With so much day trading information and fake gurus out there, it can be extremely confusing and frustrating when searching for a real guide on how to day trade for a living.
I’ve pretty much heard it all from trading gurus.
From day trading on the beach, to day trading on an airplane. If you see anyone promoting this, RUN. They are trying to sell you on the lifestyle and are not looking to actually teach you anything.
Luckily for you, I too was once a victim of terrible trading education and fake dreams. I spent over $5000 on day trading education and chat rooms, while learning absolutely NOTHING. It was all based on guesswork and assumptions.
I see 2 main factors that prevent traders from becoming profitable.
Now, to be a successful day trader, you need one thing, and this is an EDGE. Having an edge is seeing and knowing the same scenario playing out over, and over, and over, and over again.
You only need to know 1 of these scenarios to become profitable.
Because, if you know HOW a specific scenario is going to play out, why would you trade anything else?
Any other scenario that’s not in your wheelhouse, you’ll go back to guessing and that usually will lead to losses. Trading without a plan is simply gambling.
And that’s another problem many traders face.
They begin to make money on a setup they have an edge on, and they become comfortable and overconfident by placing random trades.
The best traders in the world NEVER veer off they’re edge. If the edge doesn’t show up, they WAIT until it does.
It can be a few days or even weeks, because they know that when it does show up, they will be profiting a good amount from it.
And they also know that veering off their edge, will amount to losses. They are extremely disciplined. Because at the end of the day, day trading is not a game, it’s a business to be taken extremely seriously, or risk losing a lot of money.
Now, the question you should be asking yourself here is; “How do I find an edge?”.
And finding an edge can ONLY be obtained by backtesting a countless amount of chart data.
I’m talking thousands upon thousands of charts. Going over historical chart data on specific scenarios will SHOW you how the stocks end up playing out. Now there’s a ton of different scenarios you can backtest.
For example, you can backtest all stocks that have a positive earnings report. The steps would go something like this.
That’s the basis of backtesting. But you will have to try many different factors, such as indicators, how much was it gapping up pre-market, was it gapping down, what does the daily chart look like, are we at all time highs, are we facing daily resistance, etc. The more you backtest different factors, the narrower your search will be and the more defined your edge will become.
As for myself, I’ve backtested countless chart data on stocks that are gaping up pre-market. I know exactly how each and every gappers SHOULD play out. I also know my entry and my exit. All of this comes from backtesting, none of this is guesswork. I’ve put in the time and have done the homework. Having an edge like this is PRICELESS. It’s what many traders don’t do, and therefore won’t last long in this game.
If you want this EXACT strategy, that’s taken me years to define, click here.