My SIMPLE Day Trading Strategy Makes Me $30k/Month (Full Guide)

Over the past 8 years of full-time trading, I've tried a ton of different strategies, and it took me three full years to boil down a process to actually become consistently profitable. Looking forward to now, in a single trading session, I can set myself up for $3 to $5,000 profits multiple times per day, allowing me to have 20 to $30,000 profit months like I just documented in the last month. This isn't done by having an overly complicated strategy or trying to trade a million different things.

This is done by having one simple strategy, following a model, and focusing on the right things. So, in this video, I'm going to take everything that I've learned over the past eight years of my trading that allows me to execute on the simple strategy that you'll be able to learn and use to start making money. Then, I'm going to show you real examples of trades using these strategies that I'm going to show you in this video so that you'll have a profitable strategy that you can understand, practice that you can start using to make consistent profits.

So, this is going to be a course on the exact steps that we need to take to actually be able to set yourself up to have a repeatable process you can follow each day to have these money-making opportunities. And it's not as complicated as you think. All right.

All right. And the first important thing to do is understand the basics of trading and have a solid foundation before we're diving into all of these things. It is a complicated world.

There's a lot of nuances in the trading space. So, we're going to be covering the basics first and then we're going to get into more advanced topics in this strategy that we've been able to develop over the past couple years. Okay.

So, first thing that you want to focus on is trying to find high probability conditions in the market. This is going to start making more sense in a second, but what it's important to focus on is we're not trying to force trades. We're not trying to enter at any point in the market.

We need to find high probability conditions that are going to set us up in a position to be able to have really good opportunities. Okay. The second most important thing to focus on when it comes to the basics of trading is having a process to be able to contain your risk and allow the winners to run.

So, one of the biggest things that will hold you back is not being disciplined enough to be able to cut your losses small and also having the discipline to be able to let your winners that are moving in your direction making you money continue to run in that direction. Often times you'll hear people say, "If there's profit on the table, take it. " And another common thing is just holding positions so that you don't have to actually take a loss.

These are things that are hardwired into our brain as humans that we need to learn to flip in trading. So really focusing on containing risk is one of the biggest things that's going to make or break your trading career. The third thing that's extremely important to focus on is to have a solid system and not force trying to find trade opportunities.

If you set daily goals for yourself, as many traders do, you'll try to force finding these opportunities and fall into a trap that's called confirmation bias, where you're going to try to convince yourself that there's opportunities that aren't there. if you're hungry to make money. So, we have to focus on this exact strategy systematically and let the trades come to us.

Okay. And then the fourth thing is finding actual pairs with good liquidity and good volume that's going to give us an opportunity to be able to smoothly get in and out of the market. So, let's dive a little bit deeper into these critical concepts of day trading so that we approach this properly.

Right? So, what is a high probability condition? Okay.

often times the conditions in the market are not necessarily optimal to try to take a position. When price is sort of chopping around aimlessly and isn't either an extreme high or an extreme low. If we're forcing trades and we're not being patient, this can be an area where there's a lot of confusion and a lot of forced trades and not in areas where we're likely to have big moves either up or down, which is going to present opportunity for us.

All right? And this ties directly into being able to contain our risk and allow winners to run. When we're taking trades in the market, we actually want to play into volatility, which means big moves up or down in the market, which is going to allow us individual trade opportunities.

There's not really going to be many opportunities in this sideways chop area to have expansive upside and contained downside because it's mostly just consolidation in chop. If we look at this for an example, if we're able to identify key points such as these, we can position ourselves so that we're risking a contained amount in an area where we're likely to get a reversal in a large move up to allow a big reward but a small contained risk. And this plays largely into actually having a proper strategy to put us in positions and to be able to identify these key areas where we could expect big moves to come out of it.

And one of the most important ways to not enter the market during these bad periods and only selecting these high probability times is to have a system that we trust and once again not trying to force these individual trades. Okay. Oftent times I would get into sessions and I see this a lot of times with other traders too and I would start thinking about okay I got to try to find an opportunity or what if this happens or I think this is going to happen so I'm going to change my behavior.

This is a very important thing to remember with trading. This is something that I quoted from a institutional level trader. All of the thinking was done in the back testing.

Okay? So when the system was being developed, that's when you were thinking. Now we need to go and focus on following the rules rather than trying to be creative in the session.

The more times you're coming up with ideas on the fly, the more changes you'll have in your strategy and the more we can't predict the end result because we're modifying all of the things that we tested that we know to be true and profitable. So we're not going to be thinking during sessions. We're just going to be focusing on executing and following the rules that we already have and know work.

And with all of these elements considered, we have to focus on pairs that are going to allow us to get in and out of the market, and it's going to give us something called good price action. Now, price action is any movement that we're seeing on a chart. So, when we see charts like this where we have weird candles, spiky, unpredictable price action, this is not going to be something that we want to get involved trading because we're not going to be able to get into the market.

We're not going to be able to easily anticipate where the price is likely to move or not. It's going to be almost impossible to trade these, especially as we start increasing with more size. Conversely, if we look at good price action, right, notice how all of these candles are very, very even.

There's no crazy wicks. Everything is predictable and moving nice and smooth. This is going to allow us to do good analysis, be able to actually get in and out of the market, and have predictable, reliable price action that we can start building these models out on and getting key areas to react the way that we want.

So, having good liquidity and good price action is going to be a critical part. And I'm going to show you some of the pairs that I use, but also just how to generally look for this on the chart, okay? and considering all of this information to make sure that we're starting off on the right foot.

I want to show you the golden foundation model that I use in my trading that's going to set me up in these really really good high probability areas where we're cutting out 80 to 90% of the bad ideas just by following this one thing. So the first thing that I'm looking at in general that you can start applying is using an indicator which I'm going to show you a few options where we can see whether the market is considered overvalued or generally undervalued. This isn't something that we're going to make full trading decisions on.

A lot of people when they get into trading, they're just like, "Oh, if I sold here and bought here, I'll be able to make infinite amounts of money. " That's not how it works. You can see we were considered undervalued here and price continued moving down.

We can't use this by itself, but we can use it in conjunction with other things to be able to start off in a good foundation. It's starting off in areas where there's indications of being overvalued or undervalued, okay? Can be the first step of generally getting the right idea of where to go with our trade idea.

Okay. The second thing in this golden foundational model is something called an oversight or underside retest. And this is probably one of the most important anomalies in trading that I've been able to figure out and that I follow and apply to basically every strategy that I use.

Okay, these ones and other trading models. How this works is as we're seeing a chart making its move, there's going to be these key areas where price continues to bounce off of. That's what's considered a low part of a trend.

Okay? And what often times will happen is you'll get contact here, contact here, contact here. Then eventually price is strong enough to be able to break out of that what's called resistance.

Breaks up above it. And basically what this is saying to the market is there was not enough demand to break out of this level. Now there's enough demand to be able to push through that area.

And often times what will happen is price will eventually come down retest the opposite side and that will be the last exact point before an absolute explosion in the market, an explosion in price that used in conjunction with the trading model is going to put you in amazing opportunities to have some massive upside. Okay? And I'm obviously going to show you some examples of me being able to execute this on real time.

But being able to leverage these overside underside retests and starting off in over or undervalued areas in the market is going to once again cut out 80 or 90% of the general noise of trying to just jump into the market in trading whatever. These examples can be found basically everywhere all over charts. So let's look at some examples in real life now so that you can understand this concept.

So once again we're seeing price reacting off of this level reacting. Notice how we're getting closer and closer reaction points and we finally get a big push down which is now breaking that key level which is creating this really really amazing area right up here. Price comes up tests that key level.

Look at how sharply it responded before making a further move to the downside. Okay, let's look at another situation. Okay, so we have contact price pushes up above that level responds on the over side of it.

It responds off of that level again and that's where price starts to get momentum and make a massive move to the upside. So, let's look at another situation. We have a low.

We have a low. Price bounces off of that again. Once again, coming in closer and closer contact with it.

Finally has a break underneath it. Notice this really important area. Price comes up now on the opposite side of that area and then continues to make its way down.

Okay? And so, something that's really important to note is when price tends to break down or break out from trends like these, these big moves tend to leave behind something called a fair value gap. Okay?

And so, what a fair value gap is is take one, two, three candles. the first candle's wick and the third candle's wick don't have an overlap which leaves this key area which oftentimes price will come back into have a response off of this area and then have a continuation or a response behind it. We're going to see these all over our chart and these are key areas that we want to focus on in our trading.

Okay, so considering this golden foundational model even this area right here is generally an optimal area for us to expect a reversal and we can start adding extra evidence of that. So, like I was showing you overvalued or undervalued periods. This is an RSI, which you can just type in RSI on Trading View.

And notice as price was coming back up to test that opposite side, we were also in an overvalued area. And then lo and behold, price comes back down and continues trading down before making a low point over here and then having a move up higher. Okay, so once again, we can't use tools like these completely independently, but really focusing on these key areas and these key scenarios is going to cut out 80 to 90% of the noise and keep us focused.

But in order to get that last 10 to 20%, we need to have our specific trading models. Okay, so this is where it gets a little bit more complicated into the next level. I'm going to go over some profitable day trading models that I've been able to set up considering these elements, but using more advanced market mechanics.

And we're going to take a look and I'm going to explain thoroughly how each one of these works. Okay, so the first is going to be something called a continuation model, which is basically finding a trend that's already moving up and trying to enter in that trend and play a continuation. And then there's model two, which is going to be a reversal model, which is going to be geared towards finding a trend that's moving up, timing a key area where we're anticipating a reversal, and trading it either down or up, and playing into these big swings in either direction.

All right, so let's get into the first model, which is going to be our continuation model. So once again, we're playing into a trend that's already moving. So, first thing that I'm going to do is wait for the New York session to open.

This is that gray line here. This is where trading activity starts to increase on the New York session, which is going to open up volatility and opportunity. First thing that I'm going to do is identify an area where we have a trend in the opposite direction of what we're trying to trade.

In this case, we're trying to trade up. So, we want to find kind of a downward trend or an area where price is bouncing off of it. Next thing I'm going to do is wait for a significant fair value gap producing candle to break out of that trend level, create a local high, and then have a sell-off.

The next thing that I'm looking at is I want to see price react off of the oversight here, as well as the fair value gap that's produced. You can see high here, low here. It's small, but it's right at that same level.

And I want to see a key candle respond off of that area and have a push upwards as we can see right here. So entry would be at that first candle to have a response off of the trend and the fair value gap. And then what we're trying to do is trade in the direction of the trend and walk our stop loss up so we can sort of ride in the direction of this trend.

Okay. So once again we have trend direction generally moving up. We have highs highs responding off of this key level.

Okay. We get a candle that pushes over this key level producing a fair value gap. We have price push come down retest that trend level and that fair value gap and have a responsive candle off of that level.

Okay. This is where I would start building a position. Okay.

So I can click on my entry. I can click my take profit. Click on my stop loss.

Say I wanted to risk $100. Also, if you want this onchart indicator that shows you all of your quantities, you can go in the description, follow me on Instagram, DM me the word tools. I'll send over a whole suite as well as this onchart indicator, which I love and I use every day when I'm trading.

Okay, so now we have our quantity that we know we want to enter in on. So, I can enter in with that specific amount. Then, the market starts to move in our direction.

So, I'm basically going to trail these fair value gaps. So, stop would be here now. Okay, fair value gaps here.

So stop loss is going on this candle below the fair value gap. Fair value gap's now up here. Fair value gap's now up here.

So now we've effectively locked in 10 times the amount we're risking. We're up $1,200. Fair value gaps now here.

We move our stop loss up to here. Okay. And that's where we would end up getting stopped out.

Okay. So you can see even risking $100 because of finding a specific model like this. Of course we're not going to get crazy moves up like this every single time.

But we only need a few of these to be right to be able to make $1,200 risking 100. and we can be wrong say seven or eight different times after that. Say we're risking $100 and we lose $800.

If we get one of these, we're still up $400 in total. And that's the concept of trading is keeping those risks small, allowing the open-endedness of your trade models to really come to fruition and allowing the upside to basically be infinite. All right, so now let's take a look at the reversal model.

And this is going to be really similar to the strategy that we were just looking at, but sort of in the opposite direction. So what we're looking for here is for a trending price action to make its way up. We once again have price action pushing underneath a critical level, leaving behind a fair value gap that intersects with the underside of this current trend.

Actually, fair value gap should be drawn right here, but it's okay. Then, we're waiting for price to come up into the intersection point of this fair value gap and the underside retest that we know tends to create these flips in price action off of the trend. And we're looking to get in anticipating that the price will end up reversing down, moving in our direction, allowing us to build out a position and trade in that direction.

Okay, so let's look at how this trade would unfold on a real chart. So we have the trend level developing. You can see it's about 8 a.

m. right now. So the New York Stock Exchange is just about to open.

We have this trend level is broken from a candle that leaves behind a fair value gap. So we have our fair value gap in there. Price continues to push down, then starts to come up to retest.

So this is where I would start building my position. So this time I'm going to be targeting the midpoint of this fair value gap as my entry. So I'm going to click there.

I'm going to put my takeprofit somewhere down here. That's going to be set a little bit later. Then I'm going to be finding the fair value gap producing candle and I'm just going to go a little bit above that candle to set my stop loss.

So once again risking $100. And once we get to that midpoint, we enter our position and notice how price consolidates right at that midpoint and then flips back around. Okay.

And this model is going to be a little bit different because the next area that we're paying attention to is this low before our swing high. So price continues to move. Once we get a candle close below this swing low, that's where we're going to take our stop loss and we're going to move our stop loss to our entry.

So now we have a zero risk trade and we're going to set our takerit to 1:4. So we're going to have 1 to4 set right there. And once that's achieved, we're going to walk our stop loss down to trail the last fair value gap producing candle.

In this situation, we have a swing structure here. So I'd probably be moving my stop loss down. But you can do any sort of risk reduction trend following process after this.

So price does make its way up and tag that level which locks in a 1 to3. So a plus $300 win. Had this have continued to sell off, we could have had, you know, $1,000 plus dollars risking $100.

Okay? So, once again, finding these critical levels by having a model, getting that extra 10 to 20% to be able to put ourselves in positions where we're risking $100 or in my case, $500 to try to make three, four, $5,000 with these setups, okay? And I know a lot of times on YouTube, everything looks great in theory and people can do it in hindsight.

But what about trading it in reality? Really doing this. I'm going to show you just from my last trading session some of the trades that I took using these concepts and actually a few more proprietary concepts that I take into consideration that we talk about on the private side of our trading team.

But I'm going to show you what my thought process was taking these trades in real time. So you can see we had a broken trend level here. Heavy resistance fair value gap produced.

So risking $500. I set up my position. Notice how the price came into that level.

Now I'm in on a position. We get our instantaneous reaction off of that level. And then we break below that point.

So I reduce my risk to break even. set my takerit to 1 to4. That 1:4 is tagged.

I'm up $1,700, risking $500. Then we get a continuation of a push. I actually set my takerit as a placeholder and never moved it.

So, I accidentally got out for $2,600. Obviously, I'm not going to complain about that, but normally I would be trend following this a lot further down. You can see $2,600.

Risking $500 is about 5. 5xing my money that I'm risking. Okay, so let's take a look at another trade example.

So, we have our trend broken here. Contact point, contact point, fair value gap producing candle. Entered at the fair value gap, reacted off of our trend level.

We almost actually got stopped out on this trade. Price starts to push back into my key area. Okay, we get a break and a close underneath that low.

So, I reduce my risk to break even. I'm up 2,000. Okay, price continuing to push down.

I set my stop loss over these consolidated highs. Then, I get out for about $1,500 in profit. Okay, you can see even risking $500 on those trades, I was able to make over $4,000 in profit.

Now, if you watch my live trade videos, you'll see I actually miss a lot of the entries and lose quite a bit of the trades. But when I'm losing, I'm containing that risk down to $500, $600 and letting the wins turn open-ended. Okay?

And what I'm showing you is just the tip of the iceberg of what I'm considering when I'm entering into these strategies. And these are the exact strategies and concepts that the private side of our trading team focus on to be able to deploy on their own trading. You can see one of our private team members, Craig, told us to hold runners, which is what I've been focusing on myself as well.

You can see he held this. He said it would have been $120 R trade. I don't know how that's possible, but still 18.

8R. So risking $100 would be $1,800 for him. Okay, we got Isaac showing off his funded trader certificate.

He said, "From the Nev Trade course, I finally passed a top step. Winning the trading combine using the smog strategy, which is the more detailed, more advanced version of what I just showed you right now. " So big shout out to you, Isaac.

That's a big accomplishment. You can see Jimmy 4xing his account in 20 days using this framework. Dstone getting 21 riskreward trades.

Okay, so just to show you these aren't things that are happening in theory. This is really how you identify key opportunities and key areas to be able to turn your trading into a profitable business. If you want to learn more about getting started trading, you can check this playlist out.

Don't forget to subscribe to the channel, like this video, and share it if you found it helpful. And until next time, I'll see you all in the next video.