How To Start Day Trading As A Beginner In 2026 (Full Course) [Fibonacci, Gaps, Zmiana Characteru]

In this video, I'm going to show you the exact learning path that I would follow to start my day trading career from the beginning if I was to start over knowing what I know now. Okay, I've been day trading full-time for about 7 years now. And before developing my entire process, my foundations that give me opportunities to make three, five, sometimes $10,000 in single sessions, I wasted years of my 20s [music] and thousands of dollars that I didn't need to spend. Had I have just had the information that I'm going to share with you today. So, I'm going to start off with core trading fundamentals to clear out any confusion and show you how to first look at trading [music] with simplicity. Then I'm going to show you the tools you're going to need to get started. We're going to get into trading psychology, which requires pretty much an entire brain rewire that most people never realize. I'm going to go into trading math, do a full technical [music] analysis crash course, and show you exactly how I analyze the markets, how to build and test your own systems to prove profitability. Then I'll show you the foundational models that I use every day to place my trades. Then at the end, we're going to take everything that I've showed you. I'm going to show you me applying it in real [music] time. So, you can basically follow along and have a consolidated learning path to starting your day trading career. Okay, so in this video, I'm going to sort of just talk as if you're my friend and I'm teaching you everything that I know about trading from my 9 years of doing this and 6 years of doing it full-time. And I think it's important to start by zooming out and looking at trading in its simplest form. It's really easy to get bogged down with information overload. There's a million different things online. Starting by understanding it in its simplest form is going to allow you to add when necessary but not over add and confuse yourself, which is what happens to most people who are starting out and most people in general. Okay, so to look at trading in its simplest form, we have to understand what we're looking at with the chart. When we're looking at a chart, what we're seeing is a visual representation of mass human psychology. Okay, so there's periods where the chart is moving down and there's periods where the chart is moving up. And all we're looking at is basically a battle between buyers and sellers to determine what a fair price is. And all that we're seeing with these moves are supply and demand imbalances. So, in this example where price is moving down, that means that there was more supply than demand until this level was hit where the buyers stepped in and the demand started to outweigh the supply to drive the price up until a major period where the supply started to outweigh the demand again and allowing the price to fall back down to those levels. All we're doing is basically seeking equilibrium and this is a representation of what people are willing to buy and sell for in real time. Okay, what we're trying to achieve as traders is basically figuring out positions on this chart where we can enter in with say, for this example, one unit of something that costs $100. So, we're purchasing something that's $100, allowing that to increase over time, and then later sell it for a higher valuation, which would mean that we're investing, in this example, that one unit $100, selling it for 110, and collecting 110 in profit. And the way we're going to do this is by figuring out, by doing analysis and finding patterns, areas where we have a high probability of being able to enter in, keep our risk contained, and then later sell that where we're able to make five, six X what we're risking if we're wrong. So, in order to explain exactly how day trading works, I want to use a chart here of the S&P 500. Now, this is the overall stock market and what we're looking at is a full year's worth of its data. Okay, so say we took $100 and we wanted to buy in at this price and we allow one year to pass. Now, you can see this year was really good. Sometimes it's 10%, sometimes it's 30%, sometimes it's negative. But, this past year, that's 26%, meaning that our $100 that we invested after waiting one year is now going to be worth $126. That's great if we're dealing with a large amount of capital and it's great for investing. But, as far as daily opportunities, it's not going to give us that much upside. And technically, on this position, our implied risk is the S&P 500 going all the way down to zero. In that case, our risk is called risking off of liquidation and our risk is our entire position of $100 here. So, we're risking $100 for upside of $126. So, our risk is at $100. Now, like I said, that's great, but to make $26 in the year isn't going to be something that's going to give us opportunities for daily income. Now, if we're looking at this same chart, but we zoom in instead of being on a weekly chart to a 1-minute chart, you'll see on an individual daily basis when the market opens, there's multiple opportunities to be able to position ourselves. But now, instead of waiting an entire year to make $26, we can put $100 worth of risk on to be able to have the potential, in this case, to make $527 of profit if we're able to pick areas where price is more likely to move up to this level before moving down to this level. But now, obviously, the question becomes figuring out these areas of opportunity. Okay, and as we zoom in on this process, the math becomes more and more important to be able to nail this properly. And obviously, we need to be able to figure out areas in the first place to be able to position ourselves to predict where the market is going to reverse and allow us to take advantage of these opportunities. Okay, but our jobs as traders is to be able to figure out these specific areas. And you can see, as an example, this is exactly what I do when I'm day trading. So, you can see, I enter a position here. I position myself so that I have more upside and my risk is contained. You can see I'm up 5,000, nearly 6,000, and then price shoots in my direction, and I'm able to figure out these very specific areas. Okay, and I'm not showing this to brag to you. I'm showing you that these are the opportunities at hand if we're able to master the skill and figure out how to execute this on a daily basis. And obviously, we don't have a crystal ball, but it's about putting ourselves in the right positions to allow this to play out. But before we get into that, first we need to go over all of the tools and softwares that you're going to need to start this process. So, first thing that you're going to need is TradingView, which is where we're going to be doing all of our charting and analysis. Okay, the second thing you're going to need is a broker or an exchange to actually be able to execute [music] these trades. Okay, when I'm trading crypto, I'm using either BlowFin here or Bybit. Okay, and for traders on the team that are trading stocks. Okay, a lot of us like to use Tradeify or Topstep to be able to get access to capital and be able to execute these trades. Okay, and the third thing that we're going to need is a trade journal to be able to document and record all of our trading information to be able to see our results over time. Okay, I'm going to share this one with you guys so you can follow along, but more on that later. Okay, so let's start off with TradingView. When you get to the homepage here, you're going to want to go to products and then you're going to want to click here on super chart. What this is going to do is pull up a basic chart. Okay, before we're looking at this chart in a line graph, we click on this button right here. We can click on candles and that's going to show us the same data, but just in candlestick form, which is going to be very, very helpful for us to be able to look at charts simply. Okay, when we're on TradingView, what this is allowing us to do is see this visual representation on any pair that we're looking to trade. Now, you can see if I click up into this button here, I'll be able to type in basically anything that I want to look at. Okay, so say I want to look at Solana. What this is going to show me is basically the price of Solana compared to the US dollar. So, as Solana's value increases compared to the dollar, we'll be able to see when the chart is increasing and when it decreases, we're also going to be able to see that visual representation of all of these instruments compared to the dollar or whatever currency that you're using. Okay, when we're looking at this chart, there's a lot of important information that we can pull out of this. But at first, it's important to understand what we're actually looking at when we're looking at these candlestick charts. Okay, so here's how we look at this data. Whenever we see a red candle, okay, this is showing us a few things. It's showing us the open price, the close price, and then the low and the high. Because price opened at this level and closed lower, this candle is going to be red. So, that's showing us a net decrease in movement with our highs and lows over that time frame. If we're looking at a green candle or a bullish candle, price opened here and closed higher, leaving us with a green candle and we still have our highs and lows being showed by these wicks right here. So, that's going to show us how price has moved over that period and we can study how this responds in order to dictate how we're going to place our trade. So, if you go up to TradingView, there's going to be a top menu right here where you can basically select any sort of time frame that you want to look at. So, on my chart right here, I have it so that each one of these candles is showing me 1 minute worth of price move. Okay, so if we look, this candle showed me the open and the close, considering it's a black candle, I have mine in black, that's showing me a bearish candle, and then it's showing me the low and the high over that period. In the opposite direction, we see our open, our close, our high, and our low right here. Okay, so we can see, if we take 1 hour worth of data, right, I'll have 60 candles at a 1 minute time frame right here. Again, if we look at the 15-minute chart, you can see we have 1 2 3 4 candles at 15 is 60 total minutes, but now we're looking at 15-minute candles as opposed to 60 1-minute candles. Okay, and I'm going to show you exactly how we can look at these simultaneously to be able to give us an advantage in the market. It's really, really cool. Okay, and the reason that this is important, and I'm going to go back to my live trade example here, is because we can find areas on a 15-minute chart that agree with our 1-minute chart to be able to give us double layers of confidence. If we're seeing the same things on a really zoomed-out perspective and a really zoomed-in perspective to allow us to play into the bigger picture, but be very, very accurate on our entry, which can allow us to make substantially more profit. Okay, I was targeting this area on my 15 and this on my 1, which both aligned, and you can see I was able to use that to make 5 6x what I was risking. Okay, so basically, we can take all of these pairs and all of these time frames. Okay, and say I want to build a list of things that I like to look at and trade all the time. We're going to go ahead and click on this button here on TradingView. We can click on this plus button here, and we can add basically anything that we want to trade on a continued basis into a watch list by clicking on this plus button. And now we can organize this so we can always have access to be able to quickly go and look at what we want to trade for the day. Okay, but before we can get into actually taking trades and looking at analysis, we need to fully understand trading psychology. Okay, and this is one of the most important parts that is usually glazed over by traders in the beginning, but without this, I promise you, it's going to be nearly impossible to be able to figure this out. If you're able to master this mental rewire that I'm going to explain to you right now, you're going to leave this video immediately better than like 90% of retail traders. Okay, so as human beings, we're designed a certain way that is actually the exact opposite way that we need to act while we're trading in order to be successful. Okay, and this explains why 90% of people struggle to become traders. As humans, we're predisposed to thinking that being wrong and losing money are things that need correctional changes. Means that something is wrong. Okay, and typically, whenever we're doing something that is making us money, we view this as good. But in trading, this is the exact opposite way [music] that you need to think about it. Whenever we're entering a trade, say we're entering a trade right here, only one of two things is going to happen. Either price is going to continue to move through our unit of risk, giving us -1 unit of risk, or price is going to move in our direction, giving us +4 units of R. Okay, the reason that we put this automatic line right here to be able to exit a position if we are wrong is already coming to terms and agreeing that we're fully comfortable and confident to be able to take a calculated loss. The reason we're taking calculated losses as traders is because the market is somewhat random. Even though we have reason to believe that the market is going to move in our direction, it is pre-built into any successful trading plan to account for those losses. long as we're following a simple strategy that we know it works and we're executing on that strategy, we're accounting for those losses to be able to give us the opportunity to have these wins. So, any loss should be considered opportunity cost. Okay, and the reason this is so important is because all we're trying to do is boil trading down into basically two simple data points. Say for entering a trade here, we have one unit of risk at our stop loss, and what we're trying to do is make, in this case, 1 2 3 4 units of gain for one unit of risk. Assuming we can pick an area where price is more likely to move in this direction before it moves in this direction. The way that we're doing that is by positioning ourselves so we can calculate exactly how much we want to risk every single time we take a trade so that our risk is always perfectly calculated, which is then going to allow everything to be very calculatable. So, if we're risking -1R, we can ensure this is going to be +4R. And say we want to risk $100. All we have to do is take the price we're entering at or the price that we want to buy at, say it's 85, subtract it by the stop-loss value, which say is 84. Okay, in this case, it's going to give us one. So, if we literally want to risk $100, we're taking the dollar amount we want to risk divided by $1, and that's going to give us the amount of units that we need to enter with in order to risk the same exact dollar amount. Okay, so let's take an exact example on the chart. Okay, so if we go back over to TradingView, say I wanted to buy in here at exactly 85. I want to set my risk. So, if price goes down to 84, I'm getting out. I can click and drag my take profit to be exactly four times what I want to risk. And you'll see if I double-click into this, I can literally input 100, and that's going to show me I need exact quantity of 100 units at this price to be able to buy in in at this price because if this moves down by $1 in price times 100 units, that's going to equal $100 worth of risk. So, this is extremely important because all we're trying to do in trading is figure out basically two key metrics. One, what percentage of the time are you winning versus losing? So, your winning percentage or your losing percentage, and how much money are you making when you're right versus when you're wrong. So, let's take this as an example. This ties back into trading psychology again, where people constantly think that they need to be right in order to be good traders. Trading has nothing to do with being right or wrong. In trading, you get paid to be profitable. You don't get paid to be right. And this is going to explain that exact scenario. So, let's take a scenario where we lose 70% of the trades that we take. Okay, so every time that we're entering in the market expecting for price to come up to this level before coming down to our stop-loss, 70% of the time we're wrong. On a surface level, people would think, "Oh, you're wrong, so that's inherently bad. That strategy doesn't work." Now, let me explain why that's the exact opposite way that you need to think. Okay, so let's take all of our losses and all of our wins. Okay, so over here we have 1 2 3 4 5 6 7 losses for a sum of -7R and an average loss of -1R. Once again, that's why it's so important to be able to calculate our position sizing extremely precisely because without that, all of these metrics that we're going over in order to make it calculatable based off of the winning percentage in the average risk-reward is completely thrown out the window if we start changing the amount that we're entering on trades with arbitrarily. So, this is going to give us a loss rate of 70%. Now, let's go over to our winners here. You can see, we have 1 2 3 winners. Say we have 5.2R on one winner, 2.5R and 3.1 on the other. So, that's going to give us a sum total of 10.8R. Once again, when I'm talking about R, I'm talking about the risk we're putting on the table in the multiples of how much we're able to make in reward if we're right about the directional bias of the trade. These are my positive risk units, these are my negative risk units. This is going to give us a sum total of 10.8 positive risk factors. Our average amount of R on our winners in the winning percentage of 30. Okay, so if we take our 10.8 over 10 trades, subtract it by 7R, that's going to leave us with positive 3.8R. So, if we're risking $100 on the trade, that means that that's going to be 100 * our 3.8R and it's going to leave us up $380 in profit being wrong 70% of the time. One piece of advice that I will give to you is don't tell people when you start trading. Don't talk about it with people who don't understand trading cuz if you come into a session and say, "Oh, you know, I lost money today. I lost few trades and I lost $200." They're going to be like, "What happened? What can you do differently? How can you improve for next time?" And the truth of the matter is, sometimes there is zero things to improve. Sometimes you just need to understand to trust that process. You need to trust that your strategy actually works, which makes it so that having a good, simple, profitable system is super important. We're going to get into that in a second. But, to also understand that losing money is not inherently bad. Being wrong is not bad. And if you make money on a trade by doing something really stupid, they can compromise you losing a bunch of money, but it ends up making you money. All you're going to do is reinforce bad habits. But, people in the outside world are going to tell you everything's great. That's amazing. You made a lot of money on a trade. Keep doing that. So, it's a literally the game I just showed you. It has nothing to do with how you feel about winning trades or anything to do with ego about being right. That is how you rewire your mind for trading. Okay, so now let's get into actually analyzing charts. And I'm going to show you exactly, very simply, how I start to find patterns and start to put ourselves in high-probability situations by looking at price action. And I'm going to start really simple, and then I'm going to continue to go advanced. So, throughout this process, it should make sense to you even if you're a beginner, but we are going to go into some more advanced topics. And I'm going to show you how I'm actually able to pick these really key areas and set myself up so I can set my risk at a fixed amount, but I'm able to predict large market moves. Say I'm starting on a 5-minute chart. And all we're looking at is our candlesticks. The first thing that I want to do is understand something called market structure. And the first element of understanding market structure is simply to look at trend levels. Okay, so what a trend is is basically when price is generally moving in one direction or the other, whether that's up or down. Okay, and there's a few unique identifying factors that we can use to determine whether the price is generally moving up or down. And if we can determine price is generally moving up, we tend to want to take trades in that direction. And if price is generally moving down, we don't want to fight that trend, and we want to go in that direction. Okay, and so what I can do is click on this tool right here. Immediately, I can start identifying high points and low points of price that is generally moving in an up direction. You'll see price is generally moving down here and up over here. Okay, and I can go ahead and click on this trend line tool here. And all I'm doing is clicking off of this lowest point here of price that is generally moving in an up direction. Okay, and all I want to do is draw a line here that comes in contact with as many of these low levels as I possibly can get. can right click on this and click on clone and then move this one up to that high period and see where the top part of my range is. Okay, this is basically showing me now the upper and lower portions of this move. And it's going to give me a lot of information the further that we analyze this. Okay, but the most important part to understand about these trend levels is it basically what it's showing us is these visual levels of where these supply and demand levels are. Price is pushing down to this area, pushing up, coming down to this area where the demand continues to outweigh the supply. Where the buyers continually start to outweigh the sellers. Okay, so here buyers win, here sellers start to win, here the buyers are holding this key level. Okay, supply starts to outweigh demand here. Price comes back down to test this level again, attempts to push higher than this level, but instead comes back down to test it again, and then eventually starts to break below that value. These trend areas are going to show us a few things. First off, if we can figure out where price has responded off of before, we can start to anticipate and build positions off of these low levels. Okay, so that even if we are wrong and price ends up moving lower through that level, we're still putting ourselves in a position where if we are right and demand continues to outweigh supply where it has before, we now are in an opportunity to play all the way up to the top of the range and potentially make eight times what we're risking if we're wrong. Okay, additionally, if price is generally trending up right here, and then all of a sudden price drops below these levels, whenever price comes up to contact that on the opposite side is usually a high impact area for a high probability of price to come up contact that level and then continue moving down in an opposite direction range. So you can see once again if we could position ourselves up here, this is the last point that price went before making a continuation all the way in the opposite direction. So this is going to allow us to be able to get in mid-trend and start to position ourselves in higher conviction areas to go in our direction. Okay, so I'm going to go a step deeper now into analyzing the way price moves in trend. So in order to establish an uptrend, we need to figure out where the previous downtrend was. Okay, so whenever we're looking at trends, here is really what we want to focus on. If price is generally moving say in a direction like this, okay, this is once again forming that uptrend. We have a few unique identifiers which is going to show us how this market is structured. Okay, in order for us to technically have an uptrend, we need to have a push up, a low, a higher high, and a higher low, and then we need something called of structure. Now whenever I say break of structure, that means that price has made a secondary low and pushed up over that secondary high and that's confirming that we have a higher high, higher low, higher high, higher low. That's confirming an uptrend. Now say price now makes a move down to this low level again, but instead of continuing to move up through this high, it now pushes through this level. I'm going to take the last confirmed higher low with a confirmed break of structure and this is going to be something called a change of character. Now the change of character is showing us that we're no longer holding this level and no longer breaking to fresh highs with new breaks of structure and this is our first sign of weakness saying that we could potentially be at the very beginning of a new trend that is now broken below these levels, can come up and then continue to do the same thing in the opposite direction. Now creating bearish breaks of structure to the downside. Okay, and this becomes very important because this is going to allow us to look at charts relatively quickly and understand whether we're in an uptrend or a downtrend and it's going to allow us to time entries a lot better. So, let's take an example here. If I'm looking at this chart, I'm seeing that price is generally moving down. You can see before price was moving up here, but instead of breaking over that new high, you can see we almost broke over that new high and started to close, but then broke below this level. That's confirming a change of character. We get a push down, push up. That's a break of structure to the downside. Pull up, break of structure to the downside. Now, we get a push down, a push up, a final low here. So, that's my bearish break of structure until we get this move right here, which you can see closed above this previous swing point before our low. And what this is telling me, if we get a candle close here, is this is the exact point where we're getting our change of character. Okay, so like I said before in our example, the first potential area where the trend could be showing indications of reversals, which tells us this level could be the last push if we are going to make a move in the opposite direction or have a bullish uptrend that this low level is important and that we're potentially in the beginning of a new uptrend. Now, as price starts to trade back into this area, it becomes very obvious to us that it's either price is going to break below this level or we're going to establish a brand new uptrend. Okay, in which case we can start to set ourselves up to be able to risk underneath that low, but if it does create a new trend in the new direction, we can make four times what we're risking. I'm going to go a little bit deeper now. That's generally how I'm reading the visuals in the market. Now, the next tool that I want to talk about is something called the Fibonacci sequence. Okay, and the Fibonacci sequence is a ratio that is naturally occurring. We can see it in seashells, trees, nature, facial symmetry. This is basically how the universe is coded and we can actually see this showing up in tendencies in mass human psychology. People tend to do it, institutions, the way price tends to move tends to follow this key ratio. So, this is exactly how it works. So, say we have a point where price is moving up like this. What we want to do is we want to go over to this tool right here and click on Fibonacci retracement and then we're going to click on the beginning of our trend and put this up to the highest point. So, we're going to cover the entire range. Now, you're going to see these numerical values here. We're going to see 78.6, 61.8, 50 level, 38.2, 23.6. What we really want to focus most of our attention on is this green level right here. That's going to be the 61.8. This is considered the golden ratio. Now, typically what will happen is if price is going to continue to move in a direction, if it pulls down and comes in contact with this area, there's a high probability, if there's going to be a continuation, the price is going to come back down to this area, complete a full retracement and then continue moving in that direction. So, let's go back over to our chart here and take an example look here. So, we have our confirmed change of character over this level. So, let's take our Fibonacci tool, go from this low to the high that is produced and you'll see that's exactly where price pulls at its lowest level, also coming in line with this area that wasn't broken before. So, the demand was outweighing the supply here. So, if we wanted to say we want to position right here, now this can allow us to be even more precise on how we're positioning ourselves because we're seeing the price is coming in contact with this low level. Let's take a look at this working again. So, let's say we wanted to trade in the opposite direction, okay? So, we have our break of structure here, small break of structures up here and then a push and then we notice price fails to break over this level. Okay, as price trades back down to this level that was previously contacted, you see this is where we get an aggressive push below and a push down. So, if we take our fib from this swing point down to this exact point over here, you'll see this is the exact point that price came back up to into that golden ratio again from this entire range, also into the opposite side of where the buyers used to be beating the sellers or the demand was outweighing the supply broke below it and now the supply here outweigh the demand right at that 61.8 area again allowing us to more precisely be able to enter and play to the downside. Okay, so this fib you can see examples of this literally happening everywhere. What I like to keep in mind while I'm using my fib and to find areas where it's going to be very impactful to use them. What I want to see is if the price leading into that direction on that range is responding off of these key levels. If price is responding on its way up, there's a higher probability that price is going to respond on the way down and allow us to capture off of these moves. If we're disrespecting it on the front end, I don't really expect it to be able to respond to it on the opposite side. But if it's working in harmony with these levels, these are good pullback areas that we can match up with other pieces of analysis to be able to assist us in finding good areas to trade. Okay, the next piece of technical analysis that I want to share with you guys is using something called the Inevitable Pro Plus. Now this is an indicator that we built uses something called a cloud highlight RSI. Now an RSI stands for relative strength index and you can see on this indicator when price is in these big drawdowns, we start to see red highlights. Okay, when price is generally in these overbought territories, this is where we're going to start to see these green highlights. So you can see we had a green highlight at the very peak of this price action. This isn't going to be some sort of magical indicator, but what it does do is allows me to check to see where we generally are with price and if we are, like we can see right here, in a generally oversold area to get a little bit of a boost in the opposite direction. You can see as price is at its low here, we're highlighting it red and anytime it's relatively overvalued, it's going to be highlighted in green. It's going to be a layer of extra evidence to be able to put me in generally good areas. If you want access to this or any of the other indicators that I use, okay, that and a bunch of other resources are in the description. Okay, so the next thing that I like to look at with my chart is something called a fair value gap. What a fair value gap is is a sequence of three candles where the high wick of the first candle does not overlap with the low wick of the third candle. And what it does is leaves behind an area here, which we're going to call a fair value gap. All right, in this case, this is a bullish fair value gap where we have three bullish candles here and we'll notice this is typically where price will pull back into before continuing to make an expansive move the upside. Same thing in the opposite direction. If we have one, two, three candles moving generally down, if we take the first wick and the third wick, this is where price tends to move up into into the midpoint or the 50% of this move before continuing to move in the opposite direction. Okay, so if we go back to our example from before, there's lots of gaps in this price action, but we're not exactly sure which gaps we need to be closely paying attention to. Okay, we can see there's a gap here if it aligns with my other general analysis. So, take this as an example, we have our change of character level here, we have our trend break here, we have a change of character where we're closing lower than this previous level. We also notice that price significantly pushes through this area and leaves behind a gap right here. Okay, we have a smaller gap, which if we zoom in right here, was produced and you'll see that was the last area before price took a massive sell-off. We take this gap from this three candle sequence and the candle that pushed directly through that level, price came up to this midpoint, aligned perfectly with the 61.8 level and on the opposite side of this trend level, and this was the last area that it pushed before making a substantial move to the downside. Okay, so these are the building blocks that I'm using to be able to put into data-tested strategies to be able to take what seems to be completely random data and random information and we can start to very quickly filter out all of the noise and put ourselves into high-probability situations to be able to enter the market, keep our risk contained and allow our wins to be open-ended. Okay, but in order to do this, we need to build an exact strategy and then and able to test it to effectively build a trading strategy and build trading into a trading model. Okay, so that's what we're going to get into now. Here's exactly how I've been able to build my trading into a business model and exactly how you can start and build an actual game plan for yourself to test it to have proof of concept instead of just jumping into the markets trying to do things randomly, which is what most people make a mistake on. Okay, so the first thing that we're doing is finding a trading strategy concept and how we're going to do this is by literally just looking at the chart and looking for observations of things that tend to happen. Okay, so if we go back to our example over here, we can basically conclude that if we get a change of character, a push down, price coming back into a trend level, into our 61.8 level, and into a fair value gap, this has a high probability for us to be able to set our risk up and get five times what we're risking. Okay, and I'm just scratching the surface of general technical analysis. I have an amazing video going over not only TradingView, but also how to do a bunch of different technical analysis. I'm going to link that at the end of the video so you can dive in a little bit deeper. So, the first step is literally just to observe what is happening in the market. Okay, the second thing that we're going to do is actually define exact rules that we're going to follow. So, observation is the creativity phase. The second thing is defining rules, 1 2 3 4 etc. rules that we're actually only going to enter the market if these things line up. Now, it's very important to start fairly simply because the more variables that you add into this, the more difficult it's going to be to collect the data and observe it and then to be able to determine what is actually leading to the success or not of the trades. Okay, and what this is going to allow us to do is basically pull up our chart on the left side, pull up our trade journal on the right side, and go through scenarios in the market that fit our criteria. Okay, so on TradingView, you can go to this top part right here, click on this bar replay button, click on this menu and select bar, and you can literally click and drag and rewind the price and then use this play button to play the bars forward to be able to make decisions of what you would do in real time. Okay, so as the market is developing. So in our situation, if we're just waiting for a change of character, waiting for a fib level in our fair value gap. Okay, here we're getting our change of character. I can immediately set up my Fibonacci level, add in my fair value gap level, and then set up my take profit value, play it forward to see how the trade plays out, and then basically I can input the exact date. Okay, so this was the 14th day of the week, what I was trading, the strategy that I'm testing, you can add your own, the time frame that you're trading on, whether it was a long or a short position, whether it was a win or a loss. In this case was a win, and the P&L that you would have made on this trade. So, we click into here and set our risk at a 100. So, if I set up my position so that I'm risking a $100, this trade would be $500 in profit. Okay, so say we play this forward. Okay, I wait for my next change of character level. I have my fair value gap here and my 61.8 and my golden ratio level. So, I set up my position, can put in my next trade here. Okay, and say we have a loss in here as well. So, say we lose $125. This is going to now show us our winning percentage here, as well as all the money we've made over a certain amount of testing. We can click into this sum value here, click on more options in average, and that's going to show us our average profit. If I can click on this filter and click on wins are checked. And so, that way when we go into averages, it's going to show me how much money I'm making on my average winning trades. If I want to uncheck this, it's going to show me my total average of all of my trades, whether it's a win or a loss. And this is going to allow you to get your winning percentage and your average risk reward. Okay, so we've identified a strategy with observation, we've set up rules and defined them, and then we've evaluated the outcome and figured out our winning percentage and our average win and loss size. Okay, and all we're trying to do with this process is basically make it so that we're on the green side of this table. So, in that case [music] of our strategy, our average position size was 5 to 1. Technically, we had a 100% win rate, but if we were to do that over enough data, all we would have to do is be able to find situations where two out of 10 times we're able to find that exact scenario and that's going to put us into a profitable state. If we can get even better at it and we can do it 30% of the time by improving our analysis, that is going to put us at a highly profitable state and that's going to allow us to move to the next stage. But anyone starting off with trading who's not doing this process first and is jumping into live markets is going to be wasting their time. You want to have the proof of concept first. Trading is the only business that you can really come into and be able to have full proof of concept without putting any money into the market. Okay, so this is step one of the process. Here is the next steps to actually start with no money and get to the point of trading with a live account. So first thing that you want to do is observe on chart to find the idea. Okay, we replayed it and put all of the information into our journal. When you're ideating, you don't need to replay, you just want to look for stuff, see what happens with all of the indicators and processes that you're adding to your chart and see if that's going to give you a positive outcome over time. I would say 30 to 40 trades over a few months is going to give you a pretty good idea of how you can expect that trading strategy to work over the long term. Next thing that you're going to do is go in and actually paper trade this strategy by executing it with simulated capital on a real exchange. Okay, so keep in mind this process is going to be diminishing over time. Meaning that each time you go through one of these stages, the profitability is going to continue to drop, but the goal is to be able to start with such a good concept that by the time you get through actually executing it and then bringing it to a live account, you're still well in the profitable stage to be able to trade and deploy this with real capital. Okay, so let's take this next trade that we would be taking as an example. So we have a break, a change of character, our fair value gap, we set up our Fibonacci level. Okay, price is coming up. Let's say we wanted to actually execute this trade. Okay, so if this is on Solana, I'm going to click into my pair here on BlowFin, click on Solana USDT, right? So that's Solana against the dollar like we said. We're We're to click on this button right here, click on where we want our entry, where we want to set our risk, where we want our take profit. Okay, I'm going to double click into this and click on $100 worth of risk. That's going to give me 344 units that I need to enter it. So, I'm going to go in, add the entry price, which you can see is 9158, and I'm going to type in 344 units. And you're going to see underneath here, we have a cost. Technically, this position is going to cost $31,500. Now, unless you have $31,000 in your account to risk $100 on a trade, this isn't really going to be feasible. So, if we go up to this button right here, you'll see we can actually adjust the amount of leverage. Now, if I go up to 100, click on that 100, that is dividing the actual capital requirement of the position by 10, which is now requiring only 3150. If I go up to say something like 50, now the cost of this position is only $630. So, I can go in, click on my take profit, 9031, 9187, and you'll see I'm inputting these exact values, and that's going to give me $100 almost exactly of risk and the probable [music] outcome of this trade being that $500 amount. Then, considering we want price to go down, I would click on the short button here, and that would allow me to be able to capitalize on this trade, play it to the downside, and then all I'm doing is entering this data into my trade journal. Okay, and I'm only scratching the surface of what we can do with trading strategies and common TA. While keeping it fair to the private side of the trading team, I can't get into every single thing that I'm doing day-to-day while I'm trading, but I wanted to be able to show you analysis and show you things that you can start using to get a base level of profitability, see the proof of concept, and start off your trading. But, you can see as an example of a trade that I was taking, I'm finding the trend that we're currently playing into. I'm looking at fair value gaps, all of these things that I started sharing with you guys. I added this proprietary indicator here on my chart, which is indicating a buy level, so that's exactly where I bought in. You can see I'm in my position right here, and then I was able to trail this up for for much the entire session. Okay, you can see him up 5,000 over here. I've already locked in 3,000, and then I close out my entire position. Again, the goal with trading is to be able to find multiple opportunities to do this during the day. Follow the systematized report what works for you, and then be able to add capital to it over time. Okay, but I really wanted to make this video to show you exactly how I wish I started to hopefully be able to expedite your guys' journey and give you an opportunity to join a team if you want to take it to the next level. You can check out these videos as promised right here. Make sure you hit the like button and subscribe to the channel if you like trading and investing. Resources are all in the description, but until next time, guys, I will see you all in the next video.