Earning a Living through Day Trading: Mastering a Single, Effective Strategy (2023)
Introduction
In this video, Chad Trades shares his one simple day trading strategy that he uses almost every time he takes a trade. He emphasizes the importance of using a combination of support and resistance levels, supply and demand, and the 200-day moving average. Chad provides pro tips that he has found to be effective in improving his trading success. By understanding how to use these indicators better, he has been able to win more trades consistently.
The Pro Tip: Market Must Respect the Moving Average
Chad explains that the key to his strategy is ensuring that the market respects the moving average he is using as a confirmation for his trades. He specifically focuses on the 200-day moving average and observes how the market behaves in relation to it. If the market consistently respects the moving average, he considers it a valid confirmation to take trades off it. This approach helps him identify potential trade setups and increases his chances of success.
An Example Trade: Wednesday’s Trade Recap
Chad provides a trade recap from Wednesday to illustrate how he applies his strategy in real-time. He shows a chart of the S&P 500 on a 5-minute timeframe and points out two main levels: a resistance level and a support level. He explains that the blue line represents the 200-day moving average for the 5-minute timeframe. By zooming out, he demonstrates how the market has been respecting this moving average, acting as support and resistance at different points.
Chad emphasizes the importance of waiting for a pullback to a support level that also has other confirmations, such as the VWAP or another moving average. He highlights a specific support area that lined up perfectly with the 5-minute moving average and had been respected by the market in previous days. This alignment of multiple confirmations gave him the confidence to enter a long trade when the market opened. He shares that he made around $3,400 on this trade.
Adding More Confirmations to the Strategy
Chad explains that in addition to the moving average and support/resistance levels, he looks for other confirmations to further validate his trades. These can include reversal candles, double bottom or double top patterns, and alignment with the trend or VWAP. By having at least two or three additional confirmations, he increases the probability of a successful trade.
Another Example Trade: Thursday’s Trade Recap
Chad provides another trade recap, this time from Thursday morning. He explains that he used a smaller position size due to a lack of significant pullback. However, he still made around $1,500 using the same strategy. He demonstrates how he adjusted his approach based on the market’s behavior towards the 5-minute moving average. Since the market was not respecting it, he switched to the 10-minute timeframe and found that the market was respecting the 10-minute moving average instead. He identified a support level that aligned with this moving average and entered a trade when he saw reversal candles and a double bottom pattern.
Join Chad’s Discord Community
Chad invites viewers to join his Discord community, where he posts his daily levels for the S&P 500 and NASDAQ markets. He emphasizes that it is completely free and open to the public. In the community, traders can ask questions, network with others, and gain valuable insights. Interested individuals can join by clicking the first link in the video description.
Frequently Asked Questions
1. How often does Chad use this strategy?
Chad uses this strategy for approximately 80-90% of his day trading. He has found it to be effective in consistently winning trades.
2. Can this strategy be applied to other markets besides stocks?
Yes, this strategy can be applied to other markets, including cryptocurrencies. The key is to identify support and resistance levels, use moving averages as confirmations, and look for other indicators that align with the trade setup.
3. How important is it for the market to respect the moving average?
Respecting the moving average is crucial for Chad’s strategy. If the market does not respect the moving average, it may not be a reliable confirmation for taking trades. It is essential to ensure that the market consistently behaves in a way that aligns with the chosen moving average.
4. How can I learn more about Chad’s day trading strategies?
You can join Chad’s Discord community, where he shares his daily levels and provides a platform for traders to connect and learn from each other. The community is free and open to the public. Simply click the first link in the video description to join.
5. Can I use this strategy as a beginner trader?
Yes, this strategy can be used by beginner traders. However, it is important to thoroughly understand the concepts of support and resistance, moving averages, and other indicators before applying them in real-time trading. It is recommended to practice on a demo account and gradually transition to live trading once you have gained confidence and experience.
Hope you all enjoyed the video! Make sure to join our FREE Discord community where I share my exact levels every day on both /ES & /NQ 👉 https://marketminutes.co
Why did he call this a simple strategy? You need about 20 confirmations and if he bought where he should have with this strategy, he would have lost his shirt. But he won't show that chart.
Hey thanks for the video, what daily journal is that you are using?
I loathe commenting on Youtube videos anymore these days because it's nothing but spam bots having conversations with each other about their financial advisor (scammer) and people asking me to Whatsapp them. Sigh.
Having said that, I have a question. Are you specifically charting the 200 DAY moving average on the 5 MINUTE chart, …or are you just charting the 200 PERIOD moving average?
Nice video, thanks for sharing! What app are you using for trade journaling?
The video I just watched, the explanation is easy to understand for beginners like me who are learning in the nfc community
Hello : Can someone help me. I have a question. I'm learning about Crypto. Your talking of buy Bitcoin. Here's my question. Lets say you buy Bitcoin at $ 42,000. and it goes down to $ 32,000. Who do you owe ( or do you owe ) for the $ 10,000. Loss ??? If your down $ 10,000. Seems like your in debt for $ 10,000. . For instance. If I'm down $ 10,000. and decide to take the loss and sell. Who do I owe the $ 10,000. if I don't have that much in my account. This is hard for me to explain but hope your understand. Thanks in advance. Subscribed & Liked. 🙂
3 minute and 8 Minute Moving Average {MMA} to determine trend . Buy if 3MMA > 8MMA . Sell if 3MMA < 8MMA .
I do not understand why you would use a 200 D**A**Y Moving Average At All ANYWHERE ! !
If you're on the 5-minute chart, it's not the 200-day moving average; it's the 200-PERIOD moving average…or, specifically on the 5-minute chart, it's the 1000-minute moving average (5 minutes x 200).
what kind of 200 moving average? are you using simple or exponential moving average?
Interesting video; I wish I had more time for experimentation, but I'll be 50 by June, and I'm looking for ideas and suggestions on what investments to acquire to set myself up for retirement, especially with the looming inflation; my goal is to have at least $5 million by the age of 65.
Chad I see in this video the value of the asset is moving from 4000 to 4030 or something like that. The move is a very small percentage. How do you profit from such a small uptick? Do you have a lot of money invested?
If my math is right, .75% increase would require $200k invested to net a $1500 profit. Am I missing something? Sorry I'm brand new to this.
Nice Chad! Would I be able to hit a profit at 600k within 5 years? How long have you traded? Do you have any follow trader stuff ppl can buy or so? Very interested. Best!
For the latest APEX trader discount codes always use HUJLDKKA. Just used it the other day and got 80% off and a few cases I have gotten 90% off for a funded account. Always worked for me, been using it for a year now. Hope this helps somebody.
Thanks for continuing updates I'd rather trade the crypto market as it's more profitable. I make a good amount of money per week even though i barely trade myself
Awesome
I really appreciate the dedication in each video you post. To be successful in markets, traders should understand the crossover between asset classes & liquidity flow.
Amelia Betty focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch
90% of these comments are bullshit.
I really appreciate the dedication in each video you post. Despite the dip in crypto, I still thank you for the level-headed financial advice. I started crypto investment with $10k and since following you for few weeks now, I’ve gotten $25k in my portfolio. Thanks so much Rolando Eric for keeping me ahead of the market…….