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The Real Truth About Day Trading Nobody Tells You

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The Real Truth About Day Trading Nobody Tells You

hey hey what’s up my friend so in this video right you’ll discover the truth about day trading because let’s be honest right you’re watching this video right now because you want to day trade because of the freedom that you know it could present right you want to be trading by the beach trading by the pool the seaside sipping a little glass of you know pina colada whoo but let’s be honest down here right day trading is more than that right so that’s why in today’s video I want to share with you the truth about day trading so you don’t get caught with your pants down and also right provide with you practical tips and techniques that you can use right to to make sure you survive right in your day trading career so for example you’ll learn right the biggest reason why day traders fail and it’s nothing to do with your trading strategy or system you also learn why the environment is rigged against you and how you can actually level the playing field then we also talked about the real cost of day trading they know most traders you know most gurus will never tell you all this and more sounds good and here’s what I want you to do right now right hit the thumbs up button right and subscribe to my youtube channel the link is all below this way whenever I publish a new video you’ll always you know get up-to-date sounds good then let’s get started so the first thing that I want you to know is that number one the biggest reason reason why traders fail at day trading is not because of your trading system or strategy it’s because of your transaction costs let me prove it to you right with very simple math so you get my point right why transaction cost is such a critical component in day trading so let’s assume that you have a $5000 trading account right sir okay just simple hypothetical scenario let’s say every time you buy a buy it cost you $5 and every time you sell cost you another $5 so each transaction right it’s $10 per trip ok $10 per tree $10 per tree and let’s say you have an average of about two tweets per day okay and each month is twenty tweeting days a month so in other words right you each money you’re gonna take 40 treats so 40 treats multiplied by $10 per tray it’s gonna cost you right in total of about 400 dollars a month in transaction cost $400 a month okay so for her those are my let’s put things in perspective over here you have a $5000 trading account and you need $400 a month just to break even before I’ve been seeing a single cent of profit you must come up for her dollars because there’s your transaction cost and you put things in a relative terms that is equivalent to 8% and man written just to break even and you put them put that in a yearly term that’s a 72% written that you need to break even so before even you’re trading your head start you know that this year I need to make a minimum of 72 percent a year right 8 x 12 write x drove over here that’s why you can send me 2% to break even think about this are you able to consistently generate 72 percent a year probably not I don’t think so so what’s the solution to this so first and foremost very important is that you must get a low-cost broker there are numerous low-cost broker out there non-stop stockbrokers which are you know very low cost look into it don’t randomly start with any broker because transaction costs will be a huge huge impact right to your own trading results as a day trader so don’t think like this go with a low cost broker do a Google do research review right and find one this is very important it’s even more important in your trading system itself right maybe your system makes like 40 50 percent a year but if you’re gonna pay 72 percent in transaction costs you’re still gonna be a loser number two small trading account is this enough to trade for a living right again let’s say let’s do it with math let’s say this time round you up the ante you have a $10,000 trading account okay and I don’t know how much you need to leave a man right let’s say you need $2,000 to leave a man maybe a single you don’t really need much $2,000 – enough and putting things in perspective $2,000 a month on a $10,000 trading account debts 20% return a month okay and putting things in an early perspective you are looking at a written off 240 percent here so if you have a $10,000 trading account and you want to make 20 you want to make two passes a 2% sorry $2,000 a month they’re about you’re looking at a return of a 240 percent a year I think you know where I’m coming from right clearly a small trading account clearly a $10,000 trading account won’t cut it well there are two solutions to this number one don’t survive on $2,000 a month if you reduce it to surviving on $200 a month then hey that’s about 2% a month that might be doable okay excluding transaction costs first okay 2% a month right you can survive on $200 a month which is 2% of this $10,000 trading account then hey this might work out but I don’t think you can survive on $200 a month so what’s the solution start with a decent account size okay so I know this is a it’s a bummer but this is the truth right if you’re going to start with a $5000 $10000 trading account you can trade but don’t expect to earn a living from me a full-time living especially you need to have at least a decent account size to start off trading right minimum I would say $100,000 so if you make two or three percent of their a month that’s about – $3,000 a month okay so put things in perspective over here next your environment is against you what do I mean by there okay so when you are day trading when you’re trading for a living okay you can imagine that you know you you have certain expectations that you want to make per month let’s say for example you you want to make like you know $3,000 a month maybe to pay the bills to mortgage the house allowance for the kids whatsoever and you know that if you make 3% a month okay that would pretty much meet your needs so maybe if I heard Karen 3% a – all you need but here’s the thing right trading isn’t smooth sailing all the time right there its ups and downs market conditions change you’re going to add Rhoda and imagine that you are currently in the drawdown right now maybe that you know it’s the 15 of July and you’ve lost 3% of your trading account and right now and right you are holding on to a trait and that trait is about to be a loser as well so if that trait becomes a loser is you’re down four percent so can you imagine your top processor I know man I’m down three percent of man man Rainer and this Troy is not looking too good man what should I do maybe maybe I could widen my stop-loss if i widen my stop-loss I might not have to take the loss in the market if it reverse I might not have to take a losing trade on this or how about let me f reach into my losers if I ever came to my losers and the market doesn’t slide really I could make back everything and more no not to bet sounds good so can you see how the top process coming out there top process came about because your environment is against you you are in an environment where it’s it’s hard to drive right because of the circumstance you’re in you’re paying bills mortgages liabilities kids school whatsoever so what can you do about this my suggestion is this when you want to get involved in day trading you want to remove the need to make money syndrome write it what the top process that I share with you later on there there little you know person talking over here making money this man that’s the need to make money syndrome and you want to remove this and the way you remove this right is to set aside money right for your living expenses ideally 12 months so no matter what happens I read up this money you lose money next money lose you lose money it doesn’t matter because you really have money set aside right to pay the bills to pay whatever you need to pay so you can just focus entirely entirely on your trading so you don’t you know have real actions overloading like every Jing do you losers doubling down and stuff like that so this will help you alright setting mind your site to cover your living expenses your needs and whatsoever next you’re a slave to the market so I so forget about trading one two hours a day forget about trading you know by the pool all right by the seaside in whatsoever when you ought to do day trade it’s it’s a full time endeavor let me just break it down for you simply right there are three different stage to eat no more is the pre-market hours right so you’re not just gonna open your computer you know draw some light so the prices it support let’s buy right price it resistance cell no it doesn’t happen that way you’re gonna come in prepare and how do you prepare right first off right before the market opens right you have what we call the pre market hours so during the pre market hours you wanna be aware of the news that’s coming I want some high-impact coming news that might affect right the market you’re trading right you want to draw your levels right no the key levels do you want to be trading for this day I’m in support resistance your pivot points you know whatsoever then you want to develop a trip planned for the day like for example you know what is the current market structure if it’s trending higher I want to be you know buying dips you know in this market session market incineration I want to be by not buying high selling low maybe a support resistance if market is in a downtrend I want to be selling rallies so you can see that in the pre-market hours is where you prepare for your trading day here and conservatively right you need one to two hours for this to plan for your trading session and during market hours is where the market is open and you would have to be you know sitting in front of the screen and watching the market and you know see if there’s any trading opportunities you can set some alerts and stuff like that but it’s unlikely that you can get away from the desk for very long why is that so let’s say that you’re trading on a five minutes time frame right every five minutes a new candle is gonna paint so yeah for the four minutes and 59 seconds you can’t even run away play a game on ps3 you know we can go and go to the toilet drink some water my gonna be back and look how the next candle performs because that’s where it could be your entry trigger that could be your exit signal you’ve got to be doing some trade management I don’t know so you can see that the time frame that you’re trading the lower it is right the more glued to the screen you have to be unlike let’s say someone who’s trade off the daily timeframe every day every 24 hours only one candle it’s gonna be painted so you clearly right don’t have to be at the screen all day so you get my point okay and after the market hours you have the post market hours what is this alright so after your trading days done you don’t just pick it back Oh party time no all right you got a journal fritz and see what happened today right where where do you make money when you lose do you follow your trading plan okay screen capture the chart so you can little review them on the weekends or at the end of this session if you want to so you can see the post market I wasn’t going to do your so-called packing up alright and concluding your daily session right what you’ve been true to review and see how we can improve on things so post market I was again one two hours a day so if you add this up let’s say this one is one over this one is ten hours this one is one hour you’re looking at a minimum of 12 hours a day trading the markets Trump hours a day that’s a half the time that your week so for some of you creating might be a passion and hey please feel free to go ahead but for those of you I think you might Raynor I guess day trading is not really for me know what can I do well there are other trading methods out there like you know swing trading and position trading I won’t go into too much details but they pretty much trade-off the higher time frame if you wanna learn more you can go down to my website trading with friend or comment I covered this other training approach nix the real cost of day trading so here’s the thing right let’s say you are a profitable day trader and let’s say you make $40,000 a year day trading just an example so let me ask you a trick question how much did you make this year did you say $40,000 well that’s not quite the complete picture because you can’t just take me $40,000 at face value because if let’s say before day trading right you were working at a job earning $60,000 a year okay $60,000 a year and your previous job let’s call it previous job and now 40 okay a year let’s call it day trading your cost of day trading is $20,000 right there is your opportunity cost because you can be somewhere else working full-time making $20,000 more so there is the cost of day trading and I’ve never factored in there is a time factor whether you’re working longer hours or not and probably you are okay so this is the real cost of day trading the opportunity cost so how can you so-called reduce this opportunity cost number one right before you get involved in reading something for a really low paying job I’m just kidding the way you do it is you want to make it a must to grow your trading account so let’s see right the way you hit yeah uh let’s say the way you had it forty thousand dollars return for a year let’s say is from a 40 percent returned a year right that’s how you make a forty K forty percent a year let me make my life easier okay let’s say you consistently achieve right fifty percent a year from day trading okay so if you have a hundred K account fifty percent is fifty thousand dollars but if you have a two hundred k account then fifty percent is now a hundred thousand dollars and you have a five hundred k account net fifty percent is now two hundred and fifty thousand dollars so you get my point right is that if you want to overcome opportunity costs right make it a must to grow your trading account because the big money is made right through compounding not withdrawal if you constantly withdraw from your trading account account gets smaller and smaller and it’s very difficult to compound right it’s very difficult to to earn a healthy income from it so you’ve got to make it a mass to grow your trading account may be true you know working some part-time jobs may be true finding some external funding source investors I don’t rob a bank I’m just kidding and stuff like that so make it a must to grow your trading account okay so with that said right let’s do a quick recap to what we have covered so far I know the things are not very sexy right but this is the truth right and this is really what will you know get you started right on the right side of day trading or even to leave it right if you do you think this is not for you now more one trait if a low-cost broker you can see that how transaction cost place a huge impact right on your treaty number two start with a decent account size I recommend Ellie’s 100k number three set aside at least twelve months of living expenses number four be prepared right you spend hours in front of the screen right this isn’t you know let me take one hour a day go by the pool and enjoy life no doesn’t work that way and number five make it a must to grow your trading account right so this way try to let a power of compounding work for you and you can make more money in the long run sounds good they just what I want you to do right now if want to learn you know trading techniques that you can apply to day trading or intraday trading you can go down to my website over here okay trading with Rainer calm the link is on top over here and then scroll down this is this guide over here the ultimate guide to price action trading click this orange button right I’ll send it to your inbox for free right so this way you can learn how to better read the price section of the markets better time your entry set this works right whether it’s on a 5 minutes 15 minutes timeframe or the daily timeframe so if you are one thing to learn about day trading then hey this guy would help you as well so with that said I have come towards the end of this video I hope you enjoyed it right if you do hit that thumbs up button right and subscribe to my youtube channel the link is all below feedback comments let me know below and I’ll do my best to help so that’s it I wish you good luck and good trading I will talk to you soon you

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