All language subtitles for 2. Setup Trading

Another way you can manage your trading is what's called using setup Trenner set of trades, you're

basically looking for a certain setup and you're striking and you're acting fast.

You're acting quickly.

Once you see a certain indicator set up happening, is the idea behind it and stop trading is we'll

learn and we'll learn the mechanics of it here.

But just understand that.

So trading is real popular with like a day and swing traders.

You know, people trade very quickly.

Certainly folks that might be called arbitrage or scalping where they're making quick moves in and out.

Real popular with that.

It's also very popular with very, very, very volatile securities, things like penny stocks, you

know, these low priced, not well known companies that, you know, that might be trading for, you

know, 50 cents.

And it goes up a little bit.

All of a sudden it's a big move.

Right.

So very volatile areas like penny stocks and old coins or alternate coins in the cryptocurrency world,

for example, less so it can be blessed with like, let's say, bitcoin, very established, but more

of a newer, let's say, ultra coin.

And so the idea behind why it's popular with these types of folks to trade these types of securities

or this types of methods is the frequently buying and selling aspect of a set up trade or frequently

buying and selling.

So if you think about that, you probably are getting idea that you might need to be comfortable with

risk and uncertainty.

But if you follow a plan, you're taking a lot of the risk out and you learn and develop your your your

plan, your ideas, your own set of training, you're actually going to pull risk out.

But it is something that is a little bit more for the if you're the individual who loves to trade and

go fast and get lots of little profits all along the way and build up to big profits, well, this lesson

might be for you or this may sound very interesting.

So let's look at instead of trading a little bit more detail now.

So how works?

Kind of you know, you identify a specific price for common configuration.

You're looking for something.

You see, once this happens, you know, then that's an indicator for me.

And I'm going to take action, let's say, off of candlesticks.

For example, you might be looking at a good candlestick combination with a short time frame, 20 minutes,

maybe hours for you, even short, like more like minutes in.

You're looking for, you know, that certain setup, a certain situation.

And you can still have a confirming indicator, possibly.

As for something else confirming it, RSI, whatever it might be, something else, conferment Fibonacci

might be a good one to help in this case, to help confirm.

And you're looking for that setup.

And once you see that setup, the point is you want to see the setup.

And the sooner you can see the setup and become an expert in your primary, you're going to be an expert

in that.

Once you're an expert in your setup and you see it happen, boom, then you take action and let's say

you buy it.

You know, you buy it then.

And then once things change quickly, you sell it fast, too.

And this is all happening within minutes or certainly by the end of the day is the idea.

That's why, of course, it's popular with people trade frequently like scalper's arbitrage or certainly

traders that will close other positions.

Classically, the trader close all their positions by the end of the day.

So you're looking for the pattern and you're getting in fast and then you'll actually get out fast.

So if we look a little closer of that, let's say, for example, you identified a candlestick setup,

whatever you decide, look at the lessons around candlesticks, for example, on.

So you're really looking for certain setups.

And then once what happens is other people see these setups, too, right?

You're not the only trader out there who knows how to trade.

You're better because it's the course, but you're not the only one out there.

And that's a good thing, because what will happen is they'll be once the setup happens, once the pattern

happens, let's say with these candlesticks, there'll be a big move in the first few minutes.

Right.

People are buying in.

They see it happen, and then, boom, they're acting and they're buying in early.

And then what happens or what we hope to happen.

Not everything's perfect, of course, but so followed by additional move in the same direction, at

least a short term trend there that will be occurring and others are coming in.

And that keeps the demand keeps rising.

Right, because they're starting to see the pattern, too.

But they may not see it as fast as you because that's not their expertise or they haven't moved as quick

as you.

So you're moving fast.

You see the center fast, you move fast.

The price keeps rising, even though you bought in early.

So you're seeing your profit now rise because others are following in.

And instead of waiting for other types of signals or waiting for other things to happen, you're selling

fast, right?

You're getting, you know, getting in early and you're getting out early.

That's the key in early and you're out early and you do that over and over again to basically, you

know, build a profitable strategy around this.

Again, you got like that fast trading, maybe a little bit risk.

Sometimes it doesn't go the direction you hoped it would or thought it would.

But the idea is it should because you're seeing the setup and you know, your indicator is going to

work for you more times than not for sure.

So getting in early.

So the key identify set of fast byerly way for others to join growth price up, get out early, do it

over and over.

Now how do you one thing you want to do along the two is you want to have these predetermined trading

rules because you want to do a lot of thinking, you want to do a lot of fast acting.

Right.

So you want ahead of time established whatever rules you might have around.

Some classy ways you can look, that is you would buy, let's say, once established price range in

the first X minutes of trading, right.

So you're looking at a price range and you're seeing it in that price range.

Let's say in this case, a hundred one hundred five dollars.

So there's an established price range happening and you get in when you're above that range at a predetermined

target.

So let's say you don't do any trading for the first, let's say, hour of the day.

It was classic way to do it.

You see, the security is trading between one on one hundred and one five.

You're looking at a target that once it hits one or seven or there might be a certain, let's say,

candlestick set up, you know, that happens.

Then you buy and then you sell right away as it goes up.

Right.

You may not get a cell signal at all.

This might be a sort of a longer trend.

When you're doing this type of set of trading, you don't care.

You're trying to get out and, you know, maximize the profit that way.

And so you may not get to sell single and you may stay in it for a few minutes to a few hours or maybe

to the end of the day.

And where you want to kind of set that up is with you maybe have a predetermined profit amount.

Right.

So let's say I want to make five percent per trade or 10 percent or whatever the number is.

You would then just figure out what your exact price is, too, and then you might have some Stop-Loss

and things to protect your downside as well.

But the whole idea is that you're seeing something that's got some momentum behind it.

You're seeing the prices rise.

You've gotten above the trading range.

This is real small looks, that individual candles, you're getting above the trading range, let's

say in this example to 107, you're buying.

You're watching it go up a little bit further, a predetermined amount.

You sell, you take your profit, you get up.

So set up trading, not for everybody.

And there are some definitely downsides to trading, too, you know, so setup's may not appear every

day or every month.

As for some of the downsides, you know, it's something you're watching for that kind of more perfect

setup.

You might need to follow more securities as part of that, too, because they don't appear as often

and learn you want to really kind of learn a more set of conditions to recognize.

The more you recognize, the more opportunities you'll have.

So you need to become a little bit more of an expert in these setups, in these different types of conditions,

set up situations compared to more common primary indicators, you know, that you could be waiting

for, like moving average crossover, some things that that you're looking for these price setups.

And it does take a good amount of concentration during the trading day.

It's a little harder for a part time trader because remember, you're really watching or moving quickly.

You can do some automated things with the orders you place, of course, like stop loss, you know,

targeting certain buy level so you can kind of automate that more.

And when we get into the how to place your orders part, we'll actually talk about how to automate that

more.

But either way, it's still going to take a little bit more intense concentration in the trading day.

Again, that's harder for a part time trader, possibly, but for those who want to trade more frequently

or in certain sections when they're in session, trading a session, they're going to really concentrate

and do that and they're going to enjoy it and they love it.

So one other aspect of that, too, is you'll you'll never really maximize the profit on one trade since

you're getting out in and out so fast.

But you're protecting your downside, too, by getting in and out fast as well.

And the whole goal of set up trading in this manner is that you're going to have these many small little

profits add up to some big overall profits.

That's the big idea behind it.

So start trading again.

You might, as you watch, just less than some people are saying, that sounds like me.

I want to do that.

And other people are like, oh, that's not for me at all.

OK, that's fine.

But now you at least understand how it works and you can do that, but you don't absolutely don't have

to do it.

No more trading style.

And if you really want to do some trading, like get real crazy with it, then you could do gorilla

trading, which is in the next lesson.