Ei Day Traders

Top of the morning, my EI Day traders. DB Bedford here, the EI guy, bringing that emotional intelligence both personally and professionally. Listen, as EI Day traders, we are leveraging emotional intelligence into the financial markets. Today was a really, really good lesson day. We're going to talk about risk management, and we're going to talk about your ability to take a loss. One of the things that I know that a lot of you guys on— that's in the bleachers and on the sidelines, you like, okay, you showing all these good days, What about your losses? Well, today is an opportunity for you to see that. But my question gonna be to you, are you really about this life? Can you take an L? Do you have some fight in you for when things are not going the way that you want to, right? And that is in life, right? Whether it's physically, verbally challenging, health-wise, you— we all have a fight in life. How are you when the fight begins? I'm from Oakland, so I grew up in a city where you had to fight, you know, and you got to be about what you talk about. You can't just talk about it, you got to be about it. So today is a great opportunity to pay attention to a trade where I made a decision, right? First it worked for me, then it didn't work for me, and how I sat with what didn't work for me and how I use my emotional intelligence to recover from that and still have a profitable day. So come on in, take a look at this trade. It's very interesting. It's a good lesson on what it's like to be a EI Day Trader. So let's take a look. So look, this is the opening bell. Now I also look at my indicators, right? So my setup, uh, is with 5-minute candles. I'm using the, you know, the MACD, right, and a basic EMA. And so now when I look at this, I see that all these previous candles have these long wicks, right? And wicks are clear, uh, signs of indecision. It means that the buyers and sellers are basically going at it and nobody is really, really dominating. So I take that into consideration of the previous candle action as I watch this first candle unfold. So we're 5 minutes into the trade, and as you can see, the sellers are driving the price down. Now it's very tempting to jump in when they're driving the price down, but this is the first candle, so I try to practice waiting. Now yesterday it got so good that I really, I really didn't want to wait, and if today does the same thing it did yesterday, then I would jump right in. But it's important to kind of wait to see, will the sellers, right, uh, kind of be in control for the next few minutes? So we're 1 minute into the trade. Sellers are pushing, but as you can see how it's oscillating like right here, like going back and forth, it looks like they're pushing down, but it hasn't really, you know, changed that much. You can go up here and look at the point movement, 2283, even though this candle is, you know, looking like it's— well, even though the candle was red clearly and it's pushing down, but it's not moving a lot. Now it's at 2282, so. What you really want to do is you kind of get confirmation that the trade is going to continue to go down. Because we're only 2 minutes now into the trade, like, I got a little time. And what we don't want is the trade to reverse. Now I am looking now down here at the histogram and, and the RSI. I see that it is continuously in push, so I may go ahead and take advantage of this. This may be a trade very similar to yesterday. Go to the sell button. Click 3 contracts because that's what I like to use. Put a stop loss at 22— it's at 2281, so I'm gonna go maybe 2286, give myself a few points. I will— I'll be quick to move it first chance I get. All right, so I'm still going to watch this. It really— it looks like it has some strength and it's going to keep moving, so I'm going to go ahead and jump in just in case it goes in my favor. That right there means the trade was just taken. So I came in at 2281. Now I will say again Getting in on the first candle is a little risky because you never really know which way the market is going to go, if it's going to reverse, because it's really, uh, could be very volatile in the beginning. But once again, like yesterday, when I'm looking at this, you know, I gave it time to kind of push down and it shows some strength. The indicators are pushing down. You know, this bar is much bigger than these 2 bars, which means that it has some strength. Now listen, I came in at $22.81. Right? It's at 2280. So I want to see if this is going to push down some more. Now the the challenge here is that again, that first candle you never know what's going to happen. Plus you got another candle coming. So we want to really want this to push. But because we are scalpers too, the first opportunity that we get, we're going to take a point or two so that we can go ahead and get in the green. So as this moves down to 2279. Now remember I said that I was putting my stop loss back here at 2286, so I'm going to want to move this, uh, right about now because I want to capture whatever opportunity I have here. So I'm going ahead and get this and I'm gonna move this down to 2280. Okay, now the thing about this, right, I just want to capture one point real quick just to get the party started. That way even if this reverses on the next candle, I won't be out of loss. So see, now we see that it's down to $2,278. It's 6:34. It's probably— it could reverse, right, and stop me out, but I'm okay now because I won't lose any money. And if the trade continues— so that's a stop out, I can get back in, no worries. So position— so that's a quick $165. But we're going to see if this pattern continues, right? So I'm going to get prepared for another trade, open up the futures. Three contracts, sale bracket 2280. I'm gonna go back to the same space that I was at. I like that 2286 to give us some room, right? But we gonna watch this because the next candle is about to form. Now see, see how we talked about the reverse, right? So now it's 6:35. The second candle hit, and so look at the reversal, and part of that reversal. you pay attention to is because, look, we said up, down, up, down, up, down, right? It's possible that it might want to go back up. It's kind of, you know, it's a little challenge right here. The buyers and sellers, this is about the level that they're holding at, which is why that first candle, like I said, was risky because it was a, it was a, a risk of it reversing. Now If I'd have gotten at the top, I would have captured more points, but I needed to see what it was going to do. So this is a good example what we talk about in terms of why we scalp, right? We scalp because we like to take quick profits before the market turns around and changes its mind. If I had not moved my— now think about it. If I had not moved that stop loss that I had up and captured that point, then you can see the market would have been going back and forth. Now, It's looking like it's breaking through, so I'm ready in case it's going to act like it still want to go that way, which it looks like it does. So I am— I'm comfortable with jumping right back in now because I think it's going to continue to move forward. Trade futures, sell 1, 2 contracts, right? Let's go back to— let's go 2280 this time, uh, like 81. I know none of this stuff really making sense to you guys. I'm just right now, I'm just— I'm not in teaching mode, I'm just in showing mode. So I'm trying to get in and catch this All right, so I'm trying to capture that while it's still making its way down. So we want this to continue to push down. I'm waiting for the opportunity to move up a point. I came in at 2274, and this is where your emotional intelligence comes in there, right? And understanding what you're doing, because, you know, you look how the candles, they don't always just push down, right? We don't never know what the next candle is going to do. In fact, it's about to happen now, right? It's 6:39. The next candle is going to happen. And the momentum is going to change, right, uh, right before we know it. And so again, you see it hasn't really, uh, like pushed, pushed down. And so we have to kind of wait and see what happens. We never know what the market is going to do. Definitely already back, uh, given that $185 back, uh, if the trade was to end now. And this is part of the trading life. Okay. Now We can see down here that now, see, that it's not as strong. This candle was not— I mean, this, this graph down here is not as strong as I want it to be. Now see, see what happens. Now you got to be able to stomach this particular candle. Now my thing is, I, I am into— I— what I would not like to see— my stop loss is up at $22.81. Of course, I don't want it to hit $22.81 because that would sting, right? And it will set me back. But it's very possible. So I have to wait to see what happens. And each candle, right, that's where those wicks come from, where in in the life of the candle, this is the high, this is the low, this is the body of the candle, and that's the same thing that's happening here. So the question becomes: Do I still believe that we are this? You know, this thing is still heading downwards. Well, it's kind of hard to tell now, right? Because the indicators are switching up. So we still got about 3 minutes into this trade. See right here, we're starting to bend, right? So that means that, uh, it is reversing. So that's— this, this could be, uh, from $22.74 to $81. Like, that's gonna sting. Now look, it's reversing. Now stop out. Now let's talk about getting stung, right? So now, and this is very important, so now I'm down $765. Now, what could I have had done with the risk management? The minute I seen this reversing, I should have pulled this down and stopped and waited to see. One of the things that we talk about in this game are, are you able to take an L, right? Can you take a loss? Can you absorb a loss? I've showed you countless days of scoring. Can I stomach that $765? Of course I can, because I've showed you $1,000 here, $1,300 here, $900 here. So We know that that's part of the game, but the day is not over because, uh, there's still more opportunities to trade. Now here's the lesson in that. Had I noticed, and I did start to see that it was starting to reverse, I could have got out of the trade and got back in it and caught this candle up, right? But I wanted that— that's the— that's kind of the risk you take to, to see whether you think it's going to keep going down. But the real Uh, strategy would have been the minute you seen a couple of points going this way, listen, the trade is not going the way you believed it was going to go. Get out the way of the trade, right? So I should have pulled this down, stopped, broke even or lost minimum, and then waited to see what it was going to do next. But I stayed in it, and that is what we talk about risk management. And I didn't do that intentionally. That was kind of real life on how you make those decisions. But imagine if I didn't have that stop loss, right? You know, it went all the way up to $22.83, so it would have been more of a sting. But again, in your trading, right, this is understanding like what you're doing and how you're trading. So now I'm just going to wait for a new opportunity, right, to get into a trade. And I have to wait to see where the market is going to go, and the day— the goal is to become profitable. These particular days to me always can be a little— because, you know, when I do find a good trade, the first thing I got to do is clear, right, that loss before I can see a profit, you know. So now it's up for me to just observe, and the day is not over. It doesn't mean that's how it's going to end. See, the emotional intelligence part, which is important, is that you gotta— what, what do you do now, right, that you got hit for a couple of dollars? Now I want to say this, and this is the real cool part about it. I'm trading at a level where it is going to cost me $150 a point. Here's the good news, you don't. There's 2 different levels to trading index futures. You could do this same thing at $5 a point, okay? And if you're doing it at $5 or $10 a point, right, you would not be— you wouldn't lose a couple of hundred, right? You lose less than $100 as you're learning. And that's what I'm going to introduce you to. And you also can do this Simulated, right? Which means doesn't cost you any money. But it's important for me to show you, you know, all month I just been showing you kind of the end result or close to the end results of the wins. But I also want to show you this part where you have to be able to manage. Risk management is very, very important in this game, okay? And most of the time what people do is what they— we call revenge trading, you know? And so you get stuck and you're like, oh, I got to get that back. And so you start trading on emotion and not logic. And that is something that you want to be very, very, very mindful of. So now the, the, the, the game for me now is to wait. Okay, so I told you I believe this was going to come back down. Okay, so right now is, uh, 7:27. And, uh, remember I said earlier I believe the trade would eventually start to head its way down. So I will, you know, talk about this. This has been an interesting day. So I was able to start to catch this coming back down. We'll talk about that when this trade is over. But now I have opportunity to start to recapture some of those profits— I mean, some of that loss that I took earlier. And I don't know how much I'm going to recapture. I'm gonna go back to when the trade is over. But for now, I just want to talk about how how the patterns of the market goes. And remember, I kept, you know, I said a couple of times, I know this trade is going to go back down. I didn't know when. Now, here's the thing that you could kind of get on, you know, you kind of kick yourself a little bit, is that this is where patience comes in at. Because right here, right, I got into a trade and I scalped and I was up right here. The trade reversed. I didn't minimize my stop losses, right? So I end up going in the hole. Had to wait this out, right? And then here is clear opportunities to get back into the market. Now just imagine what would have happened on a better decision-making day. Well, while I'm talking, 2273, I'm stopped. I got my stop loss at 2276. I want to capture some more of these points because remember, I'm trying to get my profits back that— I mean, my, uh, what I've given up earlier. So I'm gonna go down to 2274 at this point. I want to capture as much as possible, right? Because I was down, you know. Now the point I want to make here is that when you think about this, you put this in hindsight. These first 2 candles between 6:30 and 6:35, had I got— did this in a more efficient way, either I would have stopped with that first couple hundred I made, got out, which means I would have gave some of it back. I would have waited till all this cleared up and then got in this, and now all of this that I am trading now would have been profit. But because, right, I'm— I didn't make the best decision here, all of this trading is, is really basically recovering for what I've, what I've given up already. At this point, I'm trying to minimize, right, what I've, what I've, uh, given to the market already. Okay. And so, because the goal of the day, right, is to have more profitable days and minimize those days when we're not, right, when we're not profitable. And so this is very, very important to pay attention to. So I got stopped out. So let's see where we're at now. Look at that! Come on, this is why I do what I do. I— we were just down $700 plus, okay? Now we've cleared that, and now we're up $30. So now there's no loss for the day, and look, there's still action here. All right, so we're back into a trade. You know, you, you got to be really about this life to be able to really understand what you're doing. That's why I'm so, uh, confident about the level of education that I'm going to be bringing your way, because to this morning, you basically witnessed me essentially go from a red status, right, to a somewhat profitable status. And it has a lot to do with being able to understand what the market conditions is. Now I'm playing it real tight right now, and you know, this, this trend— I mean, these candles, the sellers are, you know, for the last 5, 10, 15, you know, 20, 30 minutes have basically been Overall in control. And what I'm trying to do is follow this down, but right now I'm playing my stops so close that it's easy for me to get stopped out. Yeah, so basically I just want to see what happens here, you know. Um, I just— the indicator is still pushing down really strong, and I just— there may be a couple more points there. I am risking giving back that $200, uh, that I just earned, uh, but looking at this, I I think if I ride it out, right, this thing will drop a little bit more. So there's the reversal. So let's go down. Let's not give back all of our profits. So let's go down this 60. Oh, wait a minute. Okay, so it's still going down that pattern. Okay, that's good. So while we're at it, right, see, this is the beauty about the stop loss. So what we're going to do is we're going to Put it right at 67. That way we get stopped out, we don't lose anything. So we're still at 235. All right, so now we're gonna, we're gonna quit playing around with the market today, right? We're gonna, we're gonna— now this is the, this is when I talk about the don't mess off here for show trying to get some more. I almost risked that, and really it's so easy because you look at this and you start thinking about what they— this is what they call FOMO. Right? The fear of missing out. You like, what if it keeps going down? You know, I could get this, I can get that. Now here is a very important lesson for today. And listen, it went down 27 points today, so I missed a whole lot of opportunity here today. I'm not gonna lie, by the way that I traded. And that could have been a very profitable day, but I did not execute trades in the manner that I know how to. So even though today is not as profitable as I would like it to be, it's still profitable. But there was some good lessons in this. Risk management is very important. Being able to know when to get in and out of a trade, utilizing your stop losses, being able to take that L but be able to still fight. And so today is victorious. It's victorious because at the end of the day, we're still up $235, even though If you look at the activity, we took, you know, we had, we had a lot of, we need a lot of things today, right? Now, when I look back at this and I run this play, right, when I go study this after I'm done, I, I can see where I did not make the best decisions. I'll go back, like I said, and recap these first 2 candles. Even though I made a profit when it reversed, I didn't minimize my stop loss. Okay. I got up in here where it was choppy. I know I shouldn't have, but I did what I was talking about. You kind of make— you want to try to make a trade work, and you can't do that. I mean, most of the time you do that, it's not going to work for you. I knew that the market would reverse and come back down, didn't know how far. I caught these 3 candles right here that cleared up all of that loss that we had earlier. I had an opportunity to get more profit. Okay, but where we're at now, okay, we don't want to keep trying to play with our profits. Now I could stay in the market longer. It's 7:48 in the morning. I'm sure the market doesn't close till later on, till 3-something. But in our mentality as the EID day trader, right, we not gonna mess off our for sure trying to get some more. So listen, $235. We'll take that. Okay. All right, so first thing we'll do is take that $235, and you know me, like, to make it real for me and keep this flow going, right? We'll come right over here and let's log that in. $235 is not nothing to write home about, but when you go $515, $1,320, $235, small profits adds up. As you can see, a lot of green And this is not for you to be all in my pockets and counting up. I'm just trying to show results and demonstrate. But I've had some red days, right? There's no doubt about that. I've talked about this before. You look at the beginning, week 1. Let's just keep it real. In week 1, right, you see what happened? I had 2 red days. But I can doc— I can document what happened. I didn't follow the plan. I took too many trades, right? Too many trades. I took 20 trades that day and chasing, not attracting. That almost happened today, right? And I paid the price for that, but I learned from that. I didn't trade on the 12th, right? So I was able to pay attention and understand what to do. So today's situation is very, very, uh, as a reflection of what happened on these 2 days right here, and I learned from that. And anytime you have a trade— trading day That doesn't go in your favorites. So it's important to study the blueprints of past trades that didn't go well, so that when you— it does reverse on you, you find yourself in a fight, you know exactly what to do. Preparation is very important when— so you can be ready when opportunity presents itself. All right, so there you have it, right? An actual trading day. You got to have some fight in you, right? It's not going to always be smooth, right? So I want to show you some ups and downs, some ebb and Ebb and flows, how I handled it. 7:50 now, the market opened at 6:30. That's about an hour and a half of activity. The times— what I can be honest about is the part where I wasn't profitable had a lot to do with my decision-making. The market doesn't owe me anything. You got to remember that the market owes you nothing. It is up to you to rely on your skill. What I always say, your mental and your emotional state, to be able to use emotional intelligence To take small profits into the market. Today was a very small profit, but it wasn't a loss, and that's the most important thing. So we're going to log this $235 in for the day, and I'm gonna get on about my business. All right, you guys, make sure you subscribe to our YouTube channel, and so you can catch up with these videos so you can learn the ins and outs of day trading. I have a real special program coming up soon. You don't want to miss the opportunity to learn this skill that once you learn it, no one can take this away from you, and you can earn income for the rest. Of of your life. And remember, there are levels to this that you could be trading at $20, $2,000, $20,000, $200,000. It depends on what your bankroll is like, okay? And I'm gonna break all that down to you in the future trainings. Until then, I will see you on the next one. Take your profits and get on about