The “First Candle Rule” Is The Easiest Way To Make F*ck You Money

The First Candle rule is by far the easiest way to make you money in trading. And it works so well that it almost feels like cheating. Now, if I had known this whenever I started trading almost a decade ago, I would have started having days like this, this, and this way earlier. And in this video, you'll learn how this simple approach to trading will help you cut out all the noise and start making money as a trader much sooner. Before I show you the rule, you need to understand why most traders never make you money in the first place. That way, you can be like this guy. Now, we've all heard the statistic that most traders lose all their money in the first 90 days, but those are not the people we're talking about, because those people aren't traders. They're just gamblers. And if you're watching this video, then you're probably not one of those people. You are probably one of what I like to call the silent majority, the traders who die by a thousand cuts. And it's not like you're over here losing your life savings, but you're also not really making any money either. You'll take a small win here and then a small loss. You chase moves, you get chopped up, and you end up in this cycle that keeps you broke. And I know this because whenever I first started trading, I blew accounts for five whole years because of this. No, bro, you're not stupid. Trading is just hard. But why? Why is there this collective belief that it's so hard to make money as a trader, but you somehow see everybody posting profits online and posting their new Lambo? And this brings us to the Lollapalooza effect. It's a big word, but it is the easiest way to explain why most traders never make any real money. Charlie Munger, who, if you didn't know him already, was the partner of Warren Buffet and a billionaire investor, discovered that most people don't just fail because of one thing. That, no, you don't fail because you're emotional. And you definitely don't fail because you're stupid. You fail because there are multiple psychological biases that are ganging up on you at once. And this is why trading can feel impossible whenever you're learning. But there is a very easy way to overcome all of these. Now, when I say all of these, I mean the three powerful fears that will ruin you as a trader. The first is the fear of losing money. The second is the fear of missing out. And last but not least, the need to avoid pain. Now, all of these hit you at the same time and hijacks your decision making, which can make you do stupid things even though you're not stupid. Like cut a winner too early, even though you know the market's likely to keep going. Or after you see the market keep going, you chase the market and take stupid losses. And then after this, you're so upset, you just start taking random trades that you look back at at the end of the day and wonder, who was that guy that was in my computer chair taking these actions? And there is one thing that triggers all three of these fears at once. And it happens whenever your charts look like this. Whenever you have too many indicators, too many strategies, and you've learned so many different complicated concepts that your brain is overwhelmed. It's like a computer that has been overran by a virus and is not functioning properly anymore. You've got different signals and strategies and tools that are all telling you conflict, conflicting things. Which leaves you wondering if you're wrong or right. And all the while, the market is printing and you're kind of wondering, what do I do? I'm gonna. I'm gonna miss out. Oh, am I making the right decision? And this is where you become overwhelmed. And in that moment, all three of those fears activate at once. So you second guess yourself, you hesitate, you panic and make all of the mistakes that traders make that keep them unprofitable. And this is why trading is so hard. Now you may be wondering, well, okay, great, how do we overcome this? And this brings us to the first candle rule. Basically, it's just a simplified approach that removes all of the confusion and over complicated nonsense from your trading. That way you're just focusing on one strategy applied the same way at the same time every single day, all using just one candle. And this way, there is no room for panic, there is no room for fomo. All that there is left is clarity and execution. Because the setup is so simple that you see it and you know exactly what to do and you just act. No overthinking, no emotional decisions, just letting the rule do the work for you. And whenever you remove the overwhelm from having a complex trading system, you also remove all these three fears that overrun your brain and get in the way of you making, making real money. And that is exactly what is going to happen for you by the end of this video. Because after I show you this rule, you are going to be well on your way to making you money as a trader. Now let's hop on a chart. That way you can learn the first Candle rule. And with the first candle rule. The goal is to make money trading in less than 90 minutes per day. Now, I want to give you a fair warning. This strategy is so simple that you might even think it's boring. But if there's one thing I've learned in the last nine years I've spent in the markets, it's it's that a boring and repetitive strategy is what most traders need in order to make big money. And we're going to break this down in three simple steps. Step number one is to get to your desk right at 9:30am EST. And for step number one, we want to start out on our five minute chart. You get this by clicking up here on Trading View. And this means that every candle represents five minutes of trading time. Next, we'll mark the high and the low of the first five minute candle. To do this, go over to your left hand side of the screen on Trading View, click right here and click the trend line button. And you can use this tool to mark out the high and the low of that first candle. And like I said, this works on any market, whether it's futures, stocks, forex or crypto. And that's literally it. These are the only two levels that you need to trade all day long. And this brings us to step number two. We're going to head to our one minute chart by going over here on Trading View and, and we're going to wait for a break of one of these levels. So we're going to wait for the market to trade outside of this range. And what we want to see here, to be clear, guys, we do not want to just see a wick, we want to see an energetic push. Because when we get an energetic push through one of these levels, it tells us instantly who is taking control of the market, whether it's buyers or whether it is sellers. Now, as we can see, we got an energetic push down. But the reason this counts as a break is not because of this big candle here, as you might have thought when you saw it print. Because you might say, well, this is an energetic push, right? The answer is yes, but it's part of a bigger move. And if you just look at every single big candle as a breakout, well, you're probably not going to make much money trading. And in order to trade consistently, you need a repeatable pattern that confirms your trades. And this brings us to step number three, which is what I like to call the displacement entry. I also wanted to let you know that I have built a free trading community. Community. There's a free course inside and tons of free resources to help you on your journey as a trader. I'll leave the link in the description where you can join totally for free. So for our displacement entry there is one very simple pattern that we want to see forming. And in this example we see it formed not with this big candle but the one before it. What we're looking for is what you see right here. Now I'm going to zoom in so you guys can see it very clearly. But notice how there is a gap between this candles wick and and this candles wick. This is what we call a fair value gap and it shows that one side of the market is heavily in control. And when we see this three pattern candle forming through either the first candles low or the high, we know that we have a valid trade setup. And once you've got this gap through the level, you are good to enter the trade. But we need to know where we want to take profit and where to cut our losses if we're wrong. So to mark this out we're going to go over here on Trading view and since we broke through the low we going to be getting into a sell position AKA a short. So you click this short position tool and what this is going to do is help you map out your trade to make sure you get good risk to reward. So you want to put your entry right here at the closure of the candle that confirmed the fair value gap. So we have three candles to make a fair value gap. Remember yes, this is the gap candle but we have to have the first and third candles to have their wicks. So we're going to enter as soon as that fair value gap is confirmed outside of the first candle's high or low, we're going to take our stop loss and we're going to place this at the high of the first candle in the fair value gap pattern. And for our take profit all we're going to do is we're going to go for a fixed 2 to 1 risk to reward. This means that your target is twice the distance from your entry as your stop and you'll make twice as much money on a winning trade as you would lose when you're wrong. So at this time you would just go over here to the left and click the sell button and then you are going to go ahead and move your stop loss and take profit to the appropriate points. And as you can see on this trade, we've got a total of $1,295 at risk to make $2,580. And after that you just sit back and let the market do the heavy lifting for you. There's no reason to overthink where you're going to exit the market. You're not going to take profits too early because your work is cut out for you. That's literally it. Now, like I told you guys, it's pretty boring. But boring and repetitive removes the overwhelm from your trading, which removes all of the reasons you fail and inherently will help you make Q money as a trader. If you want to trade with me at Market Open, get access to my AI tool, have every single trade that you take reviewed to make sure that you're not making mistakes and be directly mentored by me, someone who's been trading for nine years. I'll leave a link down in the description where you can apply for my mentorship. Now, I want to be clear that not everybody is going to qualify. This is a little different than your typical discords. It's more of an elite inner circle model. That way I can give everybody the attention they need. But if you do qualify, then I guarantee I will work with you until you are a funded trader. Regardless, after watching this video, you now have a simple way to finally start making money as a trader. And yes, trading is hard, but when you have a simple and repeatable system, you have the work cut out for you. And thank you guys for watching. If you like this video, then you will love my full Beginner's guide which you will see on my screen. I go over everything from the basics of analysis all the way to risk management and psychology. And make sure to subscribe to the channel because I post free videos just like this every single week. See you guys in the next one.