The only trading series you'll ever need to watch...

For the month of September, I've made a gross profit of $208,000 day trading. It has been my best month in terms of consistency, risk to reward ratios and even dollar amount. Now for those who don't know me, my name is Carmine Rosado. I'm 25 years old. I've been trading for eight years now, which is pretty crazy. Now within these eight years there's been a lot of failures that have been some of my greatest lessons. And there's been a lot of successful and winning trades that have that have been pivotal to my success. And I want everybody to understand that the market is a constant journey of self improvement. I am constantly looking to refine my trading system and tweak things depending on different market conditions and being susceptible to adaptation depending on what the market is presenting. Now in this video we're going to go over a live trade that I took a few weeks ago. It was a $19,000 profit trading the S&P 500 future contracts. And in this live trade, I want you all to see what I saw, what made me click the buy and sell button, what made me confirm the setup, why did I enter and where did I exit? Where was my target placed? Now this live trading video is going to be a great introduction to the new series that I'm going to be posting on the video lessons to follow this on my YouTube channel. The next eight videos are going to be very in depth lessons about order flow trading, how I view the market, how I how I trade it and how I manage my risk properly. So this video will serve as an important foundation to the following videos that I'll be posting on my channel. It's something that I wish I had when I first started out trading eight years ago and the goal of these lessons is to cater beginner traders, intermediate traders and even advanced traders to learn something new or to refine your trading strategy. To start looking at the market differently and find success. To to briefly go into the next few weeks of lessons, Episode one is going to involve the only day trading strategy that I would ever use if I started over again. It's about understanding how the stock market actually works and how we can relate day trading to any auction place where we can develop an edge from understanding the behavior of other market participants. Episode two is going to explain how unreliable candlestick charts are if used by themselves and a tool that will explain behind the scenes of the candlesticks to understand how buyers and sellers are transacting in the marketplace. Episode three goes over two other trading tools that I have a lot of success with that will enable us to trade and follow the footsteps of other large buyers or sellers in the market, follow the footsteps of smart money and also be able to spot algos trading in the market and understand their main objective of where the market could head next Episode four will help us start thinking like an institutional trader and to stop thinking like a retail trader. If you think about it, if 95% of retail traders fail then we should not be doing what majority of retail traders do. Instead we have to follow the footsteps and start trading and thinking like smart institutional traders. Episode five is going to explain why I firmly believe support and resistance is bs. If you use it by itself and do not put an emphasis on the volume around the support and resistance. Think about this, how many times have you bought the market or longed it or you became bullish above a resistance level? As soon as it breaks you get into the market for then it to reverse on you and you stop out for a losing trade and you look at the market in frustration because you don't know why the market reversed if it broke out above a clear resistance level. Episode 6 is gonna follow along with this in my opinion. A lot of traders use volume completely wrong and this will enable a lot of traders to stop taking setups that are gonna be a fake breakout and start taking setups that are gonna continue moving in the direction that they intend to trade with. A lot of traders I see use volume completely wrong and volume is the most leading tool in the this has to be understood fully. Episode seven is going to explain how to get good entries and exits, how to enter an exit like a pro, how to get good confirmation, how to manage your risk around this confirmation and where to place your stop loss and targets. Episode eight is going to talk about a lot of common mistakes that traders make and how to fix these mistakes. It's essentially going to recap all the important lessons that we're going to go over. That way you can be aware of the issues, fix them and start to build that consistency and grow your account by not making stupid mistakes. By the end of this series, I'm very confident that everybody watching this will learn something new and start build consistency and view the market differently. Whether you're a beginner trader, intermediate trader or advanced trader, this series will help you. What I recommend you doing is if you're not subscribed to my channel, take two seconds, hit that subscribe button and also follow me on my socials that I'll post in the link in the description Below I will be updating on my socials when each new video in this series will be released. That way you stay up to date and you don't miss any of the videos and they're all going to follow each other. So it's important to go through them in order because they will all make sense once you go through the previous lessons. But now let's get into the live trading session so you can see how I made this profit and my thought process for entering the setup. Like I said, this is a great introduction to this order flow series that I will break down each concept in depth before we get into the live video of this setup so you could see exactly why I entered and why I exited. We have to understand that this trade I risked about $2,600 of my own capital. Now I am trading the s and P500 future contracts. Now, a lot of beginner traders hear the word futures and they think they are very complicated or for more advanced and professional traders. In my opinion, due to how easy it is to manage risk with futures, future contracts are the superior instrument that any beginner, intermediate or advanced trader should be trading. I risked $2,600 to come out with a $19,000 profit. And this trade Last minutes Another thing we have to understand is you're going to hear me talk about this concept. A lot in this YouTube series is going over when the market is balanced. Now, when I talk about a market being balanced, essentially there is no clear direction and the market is basically consolidating in a very tight range. So we could see that from this chart right here that the past two sessions on the S and P were very tight, they were range bound and they were essentially balancing out. Now when I recognize conditions like this, my rule of thumb is to wait for the market to break out to the upside and I look to short that move. Or if the market sells off and we start dipping lower, I look too long that move and become very bullish. So my plan on this day, which was September 23, was the market as it was opened, you could see it's very range bound. We have very small one minute candles. We are lacking direction, we are lacking volume. The volume is very dead. And when I notice things like this, my plan is to fade or reverse or play in the opposing direction of quick violent moves up or down. So in this instance, what we're going to see in this live trade is we're going to see a violent, aggressive, impulsive move to the upside when the market is this flat or the Market is this balanced. I am looking to fade or short upside moves into levels of resistance or into levels of supply validated with the order flow. In this type of setup, what I am looking for is buyers showing a lot of effort in the market who then become trapped and then sellers to appear. In this live video, you're going to see this exact example. You're going to see the market move up, you're going to see me short the market, you're going to see a lot of buying effort with no reward and then you're going to see sellers step in directly at my level of interest. So playing this live video here at the top right, we could see a five minute chart on the S&P 500 and I've highlighted the pink zone which starts at 5778 and ends at 5785, which again was from a level of supply that formed in the overnight. And 5785 was a level of the previous all time high. Two significant levels that I have to gauge the market's auction around, which then we could see it here on the top right of this pink box. Now to the left we are going to see a delta footprint chart. And again in this YouTube series, I'm going to dive deep into exactly what I'm looking for and what is on my screens that we can understand the market's auction and understand how volume is affecting price. And then the bottom right is a heat map. This is just a color visual of strong buying volume which is noted by the green bubbles or strong selling volume which is noted by the red bubbles. So this is the key information that is always on my charts that I'm looking at to make key buying and selling decisions around my level of interest. In this example, what we could see right here is the market had rallied up into 5,778, which is that level of resistance or that key level that I was watching for the market to reject that. Now down here at the notes, what I was watching for was a rally into 5,778 to 5,785 to short the move up. Now at this moment, what we're going to see here is a move up into the level of resistance. Now where in my opinion a lot of traders get this wrong is they come up with these levels, hey, I want to short the market here, or hey, I want to buy the market at this price. And they don't put an emphasis on what the price action is around that level of interest. So something that's very important and kind of changed how I view the market is that if the market comes into my level, whatever level it is, support, demand, resistance, supply, I'm not blindly entering that position. I need to get valid confirmation of reading my order flow tools to understand the market's auction and understand how buyers and sellers are feeling about prices being at this area. So in this example right here, the market yes, comes into my level of supply. And yes, maybe this was a great confirmation to short the market here and go with my original plan. But for me I didn't see anything in terms of the auction to short this market. Now I'm going to fast forward it a little bit more and now you're going to see that clear rejection. You're going to see the market come up into 57 78. We had rejected it. We've actually put in sort of like a double top and then started moving lower into 5770. Now at this point this setup is becoming very attractive to me. Even though it has hit the level and sold off. Why is it becoming attractive to me? Well, number one is the market has continued the auction and has continued moving sideways while holding V wap. Usually this purple line, which is vwap, Volume weighted average price is the only indicator that I'll ever have on my charts when I notice it's supporting price. Number one, I like looking to to use that level as a target to where the market can gravitate towards. Number two, the market really is still inside of this range and we haven't really made a violent impulsive move up or down. Now the market starts moving further into this level of supply or this level of resistance. Now I'm going to pause the video here and what we're going to see here is a lot of buying volume as the market is rallying into 5778 to 5785 which is this top level here. What I mean by this is as the market is moving into this level, the buying volume, which is these green bubbles, starts to increase. Now think about this and think about how you have majority of traders view the market and trade is they see a lot of buying volume and they automatically assume the market will continue to move to the upside. On this footprint chart right here at 5778 we could see the market in a three range bar basically consolidate directly at this level of supply. So this is what in terms of my strategy, I call it is brewing. What I mean by brewing is this is setting up for A very good setup to the downside if this buying fails. So number one, looking for a pop to short the rally into that level of resistance. And number two, I'm observing at this given moment right now lots of buying effort here. Let's see if it fails and does not hold. My concept was how I view the market is if the market's at my level of resistance and I see all of this buying effort and eventually this buying effort fails, this is a good indication that a seller is present in the market. Retail traders view this green bubbles as strong buying, which is true. However, if this strong buying doesn't prove the market to continue moving higher, this would then be viewed as a seller present in the market. So let's keep playing this replay here and you're going to see me enter a trade short once we get that impulsive move up. So I'm going to speed this up. Let's go two times and watch here how the market now is going to break this high right now. This current 5 minute candle is really not a strong upside candle and it doesn't really have much depth to it yet. However, the market is going to break out above this previous high right here. And look at this impulsive move up. In fact, this impulsive move up happened within a 5, 10 second period into the previous level of resistance which indicates strong buying volume. To me, this is now a valid short setup. Now I am observing for strong aggressive selling to come in in a few seconds here, right there. I entered this trade short. Now how I trade is I am looking for those quick impulsive moves up or quick impulsive moves down. Context fitting at my level of interest because I know a lot of traders are buying this breakout and if the selling steps in the market is then going to continue selling off and reverse to the downside. So with this in mind, I am comfortable getting short here. You could just see I shorted 30 contracts at 5782, placing my stop loss above this previous high here at 5784. Targeting that V WAP. Remember how I said earlier when VWAP's holding price and we're basically balancing and consolidating around there. I like using this level as a target because this is where the market can gravitate towards. As the market rallied up was enough risk for me to try short with a 2 point stop loss going for a 12 to 15 point target. To the downside, I'm essentially shorting the strength with valid buying effort that has failed. And as long as the selling steps in this trade is looking great, especially with how impulsive that rally was to the upside at this level of supply or at this level of resistance. Now fast forwarding it here, you can see that the selling now has began to step in and entering here would be valid. It would be great. But the issue is, is that if I enter at this moment and not where I did a few seconds prior now my risk is going to be very high because I would have to place my stop loss at the high and I'm essentially reducing my reward by three points if I were to short here and maximizing my risk by three more points. So here now the market's basically going to keep moving lower. You could see the selling print step in. Here's a little bit of a volume tail at the high. In later lessons you're going to hear me talk about a volume tail. This is a perfect example of a volume tail at a high showing there's a lack of interest in the market to continue moving up to the upside and the selling then steps in and then we get a dip down. And my mistake with this trade is as you can see, the selling keeps stepping in was the market sells off into V wap perfectly. You can see right here we sell into my 5770 target 5767 target and I don't sell this position. I got a little greedy with this. I expected it to keep going down and I didn't sell at my target, which is a complete mistake and I don't know why. I had a plan if I wasn't going to follow this plan. It sold off. It's bouncing off vwap my target hits. I was correct on the analysis that impulsive move up the selling stepped in there after. But I got greedy. I wanted more profits and that led me to now sitting in a move back up and almost stopping me out for break even on this trade. I could have been said and done in 15 minutes, walk away and got out of this trade and been very content with almost a $20,000 profit. But instead I wanted more money out of the market. I got greedy and that now led me to sit in this trade for about 30 minutes to follow for it to move back up right near my entry point. For me to sit in this trade having to worry that I'm going to stop out for break even and now stop out for a loss versus me just selling at my original target. And I wouldn't have had the headache of this. However, luckily the market had rejected that resistance level. Again, the selling pressure has then stepped in again validating that this setup is great. If I was not in the short from originally, this is great confirmation to re enter that short position. Again, you could see all the red bubbles stepping in indicating the selling pressure is trying to step in and continue dropping the market much lower. And then we eventually get that drop down. And you're going to see me cover this trade right down here at the 5769. I don't want to get greedy again. It just hit V Wap. It's not breaking this previous low. I want to sell into this strength to the downside or cover the short into this strength. And right down here you're going to see the market sell off. And I exit this trade all out right here at 5769 at my target at V WAP which what I should have done originally because I wouldn't have had to sat in this trade. But the real thesis for this setup is spotting aggressive buying, stepping into the market at my level of resistance. Those buyers to then become trapped and then the sellers to step in. Further fueling more downside to those earlier buyers that were buying this breakout. Again, context fitting. The market was very flat. When the market is this flat and the market's moving this sideways, my rule of thumb is reversing a quick violent move up or down and shorting a pop or longing a dip to the downside. And this was the great plan, the great setup. And you know it was, it was small risk, only $2,600 of risk placing my stop loss at that high a day for a $19,000 profit. Again, my target hit originally didn't sell, popped back up and then eventually sold as it moved down. And to validate what I mean about the market moving sideways, look at this impulsive move to the downside. Eventually got bought up and the market rallied off of that. So when the market's balanced, don't look for breakouts. I look more for reversal type of setups. And looking at my running P and L, you could see at one point I was up $16,000 on this trade in about 15 minutes time. Then the market dipped and I was very near break even on this setup. A 16,000 do profit went down to $1,500 by me not selling at my target. I always have to follow my plan and sell at my target. Why have a plan if I'm not going to follow that plan? Luckily this worked out and I sold that trade as it was selling off into my target the second time.