Simple Day Trading Strategy — Step-by-Step Guide & Transcript

[00:02] I'm going to make it very simple for you in this video. By the end of the video, day trading will become the simplest form of trading you can engage in.

[00:18] fact, what I'm going to show you today will only require only about 30 to minutes of your time a day. And you don't need multiple indicators. All that does is just confuse you. We are going to keep things really

[00:32] simple. [music] As a matter of fact, my profitability actually started when I stopped complicating things and started keeping things really simple. [music] My keeping things really simple. [music] My name is Jude and on this channel I help

[00:46] aspiring traders hit their first $10,000 in profits. If that is what you're working towards, then subscribe and let's get to it. Now, when people hear about day trading, they immediately believe it means taking

[01:00] trades every single day. They feel like if they don't open their >> [music] >> So, they wake up, open TradingView, force trades, jump into positions that are not even very clear.

[01:13] And over time this leads to frustration because they are busy but not profitable. What many beginners don't understand is that profitable day

[01:25] trading is not about activities. It's about waiting for the right opportunity. In fact, what I want to show you will give you only about one to three setups give you only about one to three setups a week. That means roughly five to eight

[01:40] trades [music] a month. And that is more than enough to build a profitable trading career if you execute them properly and manage your risk. So, day trading is not about sitting in front of your charts the whole day.

[01:54] It's about knowing what to trade, where to trade it, what simple setup to wait for, and how to protect your capital when you enter. Let us start with the first question. What should you actually [music] trade

[02:09] as a day trader? Now, as a beginner, you want to focus on very liquid [music] assets. That is markets where there is enough volume. Price executed [music] quickly. In crypto, this means coins

[02:24] like Bitcoin and Ethereum because these two coins makes about 60% of the entire In Forex, [music] it means major pairs like EUR/USD or

[02:37] GBP/USD. [music] As a matter of fact, the major currency pairs makes about the major currency pairs makes about again 60% of the entire $7 trillion a day Forex trade volume. You don't need to monitor many [music]

[02:50] You don't need to monitor many [music] assets. In fact, focusing on just one or two markets is better because over time you start to understand how they move and that improves your decision-making. So, once you know what to trade, the

[03:03] >> [music] >> where should you actually place these trades? For crypto trading, I personally use Bybit because execution is fast and the fees are competitive and you can also

[03:17] trade Forex directly inside the chart five section. So, you don't necessarily need multiple platforms. If you don't already have a Bybit account, you can use my link in the description to get some sign-up bonuses when you sign up

[03:31] supported in your country, then you can simply use any good crypto exchange for crypto trading and a regulated Forex broker for Forex trade. [music] broker for Forex trade. [music] Now that you know what to trade and

[03:46] where to trade it, let's talk about the simple day trading setup you should be waiting for. So, looking at this screen, we have the USD. This is the example I want to use. Now,

[03:59] >> [music] >> you should look at in your strategy. One, you have market structure. I know you must have heard about this before, but I'm going to make it make sense to you. Then you have liquidity. A lot of

[04:13] liquidity when it comes to trading. Then we have area of interest. >> And finally, we're going to talk about entry. Now, let's start with structure, okay? So, we know the market moves in three ways. So, we have a uptrending

[04:28] market. Market is making higher highs and higher lows. So, these are the highs for uptrending markets and [music] these are the lows. Okay?

[04:40] >> [music] >> Market is making a sideways movement. highs and higher lows. It's just moving [music] about a range. We don't want to trade this. We want to keep away from the market when it's

[04:54] Then I have a downtrending market. Market is making >> um lower lows and lower highs. So, these are the lows and these are the highs. So, we want to

[05:07] trade this one and this one. >> [music] >> So, let's me zoom into this one. All right? The way market moves that many people don't talk about is this.

[05:21] liquidity. It has to create liquidity, takes that liquidity. On its downward movement, it also creates liquidity, thing on its way on its movement upwards.

[05:36] upwards. So, market actually does this. actually moves. So, each time it is creating liquidity here, takes [music] it,

[05:51] creates liquidity, takes it, creates liquidity, takes it this way. This is how it moves. Now, on a chart you're going to see this. Sometimes it just moves cleanly, okay? And we're

[06:04] really soon. Let me draw this differently >> maybe to make it make more sense to you. So, I'm going to draw this using this particular tool. So, we have [music] a market moving this way, creating

[06:18] liquidity, okay? Takes it, makes a high [music] downwards. It can create liquidity this way. these are the liquidities [music]

[06:32] creating and taking. This is what traps >> [music] >> a lot of retail traders and this is what makes you um lose your trades. This liquidity market creates. Now,

[06:46] what you have to understand about market structure is this. It's the highs and the lows. [music] This movement here, this one here, is our impulsive move. Then the movement downwards

[06:59] is our retracement move. So, these are the highs that I mentioned before. So, I have the high here and the high here. [music] that I mentioned here. Now,

[07:13] we're going to call them the external highs and lows. So, this one here is an external high. This one here >> is an external low. So, for what I drew here, we have

[07:28] this external high and this external low. [music] Let me give give it one more extra leg.

[07:42] So, market comes down, creates liquidity, okay? Takes it, then it creates liquidity again, then takes it and go up. So, have one more external high

[07:54] Now, like I said, this is [music] impulsive move, retracement, impulsive, retracement, impulsive, retracement. What you have to now know is that this external high,

[08:07] external high, when it is broken this [music] way, When it is broken this way, we call this a break of structure. Now, we are doing liquidity and market structure.

[08:25] market is trending, the external highs are taken out. While the external lows are called the protected lows. These external lows are called the

[08:38] doesn't come back to take them. As much as this external lows are not taken out, this market is in the uptrend. When they [music] become taken out like this market, you see it took it took

[08:52] >> [music] >> highs and lows and I just call them the >> highs and lows and I just call them the liquidity of this part of this movement. If this is taken out, this particular one, this market is still uptrending.

[09:07] >> [music] >> this way, when it is taken this is taken out, this then becomes is no longer a protected external um low. This then becomes a [music]

[09:24] change of character. Now, what then happens is that it gives me confidence that this market is going towards start doing this starts going [music] in So, here we now understand break of structure, break of structure, break of

[09:38] structure. And when it [music] changes, it becomes change of character. Then we now start having break of structure to the downside. So, how do you trade this?

[09:50] we use this tool, Fibonacci, to find the area of interest. So, if a market trends and is breaking structure, all I'm interested is to deposit the Fibonacci. Once this market comes into this zone,

[10:08] I call this the golden zone. So, between 0.62 and 0.79, this golden zone. What I will start looking for in this zone is also a change of character in the lower time frames. So, I'll go to like right now I'm on the 1-hour time frame.

[10:23] and look for the market [music] is coming down. This is the area of interest, right? So, what I'm looking for here is on lower time frame we have a shift this way.

[10:35] >> Then, I want to start trading here and here to take this market higher. So, if you look at this, we have on this

[10:48] here to the low. We then have a change of Just like here, we need a break of structure here. Then the structure [music] breaks to the other side like we have here.

[11:04] It then becomes a change of character. Now, let's go to the real chart and trade this. So, this is GBP/USD and let's look at this. [music] So, this trending upwards. >> [music]

[11:16] >> This here is a break of structure. So, normally I would expect this to go up, retrace to the golden zone, >> [music] breaks below, then I expect this [music] to happen.

[11:32] this takes days because we're on the 1-hour time frame. But, if you look at >> this particular area as well, we see what is happening here. >> [music] >> The market is trending downwards this

[11:48] Okay? I want to keep on trading this market down this way [music] until I see like this go down and and I see a change of character here.

[12:01] That is when I will likely start trading this way. So, now let's analyze this and see how we [music] take this particular trade. But, first, if you look at this movement, you will see what I've been

[12:14] talking about. If you look at this market trending this way, let's look at this. So, you can [music] see this upward movement is creating a bunch of liquidity here. Took that liquidity,

[12:27] came down, created liquidity here, took it, took it again, this one again, created liquidity, took it. So, the market just keeps on creating liquidity and taking it. So, this is majorly what traps a lot of

[12:42] this is majorly what traps a lot of retail traders. creating and taking liquidity, that's what the market is doing here. But, let's look at this now. If you look at this particular low,

[12:57] >> [music] >> this particular one. This is the point where within this larger movement, this here. This is when the structure is broken

[13:12] So, I want to call this change of character. We have a change of character here. Now, once the change of character occurs, what do I do here? I want to pull my Fibonacci out, take it

[13:25] from the top, and do this. [music] What I'm expecting is for price to go up from here. Once it hit this zone,

[13:38] I want to take a trade here. Okay? I want to look for change of >> then take this trade down. But, you can see here that the market didn't actually come back to this um place. Okay? What did it do? It went ahead and

[13:52] broke structure again at this particular point. So, this why I say trading is really really pretty. You have to be patient for these we have a break of structure here, and this I can consider this a high. So,

[14:07] what do I do again? I pull my Fibonacci, then from the top here to the bottom. [music] So, I'm waiting for what price is going to do within this region.

[14:20] So, here, let's now zoom into this region on the [music] frame. So, this is on the 15-minute time frame. So, let's look at what price did here. So, here, we have

[14:33] Look at the same price movement. We have price going this way. price going this way. Market structure, then we have this. And so, this is my high because we had a break of structure

[14:46] Then once we broke structure to the downside, that is when I want to trade >> And my target is going to be this particular So, on this market I'm going to do the same thing. So, price has

[15:00] clear So, here, we had a break of structure to the >> Okay? And

[15:13] below we have another break of structure here, here, which is this one. do?

[15:27] this is actually a liquidity sweep. This one is also [music] a liquidity sweep. Now, break of structure is confirmed when the candle body is actually closing below this line. So, in this case, this

[15:42] technically occurred here. Okay? So, draw our Fibonacci again from this particular point

[15:57] to this low here. This is the low. I'm pulling it all the way this way. Since market has broken structure this way, we didn't um get a trade here. It came down, broke structure again, and

[16:10] that's is going to be our target. [music] So, I'm going to go ahead and mark out this particular low so I don't cluster this chart. So, I have this low here. So, now this is going to be my target.

[16:25] how do I now enter this particular trade? So, since um now it's now character here, my first trade can be from here. I can go ahead and take a short position from this particular

[16:39] >> [music] >> My target is this high, particular [music] low. So, this give me a 3.95 risk-reward ratio. So, you can see how [music] this trade

[16:54] played out. For us to get this, for us to get this. particular point. If you look at it, it's to get this one trade. Now, there's but there's another trade

[17:07] >> [music] >> you will see that after this change of character, after [music] this, let's say we missed What is the next break of structure we are having

[17:19] >> within this movement? So, technically we can look at this high. We can look at this high bottom this is the bottom that led to this high. So, this is also another

[17:34] point. Uh what do we do? We take our Fibonacci from the top to the bottom, and this is where we look for our entry. Now, we can I can do two

[17:47] things. One is that So, this is 1-hour time frame. I can now go to the [music] 15-minute time frame to look for entry at this point. So, again, [music] what am I looking for at this particular point? So, here, you

[18:01] at this particular point? So, here, you will see that we made a high here, even >> [music] >> at the top, then this is a low that is Okay? So, this is not our change of character at this point. So, I can

[18:16] actually from here take this particular trade from this particular point. trade from this particular point. From here, we can take a short position >> [music] >> target the the high

[18:31] >> target the the high as stop loss, and go all the way down to give me a 4.69 [music] risk-reward Now, we can continue. Let me give you one one more example.

[18:45] here, the market came down, and what did we do? We broke structure at this region. >> [music] >> So, this becomes a break of structure.

[19:01] >> [music] >> what can we do? We do the same thing. Take our Fibonacci, take it from the top of that break of structure, which is this, to the bottom, [music]

[19:13] >> [music] >> which is as you can see that this didn't come all the way to this point. Okay? And we now have another break of structure. So, we're then now going to

[19:25] structure. So, we're then now going to ignore this particular one, this one, and go back to this break of structure. I want to do this on the the 1-hour time frame. Let me do it again. We have this break of structure

[19:37] again. We have this break of structure here, and from this point [music] to the bottom. You can see that. And we didn't have this come all the way up to our golden zone,

[19:50] and it broke our uh structure again. So, I'm going to ignore this one. Then I now look at this breaker structure we have here, this one. >> Okay? And this is the low

[20:05] that we're now looking at. Which is now our target. So what do we do [music] here? From this particular point, we do the same thing. We take our Fibonacci from the top.

[20:18] We take it all the way to the bottom. Because from here character. Uh if you look at here, I'm going to go down to the lower time frame. From here, you will see that

[20:34] character here. Because this is the low that led to this highest particular low led to this high. We didn't break it, so we cannot take this trade. And this continued until

[20:47] have this at this very top. So this is clear A breaker structure here. To the higher side. On the 15-minutes [music] time frame,

[21:01] you also see this on the um 5-minutes time frame. Then up below we now have a change of character on the lower time frame. One way I can take this is just to enter this trade from here, like I said earlier.

[21:14] I'm going to take a short position from as we broke structure, we take it from And where do we target? We target this zone. At this bottom here. [music]

[21:26] You can see this is this is clear 4-hour. to show you a second way to do this. Another way to do this is to just to do

[21:39] Take this from here to this bottom [music] again. So I want to enter from the 62 level. So I want to enter from the 62 level. So we take a short position.

[21:57] giving us a 5.5 as opposed to a 4. um 4. But the thing [music] is that this is you are going to take this trade. With this one, market doesn't really treats to this particular level. So let's let me replay

[22:11] particular level. So let's let me replay this and see how this actually happens. Yeah, so we've got a a tapping at this point.

[22:25] this point. So this is simple. You just have to [music] wait for this to happen. It just shows in the market marketplace. Start from the 4-hours, 1-hour, get your um structure. Then >> [music]

[22:38] go to the 15-minutes or 5-minutes time frame to look for the entry to enter that trade after each change of character. let's talk about the real power of risk management. Now,

[22:54] from my analysis so far, we've established one important rule. On every trade, I target a minimum risk reward ratio of 3:1. As a matter of fact, from what you're seeing, we're seeing like four and we're seeing five. What this

[23:08] means is that for every $1 I risk, I'm aiming for at least a $3 reward. Um tools like um the FX calculator can help you to execute trades properly this week. You can download it and also watch the tutorial from the settings [music]

[23:23] page. Now, let's look at a practical example so this all comes together and makes sense to you. Let's say in 1 month I took seven trades. Like I said, I'm aiming for five to eight trades. Let's say I

[23:36] took seven trades in a month. Out of the seven trades, I won four of them and lost [music] three of them. So yes, even with this, you will experience losses. Since each winning trade gives me a 3R,

[23:49] >> [music] >> 4 * 3. Remember I won four and each >> 4 * 3. Remember I won four and each trade gave me three. 4 * 3 which is 12. And my total loss is 3 * 1 since I lose only one part when I

[24:04] >> [music] >> which is three. So my net result for the >> which is three. So my net result for the month becomes 12 - 3 which is 9R. This is a very profitable month for a trader. Now, imagine you are risking

[24:18] that means [music] you would have made about $9,000 in that month. And the interesting thing >> [music] >> trading all day. Sometimes,

[24:34] just 30 minutes focused on the chart will give you [music] this. lines and put an alert. If it goes off, out. This is how day trading becomes structured

[24:48] >> and scalable. For example, risking just 1% on a $100,000 funded account is already enough to generate a serious income. And getting access to that kind >> [music] >> as many people think. But you must

[25:04] follow a plan. Step one of the plan is to backtest your strategy on at least 6 months of historical data. This does not mean you spend 6 months process within a week or [music] maybe 2 weeks or

[25:20] thereabouts. You just want to see how the strategy would perform over a 6-month [music] period. Step two is to demo trade the strategy for about a month. If you are able to achieve roughly 50% win rate

[25:37] >> while maintaining a minimum risk to reward ratio of three, then you can move on to the next step, which is step three. Which is to fund a which is step three. Which is to fund a small real account, maybe [music] $300

[25:51] small real account, maybe [music] $300 or $500 and trade that live for about two to three months. This is my alerts to you now. Real example in my golden zone. It's a real trade. So what I'm just waiting for

[26:05] is so I can take this trade from here >> [music] >> if we have a proper break. A proper break closure, I can [music] take this trade here for you. And go low or simply wait for a

[26:17] Now, back to what I was saying. So live trading, you need about $300 to live trade for three [music] to um two to three months. If you remain consistent and profitable during this period,

[26:32] only then should you move to step four. Step four is to attempt [music] a prop firm evaluation. This may cost you around $400 depending on your account size. If you follow the previous [music]

[26:46] steps properly, your chances of passing on the first >> increases significantly. Step five is to scale. You can now aim for funded account of a $100,000 or $200,000.

[27:01] >> [music] >> This is how structured day trading skill >> [music] >> Now, if you want to see the my trade setup, just look for a way to get into my community, be Telegram or um Discord.

[27:15] >> [music] >> and the trades that I'm taking. Now, if you want to actually copy my trades, what you want to [music] do is watch what you want to [music] do is watch this next video.