Transcription
The only way to make money in trading without having to look at the market every single hour before it opens and closes is by simply swing trading. Swing trading allows you to understand the bigger picture of the market. And this way you are able to capitalize off of bigger moves.
There's a better alternative to trading other than just watching it when it opens, watching it when it closes, and having to follow the daily direction of the market. Swing trading is the best single-handed way in order for you to maximize the most amount of money from the markets. You can look at, for example, this trade where it made me $414,000 in 4 days. This is a semi- swing trade, and I'm going to break down in this video exactly how I did that. And I'm also going to be breaking down this trade where I made about $250, $260,000, where I held for a little bit over a week.
Swing trading is the perfect way to trade if you have a 9-to-five job, if you're busy with school, because you enter a position and you let the direction of the market for the entire week make you profits while you simply lay back and let the market continue trading with the trend that you're doing. So, with that being said, let's get right into it.
Now, for those that might not know, let me give you a little bit of context on what swing trading is. So, swing trading is actually the safest way to trade. Might take a little bit of longer for the markets to play out. There's some pros and cons, but let me give you the full framework of it.
Swing trading is where you're trading with the higher time frames. The reason why it is safer is because the higher time frames are very predictable because it takes a very long time for certain market structure to be created. For example, let's say you're going to build a concrete block and you were to give it 30 days to dry. It's going to be a lot stronger compared to a concrete block that you give it 24 hours to dry. So every single candlestick that is performed on the higher time frames for swing trading take a lot more time for it to be created. So it's going to be a lot more respected compared to the lower time frames where things happen very fast. That is not as concrete. It's not as strong. It's not as respected. So the higher time frames are very predictable because the market moves in patterns and these patterns take very long for them to create themselves. So they're very predictable. It just simply requires patience. So, when you're trading with swing trading, you're holding for longer because the moves are bigger and you're having safer trades because they're a lot more predictable. So, you are you're able to not only be able to risk more on positions because they're less risky and you're able to maximize more profits without you having to overexpose yourself. The only con when it comes to swing trading is you will need some patience. But as time goes on, this becomes inevitable and normal in trading.
Now, understanding that there's three popular ways to trade. You have scalping, day trading, and swing trading. Scalping is anywhere a trade that can take anywhere from 30 minutes to about 1 hour where you're really holding a position for a very quick move. You're not targeting trades that are going with the higher time frames. You're just trading the move for that specific session. So, if you're trading market open, you just want to catch the impulse move from when the market opens or right before the market closes, you just want to catch that impulse move. This requires a lot more trades because you're just trading these sporadic moves up or down and you could be in and out of a position probably two to three times every single day which you're going to have a much more lower win rate and you're going to have a lot more quantity amount of trades. So this is where I don't personally like trading just because it is a it's very stressful having to predict and change the bias of the move every single day. But traders that have a sense of urgency to trade every single day like trading it, but it's very stressful because you have to be in front of the markets for many hours at a time and constantly changing your bias in the market.
Day trading is pretty much the perfect medium in between scalping and swing trading. It's where you're trading a direction for the entire day or for the next day market open, market close. So, for example, let's say market opens in New York session. You anticipate for moves to happen to the upside. You're going to continue to trade for the upside for the duration of that session. Could be five, six, seven, eight hours typically is what a day trade lasts. Or you can take a trade that will last overnight, which is also considered a day trade/intraday trade where you're holding it during the duration of the next day. Now, this style of trading, you're not really taking that many amount of trades. You can probably take one to two trades a day max, but you're not changing your bias and you're not looking for impulse moves. In scalp trading, you're looking for a big impulse move just to catch that move and then get out. You don't care what the overall direction really comes down to because you just want a quick move to get in and out of the market. Day trading, you are taking a little bit of anticipation of the higher time frames, but also combining a bit of the scalping with the impulsiveness because you want to get out of the position that very same day or that next day. In scalping, you want to get out within the hour. Day trading, you want to get out within the same day or the next day. And the win rate for day trading can typically be anywhere from 50 to 55% which is very healthy. And you're in the middle of quality and quantity simply because you're looking to take a trade every single day depending on the session and depending on the direction of that session.
Now swing trading is the godfather of all of these trades. It does require a bit more patience and it simply comes down to trading with the trend purely. If you are swing trading, you want to anticipate a position that can continue to go in a direction for weeks at a time. And it's very easy to scale in positions that you can anticipate if it's going to continue going up for the next two to 3 weeks. So once you're an experienced trader like myself, you can understand how to day trade and scalp on a swing trading move. Because if you can anticipate that the trade is going to continue going up for the next 2 to 3 weeks, you can find these smaller positions inside of that bigger position where then you capitalize off of a swing trade, a day trade, and a scalp position. Swing trades really come down to maybe one to two trades a week, if that. And uh you don't care how long it takes for it to get to your takerit. Typically, what it should last is anywhere from four to about 8 n days. and you can make three to four, even five times what any day trade and any scalp trade could take. The reason for this is because you need to wait for those weekly candlesticks to close. Those weekly candlesticks take about 5 days to close or at least trading days. And those candlesticks opening and closing dictate the direction of the following week. So, for example, let's say you're looking to buy on the weekly time frame based off of the trend of a swing trade and it closes bullish in that direction. If next week it closed bullish and you're still looking for more buys, why would you want to cut your winning position short? It's only indicating that it could continue to go in that direction. You're simply going to continue to hold.
Now, what an experienced trader like myself and many members of my academy do is we find day trades within that swing trade position and then we capitalize off of that every step of the way. It's a bit riskier because you're overexposing yourself to an additional risk by entering another trade. But if you have the bigger swing trade to hedge that day trade, you're really not putting anything at risk. If you're in profit way down here and you're adding an extra position up here, even if that day trade loses for whatever reason, that swing trade can make back that loss and you don't have anything at risk. So the beauty of understanding how to swing trade is the godfather like I mentioned of all of these time frames and these different trading styles because regardless of what happens on the lower time frames, if you can predict the direction of the higher time frames, this is obviously far greater and it is a lot less stressful.
The main reason why I am a swing trader and why I was able to actually learn this strategy is because I had a job when I learned how to trade and I didn't have the availability to be in front of the market at market open or even on scalping. So I was forced to understand and learn trading this way and I'm very grateful for it because now longer term it's helped me understand the direction of the entire market. So swing trading you can have a win rate anywhere from 60 to 65% but the risk-to-reward is by far the greatest and you're able to have that recovery from any losses that you can have. You make back losses far easier because your profits are far larger.
Now, I will warn you, swing trading has a bit of a bittersweet taste to it simply because of one thing. Patience does not matter any type of human that you are. When you are having an opportunity to click a buy and a sell button 245 the entire week, temptation will kick in. Doesn't matter how experienced you are, how much patience you have, that temptation of clicking that buy and sell button is always in the back of your head. It's like if you have a little devil here on your shoulder constantly telling you to execute a trade. And swing trading will require the most amount of patience because there can be times where you're looking at the markets for a duration of 4 days. So hopping in and outs of the market, looking at it and analyzing for 20 to 30 minutes and not entering a position. You might miss out on opportunities. You might miss out on these smaller moves. And that can really affect your psychological aspect of trading because you're constantly battling on entering a position or not because you have to wait for the perfect trade that can continue to go in that direction for the duration of a week or two weeks. So, it's great as soon as you enter a good position because you're making money week after week without having to do absolutely nothing. But it is very very difficult at times to do nothing when you're not entering a position and when you're in a position. us as human, we are human. At the end of the day, we will fall into temptation. Any type of temptation. It's almost like if you love sweets and there's a jar full of candy and they tell you, "Hey, you can't have any candy for 4 days and the jar of candy is following you everywhere for 4 days." You know, it might, you know, you might put your hand in the cookie jar once and take a bit of that sweet. Trading is no different than that. The market is available 245 for you to enter a position. And you have to be very patient for when it's the right time for you to enter that position. Before you enter it, and once you're in that position, you need to let that winning trade run. I know it's very difficult at times to see a winning position, even come back into a little bit of a retracement and miss out on quote unquote profits that you had at that time. But if you're swing trading, you need to understand that the market will create these retracements in order for the market to continue going to the upside. From the moment you enter, it's not going to be a ginormous candlestick to go straight to your takerit. It needs to create structure to go to that takerit. So that will consist of highs and lows to get to the point where you're supposed to be. And you need to be able to have the stomach and the patience for you to be able to weather that storm. And that is what crushes traders in swing trading. People can predict the direction for the next two weeks. And that's all easy. But what is not easy is being patient, waiting for that trade to go all the way to your takerit. So, if I were to have the main con of swing trading or just trading in general will be patience, waiting for that right setup and letting that setup play out. Biggest battle you will face regardless of what level you are in in trading. And once you master that is where everything changes.
Now, enough with the talking. Let me actually go into the charts and give you a real life example of a trade that I entered. This is GVPND that made me a quarter million. Now, I know that might seem like a lot, and it is a lot of money, but you need to understand that I also risked a lot in order for me to make that. I risked about $80 to $90,000 on this exact same position. That's why I was able to make this amount of money. So, don't think that I risk $1,000 or $2,000 to make a quarter million. Now, I put a lot of money at risk to make this money, but the beauty of this trade is that I was able to predict it for the duration of two to three weeks. So, the beauty of Jimmy PNDD is I was predicting the retracement of this trade. So, I'm about to get very technical on this trade, so bear with me. If you're driving, stop driving. Shouldn't even be watching a video as you're driving, but just saying that just in case you don't know. If you're at a coffee shop, put the volume up, put your headphones on. If you're at work, take a break. Pay attention to this because this can be completely changed in your entire trading by understanding how the market moves.
So when it comes to understanding any swing trade, the most important thing that you need to understand is the trend. Where is the trend headed in that position? For example, this trade in this market that I'm drawing up here, it's very obvious that this market is clearly heading to the downside. We all know the lower highs, the lower lows of the market. This is a lower high. This is a lower low. Whenever a market has a lower low, we anticipate for the trade to have a lower high. On this lower high, we anticipate for it to have a new lower low. That's simply how the market moves. That is market structure. This imagine this as if it were to be a staircase going to the downside. In order for you to go from one staircase to the next one, you have to step here. And then after you step here, you step here, and you step here. You need to go through every single one of these steps in order for you to get to the next step. Can you skip a step? Can you go from this step to this step? Yes. But you will probably fall and break your ankle. I'm sure we've all been there. Except the break in the ankle. Trading is no different. In order for you to be able to predict these swing legs to the downside, you need to have these retracements that you anticipate in order for this move to go to the downside.
Now, this trade in specific GBP NZD, I predicted the low of this leg. So as you can tell here this market was very beautifully creating higher highs and higher lows. Higher highs shifted structure and then it created a lower low. So this market was very predictable because we created a massive push to the downside. So we were clearly bullish at one point. This was the higher high in this market right here. After we created this higher high, we had this higher low. After this higher low, we shifted the structure. So now this became the new lower low and then this became the lower high. What happens after we have a lower low move? In order for us to continue to go to the downside, we need to predict a lower high to then continue going to the downside. There's no way that this market could just continue free falling for the entirety of the move. No, it needs to create these retracements right here in order for it to go to the downside. So me understanding this direction of the markets on the higher time frames, I then go look for entries on the lower time frames. So I have a swing trade analysis, but then I can go take an intraday entry. That's exactly what this trade consisted of. My swing trade analysis was very predictable. After this move had this massive push to the downside, we got near this support level that every single time we're above, we clearly reject up. We clearly reject up. And here we were clearly going to reject up. When I go down to the daily time frame, daily time frame made it as clear as possible that we're going to have that leg for the lower high to have the push to the upside. So we know that on the weekly time frame, this is the big leg that we're anticipating for this move to come up and then continue go to the downside.
Now on the daily time frame, as you can see here, this created a lower low, lower high, lower low, lower high, lower low, lower high, lower low, and then we had a shift. So now we went from creating lower highs and lower lows to higher highs and higher lows. If I were to bring this market structure right here, you can very much see lower high, lower low, lower high, lower low, lower high, lower low, and then we shifted to the upside. It's almost as if we were to be in a bearish channel to the downside and then we shifted to having a bullish channel to the upside. This is the beauty of understanding how to read market structure. The lower time frames or the next lower time frame which is the daily compared to the weekly is giving me the indication that it is shifting right here and creating moves to the upside to have that retracement for the higher time frame. You need to remember the higher time frame was like this. It was consolidating and then we had the push to the downside. Now, this is indicating to me that it's ready to have this retracement. This is exactly how it looks like. So, it's ready to have this retracement to this area so then it can have the push to the downside. So, I'm taking a intraday/interswing position for this retracement here. So, then we can enter the continuation cell to the downside. All of this because I can understand how to read the higher time frames.
So what I do on Jimmy PNZD I can identify that we are indeed heading to the upside and uh I can see that we have not only the bullish structure but we also have resistance we also have support when I go more to the left we have supports we have resistance we have resistance resistance and resistance clearly whenever we're below this points we're heading down whenever we're above it we're very much going up whenever we're above we head up whenever we're below we head down. Whenever we're below, we head down. Whenever we're above, we head up. Right? This is not rocket science. All I'm doing is understanding the higher time frames need that bigger retracement. The next lower time frame is indicating to me that it's having that shift to give it that retracement. And then we're above a massive area. Whenever we're below, we head down. And we're we're above, we head up. This is not even related remotely to how my strategy works. This is just simple understanding of what the market is telling me right now. This is not my exact strategy. This is not a concept. This is not a uh SMC, ICT, whatever. This is literally just understanding what the market is presenting. Picture this as if it were to be the English language of the ABCs. This is literally the letters, the ABCs of the market. I'm just reading the letters. Now how I put those letters together and how I make my own words that's where my strategy comes in. How I enter so on and so forth. This is just the basics and 90% of the people can do this correct that's why they are not successful because they can't understand the overall direction of the market.
Now after that price is above my EMA after us being above the EMA I then look for entries on the lower time frames and that's why I entered this position around this zone right here. My stop loss is below the very strong level of supportive resistance because clearly if we're going to go hit this position and we're going to make it to this area, we're going to be below it. What happens if we get below this resistance? We should technically then head to the downside. So, I'm always going to put my stop loss at an area where if it gets hit, I am entirely wrong. That is the most important thing. I can't tell you how many traders trades I review and they're putting the stop loss at around 20 pips, 25 pips, 30 pips for no spec for literally no reason. They don't have an explanation. They're like, "Oh, I just like the number 27." What does your number 27 have to do with the market? Nothing. You need to put your stop loss at an area where it has some significance and if it gets hit, you're entirely run. That's what the point of the stop loss is. One reason of the stop loss is to obviously cut your losses and stop you out where you're comfortable at your risk. And two, if the market heads to that area, you're entirely wrong in the direction. I can't stress how many people put their stop losses just based off of where they think they should put it and have no understanding of where it should actually go based off of what the market is telling them. This stop-loss just logically makes sense. it's below this zone because if the market goes below this zone, what happens? It should continue to go below the zone. So, it means I'm entirely wrong in the direction of this trade.
Whenever I get stopped out in a position, 70% of the time, 80% of the time, the market goes in the complete opposite direction. Like for weeks at a time, so where I analyze the direction of the trade, I was wrong. Right? So, this position right here, I was basically buying into that weekly area of interest. Now, the beauty of this trade is that I am anticipating this trade to continue to go into the downside. Right? So, let's take a step back. I am buying this position to the weekly area of interest where we could potentially continue to go to the downside. Remember, what I'm anticipating from this trade is for this weekly time frame to have a lower low leg, have a lower high leg, and then continue going to the downside. So, I'm taking an intraday trade on this retracement before it continues to go to the downside. So, what I want to do is I'm placing my takerit at a weekly area. If I look left based off of this market, clearly same exact literally the exact same concept of highs. This zone, whenever we're below, we head down. Whenever we're below, we head down. Whenever we're above, we head up. Whenever we're above, we head up. So, for me, I'm buying into this area because I expect for the weekly time frame to get to this zone and then continue to go to the downside. Now obviously I enter my position entering it to that weekly zone and then here is where the trade ends up going all the way to our takerit round psychological level 2300 and we broke above that which is great. The beauty of swing trading is that you can anticipate these bigger moves and I could have maximized and gotten a one to three, one to four, but I was content with my position being at a one to two because I understood logically that the weekly time frame should have stopped at this area and then continued to go to the downside. But if I would have followed my rules, which is what I explained to you guys earlier, waiting for that weekly candlestick to close, which is this candlestick here, I would have closed it at the top here for a little extra half a percent, nearly an extra percent on the position. At the time I just wanted to close the position. Didn't need to hold any further and I made that decision. But this is the beauty of sticking to those swing trading analysis and overall directions of the market.
Now obviously you fast forward a couple of weeks and then this market ended up indeed having a reaction from this area slightly after it had the push to the upside. So all of this is by understanding the direction of the market. When the market is heading down, you understand it needs to have a little bit of a retracement before it continue to go down to the downside. And then this position obviously continued to go to the downside, rejecting this resistance from this point here. So me entering this position, I bought perfectly into this resistance and then from this resistance, we then had a push to the downside and I did not enter this position here. I placed the risk-to-reward. I just fell asleep and missed out on this position. That's part of the process as well. When you're swing trading, you can predict the direction, but sometimes life happens. You have to go to work. My case, I was just asleep. I was tired. I think I was traveling and I wasn't able to be awake to enter this position and I missed out on that trade. It is what it is. It's part of the process. But all of this is by understanding the direction of the markets. It is the most important thing and the backbone of every single trade and truthfully should be of every trade. If scalpers, in my opinion, would understand how to use the higher time frames with them, they would be very powerful. But they're so focused on the one minute time frame, 5 minute time frame, and they they don't understand that it only takes 5 minutes for a candlestick to close. Which one do you think is more powerful? The candlestick that takes 5 minutes to close or the one that takes 5 days? Obviously, the one that takes 5 days will be a lot more respected. And I think a lot of people really overlook swing trading because it is the most powerful for people that have nineto-fives, for people that go to school and genuinely have a busy schedule. Because as you can tell in that position, I entered it and I waited five, six, seven days for it to get to my takerit and I could have held it for another 5, six, seven days and doing absolutely nothing. It could have continuously made me money. I don't have the stress of looking at the charts every single day to make a decision. I don't have to reanalyze the market for whatever reason. And I don't have to secondguess my overall direction because I'm trading with the higher time frames. I'm not scared that it's going to change direction if a new session kicks in with a lot of volatility and everything goes backwards. Not at all.
The beauty of this is I learned this when I was working at Dunkin Donuts. I was working I was a 7 to2. So that was my schedule. 7:00 in the morning, 6:00 in the morning till 2:30 in the afternoon. So I would do my analysis on Sunday, enter the position before I would go into work and the duration of the day that I am at work. the trade is going in the direction that I analyzed for the duration of that week. So, I can be at work stress free, open my phone for 30 seconds, see how it's doing, put it back in my pocket just because I wanted to see how the position was doing. And the most successful students inside of my academy are the ones that are actually devoting the less amount of time to looking at the markets during the duration of the week. and you understand how to identify the direction of the market every single Sunday before the market opens where you have literally no option but to just analyze the market and not enter a trade. You can make an analysis that is entirely entirely neutrally based because you're not making analysis to enter a trade. You're making an analysis to understand the direction of the market and your psychological battle is not even there because you're just analyzing for a trade that you could take for the duration of the week, not for a trade you could take that very second. That's the beauty of swing trading because when you're scalping or day trading, you make an analysis that very moment when the market is live and you almost see things you shouldn't be seeing because you want to enter position right there, right that second. With swing trading, that's not the case. You do an analysis when the market is closed and you do it for what is actually there and you can make a analysis with a cold mindset and really read the market for what it is. So it's very powerful, very predictable and this is what I do every single Sunday with my students. I review the trade setups on what they did the week before. Make sure they're doing their analysis right. I get on calls with them and I give them the exact markets that I am interested in trading for that week and we discuss what is the correct thing to do, what is the incorrect thing to do, where should we place our takeprofits, where should we place our stop- losses. And yes, we do this every single Sunday. If you want to join my private community where I get to review your trades and you get to get these analysis before the market even happens every single Sunday with me live, DM me the word Sunday swings. I'll leave a link in the description down below of my personal Instagram. Just DM me the word Sunday swings and we'll have a chat about it and see what markets are available for that current week and what opportunities are presenting themselves and we get a deep understanding of why we should be entering a trade in this direction rather than this direction. Because the most important thing when it comes to swing trading is removing all of the trades that don't make sense. There's 75 different currency pairs that you can enter a position on. And the goal isn't to enter every single one of those positions. It's to hash out the ones that aren't clean and focus on the ones that are giving you the best possible opportunity. Do that every single Sunday with my students. So just DM me the word Sunday swings and we'll have a chat about it so you can potentially be parts of my academy. But with that being said, I hope you guys enjoyed this video. Make sure to pay attention to that market structure. It's the most important thing to predicting the overall direction of the trend. If you guys like this video, hit that like, hit that thumbs up, make sure to subscribe, and I'll see you guys in the next video.