What Makes a Profitable Trader? The Answer is Inside.

Hello traders,

We had such an amazing trading day today with major tech names breaking out. This likely occurred due to a few reasons: yields coming down, providing a relief rally for a lot of high-duration names; tons of PMI data showing that the economy is really weak, possibly signaling the end of the rate hike cycle for the Federal Reserve (for the full economic calendar, visit TradingTerminal.com); and lastly, anticipation of $NVDA earnings and the overall market flow, which was very bullish today.

I always find it funny when traders try to find the reasons why the stock market is up or down. It doesn’t help anyone, and it can’t make you money. It’s a backward-looking way of trying to explain something that has already happened. Who cares?

Your job as a trader is to figure out what is going to happen in the next three to four minutes! That’s all! And now the questions arise: how can you do it? How can you tell where the market is going? Some, like Paras, define their edge through the time and sales. Jarad looks at options flow, Thor looks at volume, price and value zones. For me, it’s a mixture of price action and Level 2.

Today’s trade was a great example of how I used price action (engulfing candlestick on $AMD) and Level 2 (big ask on AMD) to make $10,000 in just a few minutes! People often push back on getting DAS Trader Pro, Bookmap, or other software due to the cost, and my response to them always is that you can recover that cost with just one good trade.

Level 2 is your compass as a day trader, and if you cannot read Level 2, you’ll probably have a tough time becoming a day trader. I often say that if you’re trading without Level 2, it’s like trading in the dark. Level 2 can help you find your path. In today’s recap, I talk about how I saw a strong signal on Level 2 on AMD and used it for a large-size long position. For the full recap, make sure to watch it here. I go into tons of detail on how I saw the ask and why I added to my trade.

We have an extensive library of trading education and webinars where we delve into the details of how to read price action and become a better trader. For that reason, I asked the team to offer a flash sale of our Elite Annual membership. So, if you’re on the fence or want to take your trading to the next level, you can join us at a discounted price. This offer is only available for the week, so be sure to take advantage of it.
Today, one of my friends and fellow traders, Avi, asked on X how to avoid over-trading. The answer to this question often lies within your own mind.

You need to take control of your mind to become a good trader. For me, I force myself to leave the office by 8 am Vancouver time. I often have meetings and other commitments that make it impossible for me to overtrade. However, taking control of your mind takes time and practice.

If you are an Elite member, be sure to join the webinar room today for a presentation by Rande Howell on how to take control of your own mind.

Thank you, traders, and trade safely. I’ll see you all tomorrow.

To your success,

Andrew