in love with it I'm already familiar with the name I i' I've traded it before it's got a float of 3.7 million shares and here all of a sudden it's just surged from 290 up to 330 that's a 10% move in less than 10 minutes that's something to pay attention to"

"and so my first entry on these stocks typically is going to be right here that's my favorite setup now I've got other episodes where I talk specifically about this pattern because I love this pattern so much"

"and when that happens this blue line moves up very quickly relative to this Orange Line once they cross over for the first time right here that for me is usually the end of the move for the front side and that occurred right here"

"because most of these companies are putting out their news pre-market they don't put out their news at 10: a.m. now if companies did put out news at 10:00 a.m. then we would be sitting here at 10: a.m. trading them if they put out news always at 2 p.m. we'd be sitting here at 2 p.m. we're trading when the news is coming out"

"so it ended up happening on prtg was we actually had sort of two uh two moves we had the first initial move which occurred earlier than most Traders were able to trade it it was before 7 a.m. right so a lot of Traders it up and saw the stock and then we're eager to find an opportunity so once it started to move up here just a little bit I think all of the traders who missed the first part of this move here said you know what I'm getting in and I'm going to get in right here on this pullback because now we're starting to push higher and so in this particular instance the stock gave us two opportunities we had the first opportunity which one group of Traders took and then a second opportunity at a different time of day that the next group of Traders took"

"so we'll see the first move prior to 7 a.m. in which case most people or this is the 7 am window right around here which means most people don't trade it it gives them fomo and then once it starts to pull away a lot of people jump on"

"because if you're really going to be an active Trader most likely this is the window that you're going to be trading now this again is an example of an index which is not the type of stock that uh not something that we would be trading on a daily basis we're going to be more inclined to be trading um stocks that are small cap stocks that have some good volatility but even these we're seeing this very interesting Trend where you've got volatility sort of through this whole range this is that 4 a.m Spike right here so you got 4 a.m. Spike here but it's on relatively light volume"

"and for me right now that begins more or less at about 7:00 a.m. and then it's kind of dying down by by 10: a.m."

"so we'll do year to date right here so we'll do year to date sitting currently at just over 800,000 gross profit and you can see uh performance by hour of the day I'm doing the best up until 10:00 a.m. so it slows down and then I had some losses during Power Hour this year"

"I mean this was the one spot where there was where there was some momentum there and on this pullback right here like that was where we had some some clean action it got so crowded I think a lot of Traders are waiting until 9:30 because those are that's convenient for the tools they're using but then they're finding that they're just getting chopped out they're getting stopped out chopped out by the high frequency trading algorithms and they're not seeing the volatility that they're wanting"

"and there have been some periods like we had during the month for instance of June and July where we had so much volatility that it was it made a lot of sense to trade longer into the day so if we look at um let's see we'll go overview and then we'll do yeah we'll do by month so you could see here July and August I mean really incredible volatility and this was a time where you could get away with trading longer into the day but some of these earlier months in the year you couldn't get away with it you had your small window and if you push your luck you over stay your welcome you're going to go into the red"

"I think that as a as a brand new Trader as a beginner you want to practice in this in a simulator and trade as much as possible because you want to gain a lot of experience you want to get in you want to get out you want to get really good at reading the charts understanding the language of technical analysis knowing how to read level two tape reading you how to use your hotkeys how to make the most of the trading platform that you're using whatever it may be but then you're going to get to a point where you want to test yourself yourself to see whether or not you have what it takes to be longterm a profitable Trader and that's when you put on the guard rails"

"but then the blessing of the market is that once you're doing that consistently with a thousand shares what's stopping you from going up to 4,000 to 8,000 to 12,000 and next thing you know 20 cents a day is $2,000 a day that's half a million dollars a year"

"it's up here I actually have a great book for you that I'll show you here this is a book called trade mindfully by Gary Dayton so I'll put it here on the Whiteboard so you can see it better this is a book that's all about trading psychology and getting yourself into the head space of a successful Trader"

"you catch a big loss a huge loss you give back three weeks of profit and you feel deflated you feel like oh my gosh what am I going to do am I going to recover from this do I even know what I'm doing but what do you do you look at your metrix you go back you pull up your metrix and you say I am the trader who just did this this is what I'm capable of I know what I'm doing all I have to do is put the guard rails back on my account and go back to basics because most most likely that big loss that anomaly loss it was a result of straying a little outside your strategy"

"similar with trading you've got your core strategy you start expanding building others you go back to your core but now actually I've got that one but I've also got this other setup that really is pretty consistent now you've got two now you've got three now you've got four 10 years later you've got 10 and now this is where you get some real self-confidence"

"your success will depend on number one having a proven strategy and number two having the discipline to follow the rules and that that that's really where it's at"