How I Made $27K Day Trading with My Favorite Strategy | Full Breakdown

so today I made twenty seven thousand dollars day trading one of my favorite strategies and in this video I want to break down exactly what that strategy is I want to break down my risk tolerance I want to break down my game plan and I want to walk you through this trade exactly where I got in and where I got out so with that being said let's dive into the trade all right so as you guys can see I made twenty seven thousand dollars on you know one particular trade I have two other trades that didn't really kind of go all the way but here's my TOS you guys can see 27 530 on spy spies ultimately what I traded and once again let's just kind of go through all of this right so first and foremost what was my game plan for the day so before I take on any single trade or any single trading session I like to have a game plan I like to have an idea of what has happened yesterday what is happening pre-market and what I am kind of anticipating will happen in the market right now the anticipation is based off the reaction on certain key levels or certain reactions of how the market will respond now I know that may sound confusing to some of you guys but in simple terms I'll build a game plan as you guys can see here uh the game plan will look something like this right so before the market opened I you know analyzed what the market did or what the market was doing uh I mentioned Gap update today we had fomc yesterday with mixed action on the market strong rally in pre-market I believe it's overextended but waiting for price to tell story on the open I always want price to tell me your story I don't want to create a story on my own as a Trader I want price to dictate what it wants to do next so let me show you guys a real quick example so here is let's open up es really quick so here uh here is the ES right uh let's kind of make this larger let's look at this so this is what's going on pre-market guys just to give you guys a little bit of an idea of what I'm looking at right so you guys can see yesterday fomc happens as fomc happens Market gets very unsure typically I like to trade a lot of days after fomc I like to trade a lot of days after earnings or big economic events I like to trade them after not during so today all we start seeing is we start seeing price rallying Higher and Higher and Higher and as we get closer and closer to U. S market open uh you guys can see we're kind of entering the Gap update now what do I mean by Gap up day for anyone confused this is spy this is where we closed yesterday this is where we opened today so essentially we gapped up from yesterday's close so this is once again really quick this is a gap up day so we or I was already seeing the Gap up day uh before the market happened right which you guys should be able to tell right and from there I start looking at this different scenarios that may possibly happen number one do new buyers step in and drive price higher so a scenario that I anticipated was number one possibly what can happen is on the open around this zone right new buyers May step in they may show interest and they may drive price higher which essentially for me is a gap and go strategy other situations that I have laid out is do we see selling pressure kick in and profit taking happening we might see aggressive selling pressure kick in right on the open right and we start seeing selling pressure which drives the price down or number three which is another thing I was looking at is do we see a gap hold and go right meaning we Gap we hold this area and we start rallying now all of this is contingent on how price responds at these levels so what I mean by that is I even mentioned it to myself and I like to reassure myself and just kind of write things down so I'm aware of what is going on and I wrote down just wait for price to give direction I have the following scenarios laid out but wait for price to give direction so I don't go into the day biased I have my different game plans and different ideologies of what the market can do and this is something you guys should really take away one main thing you guys should take away from this video is before the market opens guys have a game plan have different scenarios laid out and be open open to these scenarios be open to understanding that these are the possibilities that can happen and let price dictate one of these scenarios do not dictate them on your own through Randomness let price confirm it and if you can read price action or you can e-read order flow and they can confirm that this is true or this is where the strength is that's where you take the trade right so now where did I take the trade what was my trade idea let's just kind of go into the big trade right so I will open up this in a second right but let's go into my trade so let's go into this trade and kind of look at it so just from our perspective I made about a 2. 5 R on this trade meaning I risked ten thousand dollars I made about 26 27 000 so I made two and a half times what I risked and this is what I always want you guys to focus on I don't want you to I don't want you guys to focus on the 27 000 I know it's mentioned in the video because that's what will get people attracted to the video but what I really want you to focus on is the r multiple what did this guy risk on this trade so for me I risked ten thousand dollars to make the 27 000.

now this could have been a trade where I risked fifty thousand dollars to make the twenty seven thousand dollars now the trade isn't as attractive so always look at how much someone risked on a trade what their risk tolerance was and then Gage if the trade was good or not right so once again risk 10 000 had a 2. 5 R which is solid so let's go through my entries and exits and I'm gonna give you guys a rundown of my entries and exits right so every trade I kind of every single trade I take it's a rule for me right I have to tag my setup so as I mentioned this is a one of my favorite setups I love when we have Gap up or gap down days for me this was a gap up and failed trade we had a gap up day buy absorption happened we saw an imbalance which I'll show you guys in a bit and we saw weakness right so all three things gave me the confirmation and I took this particular trade and I like to track it and I like to tag what setup it is on trade Zello just to have my journals just to have my analytics uh going on for you know overall for all my trading to have a clear idea of what setups were what setups don't work when do they work and you know that's how you're going to build this report on your own trading right so let's go into this trade really quick so let's go through it step by step and get a good understanding and feel for it so here is spy so I traded spy I traded the 459 puts I didn't trade I didn't trade uh es Futures I was looking at es's order flow I was looking at es's action to kind of take the trade on spy right so spy es essentially same thing one of the features one is kind of trading options if you want to trade options for them so I traded options here right so where did my first trade happen so as you guys can see we open up we Gap up so let's just go into let's go into es let's turn off pre-market really quick right so I'm just going to turn off pre-market to give you guys uh some idea so here's pre-market pre-market is off so with pre-market off this is where es opens up so es gaps up opens up right here first minute first five minute candle you guys can see holds really well which you know is fine I'm letting the market dictate the levels the zones it wants to open on right what is the price the market is comfortable in what is that range on the open on the open the range IC is 46. 25 to about 46.

33 now real quick when we look at pre-market on ES when you look at pre-market on the overall market right uh we we did have some sort of levels we did have some sort of rejections on the market right so just to cover this really quick here's pre-market you guys can see pre-market we did get some activity we did get some rejection which I like to highlight so you can see 46 34 we rejected so I already know we're in pre-market buyers are essentially trapped where if there are buyers that aren't unable to get the best price that's where they're getting trapped right not to say that it won't go higher not to say it will go lower it's just good to gauge how the market is structured at that current time right so seeing that I start watching price action as I start watching price action and as I start watching how the market starts responding now this is where I look at order flow I look at something called the footprint chart and I look at footprint charts to identify you know where our imbalance is happening are we getting an absorption are buyers being more aggressive than sellers or sellers being more aggressive are there passive buyers or passive sellers stepping in right and I'll talk about that in a bit so here's the pre-market action you can see on the footprint chart pre-market action we reject here on the open we now are coming into the same zone now my job as a Trader is to read the order flow and dictate who is more strong is it the buyers is it the sellers and that's I know it sounds very simple and I don't want to make it that simple essentially it is simple but it takes a lot of time and and Screen Time essentially for you to start reading these things and being able to dictate what the market will do guys right so first five minute candle opens you guys can see I'm not trying to trade on the first five minute candle especially in a market that we're gapping up we're having a huge rally I want to start seeing the first 5 10 15 minutes and see how the price reacts around these levels so as we Gap up what starts happening at around 46. 32 right is something really interesting so this is a five minute footprint chart on once one side we have the bids one side we have the asks how many orders are hitting to ask how many orders are hitting the bids just in simple terms and if you guys want me to make a video on footprint charts and how do I read this give this a like give it a thumbs up and just comment down below because I don't know if you guys understand this or not maybe you know I make a video for no reason but if you guys don't just give it a thumbs up or comment down below I would love to make a video breaking this down soon uh so let me let me know so anyways so as I'm looking at this um what I'm seeing by looking at the depth of market and basically just looking at all the orders going through I'm seeing a lot of absorption what absorption essentially is means is that as aggressive buyers are stepping into the market there's a passive seller that keeps selling that keeps selling to this aggressive buyer so imagine someone who's being extremely aggressive in buying as he or she's being extremely aggressive in buying the market is incapable of moving in that direction so that is what starts Happening Here I start picking up well the Market's being really aggressive or you know the buyers are being really aggressive at this point and they're incapable of driving price higher and as I'm seeing the orders go through I'm seeing a lot of passive sellers sellers on their sideline just selling to these aggressive buyers and you know eventually these buyers are either going to get exhausted or they will stay alive to cause the price to go higher and as I keep seeing that I start seeing big imbalances on the footprint chart where we start seeing a lot of aggressive buys hitting the ask over and over again in certain situations but price is incapable of going higher so me looking at that and me reading the tape on ES allowed me to identify that okay buyers are not as strong as we may think sell it there's a big passive seller or multiple passive sellers sitting there selling on here the buyers are not able to control price despite how aggressive they're showcasing and regardless of how much effort there is there's no result there's no Direction so typically when I see that happen I'm looking too short I'm looking to take a play on the downside so once again looking at this particular area right it's exactly around 46 30 to 46 31 32 I'm seeing extreme levels of weak thickness right and like I said looking at the footprint chart we have you know we have multiple imbalances that happen uh also the imbalances are also showcasing on the tape right uh the tape you're seeing anytime price goes higher sellers come in drop it a little bit lower price goes higher uh sellers come in drop it lower so that is showcasing weakness so when I start seeing that in this area that's where I'm looking to get short and that is where I'm looking to take a position to ride out the move to the downside so looking at the first trade right where I got in on the first straight now my confirmation or where I was like okay this this looks good right so first trade I get in around 9 47. so 947 I add about 200 contracts at the 459 puts so looking at 947 right obviously I'm trading you know spy but just looking at 947 really quick what do we see at 9 47 what is the strength or movement we're seeing so 947 is is my first trade I'm seeing the imbalance I'm like okay we're incapable of breaking this area buyers are not strong enough to drive this higher in my opinion obviously if buyers are able to get into the Zone especially the 35 Zone I will exit and I will take uh take a loss there that was my game plan if we're able to get into 35s and if buyers are able to drive it into that I'll get out I'll reassess my position so I take my first short there right now I took it with 200 contracts as we make and move down and as we come back into this Zone again that weakness is still there so I add 400 contracts at 9.

54 so going to 954 I see that rejection again I'm shooting this once again showing this at 954 we make a push down we come to the opening low we hold the opening low but once again price action is a little bit sloppy and you know I am going to keep writing this out because for me my stop is around this area if we do control price in this area I will be wrong and I will gladly take that loss going into this zone right here we start consolidating 10 a. m comes and you know as you guys know I always talk about 10 a. m we start seeing an influx of volume we start seeing influx of movement 10 a.

m comes we start seeing some movement and then right after 10 a. m you guys can see now we start slowly fading now when we start fading guys that's where I take my first exits around 1008 I scale out so this is 1008 I scale out at 1008 for for multiple reasons right number one I'm already in the profit so at 1008 I'm already in the profit that's number one I'm going to take half off I'm going to take some of my position off which is what I do at 1008. when I take some of my position off at 1008 one reason was I want to lock in profits second we're breaking the pre-market low and not the pre-market low we're breaking the opening low so I don't want to get trapped in here where retail Traders are entering you know Market traps them in gets sloppy and then goes down so I'm like you know what before I get caught in this crazy mess even though that didn't happen right away let me just exit or take some off so I take some off right there right you know we can see my running piano you know where I start taking off I start taking some off right there and then right a couple of five minutes later at 10 13 is where I fully exit my position so when we go to 10 13 this is where I exit now the reason I exited at 10 13 is because what I saw at 10 13 I saw somewhat of a trap so what I thought was gonna happen based on the movement I saw here was Market is going to start fading back into this 4626 area and it will then start dictating the next move so I was like you know what I'm up on the trade I'm up about a 2.