how day traders do 200 trades a day and strategies they use
TRANSCRIPT
How Day Traders Do 200 Trades A DayAnd a strategy they use
You’re Average Day Trader
…Profits…200 trades x $10 = $2,000 a day
…Because Buy & Hold May Give Zero…
…More Control…
…small trade sizes…$1/£1/Eur1…small risk
…lots of experience gained in short time…
Who? Students
Full Time Mothers
Full Time Plumbers
Professional Traders
School Teachers
Retirees
My Talk At
Bloomberg
What Do Winning Day Traders Do Right?
Trade 5-6 products
Trade about 2-3
hours a day
Long and Short
Shorts make
profits quicker
Dow, GBPUSD,
FTSE
Time frame – 1
minute and 5
minute charts
1 or 2 strategies
max
80-90% winning trades
52% trades held
under 1 hour
24% trades
held 1-6 hours
Hold under 10% of
positions overnight
max
What Do Winning Day Traders Do Right?Have a max loss of around 5 x average winning
trade
Winners take lots of small wins & some large losses
Account size $7,000-$20,000 = 80% of day traders
Lots of small bets compared to account size
Cleverest Thing Day Traders Do…• Bet small…0.1% of their account per point on index/currency
• Eg $20,000 account. Bet $20 per point move in Dow or GBP/USD
Why Small Trade SizesThey would
have open 3-5 positions at any
one time in different products
If lose, lose small
Feared losses
Which Products?
Dow
FTSE
Gold
GBP/USDEUR/USD
GBP/EUR
Apple
Which Time Frame?• 1 minute and 5 minute charts
How Did They Set Up Their Screens?
Strategy: Scalping
Up to 200 trades in a day
About 5 trades per product in
an hour
80% of trades last 5 minutes
to 2 hours80% win
Strategy: Scalping
Win target: 3-5 pips
Add to winners if price moving
sharply (watch chart)
Add to losers up to maximum 3 additional positions
Bet size: 0.1% of account size per
point ($20k account = $20 per
point bet)
Stop loss if 3 x winning target (ie
3 x 5 pips lost ie 15 pips)
Trade in direction of trend, or of a
pullback – see next
Popular products: FTSE, Dow,
GBP/USD/JPY/EUR, Gold
Why – What’s The Theory?
The markets moves short sharp
amounts
So capture many small profits with
small moves
When it moves fast in your favour,
quickly add to your position
As soon as it slows, get out
If you have a loss, add to it, to reduce your average entry
price and the market will come
back
Profit Maths
8 x 5 pips = 40 pip profit
2 x 15 pips = 30 pip loss
Net profit 10 pips
Profit Maths
$20 bet per pip is $200 profit per 10 trades
2 trades per hour per product
5 products = 10 trades per
hour
100 trades per day = $2,000
Profit Maths - Caution• Assume 10% of that whilst you learn and make errors
• Increase profits: larger account and bet size; more products observed
When Do You Know To Enter The Trade? Method 1: Trend
…the trend…
Method 2: The Pullback
• Draw a line to represent the average price of the past 9-12 hours
• Ie a line above which as much time the market was as below it
• Ie a line around which the market traded
• Expect pullbacks to the line when price goes above it too far and below it too far
How Do You Know The Trend?
Look at the prices
Look at the chart
Method 3: Breakout
Remember Shorting…
Risks
You don’t exit your losses
You don’t trade with the trend,
breakout or with a pull
back
How Do You Do It?Open An Account With A Big Hairy Friendly Broker
…A Broker That Has Won Awards
Get on which gives you money & is quick to open…
….A Broker That You’ve Been Recommended
Our Choice…
www.investingbetter.com/bwin
How To Get £5,000
www.investingbetter.com/bwin
Open via our link to get a free copy of
Investingbetter.com/bwin
Open via our link to get a free copy of
Investingbetter.com/bwin
Step 1: Open the Account – 5 mins• www.investingbetter.com/bwin
Step 2: Familiarise Yourself – 2 minutes
Step 2: Familiarise Yourself With How To Place a Trade – 2 minutes What we are
trading eg Dow. Buy and Sell Buttons and the Buy and Sell Prices. If buy and then sell – make 1 point loss.
Step 2: Familiarise Yourself With How To Place a Trade – 2 minutes
1GBP profit/loss per point change from buy price to sell price
Step 2: Familiarise Yourself With How To Place a Trade – 2 minutes
Optional: At what price you want to sell at a loss ie price below your buy price
Step 2: Familiarise Yourself With How To Place a Trade – 2 minutes
Deposit needed to bet 1gbp per point on this product
Safety First: Investingbetter.com/bwin
What if Day Trading Is Not For You?• Can’t spare 1-2 hours daily
What if Day Trading Is Not For You?• Want expert advice not doing it yourself
What if Day Trading Is Not For You?But don’t want to pay big broker fees to manage your money
www.investingbetter.com
Entry
Exit
Profit: 45 pips x 30gbp/pip = 1,350gbp
EUR/USD
Entry
Exit
Profit: 50pips x 30gbp/pip = 1,500gbp
GBP/USD
Entry
Exit
Profit: 1,600USc x 3gbp/USc = 4,800gbp
Gold
Entry
Exit
Profit: 45pips x 30gbp/pip = 1,350gbp
EUR/USD
Entry
Exit
Profit: 1,100USc x 3gbp/USc = 3,300gbp
Gold
Testimonials
Entry
Exit
Profit: 90points x 30gbp/point = 2,700gbp over less than 3 days!
FTSE 100
Entry
Exit
Profit: 120pips x 30gbp/pip = 3,600gbp in 2 days!
EUR/USD
www.investingbetter.com