ANATOMY OF A TRADE
"See How This Very Different Trading Approach Is 
Producing more than 1:5 risk:reward"

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Let's Dive In Deeper Into The Details Of

Why I Took This Trade?

First things first.

I have received a lot of emails from traders asking me to take a deeper dive into my Day Trading System.

Guess what? 

I intend to do just that NOW. 

So, let's roll up our sleeves and first look into 

My Entry...

My entry is based on a major level that I am taking from the higher timeframes.

Once I have pin pointed that entry as per my trading formulae, I am narrowing down my analysis to the lower timeframes.

By the way, my TIMEFRAME PYRAMID looks like that: 

As you can see from the image above, I start with the Daily timeframe and narrow down my analysis to the 1 minute chart.

NOT THE OTHER WAY AROUND! 

This is what makes all of the DIFFERENCE.

Once you master this approach, you will not want to come back! 

So, Remember: 
Daily chart FIRST and 1 minute chart LAST!

Once an opportunity is spotted, then it is easier to just fine-tune it by scaling down to the lower timeframes. 

Let's come back to the trade now.

I have just opened a SHORT Dow trade based on my entry rules and now I want to place a STOP LOSS order.

Where shall I do that? 

Well, easier said than done, but my stop loss is usually placed above a previous high.

There are certain rules about it, but to keep it simple for the sake of this example, remember:

Stop loss goes a few points above a previous high. 

In this example, a stop loss must be placed just above 35180. 

And the STOP LOSS IS...

The stop loss in the example is very GENEROUS! 

I could have placed it just over 35180, but I wanted to give some room for the trade to breathe.

Therefore, I have placed it around 38 points above the entry. 

[BEAR IN MIND: my average stop loss on a Dow Jones trade is around 25 points]

So, this is way over the average, but as you will see below, it was well worth it! 

Hey, what about your TARGET?

I DON'T have a target!

Why is that? 

Because I've got TARGETSSSS! 

Not one, but two or more depending on the strength of the trade and the volatility of the market that I am trading. 

I will not be able to go in more details here, since it will take us some time, but I will try to shorten this as much as possible for the sake of this article.

Once I have established a direction and I am in a trade, I try to book first profits once a 1:1 rusk:reward is achieved. 

Once I do that, I can FREE MY MIND and run a trade for A LOOOOT LONGER than I would have had in any other circumstances.

Let's have a look at what happened next with this trade, though:

THE LIMIT ORDER

The LIMIT order is here to help is book profits instantaneously once we reach 1:1 risk:reward.

I have programmed my own automatic tool that I do share with all of my Day Trading Course students for FREE! 

It does make this process of booking profits very easy and efficient.

So, before we see what happens after I start running a risk-free trade, let's recap the process so far in a drawing:

ZONE OF FREE MIND? TO INFINITY???

This is where the FUN PART BEGINS...

After you have already booked profits at 1:1, you can allow yourself some stress-free time. 

This is where the BIG CHUNK of the MONEY is made. 

This is what the BIG TRADERS are putting in all of their EFFORT(less)...

This is what every successful trader means by PATIENCE PAYS BACK.

This is why every successful trader knows that your EDGE is in the WAITING. 

I like to call it "Zone of Free Mind", others like to call it "Free Money"...

No matter how you call it, reality is that this is the line that differentiates GOOD TRADERS from GREAT TRADERS. 

The AREA OF UNKNOWN

Let's take a step back now.

I want to go over the AREA OF THE UNKNOWN and what it means to me.

This is the place where you are literally "shooting in the dark" hoping to get into a trade that will give you a 1:1 risk:reward ratio.

No matter how "sure" you are about a trade, it can all go wrong.

No matter how many times you have taken a trade, it might still end up losing money.

I am completely honest with you and my trading strategy bears losses sometimes.

I do still have losing days. 

Losing is part of the big picture.

BUT...

Following my rules has allowed me to overcome the fear of the unknown and reach some phenomenal results. 

Having traded with this trading system has allowed me to reach returns that no other methodology has allowed me to. 

My trading strategy has helped me to not throw good money after bad money. 

And yours should, too!

Oops, I almost forgot about the Anatomy of This Trade, so let's continue.

Now, let's have a look where this trade eventually ended:

NO OTHER STRATEGY HAS BEEN ABLE TO DO THAT FOR ME!

The video finishes here, but the price continued to go lower. 

At some point, I was standing at a ridiculous 1:10 risk:reward ratio. 

This is not where I booked my profits in the end, but still, it was an AMAZING RUN!

Having reached similar returns so many times, is literally the meaning behind the words: CUT YOUR LOSSES SHORT AND LET YOUR WINNERS RUN! 

I cannot give you a better example of this definition. 

What I Can Do Instead Is...

I have decided to open my lines for you and give you a chance to book a PRIVATE TRADING CONVERSATION with me. Book FAST because slots get filled extremely fast.
Atanas Matov
Creator&Founder of the Day Trading Course