We recently had the pleasure of chatting with Travis, better known as CoachT, a seasoned trader who’s been navigating the markets for a few years now. CoachT shared the ups and downs of his trading journey. From his early days of learning the ropes to his current strategies for consistent profits, CoachT dropped some serious knowledge. Whether you’re just starting out or have been in the game for a while but not seeing the success you hoped for, CoachT’s insights might just be what you need to turn things around.
From curiosity to determination
When I started trading back in 2021, I didn’t have much guidance or knowledge about the markets. My journey began with I Am Academy, a platform that offers educational resources for traders. I was fortunate enough to be part of a group that focused heavily on trading rather than just recruiting. They did push us to recruit, but most of the Zoom calls were dedicated to trade trainings.
Initially, we learned to use various indicators and strategies, such as the Hai candle, parabolic SAR, trend lines, and stochastics. It was all about lining up these indicators and taking trades based on their signals. For the first six months, this method helped me make small profits, around $20 to $30 a week, which felt pretty good at the time.
However, I quickly realized that I needed to dive deeper into understanding the market beyond just following indicator signals. After soaking up as much knowledge as I could from the Academy, I decided to branch out on my own. I left the platform and started learning from various sources like YouTube, books, and most importantly, from my own experiences in the market.
In those early days, I didn’t have a lot of money to lose, which was both a blessing and a curse. I didn’t experience the gut-wrenching losses of thousands of dollars that some traders talk about. Instead, my losses were smaller, usually $10 to $20, but they added up and taught me valuable lessons. I’d often flip $10 into $100, withdraw $90, and start over again. This cycle of small gains and careful withdrawals helped me build confidence and refine my strategies without risking too much.
Looking back, I realize that my early mistakes and modest beginnings were crucial in shaping my approach to trading. I learned the importance of risk management, discipline, and continuous education. Today, I still apply these lessons, aiming for consistent, small profits rather than chasing big, risky wins.
Facing challenges and working a job to learn investing
As I continued on my trading journey, it wasn’t always smooth sailing. There were plenty of ups and downs, but I stayed committed to learning and improving. One of the turning points came when I shifted my focus from Forex pairs to indices. This change allowed me to hone in on specific market behaviors and develop a more consistent trading strategy.
I began by trading indices like the NASDAQ and S&P 500, which required a different approach than Forex. I started using top-down analysis to understand the broader market trends and then zooming into lower time frames for precise entries and exits. This method helped me to see the bigger picture and make more informed decisions.
The real breakthrough came when I truly grasped the importance of risk management. I realized that keeping a buffer of funds and not overleveraging were crucial to staying in the game. I also learned to accept losses as part of the process and not let them derail my progress. Consistency became my mantra—I aimed for steady, small gains rather than swinging for the fences.
How to read forex charts
Reading forex charts and identifying optimal entry points are crucial skills for any trader. Coach T, with his experience and disciplined approach, has developed a systematic method for doing this. Here’s a detailed look at his process:
Top-Down Analysis
- Monthly and Weekly Charts
- I start by looking at the monthly and weekly charts to understand the overall trend. This helps me get a directional bias and think like big banks.
- On these higher time frames, I don’t mark up too much, but I get a sense of whether the market is trending up or down over the long term.
- Daily Charts
- I move to the daily chart, where I start marking key levels of support and resistance from recent price action.
- I focus on the highs and lows of the previous day, as these levels often provide significant insights into potential price movements.
- Hourly and 5-Minute Charts
- On the hourly chart, I refine my analysis by looking at more detailed price action. However, I don’t mark up the chart extensively at this level.
- I drop down to the 5-minute chart for precise entries and exits. This is where I do most of my detailed work.
Marking the charts
- Identify Key Levels
- On the daily chart, I mark the high and low of the previous day using horizontal lines. These are my initial support and resistance levels.
- When I move to the 5-minute chart, I focus on recent price action, marking significant swing highs and lows from the overnight session.
- Use of Boxes and Wicks
- I prefer using boxes over horizontal lines because they give a clearer visual representation of support and resistance zones.
- I pay close attention to wicks, as they indicate areas of strong resistance and support.
- Wait for Price Action
- I look for specific price action patterns around my marked levels. Patterns like the three-line strike, three black crows, and three white soldiers are significant to me.
- I don’t chase price; instead, I wait for the price to come to my marked levels and then look for confirmation of my bias.
Finding the optimal entry points
- Price Action Confirmation
- I rely on price action signals around my key levels for entries. For instance, if I’m looking for a long trade, I want to see bullish patterns like three white soldiers forming at support levels.
- Similarly, for short trades, bearish patterns like three black crows at resistance levels are my cue.
- Candle Close
- I always wait for the candle to close before making an entry. The last 60 seconds of a 5-minute candle can be particularly telling, as it often indicates the true direction of the move.
- By waiting for the candle to close, I avoid getting faked out by early movements within the candle.
- Break and Retest
- I often look for a break and retest of key levels. For example, if a resistance level is broken and retested as support with bullish price action, it can be a good entry point for a long trade.
- I don’t chase price; instead, I wait for the price to come to my marked levels and then look for confirmation of my bias.
Risk Management
- I use stop losses to manage risk, though sometimes I rely on mental stop losses to avoid getting wicked out.
- I typically aim for 50 to 100 points per trade, adjusting my position size based on the risk level and my target.
- Consistency and discipline in following these rules help me stay profitable and avoid significant losses.
Three Black Crows Pattern
The three black crows pattern is a bearish reversal pattern that consists of three consecutive solid bearish candles. Each candle should have substantial-sized bodies, indicating strong selling pressure, and can have wicks but should not be excessively wicky. This pattern typically forms after an uptrend, signaling a potential shift in market sentiment from bullish to bearish. The three black crows are a strong indicator that sellers have taken control, making it a critical signal for traders looking to identify potential short opportunities, especially when it appears at key resistance levels or after a significant price rise.
Questions from the Audience
Q: How long have you been trading?
A: I’ve been trading for three years, since 2021.
Q: How do you do top-down analysis?
A: I start with the monthly chart to identify the long-term trend, then move to the weekly chart for a more detailed view, and finally use the daily chart to mark key support and resistance levels from recent price action.
Q: What is the significance of the three black crows pattern?
A: The three black crows is a bearish pattern that consists of three solid bearish candles in a row. They should have substantial-sized bodies and can have wicks but not be too wicky.
Q: Do you trade the 4-hour chart?
A: No, I don’t use the 4-hour chart. In my opinion, the 4-hour and the 1-hour charts tell the same story, but the 1-hour chart has more noise.
Q: What time frame do you use for entries?
A: I use the 5-minute chart for entries.
Q: How do you manage risk?
A: Risk management is crucial. I keep a buffer of a few thousand dollars if trading indices. I also emphasize realistic demo trading to build discipline and avoid overleveraging.
Q: Do you have any social media accounts?
A: Currently, I’m taking a break from social media, but when active, my Instagram is “the official Tavis Holland.”
Q: How do you use the RSI indicator?
A: I use the RSI mainly for momentum and divergences, which helps in identifying potential entries.
Q: What do you do if you see price action that you like?
A: I wait for a break and retest of the identified levels, and then look for specific price action patterns at these levels to confirm my entries.
Q: How do you handle overtrading?
A: Overtrading has been a challenge. I overcame it by sticking to my trading plan, focusing on indices instead of Forex pairs, and limiting my trades to specific sessions, mainly the New York session.
Q: How many points do you go for in a trade?
A: I typically aim for 50 to 100 points per trade. If I’m trading with a 0.01 lot size, I go for 100 points. If it’s 50 points, I use a 0.02 lot size. My goal is to make around $100 a day.
Q: Do you look past a day when analyzing charts?
A: Yes, I look left to past price action for context, but my main focus is on the immediate price action and key levels for intraday trading.
Q: What happens in the first 60 seconds of a 5-minute candle?
A: The first 60 seconds of a 5-minute candle is a teaser, giving false movements. The middle part of the candle fills around price, and the last 60 seconds show its true movements, which I wait for to confirm my entry.
Q: Do you set stop losses?
A: Yes, I set stop losses, though sometimes I use mental stop losses to avoid getting wicked out. If I need to step away from the trade, I set a stop loss.
Q: How do you stay disciplined in trading?
A: By sticking to my plan, not chasing the market, and avoiding revenge trading. I focus on consistent, small gains and use the demo account realistically to practice discipline.
Q: Do you have a set amount you withdraw?
A: I don’t have a preset amount. I withdraw what I need when I need it, keeping the rest in my broker wallet to manage risk better.
Q: How do you handle the mental aspect of trading?
A: I stay motivated by viewing other traders’ success as motivation rather than competition. I focus on my own journey and maintain discipline to avoid emotional decisions.
Q: How did you start learning to trade?
A: I started with I Am Academy, learning from their resources and Zoom calls focused on trade trainings. After six months, I left and continued learning from YouTube, books, and personal market experience.
Conclusion
Remember, trading is a journey, not a sprint. It’s about consistent learning, staying disciplined, and embracing each lesson along the way.
Coach T has shared his personal experiences, the highs, and the lows, giving you a realistic view of what it takes to be successful in this game. Whether you’re just starting or have been trading for a while without seeing the success you want, these insights can help you refine your approach and start seeing better results.
If you want to apply these strategies, connect with Coach T and other astronauts on our Discord, share your experiences, ask questions, and learn from each other. Trading doesn’t have to be a solo endeavor; we’re all in this together. Start day trading for free trough our Demo environment.