if you learned one thing from this
experiment it should be
do not do
what i just did in this video is the
conclusion of the three slash four part
series where i used a coin
to determine whether i'm going to be
buying or selling my position spoiler it
did not end well
[Music]
welcome back to the channel everybody my
name's artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis all
right so over the course of this week
i've been desperately trying to show you
the benefits of using a great risk
management strategy where you only risk
one percent per trade with a take profit
of two percent or more the main reason
that you should do that is because it
will give you longevity in your day
trading even if you lose five trades in
a row that means that your account is
only down five percent so let's jump
into mt4 really quick let me show you
the four trades that i took how it
worked out and how you can use this as a
little bit of motivation to help you go
long term in your day trading career
okay so i entered the trade at 9 00 am
my time
all right it is 8 59 we got 20 seconds
left let's do a one-handed coin toss
going short
all right we got uh
another horrible stop loss because it's
not above the swing high
but let's just hope that the price drops
down and goes to
our take profit
which is pretty much the swing low right
here we had this big huge candle surging
up and then a nice bearish engulfing
candle right here i got pretty excited
but then my dreams were crushed and it
ended up hitting stop loss right about
here which was 10 pips which brings our
four trades to plus 100 on the first
trade minus 55 on the second minus 50
and minus 50 plus all of the commissions
that were accrued along the way total
account balance started at a thousand
dollars and now it is at 930
so for those of you that wanted to buy
this coin i suggest that you don't have
that thought anymore it is not a magic
coin at one point i honestly thought it
was only landing on long positions but
today proved me wrong and we still lost
okay let's just wrap up this entire
story what was i trying to get across
if you
want to get into day trading and you're
not trading a live account right now and
you want to get profitable on demo what
you should do is watch the plethora of
videos that i have on this youtube
channel and pick a strategy that you
feel like works with your personality
type your time frame what session you
trade use that strategy and start back
testing it on the replay mode on trading
view once you've back tested it and you
see during your trading hours hey this
is getting pretty successful i'm getting
like a 50 or 70 percent win rate then
what i need you to do is go on to a demo
account it could be a hundred thousand
dollar account whatever you want to do
what i want you to do now is risk one
percent per trade with a take profit of
two percent per trade according to your
strategy and trade it like you would a
real account every single day wake up
focus get into the charts and like
really immerse yourself in this as if
you were trading a live account now for
the next 30 days or 60 days preferably
60 days i want you to trade this account
every single day monday through friday
on one specific pair don't go hopping
around to multiple pairs pick one pair
like gbp usd and trade it every single
day at the end of that 30 days or 60
days look at your total account balance
you started with a hundred thousand
dollars see if you were in profit 10 15
20 but keep in mind you must set your
trades and leave them set your stop loss
set your take profit and let every
single trade play out do not close them
early period end of story once you learn
how to do that and you make it a habit
and you absolutely 100 percent let all
those trades play out you will have
confidence at the end of that 30 or 60
days to see wow i'm in profit or wow
this is a losing strategy i need to do
something else if you're not willing to
put in the 30 days 60 days 6 months or a
year of forward testing and demoing
day trading is not for you you are
impatient and you're looking for the big
money now which is gonna cause you to
make the mistakes and blow your entire
account i had three back-to-back losses
and i'm only down eight percent on my
account that's including all of the fees
and everything now i had way improper
risk management on here just for fun i
was risking five percent per trade
looking for a take profit of 10 per
trade had i been doing a one percent
risk i would have been only down three
to four percent so you can see if i kept
losing it if i lost like 10 trades in a
row my account would only be down a
hundred bucks let me break this down
visually for you i'm really enjoying
these little papers
pick a strategy and back test it 100
times as if you are trading it for real
during the hours that you trade not
every single occurrence that that trade
setup happens if it is more than a 50
win rate then start a demo account with
a hundred thousand dollars this has to
be a demo account don't jump the gun and
start trading live money you're not
ready for that forward test that
strategy on the demo account for two
months with a one percent risk and a two
percent take profit if at the end of
those two months you are in profit
then and only then try a live money
account but
because there are different things that
happen
to your psychology as you are trading
live money what i want you to do is risk
the minimum amount if you can risk
twenty dollars or fifty dollars without
like it wouldn't hurt you financially
like you wouldn't be able to pay your
rent with that then take that twenty or
fifty dollars deposit into your
brokerage account and only risk one
percent with a two percent take profit
the same exact strategy just way less
money because once you start trading
real money something happens once you
start seeing that number go negative
your emotions take over and what i want
you to do is get rid of those emotions i
want you to be that stone cold killer
cyborg day trader and the only way that
you could do that is to practice with a
small amount of money to start do not
deposit 10 000 or your life savings or
whatever because unfortunately what i've
seen from countless numbers of people is
that they blow that original amount that
they first deposited because they're not
ready to actually lose real money once
you've safely traded that real money for
like a month
then you can look at getting into a
funded account a funded account is the
least risky way to do day trading
instead of depositing a thousand dollars
of your own money to try to make twenty
dollars per trade on a two percent take
profit on every single trade
what you can do is spend half that
amount of money buy a funded account
challenge they give you a demo account
of a hundred thousand dollars to
basically prove to that company that you
are a profitable trader if you can go
through their evaluation and
verification phase which means the first
evaluation phase you need to get 10
profit then once you complete that you
go through the verification phase where
you have to create another 10 profit
once you do that they give you a live
account with a hundred thousand dollars
in it and any profit that you make at
the end of the month gets split 70 30 or
80 20 depending on which prop firm you
went with so if you can get 10 profit
per month consistently
with a 50 or more win rate on your
strategy you're looking at 7 000 to 8
000
profit in your pocket every single month
now if you're wondering which strategy
you should start with there are numerous
ones on my channel but there are some
specific videos that have proven
back-tested results one of which you can
find right here i genuinely hope you
guys learned something from this video
and i genuinely hope that it like
resonated and really stuck with you so
if you guys enjoyed this little four
part series make sure you're dropping a
like on these videos it really makes me
feel good about myself and the things
that i'm doing here and if you haven't
already consider subscribing to the
channel by clicking right here thanks so
much for watching and we will see you in
the next video