I made $21K in 32 minutes DAY TRADING my best strategy (2024)

So Today I made $21,000 day trading this one strategy, which is my morning top reversal. And what I want to do is I want to cover exactly where I got in, where I got at and just basically walk you through my trading session and walk you through my trading strategy. So with that being said, let's dive into it. So here you go. Here are all the four trades I've taken. Scratch these two off. But these were like the real two trades. 12,000 on one, 8,000 on the second. Both trades were my morning top reversal strategy. Now before I go into the trades, the first thing that I want to dive into is my pre market notes. Now I always recommend people that before you take on a trading session to have notes or to have some sort of game plan going into the day. So here is my game plan. I'm just going to open this up, just kind of walk you guys through everything that I have here just to give you an understanding, right? So before the market opens, I start writing out the following. I have like the theme of the market, I have my scenarios, I have a pre market picture, I have a picture of the pre market session and then I have, you know, my trade breakdowns after the day is done. So before the day opens, this is just the theme of the market for Monday, October 9, right? War news over weekend seeing gap down from market. Don't jump on what market should or will do. Let price dictates over the weekend. As you guys know, war broke out. As war broke out, looking at the markets, it is something to be like, well, will the market react negatively? Will the market react positively? We have no idea. What I like to do is I like to stay out of trying to have an opinion on what the market will or should do. I try to look at what price tells me, right? Also FOMC minutes as well this week. Market will be waiting on this due to job Friday jobs report. So jobs report happened Friday, market tanked. And then right when market tanked on, the open, market rallied. So just trying to put the pieces together and I try to carry it over into the next trading session and the next trading session. Right? Here are some of the scenarios. Pre market gap down, flat action. So this is how the market looked. You know, before we open, we had a gap down. After we had a gap down, we're kind of trending sideways. And before we open, as we open right here, we don't have any real movement, we don't have any real direction. We just get a small sort of gap down from last sessions. Close Watch and open to see if we can test Friday supply zone gap down, move into zone and identify trade there. Watch open for any sort of weakness. Look to play that. So I like to lay out scenarios just to have an idea on what are the different possibilities. How do I want to take on this day and just build off that. Right? So this is exactly everything I have for my pre market notes. Now going on to the session, this is all the trades. So we're going to walk through each trade. I'm going to walk you through where I got in, where I got out, what is my, what was the strategy? I used what happened within that strategy and just kind of give you guys the whole, you know, nine yards. Here is a recording of the session that I have. During this recording I was just looking at the footprint charts, I was looking at the tape just to read the strength and the weakness of the move. Right? So let's go to trade number one. Right. The trade number one was right here where I made about $12,000. I played the downside on spy. I got spy options. I got the 428 puts for the same day expiration which made me about 34%. So going through the trade really quick, I risked about five grand, made about 12,000, had a 2.4 R return on the particular trade. Right now going into the trade, let's just look at the entries and exits and then I'll walk you through why I entered and why I exited. My first entry was around 10 02am as you guys can see. And then I exited around 10:04 and then I exited at 10:08. Right now my entry was to play this downside move that happened ultimately right here. And I want to walk you through what gave me that read. Right? So let's go through the read here. So here is what I was looking. So right here I have a big, big level around 4334. Massive supply zone, you guys can see in the past. Massive demand zone. Massive demand supply zone. It consistently keeps flipping around this particular area over and over and over again. Even if I go back in time, this level has been continuously respected, right? Market has responded well to this area over and over again, as you guys can see, right? So going into, you know, Monday, I have these levels. One level is down here around 4307 is around 4340. And you guys can see this level has been consistently respected even going into Friday. You guys can see we get a quick squeeze and we squeeze all the way to 4340. And that's where we start having some consolidation. That's where we start having some sort of movement. So levels are very important because any level that I set or any zones I set for supply and demand, I want to make sure that the market has respected these levels in the past couple of trading sessions. If the market has, then these are active zones. If the market doesn't, then these are not real active zones or real active levels. Same thing here. You guys can see, get the rejection on the open. We kind of go in that area again, get the rejection. Same thing, same thing. And then we just kind of flush right out of it. Okay, going into Monday's open, you guys can see we gapped down right here. This is where we gap down. We gapped down right into that. We're in pre market. Right as we're in pre market, what starts happening is we start making a move higher and higher towards 4340. So because we just had this big war event going on, I am now letting price formulate, I am letting price establish itself before I go on and take any sort of trade. So as I'm watching price formulate itself, I want to see on the open for this day, how do we respond at this level? Okay, so let me explain what I mean by that. So when I have these zones, my trades, and I see a lot of traders do this, I'm not really a big fan of it, they'll say, I'm gonna go long if, you know, the stock or instrument breaks this level. I'm gonna go short if the stock or instrument breaks this level. I don't like to look at the market that way. I like to look at the market from a perspective where I want to pay attention to how price responds here. How does price respond here? Do we get passive buyers stepping in? Do we get aggressive sellers step in? Like what happens around these levels? What happens with the buyers and sellers activity? Who in control, who is more aggressive, who is consistently hitting the bid, who is consistently hitting the aspect? I like to pay attention to that to get the storyline. Also, it matters how a particular trade has got into a level. If a trade just randomly goes to a level just like the way it did here, I'm not comfortable in taking a long position here because we need to see some sort of consolidation. We need to see some pullback. But when we do get the pullback, we do get the consolidation after a big move. Now I get a little bit more comfortable maybe going long here, right? So once again, it depends how, how an Instrument moves into that key zone. Does it go straight into it? Does it go into it by consolidating like what does that look like? Right. So for me, my game plan, as I mentioned earlier, it all starts with that. When I go into this into my daily journal, I have my, I have my scenarios I have mentioned watch and open to see if we can test Friday's supply zone gap down and move into zone and identify trade there. So once again just to kind of put the pieces together, I'm looking to see how the market itself respond bonds around this level. What happens at this level if we start seeing some weakness at this level. I'm looking once again for a short, if we get some weakness here, looking for a short or maybe we get more absorption and we get a quick bounce on the open something like we saw here. Now the reason I'm focusing on the pre market aspect more and giving it a lot of time is because a lot of trades that you guys see develop, they develop with the plants first. They develop by having the reads by knowing what the market may possibly do or may possibly not do. So you want to start putting these things together. Most traders just enter the market, they go and they're like I'm going to go long, I mean I'm going to go shorter without having a proper thesis or read on the market, right. So that's why this kind of allows you to formulate a proper trade setup and you want to spend time doing this. And when you guys do just, just for a second, when you guys have your pre market game plans, just keep this in mind. Always go back to it, go back to it. Because if I have these levels and I go back to my pre market game plan, right I can see what I did right, what I did wrong. I can see that my zone that I've ident was a good zone. I can see maybe my zone wasn't good. I start knowing what are areas that I need to work on. That's why I always talk about journaling, taking down pre market notes, recapping your trades afterwards. Make sure you guys consistently do that. If you want to be a profitable trader or if you want to see any sort of improvement in your trading right now with the pre market aspect down, let's go into the trade. What are the tools I'm using? What are the things I'm focused on? Right. So I'm watching on the open, right? I primarily focus on a five minute chart. On the five minute chart I'm going to pay attention to how does this Market. Let me just move on. How does this market respond on that open. So look what happens. We open up, right? We open, we hold this 4320. I don't really care about any trades in between. I want to see how we respond here, if we get there, how we respond here if we get there. As you guys can see on open, we start making a push into 4335, right? And then we start going into 4337. We start going into this supply zone, right? My massive zone. Now the question becomes, all right, Omar, how do we know that this trade will break out of it or reject? Now this is where, you know, I made a video on this too, on my channel. I use footprint charts. Okay. So I'm going to explain to you what this is really quick. If you haven't watched it, I'll post a link down on the footprint chart video, check that out and I'll kind of walk you through what I'm looking at. So footprint charts are relatively, they're breaking down what a candle is, right? So in this predicament, let's just go right here.

Just load right here. This is the 10:00am candle, this is the 9:55am candle. So if I go to the five minute chart, this candle that you guys see right here, 955 is essentially this candle, right? So this is the body, this is the top wick, lower wake. If we go here, we're relatively getting the same thing. Body, top wick, lower wick. Now the way I have it set up is I have a few things. Number one, on this side I have volume. I'm just going to actually move this right here. Oops. Yeah. So on this side right here I have volume, right? So I'm seeing in this five minute time period, right? The way I have my footprint chart set up is I'm seeing on this five minute, five minute candle, where is the most traded volume happening? Where is price being accepted? Now you guys have to understand something about volume and price, right? When volume, when, when we see that at a certain price a lot of volume is getting traded, that is where the market feels the most comfortable within the current price. Market feels comfortable trading there. Market feels comfortable in accepting that current price. Hence why we're seeing a lot of activity there. Now also depends on how that activity formulated. Sometimes if we see a lot of activity on an aggressive move down and the trade starts holding, we could start looking at absorption. We can start seeing at exhaustions, right? So it depend depends on the context, right? In this particular point, we're seeing a lot of kind of consolidation happening in this zone. And then what I have here is I have how many orders are hitting the bid right on the left side and how many orders are hitting the ask, right? Once again, there's a video on that. We'll post a video down below. You guys can check it out. And then the colors are representing delta. If it's green, more orders are hitting the ask meaning aggressive buyers. If it's red, more orders are hitting the bid meaning aggressive buyers selling. Right? So that's what I'm using there. And then here I have all the orders that hit the ask, hit the bid, what the delta is on all that good stuff, right? So this is what I relatively use alongside with the tape at key level. So once we get into 434,337 on ES, this is where I'm looking and paying attention to how is this price formulate what starts happening, right? So this is the level where I get my first rejection, right? And I'll show you that in a, in a second when I get my first rejection. I have this morning top reversal, right? What I started looking for this is, you know, we have a gap down or gap up day, which we had kind of a gap down day. We get a rejection at key level, right? So when you go back to today, based on the strategy, right, based on my focus point, right, we go into that particular day, right? This is the closing of Friday, Monday, we open here. So not a big gap down day, but we, we did get a gap down day. We got a gap day. In general, most times I don't like opening within the range. I like opening with outside of that range. So we, you know, gap down. After we gap down, we go into our massive supply zone or key level. If we go into our massive supply and key level and we get a rejection or we see weakness, that is where I am looking to get a short rejection at key level, which we got here. No follow through of aggressive buys or strong buys. If I see the following criteria happen, I am looking to go short. That is what my morning top reversal strategy consists of. Now I highly recommend any person that has created any sort of strategy for you to have your entry rules, entry criteria, for you to have your exit rules, exit criteria, whatever they may be, and they will develop over time. I have everything tracked here on Tradezilla. Tradezilla, as you guys can see. And I check off like, okay, we had a gap down day, we had a rejection and key level. No Follow through of aggressive buys. Like, I make sure these things happen because if these things don't happen and I am recapping my trade and I am looking at the setup, I'm like, okay, well, I didn't see this happen. I did see X, Y and Z happen. And it allows me to build up my strategy. It allows me to have more, you know, cases for that particular strategy. And then what are my exit rules? If we get an exhaustion sell off, which we did, we get low of the day, which we kind of relatively did. But that's why I sold, right? So I like having this criteria. Now going into the entry, as I said, I identify the key level. There was no follow through of aggressive buys. What did I look for? No follow through of aggressive buys. Once again, I use this footprint chart now. Now what happened on this footprint chart, what I was looking at? And this is where I also had my first entry, by the way. My first entry on this short was around 10 or 2 right here. We've kind of passed that 10 or 2 area. So what I looked for is I looked for a few things just to kind of give you, I guess, a quick breakdown of what I looked here. First. We had a lot of volume, you know, set up around here. In the last candle, we went up to the high really, really quick. As we went up to the high really quick, the high got taken out with a quick flush and a healthy flush with a move down. Once I start seeing that, I start realizing we did get a rejection. That rejection is real. We are getting aggressive selling because as you guys can see, we're getting negative delta. That negative delta is being confirmed with price. Now let me explain something. If there's a strong move on the upside and there's aggressive buying behind it, the aggressive buying is being rewarded through, follow through. Okay, once again, let me explain that. If there's aggressive buying happening, right? Let's just say we do see strong delta and there's aggressive buying that is driving delta. The delta number higher, meaning there's aggressive buys, meaning orders are being hit on the ask. If price replicates that and we do see price reacting, that is a good sign. But if we start getting, let's just say in some situations I get, I see positive delta. That is saying that there's a lot of strong buyers coming into the market, right? But price doesn't move. That means that these traders are not getting rewarded. That means we are not seeing activity. That means that there are passive sellers sitting at that particular level. Right? And passive sellers will, you know, Most of the time absorb these orders and maybe cause a reversal. So if I do see delta go negative or positive, and I do see it come from a key zone and I do see a seeing reaction, that is a good sign. But now delta in this situation was let's say 10%, 20% of the current volume and let's just say it was extremely strong. But price stayed here. That means, yes, there's a lot of aggressive sellers coming in, but they're being absorbed by passive buyers. They're getting absorbed and that's not something I want to see. If I'm looking to short, I hope you guys got that concept. If you guys didn't let me know, maybe break it down on another video. But I think that should be clear enough right now for me. I'm seeing the right signs of hitting key level. I'm seeing the rejection. The tape is printing strong. We're getting massive, massive selling going on here. That is my first confirmation of taking this short. Now the moment I take a short, I have a key, key rule that I think every one of you guys should follow. Every time I take a trade, there's a cost to me taking that. So if I take a trade, I know that if I am wrong, I will lose $5,000. So that is the cost of me doing this trade. This trade cost me $5,000, right? Just look, I look at it from that perspective because that was my risk. When I go into this trade, I risk 50, $200. My risk was 50$200. So I'm easily able to execute knowing that any single trade I take, I have a cost to take on a trade. That is my risk. That is the area that if this trade goes there, I am wrong. For me, the way I looked at this trade, the reason I was able to put my stop above 4300 or in that zone is hey, we've developed heavy, heavy volume here. If we are able to get back above this zone, most likely I will be wrong. I will be wrong in the trade idea. Trade idea will not be in my favor and I'm okay on taking that loss. That is how I kind of formulate a trade. Now as this trade starts moving in my direction, right? And by the way, now I'm in this particular trade, I've entered my short. And you know when you look at the footprint chart, that's what we see when we look at a five minute kind of chart here, right? This is what we see on a five minute chart. We see a big move down all the way to 4324, right. So we haven't gotten to 4324. We're just weak and we keep moving on a weak side. Aggressive sellers are being rewarded. No passive spire stepping in. We're pushing through. A lot of aggressiveness showing up on the tape. That's just driving action lower and lower. At this point I have no reason to exit. I have no reason to rush out of my trade trade. I'm just seeing us take out every level now also where's the next level Where I see from a short term perspective, volume did formulate paying attention. I do have this zone where I know traders were present, buyers were present that may possibly step in. So I have to keep these zones in mind and I have to be ready for these particular zones. And you guys can see we keep selling off. We keep selling off. I'm in my short position at this particular point now my first exit on that short is around 10:04. So we do come around that level now and I start taking some off. Now the reason I'm taking some off here, you know, even though nothing is confirming that we're going to reverse and we're not going to reverse is because when I do go back to this particular trade and I look at maybe the one minute, right, we had a really big move down with no slowdown. So we had three big red candles just pushing. Now most of the time if I'm in a particular trade and it makes a big move up or big move down, I don't like, I'm not comfortable holding that move. So when I saw us just, you know, aggressively selling off, aggressively selling off, aggressively selling off. And we're not just aggressively selling off into nowhere. We're aggressively selling off close to the low of the day, we're aggressively selling off close to the open of the day. Now I don't want to take my chances of hoping that we're just going to randomly push through this after we had a big push down already because now big moves down require consolidation. Big moves up require consolidation. If anything just keeps going higher and higher. I'm not comfortable holding that. I'm not comfortable in chasing that same thing here. We want to see some sort of retracement. So that is the reason I got out while we were still going down. I was like, you know what, I'm going to take some off when I go cash. I took about 70% of my position off. I'm going to exit and I can always reenter because once again I'm not Comfortable in holding through the low of the day or the open of the day, which we're relatively at the same level. So that is where I first took my exit. And then my second exit was around 10:08. Now the reason 1008 is once we started getting some consolidation, we started getting some hold. I was like, you know what, I'm just going to hold. I'm just going to exit. I can always revisit this area and always re enter. And you guys can see close to that 1008 area. We start holding, we start absorbing a lot of orders here. As we start absorbing a lot of orders here. I'm seeing some sort of absorption after a big move. And last thing I want to do is get caught up up in a reversal back into this area. So for me it was, hey, let's take this trade off the table. This Trade was about $37,000 was used, made about 34% which was $13,000, 12K. Afterwards, $5200 was risked. And this was the overall trade outcome. That was trade number one, right? With trade number one, as I mentioned, I highlighted the strategy I use. I highlighted the things that worked within that strategy. And then when I went back to that trade, first trade, spy short morning, top reversal, hit supply zone on the opening move. Solid entry, good catch. And supply zone. Your level was great. Highlight those levels, highlight the good things about every trade and also highlight the bad things. A lot of traders ignore the good things they do and they keep going into the bad. But if you don't focus on the good, you don't know what things you should keep building on, things that you're doing good and things that you should be aware of that, hey, these are things that are working, right? First entry was strong. I reacted well to the market's action and rage. Did not hesitate on entry. First Exit is at 10:04, second exit at 10:08 cash and look to reenter, revisit this trade and come out, come back. So at this point I re exit and you guys can see pretty happy with exit. Once again, looking at confirmation, we're getting a lot of absorption here on the short term time frame. Hence why I wanted to go cash. If this absorption didn't happen, I would have not end up, I would have not taken the trade. I would have still stayed short. Right? But once again we start getting this some sort of reversal. Now my second trade, when I go into my second trade, my second trade of the day was also short. Okay, now really relatively similar trade. $26,000 was used made about 38, 400. I cut down the contract size, risked about 2700, made about 3R on the trade. The second trade was pretty interesting because I, you know, I did the following. I'm gonna walk you guys through it. So I cut down my size in terms of contract. The first one, I had 400 contracts. This, I went to 300. The reason I cut my contract down is because my trade was around 10:27am Right? Because my trade was around 10:27am it was close to the high of the day. And I was like, if we go into the high of the day, I will look to add another hundred. I didn't want to go full position end, right. So when we look at this, we go into this area I'm now entering around here and I'm like, well, if we keep making a leg up, I will look to short in this area, add another hundred, and then put my stop above that. Hence why I did not want to go in heavier or the same position as my last position. Now, this exact position that worked out, 1027 was my first particular entry. Now the reason I got in at 10:27, let's just kind of fast forward and kind of explain what I saw, what I looked at. And this was relatively the same setup. Right. When I go into the setup, strategies, morning, top reversal, gap down, rejection at key level, no follow through, regressive buys. Exit was low of the day. Right. All right, so this is where I started looking in for my first entry on this particular trade. You know, as I'm looking at the footprint chart, I'm looking at the activity of the market. You know, we get a quick, quick flush. After the flush happens, we start getting a move back up. Now what, what am I watching, right? It go to number one. Do we get any sort of weakness into this level? As I mentioned earlier, this is where a lot of volume was developed. I care about this level. I want to see, if we come in here, buyers are aggressive. Is there some sort of strong activity going on to drive price higher? Because we're priced to go higher. We need some strong buyers or activity happening that can drive this price higher. So I start paying attention. Now what starts happening at this level is the moment we hit this 35 level, we get extreme level of aggressive selling that opens up really, really strong. And then that's what I start looking at in terms of the first entry, right? Where it's like we're going up. I don't think that even as we're going up and just looking at some of the stats. Let me just open this up. Even just looking at some of the numbers of this particular move up, we're not getting any sort of real interest volume on each five minute areas going lower, lower and kind of lower. So volume is going lower on this move up, up, despite getting this big, big, big move up. And any move prior to that was obviously the volume was a lot higher. So the volume is not confirming this move either. We're going back into my massive supply zone and I'm just looking at how the shift happens with volume. The moment we enter this area, we start getting an extreme level of weakness, right? The moment the five minute candle opens up, it's like, all right, we're getting the weakness that is happening right here. Now I am eyeing that weakness. Is that as I mentioned, when I, I look right here, we are seeing that 1027 area, 1027 zone, that's where the weakness starts coming in. Just going to fast forward a little bit to walk you guys through it. So see for me here, this is where I start realizing we're getting a lot of aggressive selling, right? As we're getting aggressive selling, I want to see price react. I want to see the bid slowly drop and sellers aggressively get aggressive right here. As I'm slowly seeing that, this is where I start looking to build my short position, right? I start looking to build my second short position with the idea that, hey, it looks like we're weak here, it looks like sellers are present here, they are aggressive here. Even though as of yet I'm not getting that aggressive move down that I would like to see just yet because you guys can see, we come back right here, right? We're coming, we start trying to push back up, right? And it's 1026. And as I mentioned, entries around 1027, when we retest that area and we can break it and we see some weakness there, that's when I start going, all right, we're coming into the zone and if we can take this level out and buyers aren't able to absorb this, we're going to flush, right? And you can see how price is kind of battling, battling itself right now. 1027, 1027. And then right at close to 1028, we start flushing through those zones again. And now this is where I start looking to build my short position. We can handle it, right? Aggressive selling going on. We're getting the response in activity. We're hitting the key level. A lot of people, a lot of traders getting trapped in. And now I'm looking to potentially enter my short. And around this point is where I'm looking to enter my short. I take a short position. Looking to play the low side of this again, right? Looking to play the low side. And keep in mind, when we made a move up, where are the kind of small volume nods or, you know, areas of strong volume? And we're breaking them all. Well, we're seeing aggressive selling Delta staying negative. We are getting response in the movement. We are getting some strong movement on the downside. And you can see we keep taking these levels out. The bids are unable to hold. We hit the 50s, get a quick move down, go right back up and then flush right after, right? Which gets really, really interesting. And then you guys can see how we slowly start just flushing out of this zone, right? And this is 1029. And then as we start selling off, I take my first exit at 10:37, right? This one just had one exit. Yeah. So I took my exit at 10:37 as we got to the low of the day. So as you guys can see, we start going. And as we get to 1037, I take my, my exit. And the reason I took my exit at 10:37 is because we got closer to low of the day. And as we got closer to low of the day, once again, going back to what I said before, I just didn't want to play anything where it was like, hey, you know, we're going to come back into a higher area. So once you get to low of the day, the recent low right here where I got out, I was like, I'm sure I'm cool with the trade. And I walked out. Now, going back to this trade, right? You know, if I did hold this trade a little bit longer, I could have made a little bit more money. But that's, that's trading, right? I'm not. Once again, I'm not looking to capitalize on the full move. I'm looking to capitalize on smaller moves. Now, when I look at this day, overall, look at where we ripped, right? It was essentially an uptrend day, right. But I was able to capitalize money in between this first hour. Right now also this strategy for me, morning top reversal, just to kind of narrow into it. I only trade this the first hour to first hour and a half. I don't like to trade it after, right? Because that is when I have seen it to work the most. So anything after the first hour, you guys can see this is the first 30 minutes. We get 10:30 and then we go to 11 around here. Anything after. I'm not a fan of it. Even though we saw action happen here. Even though we saw action happen here, not a fan of trading it in between there. For me, this strategy is real. At 10am, 10:30am or until 11am after that I call it quits. And the reason I bring that up is when you guys do develop your strategies, you want to make sure you have times on when you're going to trade it, what time frames you're going to trade it under, when, what are the criteria of these strategies. And then consistently track and backtest these strategies. And talking about backtesting, you know, we're going to be coming out with the feature on tradezilla to backtest in November. So that'll be something cool you guys can do as well. But yeah, that is all with the particular trades. And once again guys, just looking at the days, looking at the trades, I know I talk about 21,000 and all that on the trade. Look at the R multiple, look at what this person made based on what there is. If I made $20,000 in a day and I risked $40,000 to make that, that is not a good trade. So I hope you guys found some really good, valuable insights. And you know, comment down below, let me know what you guys learned, let me know what you guys have questions on on this particular topic because I also do know this was very extensive, especially for people that aren't familiar with order flow or aren't familiar with reading data from the market that comes in, reading who's who's stronger, buyers or sellers. And if you have questions, just comment down below and I'll be happy to answer them. So thank you for watching and I'll see you on the next video.