Most Traders FAIL Because Of This Mistake

Most traders fail because they're looking at too much. But after trading for nine years, I realized something that changed everything, and that is that you only need one candle to trade every single day. And I'm more profitable now than I ever was because of this simple approach. Let me explain how that's possible. It's called the first candle rule and it gives you the three foundations of any good strategy. Your range, as in where to trade, direction, as in which way the market will go, and last but not least, your execution. Where to put your entry, stop, loss and take profit. Here is how it works. You mark out the high and the low of the first five minute candle that forms between 9:30 and 9:35am EST. And these two levels are all you need to establish your trading range. Then we drop to the 1 minute chart and wait for a fair value gap to break out of this range. This shows us who is really in control of the market and we want to be on the same side as them. Now, usually after an explosive move, the market always pulls back to test the gap. But this pullback is a gift, because once we get a dig into the fair value gap, we start to look for our confirmation. And this comes in the form of an engulfing candle. This confirms that the break is real and the market will likely continue. We enter the trade and place our stop one tick beyond the candle that retested the fair value gap. And we target a fixed 3 to 1 risk to reward. Now save this video so you can study this simple strategy again and again.