I was a losing Trader for over two years. I used to lose 50 dollars here at 100 there and if I make sixty dollars then the next day I would lose 200. I Just felt like I was in an extremely toxic cycle of losing money and I couldn't find a way out. Trading was extremely difficult for me until I started doing these four steps which really helped me get to where I am today.

I Finally quit my brutal 9 to 7 full-time job many years ago to become a full-time day trader. Um I Think in this trading business for over eight years now been through some of the highest highs and the lowest lows. I've met and connected with some of the most elite traders in the world. Spoke at the Top Retail Trading Conference in Las Vegas last year and toured the New York Stock Exchange and I Cannot wait to share these four crucial steps to help you overcome the struggles of losing money in day trading.

So make sure to smash the like button and open your notes app with whatever the kids are using nowadays. And let's get started. Number one: Focus on price action and remove your indicators. The first step that really helped me in trading was to really focus on reading candlesticks and price action and remove those indicators.

Yes You heard me right. Those pretty looking lines that you have on your charts right now. the RSI Histogram, Ichimoku cloud and a gazillion lines? there is yes, Remove them after removing all that noise on the charts. that really helped me become a better price action driven Trader instead of one that's depending on memorizing patterns, we're waiting for indicators to align with the North Star.

Let me explain when I first started learning to day trade, I Was told to place tons of these indicators on my charts to help me with entries and exits. Some really common ones are the RSI and Macd indicated cross the 13 EMA and 50 EMA pair and don't even get me started with a Bollinger band. I Spent months studying these indicators and watching them cross over. However, I neglected the one important thing that All Momentum Traders should do, which is observing price action.

How does stock price react to support and resistance levels will form consolidation during midday and seeing the buyers spitting the stock up or how strong a stock is reacting to the overall Market sentiment. These important observations are known as price action. Price action is the key indicator that will allow you to find better entries, potential setups and see subtle changes in the sentiment. They'll allow you to decide to stop out to protect your Capital sell for a profit will hold your position to really maximize your wins.

So no. I did not watch your price action at all during my first year of trading and I was losing a lot of money because I was too busy waiting for my 4 out of 10 indicators to cross over and all the while missing a big move on the most important reversals in the market. So my suggestion for you is remove the indicators. Maybe you can save one that you really like.

For me, the only indicator as you can see on my chart is V-wap This one indicator really works well when paired with price action. Trading Price action is now a very necessary part in my day-to-day trading, and the sooner you start paying attention to price action instead of indicators, the sooner your trading will improve. Step Number two: Risk Management: Moving on to the next step. And really, this is the key and probably the most important aspect that pulled me out of the toxic cycle of losing that was stuck in and that is implementing proper risk management.

If you've been trading for a while, you've definitely heard of this term, risk management being thrown around in the trading Community for a while. But what exactly does that mean? Managing risk as a Trader simply means that you get into a habit of meticulously planning out all of your trading executions. So for all the high probability setups that you do take, you could potentially risk a hundred dollars to make 300 or more or a thousand dollars risk to make three thousand or even more. Let's take a look at our risker war simulation spreadsheet over here.

Okay, so we're going to start with calculating your own personal risk profile according to your account size, so you can see on this calculator here. If you're trading with a five thousand dollars account and your max risk per trade should be anywhere from one percent to three percent, One percent, which is the example over here will be someone who is very conservative. If you're trading five thousand dollars using one percent, you should be only risking fifty dollars per trade. Or if you are a little bit more, you know, even more conservative, fifty dollars per day.

If you take two trades per day, that means you're risking 25 dollars per trade. However, if you are more aggressive then you can try using two or three percent risk per trade. So in this case if you're using the same five thousand dollars, your risk per trade is a hundred fifty dollars and just change this figure to however your account size is. Let's say if I'm trading a bigger account twenty thousand dollars, then I will probably risk around one to two percent for my own taste.

If I was starting out, this will be the figure for your max risk per trade. So that means for those trading a small account under five thousand dollars, no more yoloing and trying to risk 500 or a thousand dollars per trade. you should be looking at these more conservative numbers here. So we're using the same five thousand dollars account as we had earlier and would risking two percent per trade.

Now in this first simulation over here, we're risking one to one meaning that when you're trying to make a hundred dollars, you're risking that same one hundred dollars. So in this scenario if your win rate is only about fifty percent which is the case for most new Traders you can see that you know five out of ten trades you lose a hundred dollars. Around that and five out of ten trades you make a hundred, you end up a losing Trader right? You are break even about like negative ten dollars. But this is not accounting into any fees or commissions and realistically for most new Traders the win rate is sometimes a lot lower.

something closer to forty percent or even thirty percent. Then you can see. You know if you're risking one to one, you won't be profitable. This is the exact same toxic cycle I mentioned earlier in the beginning of the video when I first started trading I would make 50 dollars but lose 80 or 100 on the next trade.

So my true risk award was probably more like one to 0.5 and my win rate was more like less than 30 percent. And that's because I never looked at whether the trade I do take or based on high probability strategies and whether the potential profit is greater than the risk. In this second simulation over here you can see we're still using the same two percent risk, but now the risk award is skewed to one to two. So instead of risking a hundred dollars to make a hundred, now you're risking a hundred dollars to try to make two hundred dollars.

Now with the same win rate, you can see that the numbers are drastically different than the first simulation. So you know you can see that you know you're still losing 100 for the five trades. But for when the times you Wing you're making two hundred dollars or more and with a low win rate of 50 percent, you are profitable of around 500. Now even with let's say you know only 40 win rate, what does that look like? Even with 40 win rates, you'll still come out ahead a hundred eighty dollars.

This is what happens when you really plan out your risky word for all of the trades, making sure you could add the minimum, make one to two risk award, or even better yet, one to three or more. That's it. If you actually increase your win rates to that, say, sixty percent. What would that look like at this simulation? Over here, you can see that when you have a risky word of one, two three main, enough for each 100 you lose, you're potentially making 300 or more.

You are indeed very profitable with a win rate of 60 or even lower. Let's see if the win rate even is at fifty percent, you're still very profitable. So yes, you want to work out increasing your risk award. And if you can get to a point of 50, 60 or even higher 70 win rates, that's when you see your P L curve really Propel and you'll see some exponential growth in your trading account.

We'll be talking about even more high probability strategies in the future. Videos: If you want to see more free lessons, then make sure to subscribe to this Channel and smash the like button as hard as you can. Risk management is a foundation in day trading. If you don't manage your losses, you'll never become profitable, especially if you have a small account.

Because let's be real here. Once again, no one can predict whether a stock is going up or down with 100 certainty at any given time. But if you can, call me first, so keep that in mind as your second thing to work on. That will transform you from a losing to winning Trader Step number three: Focus on charting.

Now the next step I recommend you to do if you want to become a profitable Trader is to really focus on charting. Let me explain parts of becoming a self-proficient Trader is to be able to perform technical analysis on a daily basis to see Market sentiments, overall trends of specific stocks and potential opportunities to profit. Charting is not as simple as drawing out triangles on a one minute chart. Labeling is both flag or bear flags and calling it a day.

It's about planning out important key levels on various time frames and perform a bigger picture idea whether that's your day trade or swing trades. For example, some early technical analysis observations from when I was a new Trader were concentrated around breakouts. The success rate of a Breakout felt drastically increases after at least one hour of consolidation or multiple higher lows above key level after 11 o'clock It's usually when you see the strongest breakouts. Example 2: Generally speaking, stocks have sold off drastically after they opened due to just Market sentiments or purely technical Catalyst has a high chance to bounce around 10 30 to 11 am.

Example 3: When stocks for multiple retests of the same resistance but still fail the breakout on a daily chart, it usually becomes a great short setup intraday and for swing trading, these are just some examples of high probability findings that you will see if you put in the time to study charting on a daily basis and these little observations can be turned into repeatable strategies for you to profit from. To do this daily technical analysis exercise, you need a good charting platform. Well, not everyone can afford to pay for the premium platforms like Das Trader. Other more affordable options are TD think or Swim which you can see on the screen over here.

Another option you can use on your phone app on PC or MacBook is trading view. This is the really light and clean charting platform that you can see in a lot of my trading videos. It's great for charting, planning out levels, and you can connect trading view with multiple Brokers as well. Trading view is free to sign up and there's premium options for like 10 to 20 dollars a month.

I'll leave you links to all the platforms mentioned in the description below. Once again, technical analysis and charting should be something that is practiced on a daily basis, especially for beginner. Traders When I first started out, I would spend hours each evening after my nine to seven job to analyze stocks in the charts and I will save my charts every evening and count into potential strategies. If it repeats this exercise in routine on a daily basis, it will help you become a better.

Trader Speaking of routines and discipline, this is something that's been mentioned by many. Millionaire Day Traders Are interviewed in Las Vegas You have to have a a passion about the process and I know people hear this all the time they go. yeah oh it's a cliche you the process. I Hear all about the process.

You know why you hear about the process because it's the most important thing. Yeah, if you are not fascinated about the process then get go, find somewhere else to go because like trading isn't for you. I Would say be patient with yourself. Understand.

Like I said three four years you really have to commit yourself to it. It's not something that half-ass I would say that you need to put your full energy into this and it will pay out appropriately. depending on you know. If you really treat this like a business and you want to be a professional, just don't even bother.

If you're going to trade amateur, that's an easy one. Learn how to lose. If you can lose, you'll be okay. You can't lose.

Just give up and put the money in my pocket right now. Without a strict discipline and without the process for practicing that discipline, it's very likely that you will lose your profits in trading. It's not necessarily difficult to make money, but it's very difficult to keep those profits. which is why creating a daily routine and focusing on the process is the fourth thing that really allowed me to turn my P L curve around and to go red to green and finally taking off before establishing a daily process.

I was simply just waking up five minutes before the market opened and will hop into my computer and be ready to press buttons and Chase whatever alerts or stocks that be mentioned on social media. That was a recipe for disaster. That's one of the many reasons that will make fifty dollars here and lose 100 on the next trade. Just a terrible process and terrible risk management.

Remember traders that failing to plan you are planning to fail. That's why I realized what I was doing was not sustainable. Yes, While I still have my nine to seven job at the time and I could afford to lose fifty dollars to a hundred dollars a day, staying a losing streak was very draining on my emotional and Financial Health So the next step to turning your trading around from losing to Winning is to finally prepare for your trading. The evening before my set process from when I was trading part-time was to come home from work in the evening, spend a few hours tracking and journaling my own trades from the morning, spend some time charting, saving charts, printing them out if necessary, and reading up on the Catalyst from the day and a top percentage movers.

and then finally, I'll plan out two to three potential trade ideas for the next morning. My total time commitment each evening was around two to four hours. I would do this from Monday to Thursday evenings and at least one day on the weekends. Yes, I Understand, this is a lot of work and a lot of time commitment, but hey, I was so tired of staying in a losing cycle for so long I was willing to make sacrifices and push through this.

I I'll be honest, no drastic improvements happened overnight, but since implementing that routine, I find that I was formaling less and less I stopped chasing breakouts and alerts and I was more patient with my trades and setup plans after a month of repeating the same discipline routine with those four steps, that's what allowed me to really find some focus on winning strategies. and I also saw that in my journal that I tracked every evening that I was losing less and less the losses become much smaller than my wins and I was finding more consistency and finally becoming profitable. I Want to stress to you the importance of risk management once again. As you saw earlier in the video, you should calculate your risk according to your account size.

If you are unsure how to implement risk management according to your account size, then check out this video next for a step-by-step lesson. And if you're looking for one-on-one mentorship in the in-depth day trading education program, then make sure to check out the Humble Trader Community down below. Thank you so much for watching! As always, I'm the Humble Trader and I'll see you guys next time.