Excited for the 2022 swing trading challenge: let's get on team, it's ricky with tackle solutions before we even move on forward if you're excited for the new challenge. Destroy that, like button, make sure you subscribe to the channel, as i upload new videos every single day, but let's go ahead and get right to it. I wanted to provide you in detail if you are wanting to swing trade, which means no day trading, the buying and selling of a stock within the same day, what this can break down to you know, i don't care if you're paper trading, i don't care if You're trading with real money at the end of the day approach the market. However, you think you will be most affected.

I always encourage beginners to paper trade, so you can test and practice everything first and then you can transition into real money. If you have any further questions, comment down below or feel free to message me via instagram, but what i wanted to break down is the capital to percentage growth and then what that correlates to, if you start with as simple as a thousand dollars, five thousand dollars. Ten thousand dollars and, of course, fifty thousand dollars first off little tip if you're just getting started. Maybe it's not the best idea to trade with any of these right, ten or fifty thousand dollars.

There's so much money understand that you need to learn how to walk before you run the making money part comes later. You need to first understand how to identify an opportunity before you can really scale into those larger numbers, but i'm just going to break it down regardless. I wanted to set up, in my opinion, a more conservative approach. People have daily goals, people have, you know, monthly goals, because this is swing trading.

I didn't want to put too much pressure in having to take a trade every single day, yet alone, every single week. So this blueprint and again this is just the goal. This is a target, something you work towards, of course, not something that is hit every single time you set a more either risky or conservative target, depending on how you want to approach the market in 2022. I'm sure we can all agree that and again i want to know your trade plan so make sure you comment that down below, but i set this up where we have a target of 10 margin and a very quick example of what i mean by that is Tqqq as an example, you know it aggressively sold off, it was approaching its support level and when it hit lows of this 147 and then it recovered to highs of 174.

If you look at that, it did that all in under one week right it's not about knowing what stock to trade but knowing when to trade it. That is the beauty behind being able to day trade in the stock market. And you can see that this alone is 20 margin. I don't know about you, i'm not a perfect trader, i'm not here to pretend to be there's always margin of or for error.

So, although the target is 10 right, and even though we have 20 percent to work with here, what i set up is a margin of error of about three percent and i'll get into that in just a little bit. This is why you see that bi-weekly again every two weeks i have a target of seven percent and monthly 14, so think about that bi-weekly every two weeks, that is a seven percent target or seven percent goal and a 14 goal for the overall month. This is the beauty behind swing trading. You don't have to trade every single day.

You don't even have to trade every single week you trade when it makes sense again. You're gon na have your good months. You're gon na have your bad months, some slower some. You know definitely better but again, this is the beauty behind it.

One thousand dollars, seven percent bi-weekly and then monthly correlates to 140. Just so you can get a general understanding of what it is. You might be like well ricky, that's not a lot of money again. Think about this, you are learning how to do something think about anything else in life.

When you learn how to do something, you know very very few times. Do you get paid to do so understand that the making money part comes later, if you're not willing to put forth the hours and the effort now you're never going to get to that point? Where again, you know as an example, you can make a couple thousand dollars trading, but of course it takes a lot of time and effort and just overall practice to even get to that point to trade with that much money to be able to make that specific Type of you know, profit in a very short period of time, so understand that great things come with time. But again you need to learn how to do it so again with one thousand dollars within a month over fourteen percent would be a hundred forty dollars. Five percent would be seven hundred dollars, ten thousand dollars would be fourteen hundred dollars and then fifty thousand dollars.

This would be uh, seven thousand dollars again. I understand that this is not compounding if it was. This would be like 735. Something like that.

This would be a little bit over 1500 1400, i'm just talking about every week, trading with one thousand dollars or a max position of a thousand dollars with. That being said, i wanted to at least break down what this would correlate on over to with a seven percent goal every two weeks or a fourteen percent goal for the overall month. With this being said, let's break down what this means: the golden ratio, if you're part of the learn plan profit group, this is the group that gets to watch me. Trade live every single day and that's part of the swing trading challenge.

We we talk about the beauty behind calculated risk, meaning that i am only going to take advantage of an opportunity when i see four times the upside of the downside. So this is my focus. This is my focus, but i wanted to at least explain it to you that you don't have to have this focus. You can have a riskier focus, meaning that you can have a one-to-one ratio, but your winning percentage has to be higher right or you can have a five to one ratio, meaning that you only take a trade when there's five percent upside and you manage your risk At a one percent downside, so even if you have a 20 success rate, meaning that one out of five trades are successful, meaning that you lose four out of your five, but with proper risk management at managing risk at only one percent and then taking on and Making sure that you fulfill that five percent on the one that does go according to plan you'll still end up profitable again, it's the simple things in life that people over complicate.

So with that being said, when we break this down and we have a four to one ratio, i know a lot of people that are either watching this video and or just getting started. Do not have a super high success rate. So, let's not pretend right that that everyone is is super great, naturally, at trading i know i wasn't when i first got started, so i set up a success rate of 30. In my opinion, that's pretty conservative.

If you think that you want to be more conservative, then again, please do it. This is just an example. 30 success rate with that being said at a 30 success rate at a four to one ratio think about that 30, meaning that out of three trades that i take within two weeks. Only one of them needs to go according to plan.

So out of three trades, two of them are red trades, but i manage my risk at one percent right, so four percent upside versus a one percent downside. I lose two percent for my first two trades. My third trade at a 30 success rate goes according to plan. I make four percent, so my overall net profit, of course, isn't going to be that seven percent that i have the target for, but it's at least still in the green and still profitable.

That's what i'm trying to get you to understand if you have a three to one ratio, then understand that you know you're still profitable somewhat at that three to one ratio when it comes down to the two to one at a 30 success rate, you need at Least, a 40 success rate at 50. If you win every other trade, then again, you're profitable in the green, profitable right your break, even if you have that 50 success rate for for the one to one ratio, meaning one percent upside versus one percent risk your break. Even is at 50, you need a 60 success rate again higher risk right higher risk, meaning that you need to be. You need to have a higher success rate, so this is why, with riskier trades - i'm not always you know uh the one to encourage beginners to get into that as it's a little bit more difficult, so risk management needs to be a1 with a four to one Ratio at a 30 success rate we're still in the green.

All you need to do is make sure that you stay calculated with managing your risk and the reason that i'm so excited about this is, if you guys know anything about our swing trading challenge. This is my goal. You do not have to do this. My swing trading challenge.

I do not want to have more than three swing trades. I do not want to have to take more than three swing trades within a you know, overall period of time. At one time i do not want to have, i don't want to be more invested more than uh into more i'm. So sorry, but i don't know why i lost my train of thought uh with thin at or at one point holy smokes.

So when it comes down to my swing trades at one given time, i will have no more than three swing trades at a time. So that means that out of those three trades that i choose to take advantage of, i only need one to go. According to plan, so i can lose money on both and i will manage my risk at that. One percent right, because four percent upside one percent downside, so i have to cut losses on two of them at one percent.

But as long as one goes, according to plan i'll still end up profitable, that's the beauty behind risk management and calculated risk. My target is a 10 margin per swing trade, meaning that when i choose to take advantage of an opportunity, i need to make sure that i have that 10 upside. You guys, can do very quick math from 145 to about 172, that's a little bit over 20. So again, my target is 10 and my realistic goal is 7, so out of 20, i'm only trying to make seven percent.

So i'm leaving margin for error, i'm not a perfect trader. Why pretend to be so again make sure you at least leave some margin for error, uh and then margin per swing trade, and then i left a three percent margin for error. I have a a target of ten percent. Three percent margin for error.

That would leave me at that seven percent, which is why you see that, right on over there and then again, a very big focus position, size and waiting for confirmation is top priority. If you're part of the learn plan. Profit group, you hear me talk about this. All the time this is where the three stages of a reversal comes into play right, i broke it down in the learn plan, profit.

2.0, lesson library. I talk about the risk behind the rejection level. I talk about the risk behind uh going in before confirmation. During that consolidation, i talk about the risk when you uh, when we wait for proper confirmation, and then this is when we really want to step on the gas when the direction is in our favor.

All this right, the three stages of reversal, rejection, consolidation and then, when we break above vma, confirmation proactively indicating signs of an uptrend that has to be top priority and the same thing with position size. One thing that you need to take into consideration is that the smaller the position size, the smaller the risk so think about this right, even with how i have mine set up at a four to one ratio: 30 success rate. If i take position size into consideration, meaning that if i go into a trade but instead of going in even with a thousand dollars, you might be like oh ricky, you know i don't you know, a thousand dollars isn't much a thousand dollars. That's how much money! I have to work with, but think about this.

Instead of going all in at a thousand dollars and crossing my fingers and hoping it goes up, we talk about position size all the time, instead of going all in then, maybe just going in with a 10 position size at first, if you like to buy in Early with that 10 position from the thousand dollars, that's a hundred dollars, so i just have very you know a very small skin in the game. With that being said, i can still follow with that. One percent stop loss or i can still manage my risk at that one percent of the thousand dollars which is equivalent to ten dollars right, so i can still manage my risk at ten dollars. If i want to - and i can do it with a fraction of a position which means that i will only give myself more cushion and more availability to be able to move before, we actually experience proper confirmation and then you might be asking well.

Where do? I add the additional 90 when it begins to trade above the ema line, but, most importantly, you know, indicators are always just to be used as a reference never has a sole reason to take a trade. All i ever really focus on is think about this. When do you want to add more money to a position when it's making you money when it's indicating signs of growth, that's when it makes sense to step on the gas and to add more to the fuel, you know to pretty much fuel. What is making you money already so when it recovers, it makes you more.

It approaches overbought levels, you lock in profits and you prepare for the next dip and guess what do i need to do this every single day? Do i need to do this every single week? No right think about this. Only two trades have to go according to plan with proper risk manager and all of that right, two trades out of the entire month. So it's not about you need to do this. Every single day - and you need to do this every single week - understand that you can set up your own schedule.

I have you know this. This uh blueprint that i made of 700 bi-weekly 14. You know overall monthly. You can set up a goal of you know.

Five percent monthly - it doesn't matter. All i want to empower you to do - is to manage your risk and to make sure that your upside always outweighs your downside to be selective. I want to empower you. I want to look out for you to make sure that you don't you know you don't have to trade, just any random stock.

Have you guys ever heard of the stock tesla think about this right? Do i need to trade this when it's selling off or when it's overbought like this? No, but guess what guess what the learn plan profit - and you know myself did guess what our team did when tesla sold off. We were watching it. I love cheap stocks right. This is a company that we all know when it founded support here and then began to trade above the ema line.

It began to indicate signs of an option. So then guess what we began to do, we began to add, add, add, add to our position size. It began to recover it approached overbought levels, we locked in profits that simple. It's not that i have to trade every single day.

It's that i have to trade when it makes sense, create effective watch lists, set effective alerts and then work with those that actually empower. You to be the best version of yourself: that's the beauty behind networking in this market and again, if you wait for confirmation and if you would have sold out that 164, that alone is 14 growth. So you would have hit your monthly goal in what three three four days think about that: it's not about just knowing what stocks to trade we're! Never here to tell you what stocks to trade! That's not what this is about! What this is about is understanding how to take advantage of these opportunities yourself. I don't know about you, but my goal is to be self-sufficient.

I don't want to be told what to do so. You'll hear all these people always trying to tell you where to buy where to sell. I never want to be told what to do. That's not the long-term goal.

That's not the long-term vision. The goal is always to be self-sufficient, at least that's a lot of our members goals for 2022.. I don't know about you right, but if you're excited to kick off the new year right on a positive note and if you're excited for this swing trading challenge, then i want to welcome you to the learn plan. Profit team, whenever it is that you think that you're ready, if you want to learn more about the three stages of reversal, if you want to learn a little bit more again, these are all exclusive pdfs that we offer exclusive to the learn plan: profit 2.0 team.

They get to watch me. Trade live every single day. They get to work with me. 24.

7.. You have a question as you're learning how to trade as you're going through the learn plan, profit, lesson library, then you ask me, and i respond within our private group - chat. 24. 7.

At any time that you have any questions, any challenges that you encounter. I am there to assist you again if you are looking for an easy way out if you are looking to be told what to do where to buy and where to sell, do not enroll. But if you are someone that is actually wanting to learn how to trade and understand the, why behind what they do, then click the first link in the description and we're running one of our biggest sells ever a hundred dollars off learn plan profit 2.0. And yes, it's lifetime access.

I appreciate you guys time hope and wish you an amazing 2022. I hope that earned your thumbs up. Consider subscribing comment down below any questions and, like always, let's make sure that we end the year on a green now. Take it easy team.

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