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published-date Published: November 26, 2024
update-date Last Update: November 28, 2024

Everything I Do in a Day to Stay Profitable

Successful trading begins with a structured morning routine. Chris shares his comprehensive approach to starting the day, emphasizing top-down analysis, market structure, and disciplined execution to maximize trading success.

Top-Down Analysis Explained

Chris starts his day with a top-down analysis, beginning from the highest time frame and working downward. He emphasizes the importance of understanding the overall market structure on the daily chart before diving into lower time frames. “Market structure and price action are the two biggest things I use in trading,” he explains, highlighting that price action validates or invalidates market structure.

Identifying Supply and Demand Zones

A key part of Chris’s strategy involves marking significant supply and demand zones on the daily chart. He looks for areas where price has repeatedly bounced, indicating high volatility and strong support or resistance. “These zones show where price reacts violently, signaling potential reversals,” he notes. Identifying these zones helps in setting precise entry and exit points.

Setting Up Trading Windows

Chris organizes his trading day around two primary trading windows based on UK time:

  • London Window (08:00-09:00 UK Time)
  • New York Window (13:00-16:00 UK Time)

These periods align with major market openings, providing optimal liquidity and volatility. By focusing on these windows, Chris maximizes his trading opportunities while minimizing exposure to less active market times.

Executing Trades with Risk Management

Risk management is crucial in Chris’s trading strategy. He aims for a 1:3 risk-reward ratio, meaning for every dollar risked, he targets three dollars in profit. “With a 1:3 ratio, you only need a 40% win rate to be profitable,” Chris explains. This approach allows him to manage trades effectively, ensuring that losses are minimized and profits are maximized.

Using Fair Value Gaps (FBG)

Fair Value Gaps (FBGs) are essential components of Chris’s strategy. FBGs represent inefficiencies in the market where price may revisit. Chris identifies FBGs by looking for at least three candles that create a gap, indicating potential entry points. “FBGs help increase the probability of successful trades by providing strategic entry areas,” he states.

Avoiding Emotional Trading

Maintaining discipline and controlling emotions are vital for trading success. Chris advises against trading based on fear or greed, emphasizing the importance of sticking to a predefined trading plan. “Avoiding FOMO and sticking to your strategy prevents impulsive decisions that can lead to significant losses,” he advises.

Balancing Trading with Life Commitments

Chris highlights the importance of balancing trading with personal life and other income streams. Relying solely on trading can be risky, especially with financial responsibilities. He recommends maintaining additional income sources to ensure financial stability and reduce trading-related stress.

Continuous Learning and Adaptation

The trading landscape is ever-evolving, and Chris stresses the need for continuous learning and strategy refinement. Backtesting, maintaining a trading journal, and staying adaptable to market changes are key to long-term success. “Always refine your strategies based on market conditions and personal experiences,” he advises.

Real Trade Examples and Transparency

Chris shares real trade examples, including both successes and losses, to illustrate the practical application of his strategies. By demonstrating transparency, he provides valuable insights into the realities of trading, emphasizing that not every trade will be profitable. “Understanding and accepting losses is part of the trading journey,” he explains.

Conclusion

Chris’s structured morning routine and disciplined trading strategy offer a blueprint for consistent trading success. By combining top-down analysis, identifying key market zones, managing risks effectively, and maintaining emotional control, traders can navigate the complexities of the market with confidence.

Unlock Potential. Lock in profits.