Verified Trader: I Made $936,000 In 25 Days Following Only One Setup!

Trading Success: Insights from Kevin Desi

Introduction to Kevin Desi's Trading Journey

• Kevin Desi has achieved over $5 million in verified trading profits, with notable milestones including $900,000 earned in just 25 days and over $2 million in prop firm payouts.

• He emphasizes the importance of "if-then" statements in trading decisions, allowing for a structured approach to managing trades.

Understanding the Nature of Trading

• Desi compares trading to blackjack, highlighting that it is fundamentally a game of probabilities where losses are inevitable.

• He introduces his mechanical inversion setup on NASDAQ as the foundation of his successful trading strategy.

Key Lessons from Trading Experiences

• After experiencing a significant loss after a long winning streak, he learned the value of consistency over chasing large gains.

• Emphasizes taking smaller, consistent profits ($100-$200 daily), which can lead to substantial growth over time through compounding.

The Importance of Consistency and Patience

• Desi notes that traders often underestimate what they can achieve in a year while overestimating short-term potential.

• He discusses achieving nearly a 1:100 risk-to-reward ratio during his payout period by maintaining disciplined spending and strategic trade execution.

Evolution of His Trading Strategy

• Initially focused on small income boosts from trading, he gradually scaled up by leveraging multiple accounts across various prop firms.

• As more prop firms emerged, he recognized opportunities for larger payouts and began strategically managing multiple accounts simultaneously.

Achieving Significant Payout Milestones

• By mid-2023, he reached six figures in payouts from prop firms after transitioning into futures trading alongside options.

• Discusses mental adjustments required when managing numerous accounts and how losses could accumulate quickly across multiple positions.

Overcoming Setbacks and Learning Resilience

• Reflecting on his worst period before a major payout, he acknowledges how critical failures can serve as learning experiences rather than setbacks.

• After incurring significant losses shortly before a payout window, he quickly shifted focus back to future opportunities instead of dwelling on past mistakes.

Psychological Strategies for Successful Trading

• Desi shares insights into maintaining emotional detachment during trades by conducting regular self-check-ins throughout the day.

• He emphasizes understanding personal emotions related to trading outcomes and developing strategies to remain calm under pressure.

Risk Management and ROI Focused Approach

• His primary focus is on risk-to-reward ratios when evaluating trades within prop firms; ensuring that every dollar spent has potential for high returns.

• Highlights the necessity of treating prop firm investments like business expenses—spending money upfront with expectations for profitable returns.

Final Thoughts on Growth and Future Prospects

• Acknowledges that many traders fail to recognize the ongoing costs associated with evaluations but stresses that effective management leads to substantial profit margins.

Do Big Payouts Still Exist in Prop Trading?

The Current Landscape of Prop Trading

• The speaker believes that while big payouts are harder to achieve in 2026, they are still possible through live accounts with prop firms.

• Many traders mistakenly think they have complete freedom with live accounts and often overtrade immediately, leading to losses. Building a buffer is essential.

• Traders should approach live accounts positively, focusing on gradual growth over time rather than expecting immediate large returns.

Strategies for New Traders

• Starting with one account is recommended; gaining a payout can boost self-belief and confidence in trading.

• It's crucial to take baby steps and reinvest profits into more accounts while also trading a live account for experience.

• Consistent practice on a live account prepares traders for potential future changes in the prop firm landscape.

Understanding Your Edge in Trading

Defining Your Trading Style

• The speaker identifies as an ICT trader, emphasizing that their biggest edge lies in their mindset rather than just technical skills.

• They focus on aligning higher time frames with lower time frames before entering trades to avoid emotional damage from conflicting market signals.

Utilizing If/Then Statements

• Implementing "if/then" statements helps the speaker avoid unnecessary losses by maintaining clarity during trading sessions.

• Acknowledging that many traders struggle despite using similar strategies highlights the importance of individual execution and mental discipline.

Analyzing Market Conditions

Top Down Analysis Approach

• The speaker begins analysis at the monthly chart level, looking for fair value gaps or order blocks before moving down to weekly and daily charts.

• They prefer waiting for price action confirmation within established ranges instead of making impulsive trades based on initial movements.

Fair Value Gaps as Key Indicators

• Fair value gaps left behind during bullish trends are high-probability areas for retracement entries, guiding trade decisions based on market behavior.

Execution Strategy: Timing and Risk Management

Entry Points and Stop Loss Placement

• Stop losses are placed at recent lows created during reversal moves to protect against false breakouts while allowing room for price fluctuations.

Managing Profit Taking

• Locking in partial profits early (at 1:1.5 risk/reward ratios), even if it seems premature, aids psychological comfort and encourages holding onto winning trades longer.

What is the Difference Between Optimal Edge and Psychology in Trading?

Understanding Take Profit Strategies

• The speaker emphasizes that their take profit (TP) levels are not random but strategically placed at areas of liquidity, such as equal highs or fair value gaps.

• Aiming for a risk-reward ratio (RRR) around 1 to 1.5 indicates a target based on market confluence rather than fixed RRR.

• Taking trades with negative RRR is discouraged as it can lead to missed opportunities and poor trading conditions.

Trade Timing and Market Entry

• Entering trades late often results in lower probability outcomes; thus, timing is crucial for successful trading.

• Multiple levels of potential targets can create confusion; traders must be aware of psychological factors influencing their decisions.

Managing Trades During Trend Days

• Recognizing early signs of trend days helps traders hold positions longer without exiting prematurely.

• Once initial take profits are hit, the speaker trails stop losses to secure gains while allowing for further movement towards larger targets.

How to Adjust Stop Losses Effectively?

Trailing Stop Loss Strategy

• After hitting the first target, the speaker moves their stop loss to break even, ensuring no loss on the trade.

• On trend days, stop losses are adjusted based on fair value gaps observed on lower time frames.

Importance of Fair Value Gaps

• The speaker notes that respecting fair value gaps during trend days can lead to significant gains if managed correctly.

Psychological Aspects of Trading

Mental Resilience in Trading

• Holding onto winning trades requires mental discipline; securing partial profits helps mitigate emotional stress from potential reversals.

• The impact of being up significantly only to return to break-even highlights the importance of trailing stops in maintaining profitability.

Learning from Experience

• Successful traders often share similar strategies regarding trailing stops and managing emotions after substantial wins.

Risk Management Techniques

Evaluating Risk in Funded Accounts

• When risking an entire account during evaluations, it's essential not to over-leverage by using appropriate contract sizes relative to market conditions.

Consistency Over Time

• Building consistent small gains leads to larger cumulative profits over time; new traders should focus on steady growth rather than high-risk trades.

The Role of Emotions in Trading Decisions

Greed and Its Consequences

• Greed can lead traders astray; understanding personal limits helps avoid impulsive decisions that contradict long-term goals.

Maintaining Perspective

• The speaker reflects on how upbringing influences their approach toward trading psychology—staying balanced between highs and lows is key.

This structured summary captures critical insights from the transcript while providing timestamps for easy reference.

Understanding Inner Dialogue and Trading Psychology

The Role of Perspective in Relationships and Challenges

• The speaker reflects on the complexity of human relationships, emphasizing the importance of inner dialogue when interpreting others' actions.

• They highlight the significance of perspective, suggesting that taking a step back can help manage emotional responses to challenges.

Self-Talk as a Tool for Grounding

• The speaker draws parallels between their self-talk and that of top athletes like Cristiano Ronaldo, who use affirmations to boost confidence before critical moments.

• They describe personal rituals during trading, such as stepping away from charts to engage in activities like getting coffee, which helps them reset mentally.

Checking In with Oneself

• Emphasizing self-awareness, the speaker discusses how they assess their readiness to trade each day and prioritize mental well-being over forced participation.

• They express a commitment to supporting family members by ensuring they have opportunities for success, reinforcing the idea that personal growth extends beyond individual pursuits.

Balancing Life Beyond Trading

• The speaker shares new interests like boxing and morning coffee routines that provide joy outside trading, helping maintain balance in life.

• They stress that losses in trading are not catastrophic; rather, it's essential to move forward and focus on future opportunities.

Areas for Improvement in Trading Strategy

• The speaker identifies challenges with futures trading compared to options trading, particularly regarding entry precision and risk management.

• They reflect on their ambition versus contentment with current performance levels while considering whether they want to pursue more aggressive strategies.

Learning from Others in the Trading Community

• Mentioning influential figures in futures trading, the speaker expresses admiration for their success while contemplating steps needed to reach similar levels.

• Acknowledging ongoing struggles with decision-making under uncertainty, they recognize this as a source of losses and aim for improvement over time.

Strategies for New Traders Seeking Success

• The speaker advises those struggling to achieve payouts despite having an edge: size down your trades. This approach aids both risk management and psychological comfort.

• They emphasize patience in trading timelines; rushing can lead to mistakes. Building skills gradually is crucial for long-term success.

Conclusion

• The conversation wraps up with mutual appreciation for shared insights into trading psychology and practical advice.