Speaker A
All right, so this is going to be an update to the YouTube channel because there's a lot of people freaking out thinking I'm missing or gone.
Live trading update showing a bullish equity trade aiming for $50,000 with insights on fair value gaps and market structure.
Key Takeaways
- Live trading with real funds can demonstrate realistic expectations for student traders.
- Fair value gaps and market structure are key concepts for identifying trade entries and targets.
- Trading during market open requires flexibility due to potential whipsaws and volatility.
- Risk management can include manual monitoring and willingness to close trades quickly rather than strict stop losses.
- Economic events like FOMC can cause significant volatility, so trading should be limited or cautious on such days.
Summary
- The video is an update from the trader who is on vacation but shares a live trading session aiming to reach $50,000 equity.
- The trader explains the concept of fair value gaps and bullish market structure while analyzing intraday price action.
- The account targets an average return of about 20% per month and demonstrates live trading with real funds, not demo.
- The trader discusses entry strategy around market open, emphasizing risk management and flexibility without strict stop losses.
- A detailed explanation of how price action interacts with fair value gaps and swing highs/lows is provided.
- The trader places a limit order aiming for a scalp trade with a small drawdown and a target profit of around $1,000.
- The importance of being cautious during FOMC days due to expected volatility is highlighted.
- The video concludes with a summary of profits for the day and month, commissions paid, and a review of the trade monitor tab.
- The trader shares insights on how new traders might react nervously and the differences between trading platforms used.
- Overall, the video serves as a practical demonstration of live equity trading with educational commentary.
Full Transcript — Download SRT & Markdown
Speaker A
I'm on vacation, folks.
Speaker A
But, uh, I took the opportunity to sit down here this morning with you and try to hopefully make a mile marker on the equity on this live account.
Speaker A
I'm going to try to hit 50,000.
Speaker A
So I'm watching this potentially make a fair value gap.
Speaker A
I want to see that swing high broken.
Speaker A
And we'll see if we get that here.
Speaker A
And again, this account is really meant to show like averaging like 20% a month. I get questions all the time like, you know, what do I think a student that has gone through all the teachings have worked out a model?
Speaker A
You know, what could they reasonably expect to see?
Speaker A
And this is kind of like my answer to that.
Speaker A
Also, to kind of like remind everybody, I'm not just finding cherry-picked trades in a demo account.
Speaker A
I can trade with live funds too.
Speaker A
All right, so we're about to break that swing high, if it does, that'll be bullish market structure.
Speaker A
I'm thinking we can trade back to on the daily chart back to like 14,000, but that's a little bit of a stretch so far intraday.
Speaker A
Okay, we have the market structure bullish now.
Speaker A
So there's a fair value gap.
Speaker A
I'll highlight that. I'll go into the chart here.
Speaker A
I'm watching this candle, see how it closes.
Speaker A
Because that will complete our imbalance, you can see that right there.
Speaker A
Okay, give me another.
Speaker A
Right there, that's the low end of the fair value gap, this thing's always tricky.
Speaker A
All right, so now we have the close of that candle, so now I can.
Speaker A
I'm a little off on that because I'm clumsy with the finger swim.
Speaker A
Change the color here so you can see a little bit better.
Speaker A
Now, it's technically the open, so it's a little bit of volatility that comes in here.
Speaker A
It can overshoot that low.
Speaker A
I don't care if it does, if it goes back up into the fair value gap, I will buy it.
Speaker A
Okay, now when you're entering on like the opening, like 9:30 equities opening, uh, you could take a long entry here, but you don't know how far it's going to whip below that low, and you could be wrong and painfully wrong.
Speaker A
So what I'm watching is, does it want to go below that short-term low that it's already created moments ago?
Speaker A
Which would be outside and below the fair value gap, and it does not negate the fair value gap.
Speaker A
Because I'm using narrative.
Speaker A
Narrative is, I expect people to look at that and say, okay, it's going to go up, and they're already trying to buy right now.
Speaker A
But their stop loss is going to be below that swing low.
Speaker A
So sell stops are resting at 13,614.
Speaker A
They just took those now.
Speaker A
Now, this is a high-risk entry long there.
Speaker A
But I'm watching price now entering that same fair value gap.
Speaker A
So one more time to see if it wants to poke a little bit lower.
Speaker A
And I'm again, my daily bias is bullish, so I'm looking for higher prices.
Speaker A
So I'm going to go and aim for the 80 level.
Speaker A
That'll give me a nice figure to run to 50,000 on equity.
Speaker A
I do believe it's going to go higher, but I'm on vacation, so I want to kind of like.
Speaker A
Let me take this long entry.
Speaker A
And there you go.
Speaker A
All right, so now I'm watching price.
Speaker A
And I want to see it expand up.
Speaker A
Now, because it's the opening, and I don't know where if we whip below that low.
Speaker A
I'll give it a chance to go below it just by a little bit.
Speaker A
And I'll close it at market.
Speaker A
Generally, I like to trade with a stop loss, but if I'm trading the open like this, stops can be taken really, really easily and then reverse and then never give you a chance to be in it, so I'm allowing myself a little bit of flexibility.
Speaker A
I'm not trying to encourage you to trade with a stop loss.
Speaker A
Believe me, I'm I'm right here ready to click and close it if it trades below it.
Speaker A
And I want to see it expand up.
Speaker A
Now, I want to see an energetic run above the swing high that was formed just to the left of where we are right now.
Speaker A
There is a fair value gap at the 680 level.
Speaker A
And it's above equilibrium, so it would be a premium market.
Speaker A
So that's why I'm going to be targeting the 80 level.
Speaker A
Plus it's around 50 handles, so that gives me about $1,000 or more.
Speaker A
All right, so now right now at this moment, I want to see it expand aggressively.
Speaker A
Not around, I want to see it really try to spread its wings and take off and start moving.
Speaker A
Okay.
Speaker A
There's a small little fair value gap in the last three candles up.
Speaker A
I don't think it needs to fill that in or even revisit it.
Speaker A
But if it were to, I would expect price to be, you know, supported by that.
Speaker A
So in other words, not going below the 630 level.
Speaker A
Okay.
Speaker A
Now, at this moment, I could put the stop loss on at my entry.
Speaker A
And if it takes me out, then I'm would basically move to the sidelines.
Speaker A
And I wouldn't take any more trades today because it's FOMC.
Speaker A
FOMC, you can trade in the morning, but you got to be done early.
Speaker A
If you're trading equities.
Speaker A
It's important to be aware of the economic calendar because we're probably going to have a lot of volatility later on today.
Speaker A
I still think they'll push it higher with that.
Speaker A
So here's my limit order, I'm going to place it there.
Speaker A
And we'll see if we can get this puppy to reach up there and grab it.
Speaker A
I mean, I feel confident it's going to go way beyond that, but short little scalp.
Speaker A
Very little drawdown, about three handles of drawdown if that from the entry.
Speaker A
Or the candle I entered on, let's say it that way.
Speaker A
The low from my entry was only like three handles below.
Speaker A
I have to make, have to go watch the video and see what the actual drawdown was from the point of entry.
Speaker A
I'm not sure if I had any.
Speaker A
If I did, then that's what it was limited to, 60 bucks or so, not bad if you're trying to make $1,000.
Speaker A
Had a small little scalp early in the morning.
Speaker A
All right, and.
Speaker A
Now, this is where neophyte traders or newbies, they get nervous.
Speaker A
I hit the wrong thing here, I always, uh, think I'm on the other platforms I use, I use TradeStation and I use TradingView, and it's different settings, different things you can look for.
Speaker A
All right, so there's my fill on the limit order.
Speaker A
Rounding out the day and the month of March, I will not be taking any more trades this month.
Speaker A
So $1,255 on two trades, about $15 or so in commissions, so take that off of there, that will be the net for the day.
Speaker A
I'll take you over to the monitor tab here after I scrunch this up and show you the the run on price.
Speaker A
Now, I think it's going to go higher, but here's the monitor tab showing the actual trades today, and you can see the profit and loss since I started this account.
Speaker A
And the commissions, which are high because I did a lot of latency tests and I'm done, a lot of things that would kind of like mimic what a new trader would do once they get into live fund trading.
Topics:live tradingequity tradingfair value gapmarket structureintraday tradingtrading strategyrisk managementFOMC volatilityscalp tradetrading education
