Day Trading Plan Optimization For Reducing Risk

Reduce risk day trading futures, swing trading futures or any financial trading using price action.

Last updated 2022-01-10 | 4.6

- How to acquire the skills to achieve higher levels of trading mastery.
- How to improve your Risk and Money Management Plan.
- How to upgrade your trading methodology to read correctly price action.

What you'll learn

How to acquire the skills to achieve higher levels of trading mastery.
How to improve your Risk and Money Management Plan.
How to upgrade your trading methodology to read correctly price action.
How to make high probability trades with minimum risk at any time frame.

* Requirements

* Students should know about basic concepts of futures
* Microsoft Excel
* Law of Supply and Demand and Candlestick Charting.

Description

DAY TRADING OR SWING TRADING THE FINANCIAL MARKETS

A trading plan applicable to futures, stocks, forex, cryptocurrencies, or any financial instrument to gain unlimited confidence using price action.


In this course you will learn:


  1. How to acquire the mindset to achieve higher levels of mastery trading futures or any other financial instrument.

  2. How to improve your Risk and Money Management Plan.

  3. How to upgrade your trading methodology to read correctly price action for identifying the strongest trend in place.

  4. How to apply the right skills and tools to increase the probabilities of making winning trades while reducing risk.

  5. How to integrate risk control, money management, and price action to have a successful trading business.


I have designed this course with the best intention of helping people who want to get involved in the world of trading, but first of all, I need you to understand and accept a survival rule in this business: "NO ONE KNOWS WHAT WILL HAPPEN IN THE MARKET, PEOPLE ONLY HAVE SLIGHT IDEAS ". Markets are driven by trends and psychology in the short-term. The truth is no one knows how far the market will go up or down. No trader has ever had complete clarity about the path markets will take over the short-to-intermediate-term. There are far too many variables at play to know what will happen with anything approaching certainty when it comes to market psychology. This is extremely important that you internalize it so that you can positively advance in the process of making profits playing in the financial markets. I hope you accept and agree with that. Let´s move forward.


In this course, I am going to talk about day trading in a short time frame and I am also going to compare it with swing trading in a longer time frame. All this with the intention that you can compare them and understand the key details of trading on these time frames. This will give you the benefit of deciding what is best for you based on your psychological profile.


Trading the market has a story. There are two emotions at play when trading the markets; "FEAR and GREED". Fear and greed are emotions that powerfully influence a trader's mind. But especially fear is a feeling that becomes an impenetrable barrier for many people who have been bitten by the markets. They do not understand that it is impossible not to be bitten in the world of trading, what you have to do is be vaccinated against those bites. Once this is understood, an infinite window of opportunity opens in the financial markets. In this course, I will help you to understand and control this fact.


There are differences between Day Trading and Swing Trading, which are very important to know and can make the difference between living or dying as a trader. Day trading means competing in a world of nanoseconds with supercomputers located near the exchange houses which for a human being is very difficult. High-frequency trading nowadays generates an amount of noise in intraday data that is complex to handle and only very astute traders can compete at this level. Swing trading is a better option and perhaps it is the most appropriate definitive solution for many, but still, there are some who prefer the intraday super speed. In this course, I present a solution that could help you solve the problems and dilemmas of trading at both time frames.


First of all, here are five (5) key questions for you:


1.-What is motivating you to get on this course?

2.-What do you want to accomplish with this course?

3.-Where are you today with your trading and where do you want to be?

4.-What is your biggest problem right now with your trading?

5.-What happens if the following information answers all your questions regarding your concerns today?


Now, please read this:


Before you even think about buying this course, I need you to deem deeply about what I am going to explain next.


  1. Long-term investing as Mr. Warren Buffet does is a whole different story than what I teach in this course. This course is not about value-based investing or fundamental analysis.


  2. I suggest getting an education first and then start with swing trading the markets which have better odds than day trading. Once you have mastered swing trading and if you are still interested in quick daily profits, you can try day trading to test those waters with the knowledge you have acquired swing trading. This is the best advice I can give you from the bottom of my soul if you have a passion for trading in the financial markets.


  3. One of my goals is to help you survive the learning curve. I suggest you practice with paper money first (demo account), once you have tested your method and it is proven to have a positive expectancy then you can play with real money in a live account.


Now, if you have been trading and constantly have these thoughts inside your mind like ...

I am losing money trading

I make many bad trades

I take profits too soon

I do not know how to maximize my winning trades.

I let my losers too much time running

I am afraid to pull the trigger

I lose a lot of money in each losing trade

I do not know where to put my stop loss

I enter the market and immediately it goes against my position

The market hit my stop loss all the time

I do not understand price action

I do not know what time frame to use

I do not know how to detect a valid trend

I do not have a winner trading strategy

My technical indicators do not work   

... then please continue reading.


In this course, you will learn how to trade any time frame. When we talk about trading, ("no long-term investment"), we are assuming that we are going to buy or sell a financial instrument which we will have in our possession for a short-term (minutes or hours) or medium-term (days or weeks) and then we will close that position depending on the current market condition which favors us or not.


The trading method that is explained in this course can be applied to any financial instrument and to any time frame but as I said before if you do not have any experience stay away from day trading. In this course, I talk about day trading but my method can be applied to swing trading as well. We are looking for a fractal phenomenon that can be spotted in any time frame. Here I use intraday tick data but for the sake of the general public, I have designed my methodology document using a time frame for swing trading. Once you have acquired experience in swing trading you can adapt this method for day trading if that is what you really like.


Having said that, I need you to understand that it is practically impossible to forecast market behavior. No one knows what will happen in the next few minutes, days, or weeks. The first thing we must assume to be successful in trading the financial markets is that we do not know what will happen after we take a position, and what we do is a mere bet based on price action analysis. That is crucial that you understand and accept it as the greatest truth about trading.


I will teach you what I do, a very simple trading strategy, explained step by step, which can have thousands of variants depending on the financial instrument being played, its volatility, and the time frame of the analysis that you use to play it. This course lays the foundations for a trading strategy with a positive expectancy so that you can use it as it is, or make the modifications that you want depending on your psychological or risk profile. There is no strict rule for trading. I am always evolving and getting better so my strategy changes over time with some small adjustments but the core principle is always the same.


Before continuing please record this in your memory: Our trading method must be as flexible as possible in order to adapt to any current market conditions. If we do not have a flexible strategy we are doomed to failure.


Now that we are clear on this point please continue reading.


For trading the markets you need an edge, you must have a trading method with positive expectancy, this is crucial. This method must be consistent with your own personality and comfort level. The approach you use must make you feel comfortable. In this course, I am giving you the tools to find your edge to succeed.


All human emotions play a huge role in the final outcome of this business endeavor. Greed and fear are powerful enemies not easy to control when there is real money involved. News, colleague’s comments, TV experts, and even family members can supply additional doses of adrenaline that can make you take wrong trading decisions. After a series of bad trades and some money lost you become ill, and this illness is called “Fear of Losing”, what happens next? you are afraid of pulling the trigger to make a new trade again.


How to avoid all those emotions to trade successfully by yourself? It is very hard to detach a human being from emotions when trading with real money. What you can do is to control or minimize those emotions. The answer to this dilemma is to learn how to control “RISK”.


Once you learn how to manage risk you will enter a state of mind that will control emotions and will let you take trading decisions with the best odds of becoming profitable. After a while, you learn that losing is part of the game and when losses are in control then “fear” of losing disappears from your mind and you will begin to trade successfully. I will teach you how to control risk to increase exponentially your chances for success. This course is set for students that want to have a valid edge and to learn how to control risk to build a sustainable trading business.


Students will get step-by-step instructions for optimizing their skills to take high probability trades reducing risk using any time frame (Day Trading or Swing Trading).


With this course, you will solve any problems you have with your trading method, you will set your mind to listen to the market and to act only after the market tells you what to do.


This course foundation is based on endless hours of studying price charts and money management. Risk reduction is the cornerstone of trading the financial markets, if you focus your trading plan on caring for minimizing risk, then profits will take care of themselves. During this course, you will make an in-depth analysis of implementing risk reduction into your trading plan, which is the highway to becoming a profitable trader.


This course will be updated as any new improvements are made to my trading methodology and you will be able to download it at any time.


If you want to stand a chance for survival in these trading waters full of sharks then I command you to buy this course. It will give you the tools you need to develop your personal trading method with a positive expectancy to make money trading any financial instrument using any time frame you see fit.


I hope this little introduction will help you and I want you to know that my main objective is to help people to solve their problems regarding their trading method and to motivate them to be successful for the rest of their careers in this demanding and competitive business. Remember, you have to work hard, you are not going to get rich overnight trading. It takes time, effort, dedication, perseverance, and determination to be successful in trading and in anything in life.


TAKE ACTION. Remember, a lot of knowledge is worth nothing if no action is taken. Only by taking action, you will transform knowledge into wisdom thanks to the small steps you took. Only then you will see a change.


RISK DISCLOSURE

All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved, and if necessary seek independent advice.

U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures, and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them to invest in the options, futures, and stock markets. Don't trade with money you can't afford to lose.

NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange or Futures market is a challenging opportunity where above-average returns are available for educated and experienced investors who are willing to take above-average risk. However, before deciding to participate in Foreign Exchange (FX) or Futures trading, you should carefully consider your investment objectives, level of experience, and risk appetite. Do not invest money you cannot afford to lose.

All information on this site is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This information is neither a solicitation nor an offer to Buy/Sell options, futures or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed in this course. The past performance of any trading system or methodology is not necessarily indicative of future results. Get the advice of a competent financial advisor before investing your money in any financial instrument.

Terms of Use: Your use of this information indicates your acceptance of these disclaimers. Also, you agree to hold harmless the publisher and instructors personally and collectively for any losses of capital, if any, that may result from the use of the information. In other words, you must make your own decisions, be responsible for your own decisions, and trade at your own risk.

Who this course is for:

  • This course is for anyone interested in improving his (her) trading plan for reducing risk.
  • It should be taken by traders looking to expand their knowledge about trend detection, risk analysis and money management.
  • Any student looking for reaching better levels of profitability.

Course content

5 sections • 72 lectures

Risk Disclosure Statement. Preview 02:12

The present risk disclosure statement is intended to present to you risks and warnings in connection with trading financial instruments. Trading is suitable for persons that are knowledgeable in this field and are familiar with the principles and terms governing this field as well as for persons that are well aware of the risks involved in this kind of business. Students will know the risk involved in trading the financial markets.

All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved, and if necessary seek independent advice.

U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures, and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures, and stock markets. Don't trade with money you can't afford to lose.

NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange or Futures market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) or Futures trading, you should carefully consider your investment objectives, level of experience, and risk appetite. Do not invest money you cannot afford to lose.

All information on this course is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This course is neither a solicitation nor an offer to Buy/Sell options, futures, or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed in this course. The past performance of any trading system or methodology is not necessarily indicative of future results. Get the advice of a competent financial advisor before investing your money in any financial instrument.

Terms of Use: Your use of this course indicates your acceptance of these disclaimers. In addition, you agree to hold harmless the publisher and instructors personally and collectively for any losses of capital, if any, that may result from the use of the information. In other words, you must make your own decisions, be responsible for your own decisions, and trade at your own risk.

Introduction. Preview 05:28

In this lecture, students will have a quick overview of the main topics they will be learning during this course. Additionally, students will meet the instructor and how he will help them overcome their problems regarding trading plan optimization and risk reduction.

What do I expect to give you? Preview 01:50

In this lecture, I specify what are the basic things that I want to give my students and ask them to focus on achieving a full understanding of these issues.

Discover a key component of a successful trading method. Preview 03:32

Students will learn about an extremely important topic regarding the trading business.

The Right Balance Preview 05:56

In this topic, we are going to introduce you to the delicate balance that must be achieved between probabilities, capital, risk, and time in order to have a successful trading business.

Concepts to understand risk properly. Preview 12:21

In this lecture students will review the concepts they will use during this course to learn how to understand and control risk in every trading decision. 

Day Trading, Swing Trading and the subject of risk. Preview 04:08

The goal of this lesson is to talk about the risk on the day trading and swing Trading time frames, as well as helping the student to make a decision on which way to go.

Main concepts to master trend detection for reducing risk. Preview 17:05

This lecture describes the main concepts students need to understand in order to spot a newborn trend successfully. Students should be familiar with them before continuing with this course.

The Trend, a Fractal Phenomenon, and risk implications. Preview 03:26

The objective of this topic is to explain to the student that the trends are a fractal phenomenon that occurs on any time scale but as the time scale is smaller the greater the noise found in the data which makes it more difficult to make decisions.

Theory for evaluating your trading method to reduce risk. Preview 05:25

The goal of this lecture is to provide students with the right set of tools to evaluate a trading method for reducing risk. At the end of this course and with this information students will be able to find out if they have a good trading method with a positive expectancy.

Quick afirmations about trend detection. Preview 02:26

Students will find here excellent advice about trend detection techniques.

A daily supply and demand example.

This task provides the student with the opportunity to practice the fundamental concept of the Law of Supply and Demand which is the core of good trading methodology.

Evaluation of Section 1.

In this evaluation, we are going to review the main concepts of this section.

Words from Humberto. Preview 01:32

Words by Humberto on the subject of risk. It is very important for students to have these tips very clear.

Summary of section 1. Preview 01:36

Students will have a brief of this section in order to recall all the topics covered so far.

Introduction: A good risk and money management plan, a trader´s lifesaver. Preview 02:30

This lecture provides an introduction to risk and money management plan. Students after completing this lecture will have a very solid understanding of the importance of these skills which are vital for surviving as a trader of the financial markets. 

My all in one risk and money management plan plus trade log included (BONUS)! Preview 01:10

In this lecture, students will download my all in one risk and money management plan which also includes a trade log. This is a bonus for taking this course. Students need to have Microsoft Excel installed on their computers in order to use it. Students will notice that this risk and money management plan is adapted for trading the Emini S&P 500 but they can make all the modifications needed for trading any other financial instrument. This risk and money management plan will be updated for download as soon as a new version is available.

Describing step by step my risk and money management plan. Preview 08:39

During this lecture, I will explain step by step all the components of my risk and money management plan for students to use it or to modify it depending on their needs. At the end of this lecture, students will know the meaning of each component of this risk and money management plan so they will be able to understand all calculations related to proper trading size based on present risk later during this section.

Calculating position size based on present risk and capital. Preview 06:29

The intention of this lecture is for the students to practice how to calculate position size. Students will learn that every trade is different and they need to properly size their trades based on present risk and available capital to ensure they stay for the long run in the trading business. Students will use the risk and money management available for download in this section.

Outcome estimation using the trade calculator. Preview 10:17

The objective of this lecture is to explain to students how to estimate possible trade outcomes using the trade calculator that is included in the spreadsheet of the risk and money management plan. Students will need the Microsoft Excel file of the risk and money management plan available for download in this section to use it during this lecture.

Use a trading log with revealing statistics. Preview 12:02

During this lecture, students will learn how to use the trading log that is included in the Excel file of the Risk and Money Management Plan that is available for download in this section. 

Annual statistics, drawdowns and capital growth chart. Preview 03:17

In this lecture, students will take a closer look at annual statistics, drawdowns, and capital growth tabs located in the Excel file of the Risk and Money Management Plan that is available for download in this section. All these three topics are the cornerstone for having an overall idea of your performance with a glance. 

Short Trade in the Micro E-Mini S&P 500

The goal of this task is to familiarize the student with many of the calculation options found in the risk management system available for download in this section.

Evaluation of Section 2.

In this evaluation, we are going to review the main concepts of this section.

Words from Humberto. Preview 01:06

This is a reminder about my risk control sheet and trade log.

Summary of section 2. Preview 01:32

Students will have a brief of this section in order to recall all the topics covered so far.

Introduction. Preview 02:11

During this lecture, students will have a quick introduction to the concept of intraday trend analysis, a priceless skill an intraday trader needs to place his trades along with the strongest trend. This concept of intraday trend analysis can be used in any time frame, from day trading, swing trading or a longer time frame horizon from days to weeks.

A note about charts. Preview 01:31

Students will find here a brief observation about the different types of charts that are key to trade any market.

Setting up clean charts for trading. Preview 04:18

During this lecture, students will set up the charts they need to trade like a professional. At the end of this lecture, students will be able to set up trading charts for any financial product they trade.

How do you determine the trend before it happens? Preview 03:55

This is a question that I receive frequently and I have promised to answer it with an example. Here is the answer that will clear the mind of many traders.

Price resolution and the trend fractal. Preview 07:13

In this lecture, students will learn important points about the trend fractal that will simplify their understanding of price action in markets.

Detect the most recent trend to make high probability trades for reducing risk. Preview 09:33

In this lecture, students will learn in a very plain manner how to detect the most recent trend in order to take high probabilities trades for reducing risk. Please download the available file here which you will use to take the quiz at the end of this section.

Detect the long term trend for swing trading. Preview 03:45

The goal of the lesson is to explain how easy it is to spot a long term trend for swing trading.

Learn how to find trading ideas, sweet spot for entries. Preview 10:21

In this lecture, the student will learn the most important concept to find trading ideas with low risk in any market regardless of the financial instrument or any time frame they use.

Swing Trading. Find The Sweet Spot For Entries. Preview 05:34

For Swing Trading. The objective of this lesson is to make you understand how to detect a market entry to start a trade with the least possible risk.

Every trend ends, how to find the sweet spot for exits. Preview 04:46

To enter a trade requires tuned skills of understanding trend detection and price action but it is also crucial to know when to close a position. This task demands a clear knowledge of price structure to detect when a trend is ending to take profits. In this lecture, the student will learn how to close a position in a way that reduces market uncertainty to enhance profitability.

Swing Trading, how to find a sweet spot for exits. Preview 06:45

The objective of this lesson is to explain to the student the similarities in the detection of the exits between swing trading and day trading and the subject of volatility and method selection.

Swing Trading and price action: Turning Points Preview 06:59

In this lecture, I want to explain a strategy that students should have in their inventory.

Understanding price extremes. Preview 04:13

In this lecture, I want to explain a very useful topic, and it is about how to understand the message that extreme price levels send to the traders.

Candlesticks patterns and price action explained. Preview 08:06

In this lesson, students will learn the most important aspect to consider when interpreting candlesticks patterns.

My day trading method FLAHCARD, DO NOT MISS IT. Preview 08:03

Students here will have access to my day trading method flashcard. The same I use for day trading. A real gem.

My day trading method and price action, explained step by step. Preview 08:18

In this lecture, I want to explain step-by-step, how another day trading strategy works in addition to the method that I have presented in this course.

Momentum Analysis

The goal of this assignment is for you to practice detecting a momentum change in the market. It is very important to learn this skill as it will help you a lot to detect growing imbalances between supply and demand, which is essential to detect market entries and exits.

Fractal Analysis

The intention of this assignment is for the student to be able to detect the breaking of a fractal in order to detect a possible change in trend that allows him to start a new play that takes advantage of the strength of a trend that is about to be born.

Evaluation of Section 3.

In this evaluation, we are going to review the main concepts of this section.

Words from Humberto. Preview 01:56

Some thoughts on price action, day trading, and swing trading.

Summary of section 3. Preview 02:21

In this summary, students will review the most important information provided during this lecture. It is key for students to keep notes of all this information as it is a vital part of a profitable trading business. 

Introduction: The swing trading methodology. Preview 00:51

Once students end this lecture they will have the opportunity to download my swing - day trading methodology so they can use it as a step by step guide to day trade any financial instrument every day to approach the markets with a winning tactic that will increase their odds significantly to make money. I am always updating this methodology, I will notify as soon as a new version is available for download. This methodology can change over time as I evolve as a trader, remember trading is an eternal path of learning and transformation.

The Method and Volatility Preview 04:15

The objective is for the student to understand the importance of integrating a suitable method according to the current volatility.

STEP 1: Preparing for the trading day. Preview 03:07

During this lecture students will focus their attention in getting everything ready for the trading day, from drawing support and resistance levels to money and risk management.

STEP 2: Entry. How to place your trade. Preview 04:22

In this lecture, students will recall the three steps needed to make a trade with the best odds possible in order to reduce risk as one of our main goals when trading the markets.

STEP 3: Risk management on your trade. Preview 03:29

Once students complete this lecture they will be able to manage risk on every trade they take. Risk management is not only about crushing numbers on a spreadsheet it is also a technique that is used in real time to reduce risk as a trade evolves. 

STEP 4: Detecting valid support and resistance levels. Preview 04:51

In this lecture, students will see how price action interpretation is used to detect valid support and resistance levels during the trading day. Learning more about this skill will allow them to expand their profit margin to a new level.

STEP 5: Scaling out your position. Preview 10:05

After this lecture students will be able to manage the forces of greed and fear when closing a trade. They will understand how to apply the scaled exit approach for exiting a position incrementally in order to minimize risk and maximize profits.

STEP 6: The circle of victory Preview 03:00

The circle of victory is just a lecture to engrave the process of scaling out on the student's mind to make a habit of it. I think it is so important that I made an additional lecture to insist on this topic alone. Students must pay special attention to this short lecture.

Real Time Trade "Tight Risk Control" Preview 02:25

In this lecture, I want to exemplify in a real-time trade the importance of tight risk control.

Practicing the exits.

In this assignment, the main goal is that you apply what you have learned about how to use the scaled exit approach during a trade.

Protecting profits.

In this assignment, we are going to put into practice the knowledge of where to place the stop loss as the price action advances in a long trade in order to protect the gains.

Evaluation of Section 4.

In this evaluation, we are going to review the main concepts of this section.

Words from Humberto. Preview 00:52

Brief final recommendations for students.

Summary and last words of advice. Preview 08:50

Students will go through a quick review of all the six steps covered in this section. In the end some important advises will be provided for their trading endeavor.

Introduction Preview 00:50

The objective of this class is to put the students in contact with trades in real-time.

The top-down analysis and pullbacks. Preview 10:24

This is a trade made in real-time and recorded to illustrate important trading topics.

Apply a flexible strategy as anything can happen. Preview 05:31

This is a trade made in real-time and recorded to illustrate important trading topics.

Learn to avoid a not attractive risk-reward ratio. Preview 03:35

This is a trade made in real-time and recorded to illustrate important trading topics.

Managing risk dynamically. Preview 04:35

This is a trade made in real-time and recorded to illustrate dynamic risk control.

Take your chances, you never know how far the tide will take you. Preview 06:23

In this lesson, students are shown a real-time trade that explains some of the techniques they will learn in this course.

Capitalize on variations. Preview 04:51

The market is a roller coaster of emotions. This causes endless variations in price that a trader can take advantage of. This trade shows a clear example of this situation and what kind of decisions should be made in these cases.

Shorting inside an uptrend. Preview 02:50

This time I want to explain that you can take advantage of downward fluctuations within an upward trend. These are very risky trades that you should only execute when you have more experience because we are betting against the trend.

The price collapses Preview 04:41

This trade highlights the probability of a total meltdown in prices during a long or short trade. This is a fact that you must be aware of and is your responsibility as a trader to be ready to act in any scenario.

In the middle of the range. Preview 03:07

This is a good example of the importance of being patient and waiting for the right moment to start a trade.

The king of the universe Preview 05:31

The objective of this lesson is to explain to the students which are the best decisions to make when trading in the market.