How I Would Start Day Trading FAST As A Beginner (if i had to start over)

Name: How I Would Start Day Trading FAST As A Beginner (if i had to start over)
Uploaded: 2026-03-20T17:16:07.000Z
Duration: 1 h 38 min 48 s

Starting Day Trading from Scratch

Introduction to Day Trading

The speaker shares insights on starting day trading from scratch, emphasizing the importance of learning from experience over nine years in the market.

Many beginners complicate their approach by following numerous non-trading YouTubers and using excessive indicators, making it harder to succeed.

Day trading is not a quick path to wealth; it took the speaker three years to become profitable, but they aim to provide a faster blueprint for success.

Understanding Day Trading

Day trading involves buying or selling assets within short time frames, typically closing trades within hours rather than holding them long-term.

This method allows traders to profit regardless of market direction—whether prices rise or fall—unlike traditional investing strategies.

Myths About Day Trading

Common Misconceptions

One myth is that day trading is inherently difficult; while challenging, it's manageable with patience and understanding of patterns.

Another misconception is that day trading equates to gambling. In reality, successful trading involves having an edge and strategy rather than random chance.

Equipment Requirements

There's a belief that expensive equipment is necessary for day trading. However, basic devices like laptops or tablets with internet access are sufficient for effective trading.

While learning how to trade on smaller screens (like phones) can be tough initially, once proficient, traders can successfully use mobile devices for transactions.

Understanding Day Trading Myths and Markets

Debunking Common Myths About Day Trading

Many believe that a significant amount of money is required to start day trading, which is a misconception. The speaker emphasizes that one can begin with just a few hundred dollars.

It’s possible to trade with larger amounts of capital (e.g., $100,000 or $150,000) using other people's money while retaining a substantial portion of the profits.

Exploring Different Trading Markets

The speaker outlines various markets available for trading: stock market, crypto market, options market, futures market, and forex market.

The focus of this video will be on the futures market as it is deemed the best starting point for beginners due to its lower barrier to entry.

Transitioning Between Markets

The speaker shares personal experience transitioning from crypto to forex and then to futures trading, highlighting how foundational knowledge from one market aids in understanding others.

Emphasis is placed on mastering one market before diversifying into others; futures are recommended as an ideal starting point.

Importance of Trading Psychology

A critical aspect often overlooked by new traders is the psychology behind trading. This element accounts for about 80% of the challenges faced in trading.

Learning technical skills like reading charts is relatively easy compared to developing discipline and emotional control necessary for successful trading.

Common Pitfalls for Beginners

New traders frequently fail due to overtrading driven by emotions and lack of a structured plan. They may treat trading like gambling rather than a strategic endeavor.

Overtrading can lead to addiction-like behavior where traders seek the dopamine rush similar to gambling wins instead of focusing on consistent strategies.

Developing a Structured Trading Plan

To avoid common mistakes, having a clear plan is essential. This includes knowing when you will trade and what specific assets you will focus on.

A checklist should guide every trade decision—detailing risk management, entry/exit points—to prevent emotional interference during trades.

Trading Strategies and Risk Management

Importance of Focused Trading

Avoid trading multiple assets simultaneously; it hinders learning and can lead to confusion.

Always know your risk before entering a trade to prevent significant financial loss.

Treat trading as a business rather than a hobby for better discipline and accountability.

Accountability in Trading

The freedom in trading can be isolating; without external accountability, it's easy to stray from plans.

Encourage sharing your trading journey with friends or family for mutual support and accountability.

Having someone to discuss challenges with can accelerate the path to profitability.

Psychological Aspects of Trading

Building patience and discipline early on is crucial; neglecting psychology can lead to setbacks later.

Understanding psychological factors is essential for long-term success in trading.

Understanding Win Rates

Be cautious of win rate claims; they often come from small sample sizes that may not reflect true performance.

Probabilities become clearer only after executing a large number of trades, emphasizing the need for persistence.

Survival in Trading

To see accurate win rates, traders must survive through numerous trades without risking too much capital.

Remember: "You have to live to trade another day"—a mantra for maintaining longevity in trading.

Introduction to Contracts

Familiarize yourself with different tickers (assets like Bitcoin, Tesla); understanding these is key before diving into futures contracts.

Understanding Futures Trading Symbols

Key Futures Trading Symbols

The main symbols for trading futures include NQ, ES, YM, and GC. It's beneficial to keep a reference chart of these symbols for future use.

Each ticker has a smaller version prefixed with 'M' (e.g., MNQ for NQ). This indicates a reduced contract size requiring less capital to trade.

Capital Requirements for Trading

To open one trade on NQ, $1,000 is needed; however, the smaller version MNQ only requires $100.

For YM, the requirement is $500; MYM (the smaller version) only needs $50.

Tick Size and Movement

Tick size refers to the incremental movement of prices. For example, NQ moves in increments of 0.25 (e.g., from 100 to 100.25).

Each tick represents a specific dollar value depending on the symbol traded; for instance, one tick on NQ is worth $5.

Essential Platforms for Trading

Recommended Trading Platforms

Two essential websites are recommended: TradingView (for charting and planning trades) and Trade Abate (for executing trades).

Setting Up TradingView

After creating an account on TradingView, users should navigate to settings and billing to obtain real-time market data.

A suggested subscription is the CME Group bundle at approximately $7/month to avoid delayed candlestick data.

Navigating Charts in TradingView

Users can access charts by hovering over products and selecting "super charts." Initial setups may vary based on user customizations.

Candlesticks represent price movements within specified time frames; understanding their function is crucial for effective trading analysis.

Understanding Candlestick Charts and Trading Tools

Overview of Time Frames and Chart Types

The 1-hour, 4-hour, and daily time frames show price movements over their respective durations. The "D" symbol indicates the daily time frame.

The speaker emphasizes that while candlestick charts may seem confusing at first, they are straightforward once broken down properly.

Various chart types can be selected from a dropdown menu; however, candlestick charts are recommended for beginners due to their simplicity.

Indicators and Drawing Tools

Indicators act as supplementary tools rather than definitive solutions for trading success; the speaker prefers minimal use of indicators to keep charts clean.

Drawing tools on the left panel allow users to plan trades by marking patterns on charts. Commonly used tools include trend lines and Fibonacci retracements.

Users can create a favorites list for frequently used drawing tools by clicking the star button next to them.

Introduction to Candlesticks

A candlestick consists of two main parts: the body (the thicker part) and the wick (the thin line above or below).

Bullish candlesticks (green) indicate price increases, with the bottom of the body representing the opening price and the top indicating where it closed.

Detailed Explanation of Price Movements

In a bullish scenario, if a green candlestick appears at 10:00 on a 5-minute time frame, it shows where price opened at 10:00 and closed at 10:05 after fluctuating within that period.

Wicks illustrate price extremes during a given timeframe; they show both highest and lowest points reached within that period.

Bearish Candlesticks Explained

For bearish candlesticks (red), the open is at the top of the body while close is at the bottom, indicating a decrease in price over that timeframe.

Understanding Candlestick Patterns in Trading

Overview of Candlesticks

Candlesticks are visual representations of price movements, varying in shape and size. They can be analyzed across different time frames (e.g., 5-minute, hourly).

Each candlestick represents a specific time interval, showing the opening, closing, high, and low prices within that period.

A bearish candlestick indicates that the closing price is lower than the opening price; it reflects market sentiment during that timeframe.

The shapes and sizes of candlesticks tell a story about market behavior and can help predict future price movements.

Learning to Trade with Candlesticks

Understanding candlestick patterns is crucial for traders to interpret market data effectively.

The speaker introduces a simple trading strategy designed for both beginners and advanced traders.

Inner Circle Mentorship Program

The speaker offers personal mentorship through an "inner circle" program aimed at improving trading consistency and profitability.

Members have access to multiple profitable coaches who share their trades and provide educational resources.

A dedicated trading psychologist is available to address the mental aspects of trading, emphasizing its importance in achieving success.

Joining the Inner Circle

The inner circle provides tools and resources for serious traders looking to enhance their skills quickly with guidance from experienced professionals.

Interested individuals are encouraged to join by clicking a link provided in the video description.

Implementing a Simple Trading Strategy

London Breakout Strategy

The speaker outlines a four-step checklist for executing the London breakout strategy, which has proven effective for them.

Market Sessions Awareness

Different market sessions (London, New York, Asia) influence trading dynamics due to varying participation from banks and hedge funds.

Day traders typically do not move markets; instead, large financial institutions control significant price movements.

Understanding Trading Sessions and the London Breakout Strategy

The Importance of Trading Sessions

Bankers and hedge funds operate during specific trading hours, which vary by time zone. For example, the London session starts at 3:00 AM Central Standard Time (CST), aligning with New York's trading hours.

Events in one trading session often influence subsequent sessions. For instance, outcomes from the London session can impact the New York session and vice versa.

Recognizing these patterns is crucial for predicting market movements in upcoming sessions, forming the basis of various trading strategies.

Introduction to the London Breakout Strategy

The strategy focuses on price action between the start of the London session (4:00 AM Eastern Standard Time - EST) and just before the New York session begins (9:00 AM EST).

A visual aid called "kill zones" can be used to mark significant times on charts, helping traders identify when to focus their analysis.

Setting Up Your Chart

Traders are encouraged to use indicators like "kill zones" to visually represent when each trading session starts. This simplifies identifying key price levels.

Customization of indicator settings allows traders to tailor their charts for clarity, focusing only on essential information such as high and low points during sessions.

Identifying Key Price Levels

The first step in executing this strategy involves marking off the highest and lowest points during the London session using a rectangle tool on your chart.

After establishing these levels, traders wait for a breakout above or below these points once the New York session begins.

Executing Trades Based on Breakouts

Only one trade per day is taken based on whether there’s a breakout above or below London's high or low; no additional trades are made if both breakouts occur.

Upon a breakout after 9:00 AM EST, traders enter positions while placing stop losses below recent lows created prior to entry.

Understanding Market Movements

Price movements typically fluctuate between highs and lows rather than moving straight up or down. Recognizing these fluctuations helps in determining where to place stop losses effectively.

Emphasis is placed on identifying major lows rather than minor retracements for more reliable trade setups.

Trading Strategy Overview

Key Concepts of the Trading Strategy

The strategy involves setting a stop loss below the most recent low and targeting a 2:1 risk-to-reward ratio, meaning for every dollar risked, two dollars are gained if successful.

In trading with prop firms, risking a small amount (e.g., $500 on a $100,000 account) can yield significant returns ($1,000 per winning trade), emphasizing the importance of favorable risk-to-reward ratios.

The strategy is executed entirely on the one-minute time frame, allowing traders to mark highs and lows effectively without needing longer time frames.

Execution of Trades

After entering trades based on breakouts from marked London highs and lows, traders set their stop losses accordingly. For buy positions, this means placing it below the most recent low.

The process includes waiting for price action to confirm entries before executing trades; patience is crucial in identifying optimal entry points.

Backtesting and Practice

Traders are encouraged to backtest the strategy thoroughly before applying it in live accounts. This involves practicing drawing London highs/lows and testing various setups to gain confidence in execution.

Emphasis is placed on understanding how to manage trades effectively by practicing stop-loss placements and take-profit targets at a 2:1 ratio.

Understanding Prop Firms

Prop firms allow traders to use company capital (e.g., $100,000 account access for a fee like $500), enabling them to trade without risking personal funds while keeping a large percentage of profits (80%-90%).

Typically, traders must meet specific profit targets within these funded accounts as part of their trading challenge before they can withdraw earnings.

How to Succeed with Prop Trading Accounts

Understanding the Profit Challenge

To access a funded trading account, traders must first reach a profit target of $105,000 without incurring losses exceeding $2,000. Upon achieving this, they can withdraw profits from their actual trading account.

If successful in making $10,000 on a funded account (e.g., $100,000), traders can withdraw 80% or 90% of that amount based on the profit split agreement.

Risk Management and Capital Access

The primary financial risk is limited to the initial fee paid for the challenge (e.g., $500). Traders do not owe any additional funds if they incur losses while trading.

Utilizing prop accounts allows traders to leverage larger amounts of capital than they might have personally available, enhancing potential earnings without risking personal funds.

Choosing the Right Prop Firm

It’s crucial to select reputable prop firms as some may impose unrealistic rules that hinder success or fail to pay out profits after funding.

The speaker created their own firm, The Edge Funder, due to frustrations with unfair practices in existing firms and aims to provide reasonable rules for traders.

Unique Features of The Edge Funder

Unlike many prop firms requiring challenge phases, The Edge Funder offers instant funding upon purchase. Traders can withdraw profits immediately if they adhere to established rules.

Payout requests are processed quickly—typically within two hours—ensuring that traders receive their earnings promptly without unnecessary delays common in other firms.

Getting Started with Trading Strategies

Prop trading accounts significantly reduce out-of-pocket expenses while providing access to substantial capital. This setup makes it easier for traders to achieve monthly profit goals compared to smaller personal accounts.

For beginners or those new to trading strategies discussed in the video, backtesting is essential. A separate video on backtesting is recommended for further learning and understanding how it works.

New traders should practice using demo accounts before transitioning into live trading environments. This approach helps build confidence and skill without financial risk.

Getting Started with Trading: Key Insights

Importance of Preparation Before Trading

It's crucial to be comfortable with trading before considering a funded or live account. Beginners should backtest and practice on a demo account first.

Rushing into a funded or live account can lead to significant financial losses, as the speaker shares personal experience of losing $60K in two weeks due to overconfidence.

The speaker emphasizes the importance of letting initial luck pass and not assuming one is an expert after a few successful trades.

Learning from Experience

The speaker reflects on their journey, suggesting that many traders spend years learning through trial and error. They provide a roadmap for success based on their experiences.

Having sufficient capital is essential; even the best strategies won't work effectively if starting with minimal funds, as it increases risk significantly.