Demo Stock Trading — Short Shorts

In this video, I'm going to take you through an entire day of my life day trading. Today, I'm extremely sick, but I've had an insanely good trading week leading up to this. I'm up nearly $13,000. So I promised myself I was going to try to hit $20,000 in profit. And now we're about $7,000 away from that goal. So I'm going to push through this today and I'm going to take you alongside me while I'm finding these trade ideas executing on them, show you the real profits and losses in decision making when I'm placing these trades. And if all goes to plan, we should be able to hit our $20,000 profit goal for the week. Today's Friday, we have about nine minutes until the market opens. So I'm going to show you how I get set up for my session. And then hopefully we're going to get into finding trade number one. All right. So setting up for the trading session, I have my screens set up like this. I have trading view here. I have my exchange to trade right here. And then I have my trade journal to track what I'm doing here. On the left side of the screen, what I'm looking at is a macro view of the market. So in this case, I'm looking at Bitcoin and how it's trading for the day. And I'm going to use this as my overall idea of the larger picture of what's going on. What I'm noticing here on Bitcoin is I've been tracking this overall large uptrend for the past year or so. And what I'm noticing is now price is starting to come down and retest this level again. So this is a hugely important area where we're either going to see a flip up today because we just tested that level or if we go down onto a four hour timeframe, we're going to break below that retest. This is going to allow me to see if I'm going to continue to play shorts here on Bitcoin. It's going to sort of give me an idea of which direction we could be moving for the day. Okay, so overall for the day, I do have a short bias. And what I'm effectively looking to do and I'm going to explain this trade that I'm already in right out of 930 here in a second. But effectively what I'm looking to do is find trend areas on smaller timeframes, use indicators to find areas where they're either overvalued or undervalued. And then I'm looking to tap into what are called fair value gaps. And I'm looking to enter on these set up my positions around those using a bunch of different analysis that I'm going to sort of walk you through as we're trading realistically. I only need a very small amount of these to be right to be able to play into the beginnings of new trends, in which case I can keep my risk contained. And if I'm risking approximately $1,000 per position, I'm going to be looking to make $3,000, $7,000 plus dollars per position. And I only need that to happen a few times. Okay, and it looks like with this position I ended up going in a little bit light. So I'm going to see how this responds here. And if it wants to continue to move into my direction, I'll probably add to it to fill up the total 1100 shares that I want to get to risk 1,000. But if this wants to break out of this level, I'm okay to place some momentum to the upside as well. This trading strategy, effectively what I want to do, is kind of like get in where I think I could be early and then let the market do its thing. So I'm going to do that. And if I'm wrong about this trade idea, I'm wrong about the trade idea. And we'll see what happens from here. It could be a bigger loss than I wanted. This is to break out of this level. So big loss to start off with. It's hoping that the market would sort of go off of this square and then end up reversing. But it is what it is. All right. So I booked that loss, end up breaking out of my level, a little bit testing the previous day low. And now it's rejecting back into our area. For us trading things like this are going to happen, but you have to just stick to your process. It feels weird because sometimes you can feel like an absolute idiot when you're trading, but you have to be able to trust your process and trust when you have to get out of trades, what your judgment calls are and just go off of that. So I just wanted to reduce my risk down. And we're going to see if we can find another trade opportunity here. But it looks like we're rejecting off of this area here. And we could break down into this space now. Okay. And sort of looking at the price action, this level, previous day low was tested here again. So I would actually be interested in looking to take another short position in here and see if we can come up, fill this inefficiency one more time. Stop loss outside of this level. Okay. I'm looking to be really aggressive with this because the market is very, very delicate right now. And we could get a major move to the downside. So I want to be a little bit more hands on trying to get into a position right out of the gate. That way in case a market wants to trend in one direction for the whole day, I'm able to capitalize on that early. Yeah. A little bit frustrating now too, because this WIC basically just took us out and then market reversed off of that previous day low because it looks like the market's going to sell off like crazy today. So I'm hoping that price is able to move back up into these areas. Right. We have this trend break. We have a change of character. We have inefficiency level here. So now let's see if we can sort of get a push up before it continuation down. Okay. So I got in off of this level. We're getting a good initial response, which is good. Now I want to see a continuation and a weakness. And if we continue to dump off for the day, this was a good high impact area to get in on. Now we just basically have to see if this is going to come back up. So we're all out on order two and we're in on order three now. I'm actually going to get out of this trade early here. If we start to get a response back up, just because we're getting support off of this level, I'm overwhelmingly short bias and we're starting to see a little bit momentum. So I'm going to go ahead and take this trade off the table here for a small win, sort of over biasing the short direction. So even if this trade works out in my favor, I am noticing that we're getting a response here off of this area on the four hour. Okay, so regardless of whatever this trade ends up doing, I want to be able to pick whichever direction the market is going to go for the day and not exhaust all of my trade, sort of guessing the short bias right out of the gate. I'm going to see how this shakes out. See if we break over this high or continue to break down lower and then we're going to take trade number four technically. All right, so markets are sort of stabilized a bit down here and we're starting to get a response off of this lower trend level. But what I'm noticing is we're starting to flip a little bit bearish on the day. Again, we're starting to retest this trend level. It looks like we're going to break it on the macro side. So macro perspective is bearish in this level, which was tested as resistance formed this really nice gap here, which at the same time was sort of at these highs of this trend. So I'm getting into a position here, hoping that we can flip down and break underneath this level if we are going to trend down for some time here. And I'm going to set an alert here to wait for this break underneath this low. Starting to break that low as I was expecting. I'm going to add a little bit to this position just so I can get a little bit more bang from my buck here if we are to get a big sell-off for the day. I also don't know how low this is going to drop but I want to be able to capture a big move if we are to get a sell-off. All right, so starting to get a big sell-off here we're up 4,000 nearly. So that's what I was expecting. If we were to get this trend level to break there's sort of not a lot to hold up this chart other than probably this area, in which case we're going back down to 100K on Bitcoin which on a macro perspective is really sad. Might as well be trading it along the way. Like that's sort of my thing is if I'm going to watch the fluctuations in crypto I can trade it to the downside and then be able to reallocate that capital to trade it back up and that's sort of the way I look at things but I wanted to make sure that I was in on this position now. So what I've done is added to this and I've moved my new average down to this area and my stop loss is now at this average too. So if price wants to come up and retest this area I'm going to get out. What I'm going to do here is actually take 50% of the position off. Almost $1,500 is to lock in some losses for the day so I can kind of recoup a little bit of that in a good position and now I'm just going to let the rest run. So normally what I'm doing is at 1 to 2 risk reward so it should be right around this area I would take off half the profit to lock in a risk factor. Risk factor in this case is $1,000 but I was just sort of letting the momentum play on this trade. So $1,500 that means we're only down really $1,000 on the session we're floating 2K in unrealized profit so if this wants to continue to move down then we'll sort of trend follow it and I could trend follow this in a bunch of different ways. The way that I'm trend following it this can allow me to hopefully play this trend really long or something that I don't fully show on YouTube to just be fair to the private team but nonetheless what I'm looking for is this wave structure and just following this overall trend to the downside and walking my stop loss down into my trend. So at this point I have alert set underneath this low here as well as where my new stop loss and average order is so I'll be notified if price wants to break a little bit lower in which case I can walk my stop loss probably down to this high here and locking even more risk factors and if it comes up and stops me out I know that we just made 1,500 and we'll push on to the next trade. What I found is trading is really about trying to keep your losses really really small and just let your winners be super open and it's always tempting to just lock in profit like I'm down $2,400 I can be profitable today if I just close the trade out but that's not what allows us to actually get ahead statistically right what allows me to get ahead statistically is allowing trades like these to run $8,000, $10,000 in profit that way if I lose 5 trades in a row right after it I'm still well in the range of profitability by being selective on these areas and just sort of being smart overall with this so this is realistically a really important area this underside retest that we just made so I'm almost willing to like back off some of the risk here just to keep this trade potentially open this could be like the last point that it makes so I'm gonna move my stop a little higher really sad that move happened and then just ended up reversing off of that area nonetheless still locked in around 1,500 which is nice at least wow big big push up now now I'm just gonna wait for the next trade all right so I have a long set up here off of this trend level what I was noticing is basically we have this response this response price breaks underneath it and then immediately shoots up and invalidates this level to the upside now we also have this level which could be retested on the opposite side into this inefficiency area that was left behind so price continues to push down and fill this I think that this is a high potency reversal area so I have a trade set up here after the previous trade that we got stopped out of here we're basically down $632 on the trade 50% win rate so not great trading session but not terrible a little bit less than half of a risk factor that we have left open on the table so hoping this trade gets filled up if not then we'll have to just let this sort of break into a range establish a direction and then I can find some trades from there and I hope and I can play the morning volatility still I'm going to sort of set an alert here step away for a second and lay down because I feel horrible and hopefully we get something filled or get another really good trade opportunity so let's see Alright so I missed my order entry down here which would have been a nice little area to push up into but what I do see now is once again price action sort of reclaiming this area after a change of character into this trend level here so I'm playing to support see if we can break over this high which it does look like we're getting a good response now I got in a little bit preemptively to my order so my sizing is a little bit off so I'm just going to kind of modify my position here and hopefully I can reduce risk quickly on this trade and we can kind of get a push up and I can sort of see this control for portion of the day I need a close over this level now Alright so we're starting to come up and test this previous day low level here this was the area that was getting rejected off of a bunch of times before so I'm going to go ahead and reduce my stop loss level to right here so now effectively we have a risk free trade and what I'm also going to do is take off 50% of the position right about here I'm going to lift this like momentum play out for a second see if we get a big push oh no no alright so I took the and this is going to it's going to blow from here bro too anyways we were able to make about 2200 on this one which should be a lot more now I knew it was such a good position to get into I knew it was a good position and I took it off actually alright so bad news that was a massive move that could have yielded me for $5,000 already at this point and who knows how far it's going to run good news is we're up $1,500 net on the day at about lunchtime so I'm going to go ahead and step away from the charts a little bit I need to sort of clear my head and I'm going to see what we can find as far as trade number 6 now so I'm going to let this play out hopefully we'll be able to find another opportunity alright so I'm lining up our next trade here assuming that we get this candle to close right here which it looks like in about three seconds it will okay so basically right here into this heavy resistance zone from before we have the midpoint of this fair value gap we have a change of character sort of showing me that the trend could be changing direction down here additionally if we look out at our Bitcoin long-term chart we're coming right into the underside of this price action and the midpoint of this four-hour fair value gap on the daily so this is giving me multiple biases to the downside now that we're sort of playing into so I'm hoping that price is able to come up and sort of get me into this before having a sell off David that's such a great idea that I'm looking at right now okay surprise did end up coming back into this area that we're sort of waiting for which once again was that this sort of support resistance resistance resistance and that's sort of why I was so adamant about targeting this area right we have our weakness we had this area that was basically flipped underneath again you can see as it comes back up to those areas just picking those areas alone can put me into really really ideal situations so I'm going to go ahead and reduce my stop loss to break even and I'm going to sort of let this move exhaust before I go ahead and clip off half the position what I'm doing is basically once I get a risk factor basically in the bank I'm locking in half just so that I can reduce some of the downside obviously it's definitely going to affect the upside on the trade as well but it's more so about getting an even equity curve over time rather than always counting on these big runners and watching trades go you know 25 3,000 $4,000 in your direction profit wise and then not making any money off of those trades all right so I'm just going to use this basically as a placeholder for my first half of my position I'm going to walk that down and just sort of trail this candle I know I can get one to two at this area but I want to see how much I can maximize this like first lot we can get like a big juicy candle down I'd rather obviously maximize that with the full position size at this point this is definitely going to be a key area so I'm going to go ahead and take half off here all right so we locked in a thousand after fees and we're floating 16 1700 to drop underneath this level okay so the reason I'm sort of dragging my target out now is because what I'm looking for now is for prices sort of follow this funnel structure we came in to touch this four-hour fair value gaps midpoint as well as into this resistance level the next area for price to sort of come down in tests would be on the underside of this area here and you can see that's exactly where we have our take profit zones so it seems like a little bit of a far-fetched goal but we've just broken underneath this level this level and now we're testing the underside so if this wants to come down and dump off of here break through this support level next area is down here next area is down here and so on and so forth so I can sort of trail this down if we do get a negative response here in a break underneath this level which I'm expecting probably will happen so now we set the weight All right so we were able to lock in right around a thousand dollars profit on this trade couldn't catch a break and get this to dump down and up coming back up to our take profit level so looks like markets are getting strong again I don't know how to read these markets honestly I'm just trying to keep myself open-ended when there is a big move but I just realized I have like 13 packages because I just came back for a trip so I'm gonna go pick the packages up go get some food, we're up to 2500 ish on the day at like one-thirty in the afternoon so if I trade the rest of the afternoon and I see one or two big trades really push ourselves up to that 7k goals so hopefully we're able to get there and hit that 20k in a single trading week let's fucking get right All right so we sort of stuck in this trend on Solana here waiting for us to get a break underneath this area we did get a high impact break right underneath this area you can see this sort of left behind this area here so fair value gap I had my diamond indicator it's a custom indicator that I put together signaling is short for me so price came wicked back into it and now we're starting to flip a little bit so now we need to see some weakness under here and break underneath this low and hopefully we can have a push down back into this range but waiting for this level to be able to reduce risk on this trade we're up 2800 on the day sort of just chipping away at it we've had a lot of profit on the table and then prices sort of just been shopping back and forth so hoping for a big runner so we can catch one directional trend for the day but once I can reduce risk on this trade I'm gonna step away from the desk go get something to eat and hopefully this can sort of run as I'm out just doing my thing today that's kind of one of the good things about trading you can kind of just set and forget a lot of these positions once they sort of start moving with you you can just sort of go out hoping that this level breaks here now let's see if we can get it also I'm trying to ship phones to my house and UPS just keeps screwing me so I'm like on the phone with them trying to do this so fun trades running amazingly by the way as I'm on the phone with Apple I'm walking my stop lost down alright and I took that trade off the table here so I'm trying to order phones even though that's probably gonna be the last area that it comes up to so so the position that I took I took off partials right here and then I knew that this lower portion was gonna come and interact with this trend level so I basically walked my stop loss down here and as soon as you started to see momentum I got a really really nice move off of this I wasn't trying to sit in this and I knew that this could probably continue up for the rest of the day which you can see is exactly what happened here so I took profit off in here and you can see after both of those orders I was able to net out with a little over $3,000 on that trade so normally this is where I'd be going to the gym but I like literally have a flu right now so although I'm probably gonna go to dinner tonight still anyways which is a little bit ridiculous that I felt like I wanted to do that earlier in the day but I'm gonna see if I can find one more trade set up here to take before we go to dinner potentially okay you can see also over on this screen I have trade locker open and I'm actually growing a hundred dollar account just for fun I'm mostly just testing out the user interface but I'm using like two dollar orders per trade to see how much I can grow a hundred dollars yeah I don't really know where that's gonna go but I'm sure I'll end up sharing that with you guys see how much I can scale it but I'm mostly just trying out trade locker because I'm looking to potentially start using that that's sort of like a segue from only trading crypto to trading futures trading everything more sort of like frictionlessly so a definitely cool option but I was looking for like an entry here off of this area sort of watching this trend level didn't end up getting any sort of like pull back and now we're kind of riding the top of this trend level so not really interested in playing in this range the opportunity on ETH wasn't really there but we do have this all day sort of uptrend that was just broken down so you can see these levels here and then we have this sort of resistance here was broken above it came back down broke underneath it with this fair value gap here so I have a short position entered in here I'm looking to get that response off of here get a continuation as signaled by this indicator here to the downside also forgot to mention this position sizing tool as well as all the other indicators if you go in the description and follow me on Instagram and DM me the word tools I'll send you over literally everything that I use for trading you can add to your charts and it'll basically allow you to follow along with the style of trading and I'm doing but I'm entered short here and now we just got to see if we can get that initial response all right starting to get a nice move in our direction this is looking good so we just broke underneath this low level we got the response as we were expecting this is why it's funny when people say that support and resistance strategies don't work like I was like hey here's the level here's the fair value gap here's the support resistance level and they like rounded the corner perfectly and like is moving in our position we're up $1800 so realistically at this point I'm going to just reduce my stop loss to break even we got to leave for dinner in a few minutes so I'm sort of let this go sort of manage it on my phone go to dinner and we're gonna see if we can end up with a nice big trade on this one so now we'll just see if we can get a big push good day so far up 5,800 already on the day so I'm gonna go ahead and take half of this off to lock in one risk factor all right so we have half our position still open and we'll see what happens from here all right so last trade of the day as we were at dinner I started to let this trade play out a little bit ended up taking profit off sort of partials along the way here and ended up taking the final amount off here at this level now I was able to make $2,752 on the last trade which puts us well over the daily objective which was the $7,000 to hit that $20,000 profit week so ending the day up $85.92 actually brought us to $21,500 over the course of the week which is by far one of the craziest trading weeks that I've had in a long time so really really insane 64% win rate is like 25% higher than my normal win rate so obviously this is like a little bit of a normal circumstance but still you know just a really really insanely solid trading week especially pulling this off while I'm sick is pretty crazy so let's take a look at what happened throughout the day and sort of go over the trade one by one okay so trade number one was playing off of this fair value gap right as the 930 move opened price ended up poking up through here and then pulling way all the way down so it could have been a massive trade but I got faked out with this trend break here and played off of this area ended up taking a fatter loss and I wanted to with losing $1,500 trade number two similar situation finally had price breakdown I was playing into this fair value gap here trying to play into that momentum for the day and then prices came back up stocked me out again clean stop out $1,000 so I went down $2,500 pretty quick in the day so trade number three I was trying to get short back into here into this gap this time into this overall resistance zone and then I sort of got spooked out of the trade ended up taking the trade off early and only locked down $140 on that trade so a little bit frustrating there as well this trade I was kind of watching the trend developing a little bit and then I was sort of anticipating that we would get a break underneath this level sort of playing into the macro viewpoint as well as looking at this support level turned resistance here and I was able to place to the downside took partials off and then ended up taking the rest of the profit down here and this is sort of where I started to turn the ship around here was able to make 1765 on that trade okay this trade once the market sort of rejected off of the higher time frame so I was sort of looking to see if this would break to the downside and once we started confirming through this fair value gap to the upside I wanted to play a long off of this trend sort of once the price moved back up and reclaimed this level okay I was noticing that there was a fair value gap left behind with support on this trend level so I got long in here turned out to be an amazing trade here I meant to only take half the position off which would have been amazing to let this run a little bit further because this did end up running up way higher but accidentally took the whole trade off for $2,200 a little bit frustrating could have been $3,000 $4,000 but still being able to sort of keep my losses contained in this shop and then allowing this trade to play out worked out really well next trade here was on Ethereum I was sort of letting this trend develop once we got this blow off top area I was looking to get short up into here which also would have been an amazing short setup but I actually just missed it so I played into this fair value gap here I noticed that there was this level this level this level then with a breakdown here in a retest perfect entry pushed down took partials and then this ended up coming back up and stopping me out for a break even on the other half but I locked in 1257 on the front half so this is when I started going on a crazy win streak for the day which is not super normal but definitely good that I was able to sort of be selective as the market was a little bit less choppy so this next trade what I like to do is sort of let these trends develop all day and then once I smell weakness I can sort of tap into them so as soon as we got that pushed down I got my cell signal here on my proprietary indicator which basically shows me when to sort of look first which in bias and a trade opportunity so you see I got wicked perfectly into that trade sort of isolating and identifying that area and then was able to trade this down to this area and I took most of the position off right here sort of just trend following this down this should say short but was able to make a little over $3,000 on this trade all right then my final trade once again following this overall trend price pushes underneath it I was expecting for this to sort of roll on that underside retest into this critical level once again this one to cause sort of like that push in that break of trend price comes back up broke underneath that taking partials along the way basically reducing my risk to zero taking half profit once I go into profit to sort of smoothen out that equity curve make sure that I'm taking in winners allowed me to stay a little bit more consistent again like I said be able to end up $8,500 on the day I think what I'm gonna be doing moving forward is maybe going out to it five minute time frame and taking larger positions maybe risking $5,000 because of the amount of accuracy and consistency that I've been able to have but 21,500 in a single week is an insane record for me and I wanted to sort of share the success with you and sort of show you me doing this in real time if you're still here make sure you hit the like button subscribe to the channel if you want to know when I drop these videos if you want these indicators that I use make sure you go in the description follow me on Instagram and DM me the word tools but until next time I will see you all in the next video