Hey, what's up guys? So today we're gonna talk about something really important and that's how to maximize your profits on every trade that you take. I'm gonna give you guys three very simple steps to follow to help you achieve this goal and it's all gonna be in less time than it takes to make the morning watchlist. Alright, so stick with me. We're going to run through the three simple steps out of maximize profits.

Hey, what's up guys? Time to jump into today's lesson here. It's gonna be three simple steps to maximize profits. I Want to spend some time today, a short period of time today, going through some very easy but very key steps and helping you really get the most out of your trading and maximize those profits on every trade that has our highest probability setups Because those are the ones that are the lowest of risk and they provide the most opportunity. and it's important that we extract that opportunity from them to again keep our risk at a minimal level.

So let's show pride and do it here today. Three simple steps guys. Really, really simple stuff here. and the first one is gonna be cash is a position.

Now why do I say that? You've probably heard this before. Well, it's to reinforce the idea that sitting patiently while waiting for a trade to present itself is extremely important. Ninety percent of your time or more should be spent waiting. Alright, that ten percent of time is when you're trading.

So sitting patiently exercising that's that. cautiousness to trade is really important and will save you so much as you progress over your your career of trading. But cash is a position. Don't feel like you have to do anything every minute of the day.

all right, or every day for that matter. If a trade setup doesn't present itself, then there's no reason to trade. Okay, moving on the next one. Do not stress over the relief moves and corrections.

So what I mean by this is if you're in the trade and the stock is pulling back or making a correction, but it's still in the overall trend, there's no reason to panic out and take all your profit. This was a big issue that plagued me for a long time and that the first sort of weakness I saw on a stock or strength if I was short I would tend to jump out of the trade and to only then see it go on for several more points or several more percent and I'd leave a lot of money on the table every time. So I started to realize that as long as the big picture makes sense, it's still in trend. My thesis is still in play here.

You've got to maintain a position because those are the trades that when they go on to make those big moves, that's where the profits become maximized. All right. So really important to not stress over the short-term relief moves or Corrections that you may have while trend trading or momentum trading because it's part of price action. It's going to happen every time.

Do not let it scare you out of a trade or make you panic into a situation that takes you out of a trade that could essentially end up being a very big winner. Okay, number three is: be aggressive. All right. If you have trade setups that are presenting themselves and they have a high probability setup, you know that you are.

You do very well trading these setups. Don't be afraid to be aggressive. Alright, and what that means is, do you take multiple trades on the same stock? Do you size up so you have a bigger position to capitalize on that on that position. It could mean a number of different things.

We're going to discuss what that means in more detail. We're going to discuss what all these mean in more detail, but these are only the three steps that you need in order to help maximize your profits and your positions. Okay, so again, cash is a position. Don't don't think you have to be doing something every minute of the day.

Number two, don't stress over those small Corrections or pull backs because those trades will tend to be the ones that go on and make the big moves and we'll give you those those much bigger profits. And then three Be aggressive if you know something works. If you know that you're good at that trade setup, be aggressive On, Don't be shy because those are the ones again that she'll be able to pull the most profit out of. Alright, so moving on.

cash is a position. A little bit of a breakdown as to what I mean by this. So you as a trader common belief is that without a position, they're not working or they're not participating the markets, right? So for most of you coming into the markets, you probably are under the impression that if you're not trading, you're probably not doing anything, you're not working, or you're not taking the step to become profitable. And you know that was surely the the mindset that I was on there's I have to be trading something I have to be trying to to find something to make profit on.

And unfortunately, it's it's psychologically you know can be one of the the most drastic effects causing traders to take marginals of marginal trades. Alright, these are. these are trades that I can pretty much assure you that you wouldn't otherwise take because they're made in a psychologically altered state. Okay, so don't be under the belief that you have to be trading something every minute of the day, every hour of the day, or even every day.

there's several days that I'll go that I don't actually trade a stock because I don't have my setup that has that high probability and predictability factor. So I won't trade. So again, if you can practice patience, it will save you in the long run by trying to fight with the market in that you don't have the right action or the right momentum or the right trend to trade or the right setup, right. So again, put that aside, don't don't be under that belief because it was, oh, it will only cause you to take, you know, marginal trades.

Okay, this is a more sustainable approach over the long term if you trust your methodology. if you don't have open positions, you are actively doing something else correct and and that's simply adhering to your method in your process. So one thing I like to focus on is that if I'm not actively trading, I'm definitely working on something else And that skill is patience. and that is gonna be one of the most important skills that you can have as a trader.

You can ask any successful trader and they're gonna tell you patience is where the real consistency and profitability will stem from. So in those periods that you may not be trading or you can't find anything that you like to trade or aligns with your approach, remind yourself that you are actively doing something very important and that's practicing your patience all right. If you can develop, continue to work on develop that skill of patience, you will go on to be a much more successful trader over the long term. Okay, so and it's something I stress a lot that again, just because you're not trading doesn't mean you're being lazy.

You're not doing anything. You are subconsciously practicing the skill of patience and that's gonna be one of the most important skills you will. You will have to have as a successful trader as you move on. Alright, so don't be pressured into trading something just because you feel like you should sit back, relax, spend time watching the price action, and only act when you feel comfortable that you have a setup that you can be profitable.

Alright, so moving right along, do not stress over the corrections. Okay now I wanted to make this title very clear because it's simply what it is right. Do not stress over these small Corrections that you may have. stay focused on the big picture.

the fluctuations in your profit up or down. You know, when you're in a trade, you know they tend to be emotionally taxing. You know, especially during these relief moves in the midst of a prevailing trend. So let's say that you're along a stock and you get these pull backs along the way and you might be sitting in a pullback and say oh, you know I should have sold up there because that and then I would have more profit I wouldn't be having to sit here, but you know what everyone wishes they will Hit the top and bottom of a move.

It's never going to happen or very very rarely it's going to happen so you can't sit back and say to yourself, you wish you sold up there we should bought down there. Whatever it may have been, as long as the big picture is still in play, stick with the trade. All right again. Page: It's patience pays guys.

And if you can stick with the trend and stick to the big picture, this is something that again, you will be able to maximize the profits because you're sticking with the trade. Don't be spooked out of a trade just because it's not continuing to rip higher or sell-off lower. These things takes time to play out. so let the trade actually play out and give it time to do that in these situations, as did I Early on, many choose to close the trade during these events, these pullback events because again, you are worried that the trade is actually reversing on you and you want to reserve that profit.

So and these trading decisions are unlikely you know made in a state of mind. That's is clear because you're just focusing on your P&L and that's one thing. Also, I definitely stress Ilia is to remove your P&L from the screen and trade. This set of trade, the stock trade, the price action and you will see much better results than then trying to watch your price action because it's going to have an effect on how you make a decision.

Alright, so ask yourself the question you know while you're in the position, is your overall thesis or your plan on the trade still valid? Alright, if it is, If it's not completely reversing against you, then exercise that skill of patience that you're practicing in times that you're not trading. And and you know, exercise control to maximize those Brock's because if you're able to sit through the consolidation period, it's these pull backs. these Corrections these relief moves and the stock in the overall picture is still in trend, then there's really no reason to exit your position entirely. Let the trade go on to play out, and that's where you can look to maximize those profits.

And for me, there often be trades that I'll sit in for several hours day trades, several hours at a time, letting them play out because they'll run all day and doesn't happen every day. But if you sit back and you ask yourself, is it still in trend? is it's is your thesis still in play in a big picture? You'll often continue to ask yourself that several hours into the day stop. it's trending and that is a lot of profit. All right.

One one other thing too, is, you know, reviewing historical charts and studying Corrections will help your management skills for when you're faced with this situation in real time. This was something that really helped me. was actually going back and look at stocks that made these big trendy moves and look at the periods of time that they made these Corrections or relief moves or pull backs. Alright I Use a very fast time frame chart.

You know 15 second or 30 second charts. So I watched these alright. I Went back and study these pull backs. That happened and you will get a sense of what is the right type of pullback and what is the wrong type of pullback.

and as you can start to identify those differences in the price action, you'll become familiar with what you're seen in real time and that fear factor will eventually be fully removed. And you can trade the price action as you see it. And if you want to take it a step further, record your charts during live trading and then go back and review them in a live situation on a replay in the video and you can watch the price action play out. If you're exposed to this stuff outside of real time and plan for it because of what you're studying, it'll make it much easier to manage in the moment.

Alright, I Know we have to make fast decisions when we're day trading, but if you can see this stuff prior and and study it, it'll give you a much better understanding of what to expect in that situation and thus improve your management skills. All right. And then finally, number three, Be aggressive. Now this is a really important one as well.

just as important as the other two because you have to learn to become aggressive when this situation presents itself. And simply you know what this means is is basically adding in to your positions or sizing up your position when something's working in your favor. Or when you have a setup that is very, very highly rated in relation to the way that your trade. Okay, so you know that this requires a couple things: a high level of confidence as well as the risk reward making sense is obviously imperative.

And what I mean by that is that that that level of confidence is taken from your your trade metrics, right? What type of setup are you best trading right? Are you better trading a pullback? Are you better trading a breakout? Are you better trading a Bear Flag We're both like. you have to know where your niche is, your specialty is and then you can exploit that. All right? So I know that I'm best at going short when I have a very very strong macro or a daily chart set up. All right.

I have that and all that comes together and we have volume. I Know that I have a high probability of the trade working. so my level of confidence is increased, my level of confidence is increased. Makes it much easier to become aggressive on the trade.

Okay, now there's right at wrong times. become aggressive obviously and the way you want to try to develop the the situation is to waiting to become aggressive is you have to take a couple steps and basically break down this trade setup and rate it all right. So develop a specific criteria for your trade approach. Again, you just have to know and that's that's up to you to decide as to what type of trade you're going to take based on your success rates.

Okay now what you're going to do then they're afters. You want to rate each setup or opportunity based on your criteria. So let's say you have a watchlist that day of three stocks. Well what I do is I come in in the morning, look at all the stocks that are moving I end up usually with two or three maybe four if it's an earnings season and we have some good action, but typically two or three.

Now what I do with those is I simply rate them I say okay, this one has the best daily set of this one's gonna have more volume. This one's in my price range I kind of take all those factors and you have to figure out what that rating system is. but I rate them and I say okay Well this one's a definitely a really, really solid one. It's a number one.

This one is is pretty good if it's a number to number three and I will adjust my focus based on the rating and again along with that becomes my aggressiveness. So I know If I trade the stock that is I've rated the highest I know that I'm gonna be the most aggressive on that stock. All right, Sometimes those stocks not going to work out so you have to move to number the next stock that you may write it in number two. Well, it's still a good setup, but you may not want to be as aggressive on that as you would as your rating of number one.

Okay, then of course we're talking about aggressiveness. that's gonna lead directly into sizing and that that simply is going to mean adjust your size based on your ratings. All right. So let's say your typical position is you know, a $50,000 position.

Well, if it's something that you're you're really confident in. It's a really highly rated setup and you you know what to expect from this got a high predictability factor. You know, maybe you want to. maybe you want to increase your position size to 75,000 All right, I know that's what I do.

That's my approach. My typical trading position is anywhere from 75 to 100 thousand. I've got a set up that's really good and I've got really highly rated to stock down familiar with. Then I might double my position right because I am being aggressive and I want to take advantage of that situation.

All right. So again, this was something that really helped me as well. And these these all three of these steps really important. They're all equally.

They're all equally important. And this one, especially because it always keeps you pushing the envelope. You always want to feel like you're pushing the envelope just a little bit because that will that will stimulate growth in your trading and will help you really, really progress faster and ultimately maximize those profits, right? Because that's what we want to do. All right On those high probability setups and some final thoughts here.

You know these are just some thoughts to kind of keep in your mind as you go forward while trying to utilize these steps or these three key points to maximize your profits. And that's you know, we've got a couple here. A clear methodology is a must. All right.

You have to know what works for you, and you have to know what doesn't. You can't expect it to be. trade everything that moves and you know generate profit from all that. And and if you don't have that, it doesn't matter who's talking to you, what books you're reading, what videos you're watching.

No, no amount of advice is going to help you. You have to take the step to understand what you feel comfortable with and what works for you. And then that's when you can incorporate other other types of approaches into your and into your comfort zone. All right, you shouldn't be expected to be able to trade everything that moves doing what other people are doing because it's you that matters and you have to know what you were capable of.

All right. So again, make sure you have a really clear-cut plan, clear-cut setup that you might feel comfortable trading, and a clear-cut approach as to how you're going to implement these few steps into that into that methodology. And number two. Keep it simple guys, you know I only have two or three setups that I really focus on.

And like I said, there'll be some days or multiple days in a row. then I don't trade because I don't have what I want? Sure could I go off and trade something else because it's moving. Yes, But that would go outside my clear-cut methodology approach that we just talked about. All right.

So don't fight the markets. All right, If you're trying to fight the market, fight the trend, or fight the price action, you're You're just not going to find any sort of consistency or progress. And in that sense, All right. the next one.

What we just talked about: Act on high scoring opportunities, know your metrics, know it works for you, know where you thrive, you have to understand what works for you, and that's the. that's this. Those are the situation you need to be involved in. All right, don't be trying to run to every different type of strategy out there, know which one's work best for you, and stick to those only.

and again, you'll see all kinds of improvements across your trading. And then the final one is which we talked about here. Sit patiently in periods of limited action. If you don't have what works for you that you've laid in your clear-cut methodology, stay away.

They stay away. I Can't tell you how much sitting tight and being patient has helped me. It has saved me over the years. I Was under the impression I had to trade every minute and when I did that I would do nothing but pretty much lose money.

Okay, so yeah, being able to sit patient and waiting for those those setups that present themselves that you've laid out in your plan. Again, you'll see a lot of consistency and ultimately the the maximizing of your profits. All right. So quick lesson guys on the three simple simple steps to maximize your profits.

Hope that was helpful. You guys have questions or comments. please leave them below I Definitely get to all of them and happy to help you guys continue your journey of trading. Hey everyone, thanks for watching the videos! I'll continue to make sure that all of the watch lists as well as the recaps are available to all of you.

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