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Introduction:
Hello, I'm TJR. I hope this book turns out to be both fun and full of the insights you need

to get the hang of trading. Writing isn't exactly my forte, but that might just make this book more

relatable and easier to get into for you. Think of it as a direct chat from me to you. I'm skipping

the basic stuff – no talk about what a candlestick chart is, uptrends, downtrends, or any other

trading 101 material. If it's not in this book, it's because I don't use it, so there's no need to ask

me about it later. This book is like an open book of my trading brain, laying out everything

useful that I do in my trading life.

Lesson 1:
First and foremost, it's essential to simplify your thought process. Overthinking

complicates what is inherently a straightforward activity. Encourage your mind to embrace a

more straightforward perspective, think like a child. This approach will not only benefit you but

also facilitate my guidance. Absorb the instructions as presented without overcomplicating

matters with "what ifs" or hypotheticals. Trading boils down to a few basic steps—think of it as

one to three straightforward actions. And there you have it, the first lesson is complete! How are

you feeling? All good? If you're unsure, it might be beneficial to go over it once more. It's a

foundational lesson for a reason. A quick review could ensure we're perfectly aligned.
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Lesson 2:
Reread lesson 1.

Lesson 3:
Risk Management is key, so I'm putting this right at the start. Honestly, this should be a

no-brainer in trading. There are just two big rules to follow, but it's amazing how often they get

overlooked. Here they are: DON'T OVERLEVERAGE. DON'T OVERTRADE. Think of

breaking these rules as if you were breaking the law. Just don't go there.

There's no such thing as the perfect trade or the ultimate comeback trade. That's all just

your brain trying to trick you into making another move. We'll get into handling those tricky

emotions later, but for now, let's keep it super simple. Aim for one trade a day, risking only 1-3%

of your total account balance. Going beyond that? You're not following the plan, and it's time to

go back to square one.

All you need is that one trade, with a 1-3% risk. It's been enough to cover my bills, so it

should work for you too. If you're tempted to make more trades or risk more, remind yourself to

check back with lesson one. Messing up here is where the trouble starts. The tough part?

Realizing trading isn't the thrill ride many think it is. It's about consistency, not excitement.
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My day-to-day is pretty routine: wake up, trade the same way, risk the same amount. It might

sound boring, but that's what it takes. The moment you think, "Why not make another trade?

Why not risk more?"—that's when you've lost the plot. So, remember: one trade a day, risk 1-3%

of your account, and keep it straightforward. It's doable, so just stick to it and make things easier

for yourself.

Lesson 4:
We're four lessons deep now, and honestly, if you've still got questions, it's time to circle

back to lesson one. But let's keep the ball rolling, nice and easy. We've covered the basics of risk

and trade frequency, so it's time to dive into the good stuff—the stuff you've been eagerly waiting

for, even though it's really just a small slice of the trading pie. Yes, I'm talking about

STRATEGY.

Now, hold your horses before you get too excited about my trading strategy. It's important to set

some expectations: this strategy isn't a magic ticket to instant profits. It's not going to transform

you into a trading wizard overnight. Frankly, its success rate might be on par with basic support

and resistance trading. You might be wondering, "Then why am I here? I thought this was about

learning to day trade." And you're right, it is. But day trading is about marrying a solid strategy

with disciplined trading psychology. It's a two-part deal, and strategy, while crucial, is the easy

bit.
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So, sure, get a little pumped to learn about how I approach trading, but know this:

without the right mindset, even the best strategy won't make you profitable. That's why strategy

only accounts for 10% of the equation. Ready for a reality check? Good, because we're about to

dive into my trading method. And please, keep it simple. If you find yourself freaking out and

cluttering your charts, take a breath and revisit lesson one. I'm going to break this down as if I

were explaining it to my 8-year-old cousin. Let's get started.

Strategy:
Hey there, if you've jumped straight to this section, you need to hit the brakes and circle

back to the start. You've missed a ton of crucial info, and by skipping ahead, you're pretty much

tossing your cash into this book without getting the full value. I appreciate the support (and your

money), but seriously, go back and read everything. It's all important. If you hit a snag or

something's flying over your head, remember lesson one: keep it simple, don't overcomplicate

things. What I'm laying out here is all you need. There's nothing more to add.

Methodology 1: Break of structure

The basics. This is the easiest and most important thing. So pay attention.
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Why is this important to know?

Market structure tells us what the market is doing and what direction it's going. When

there is a break of structure there is a shift in market structure changing the trend/direction.

How do we spot it in the market?

What is a uptrend. Higher highs and higher lows. What is a downtrend. Lower lows and

lower highs. Right that is easy we all know that. Now what makes a high: a move up followed by

a move down(it only takes 2 candles to form a high). What makes a low: a move down followed

by a move up. (only takes 2 candles).What is a break of structure in an uptrend: a closure below

the wick of the previous low. What is a break of structure in a down trend: a closure above the

wick of the previous high. Boom, that's super easy. Now let me show you pictures on all of these

things:
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Downtrend: red are the highs, greens are the lows. Lower highs Lower lows
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Uptrend: Higher highs(red) and higher lows(green).

Break of structure to the downside: closure below the wick of the previous low in an uptrend.
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Break of structure to the upside: closure above the wick of the previous high in a down trend.

THIS IS NOT A BREAK OF STRUCTURE. IT NEVER CLOSED BELOW THE WICK

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THIS IS NOT A BREAK OF STRUCTURE IT NEVER CLOSED ABOVE THE WICK

Methodology 2: Liquidity Sweeps

Why is this important to know?

Market moves off of liquidity. There will never be a shift in market structure/break of

structure on any time frame without a liquidity sweep. Let me explain what a liquidity sweep is

more in depth for you. Think back to your high school or college days when your economics
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teacher first broke down what a stock exchange is and what it means to buy a stock. Say you

decide to buy a share of Apple; that means someone out there has to sell you that share. Back in

the old days, this process wasn't as quick as a click. It actually involved people physically

exchanging papers, and getting proof of your shares could take up an entire week. Nowadays it's

easy with exchanges and brokers but it still works the same way. If you buy shares someone has

to sell them to you. If you want to short someone has to buy them from you. Now let's go back to

understanding liquidity. If the banks, institutions, and governments are the market movers then

that means they are buying and shorting shares. This also means their contract sizes are so large

that they move the market. So how are they able to get that many people in the market to sell

when they buy and vice versa buy when they sell. Let's think back to our market structure. How

do uptrends move? Higher highs higher lows. How do downtrends move? Lower lows and lower

highs. Beginner traders are trained to buy when a high of an up trend gets “broken” and short

when a low in a downtrend gets “broken”. Beginner traders are also taught to place stop losses

above highs when shorting and below lows when going long. So that gives the market liquidity

above highs and lows because if a high gets broken what happens: people enter long AND

people get stopped out of shorts. That is a lot of liquidity and market orders being placed doesn't

that sound like a perfect time for banks, institutions, and govs to go in the opposite direction as

the masses so their orders can get filled. Same thing in the opposite direction when a low gets

violated in a downtrend people are entering short along with people who were long getting

stopped out. A lot of liquidity for the market makers to fill their huge orders and go in the

opposite direction. So where does liquidity lie? Above highs and lows within the market. How

can we confirm a liquidity sweep? With a break of structure confirming a market structure shift.

Pretty simple stuff. Liquidity is above highs and lows. Why? Because people are going to go
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long and get stopped out above highs and people are going to go short and get stopped out below

lows. Something also to note: Liquidity sweeps happen most often at market and session opens.

Why? Well, think about this logically. New traders coming into the market open wouldn’t it

make sense for the market to make its move early on and use all the traders as liquidity so it can

make its move and they can just sit back, relax and watch the money come in. Yeah it would so

when do we most often see lower time frame liquidity sweeps within the first 1-2 hours at market

open. Now lets hop onto the charts to see it in action.

How do we spot it in the market?

Liquidity swept.
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Confirmed with a lower time frame break of structure.

Now let's show session to session liquidity getting swept.

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How can we confirm the liquidity was swept with a break of structure…

The blue line indicates the high that was closed above causing the break in structure.
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Methodology 3: Order Blocks

Why is this important to know?

I like to call order blocks our safety net. I frequently use these if I miss the liquidity

sweep break of structure entry or if the break of structure is so high or so low that makes the risk

to reward not worth taking. Why are they useful to use? What are they? Well remember when we

said the market will sweep liquidity by moving up through a high and then in turn that move up

will fill those massive orders placed by banks, institutions, and funds. Yes well that move up that

price range is where those orders got filled in turn making that price range a order block. Same

thing to the downside. The downward (fake out) move to make people go short causing the

liquidity sweep followed by the break of structure is where those massive orders are filled.

Wouldn’t it make sense for banks and institutions to draw price back into that area and fill more

orders because that's where they were able to fill orders previously. Yes yes it would. So

simplified what is it, The upward move prior to the break of structure in an uptrend causing

market structure to shift into a downtrend. And the opposite is the downward move prior to the

break of structure in a downtrend causing a market structure shift to the upside into an uptrend.
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How do we spot it in the market?

Simple as that. Liquidity sweep, break of structure, then order block formed filled and price rips

back up. Let's show one to the downside now.

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Simple.
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Methodology 4: Fair Value Gap

Why is this important to know?

A fair value gap is a liquidity void within the market meaning there were no orders going

in the opposite direction of market. Ex: if market is moving down there would be no buyers and

if market was moving up there would be no one selling. Hence the name liquidity void. No

liquidity in the opposite direction. So with this knowledge knowing that this is a price range that

market had no one going in the opposite direction wouldn’t it be smart if market moved price

back into that price range to fill even more orders in the same direction that market was already

going in BECAUSE there would be no countering orders and traders in the opposite direction.

Yes it would. If the market was moving down and made a liquidity void it would be smart to

move price back to that area to retrace to fill more orders because they know there are no buy

orders or people buying in that area. Fair value gaps cannot be “used” twice once they are filled

they are done. They also become invalid once price breaks structure in the other direction. So if

there is a bearish fvg but then price breaks structure up and it gets filled forget about it because

we only use FVGs for RETRACEMENTS. They are a retracement tool and I rarely use them for

entries. I mainly use them to help find a bias of where price could draw to on a high timeframe.

(PS. Fair value gaps are usually filled 50% of the way so I use a gann box with just the 50% level

marked to label them).

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How do we spot it in the market?

For some reason this is one of the hardest concepts for people to draw on the chart so im

going to explain it here and then show pictures of what is and what isn't a fair value gap. A FVG

is a 3 candle “pattern” the first candle’s wick does not fill the second candles body down to the

third candle’s wick. The second candle is a impulsive move down that has not been filled by the

first or the third candles wicks. The third candle’s wick does not go up to the first candle’s wick.

Bullish FVG
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Bearish FVG

Not a FVG because the wicks overlap.

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Not a FVG because the wicks overlap.

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Methodology 5: Equilibrium

Why is this important to know?

Equilibrium is a super easy concept to understand. It is literally the 50% level from the
high to the low in an uptrend or the low to a high in a down trend. Why is that 50% level
important to us? Well because anything below equilibrium is a premium and what do we know
about the market makers they like those juicy discounted prices so would they likely fill more
orders in a premium or would they rather wait for price to push into a discount then fill more
orders. Exactly they are going to get in at the best price possible. This is similar to the FVG in
that it is a retracement tool. We use it to find retracements in the market. We can use either the
gann box or the fibonacci tool to mark it out on the chart. I use the gann box just because it's
easier.

How do we spot it in the market?

How do we draw it on a chart it's pretty easy. In an uptrend you take it from the previous
low to the most recent high. In a downtrend you take it from the previous high down to the most
recent low. Then you wait for price to get into that 50% level.

Drawn from the high down to the low.

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Drawn from the low to the high.

Lesson 5:
And just like that, we've covered all the methods I use for trading. That's the whole

toolkit, and most times, I'm only pulling out two or three of these tools when I'm getting into a

trade. So, with all these strategies in hand, let's piece it all together. How do we actually make a

trade with all this info?

First off, think about what we've got to help us build a trade. We know liquidity sweeps

often mark the top or bottom of a move because they change the market structure. So, step one is

to spot a liquidity sweep, then look for a break in the market structure right after. Just seeing a
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liquidity sweep followed by a structure break is enough for me to jump in. Liquidity sweep,

structure break, and boom—time to enter.

Missed the liquidity sweep? No worries, we've got order blocks that form after those

structure breaks, giving us a second chance to enter. And if the order block doesn't offer a clear

entry, we've still got Fair Value Gaps (FVG) and Equilibrium as our backup retracement tools for

another shot.

This gives you three opportunities to get in before the price takes off. The best shot is

right at the liquidity sweep plus the break of structure—that's your prime entry point. If you skip

that, look for the order block entry. And if that's gone too, your next best bet is an entry through

FVG or Equilibrium.

Now, about setting up your stop loss: for a liquidity sweep and break of structure (BOS)

entry, I place my stop just above or below the liquidity point. For an order block entry, the stop

loss still sits above or below the liquidity sweep. And for a retracement entry using FVG or

Equilibrium, I set my stop loss above the most recent high in a downtrend (or below the low in

an uptrend) that's tied to the FVG or Equilibrium. This way, you're covered across different

scenarios, giving you a structured approach to entering trades with a clear safety net.
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Lesson 6:

Nailing it, right? Told you this stuff was straightforward. Now you've got the lowdown on

how and why the market moves, how to spot an entry, and where to set your stop loss. Next up,

let's figure out how to nail those take profit levels. It's pretty much the same drill as finding

entries, but flipped around.

If we use price targeting liquidity for our entries because that's where the orders are piling

up, it makes sense that price will gravitate towards liquidity for our exits too. So, for setting take

profits, I aim for areas of liquidity that align with the direction of my trade. That means targeting

lows for shorts and highs for longs. Every now and then, I might pick a high timeframe order

block as a take profit spot, but to keep it simple, just focus on those liquidity zones.

This strategy keeps things straightforward and effective, guiding you to target take profit

levels where the market naturally tends to move, ensuring you're in a good position to capitalize

on those movements.

Lesson 7:
Got your strategy sorted, know where you're entering, and got your exits planned?

Perfect. Now, let's tackle how to manage your position once you're in the game. I keep this part
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really straightforward: I set up 2-3 take profit (TP) points based on other liquidity zones that

price is likely to hit, and I bag some profits at each of these milestones.

Here's how it goes down:

● When Take Profit 1 is hit: I cash out 50% of my position. This move not only locks in

some profit but also allows me to shift my stop loss to my entry point. Now, the trade is

essentially risk-free and guaranteed to be profitable.

● When Take Profit 2 is reached: I let go of another chunk of what's left, which is about

25% of my initial position. At this stage, if the market's given us a new high or low that's

significant, I'll adjust my stop loss above or below this point to lock in more profit. If the

market hasn't shown its hand yet, I'll just leave my stop loss at the break-even point.

● Hitting the final Take Profit: I close out whatever's left of my position, then it's time to

shut down the trading apps and move on with my day. Remember, I'm all about that

one-trade-a-day life.

This approach keeps things simple and systematic, ensuring that you're securing profits

while reducing risk as the trade progresses. It's all about making the trade work for you, step by

step, until you're done for the day.

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Lesson 8:
You're pretty much on my level now, believe it or not. But hold up, before you start

daydreaming about cruising in that new car thanks to this strategy, let's hit the brakes and circle

back to risk management. I get it, the strategy part is exciting, and you probably zoned out on the

risk management spiel. Remember, we said the strategy is just 10% of the game. The real

difficult concepts are risk management, and discipline, which sounds simple but really isn't, that's

the 90% you need to focus on.

So, do yourself a solid and revisit lesson #3. Stick to the plan: one trade a day, no more,

no less, and risk just 1% per trade. That's my formula, and it's been treating me pretty well. Trust

me on this, we're playing the long game here. Ask yourself, do you want to make this your career

or not?

Lesson 9:
Thinking about making day trading your career? Here's something to chew on: how can

you expect to become a professional day trader if you're not mirroring the habits and strategies of

the pros? So, let's break down what professional day traders do—and what they steer clear of.

Professionals are all about risk management. They keep their trades few and well-chosen

each day. They've got a solid grasp of the risks in the market and smartly limit their
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exposure—sometimes, that even means sitting out and not trading at all. They stay updated on

news releases that could impact their trades, knowing exactly when to dodge and when to dive in

(we'll dive deeper into this later).

Pros never over-risk. They understand that by sticking to small, calculated risks on their

trades, they can end the year with significant gains, sometimes hitting that 200-300% mark, or

even more for the truly skilled. They don't overtrade because they recognize the market's

manipulative nature and its designs to trip them up. Win a trade? They call it a day and walk

away. Greed, chasing after lost trades, or seeking revenge on the market for a bad trade—these

are not in their playbook.

You might nod along, thinking, "Sure, I get it," but if you're not yet profitable, it's likely

because you're missing out on these principles. The lack of discipline, entering too many trades

in the hope of higher returns, revenge trading because you can't stomach a loss, or expecting to

profit daily—these are common pitfalls. Accepting losses is part of the day trading game.

So, how do we get you on track, following these pro strategies and sticking to them? The

answer is by building a solid trading plan.

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Lesson 10:
Creating a trading plan is essential for setting yourself up for long-term success in day

trading. This plan serves as your roadmap, guiding your decisions and helping you stick to your

trading strategy, manage risk, and maintain discipline. Here's what a comprehensive trading plan

should include, along with an example plan that you can tailor to suit your own trading style and

criteria. Remember, deviating from your trading plan is a surefire way to hinder your

profitability over the long term. Your rules are in place for a reason, and adherence to them is

non-negotiable for sustained success.

TJR Trading Plan:

When will I trade:

● NYSE open (1 hour into session open if there are no trades to take I won’t trade)

● I will NOT trade any other time of day

How will I enter a trade:

● Liq sweep + BOS entry (stop loss above liq sweep)

● Order block entry (stop above liq sweep)

● FVG or equilibrium entry (stop above/below previous market structure)

How much will I risk:

● 1% of my whole account per trade

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How many trades will I take a day:

● 1 trade a day that is it

● I will be okay with a loss and I will be okay with a win no matter the outcome

When will I not trade:

● CPI news report days

● NFP (non farm payroll)

● PPI news days

● FOMC days

● Any other Red or orange folder news day that highly impacts market and price data

● I will never trade during these high impact news days

Advice for myself:

● Be okay with taking a loss

○ You won’t win every trade

○ You are human. humans make mistake

● Be emotionless after a win

○ Understand that you have an edge in the market and you have probability within

your strategy so a winning trade is probable

● Understand you are trading off probability not hope

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○ Do not hope/wish your take profit to get hit

○ Understand that no matter if you win or lose today in the long run you will be

profitable using risk management and your strategy due to probability

● Never stray from your trading plan

○ You made this for a reason to make sure you do not mess up like you have in the

past

○ These rules are here to help you stay disciplined and probable without it you will

fail.

Lesson 11:
Tying up the final pieces, you're on the brink of reaching pro trader status. Understanding

where to find relevant news and how to interpret its impact on the markets is crucial. I personally

use Forex Factory for all my news updates. It's a great resource for keeping track of economic

events and their potential impact on trading.

For those trading SPX or other US-based stocks or assets, here's a tip to streamline your

news feed:

1. Filtering News: Use the filter option to exclude all countries except the US. This keeps

your feed focused on the news that's most likely to affect your trading.

2. Prioritizing News Impact: Remove all news tagged with grey and yellow icons,

concentrating only on the orange and red ones. These are the news releases that typically

have a more significant impact on the market movements.

Deciding When to Trade Around News:

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● Major News Days: Refer to your trading plan for the major news days to avoid. There

are also smaller news events that might make you decide to sit out.

● Timing and Market Reaction: If news is released before the market opens, watch the

market's reaction. High volatility and volume in response to news might be a signal to

avoid trading. If the reaction is muted, you might proceed with trading as planned.

● News During Trading Hours: If news is scheduled to release well after the New York

Stock Exchange has opened, and you typically trade within the first hour of the session,

then later news may not affect your strategy.

Reading News Data:

Understanding the potential impact of news on the market is simpler than it might seem

at first. When you check out news on Forex Factory, you'll notice each piece of news comes with

indicators of its expected impact, the actual data released, previous data, and sometimes

forecasted figures. Here's how to interpret this information:

● Impact Color Coding: Red indicates high impact, which could lead to significant market

volatility, while orange suggests medium impact. High-impact news often warrants more

caution or a strategy adjustment.

● Actual vs. Forecast/Previous: The key is to compare the actual data with the forecast

and previous figures. Significant deviations can lead to market movements. For example,

if the actual data is much better or worse than expected, you might see a corresponding

rise or fall in market prices.

Incorporating news into your trading requires you to be adaptable, informed, and ready to

adjust your strategy based on how the market reacts to new information. Staying ahead of the
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curve with a reliable news source and knowing how to filter and interpret this news can make a

substantial difference in your trading outcomes.

All you have to do is click the little folder and it will bring this up.

Reading economic news and interpreting its implications for the markets effectively involves a

few steps. Here’s how you can go about it:

1. Start with the Forecast: Look at the forecasted number for any economic indicator or

news release. This gives you a baseline expectation of what the market is anticipating.

2. Compare Actual vs. Forecast: When the actual number is released, compare it to the

forecast. If the actual figure is less than the forecast, this is the initial data point you need

to consider.

3. Understanding the Usual Effect: Each news item on platforms like Forex Factory will

often include a section on the "usual effect" of the data. This tells you how the data
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typically affects the market or currency. If it states that being less than the forecast is

"good for the currency," this is a counterintuitive but crucial piece of information.

4. Understanding Market Impact: Contrary to what you might think. Good for the USD

(currency)means bad for the Stock market and vice versa bad for the USD means good

for the stock market. So when this news report came out during premarket we can see

that since it was less that means good for the currency and bad for stock market so we

would have a bearish news bias going into session open.

So, in the scenario where the actual economic data is less than forecasted and is

considered "good for the currency," you would prepare for a bearish sentiment in the stock

market as you head into the trading session. This bearish news bias means you might anticipate

downward pressure on stocks, guiding your trading decisions towards looking for opportunities

that align with this market sentiment.

Understanding these relationships and how they influence market dynamics allows

traders to align their strategies with prevailing economic conditions, potentially enhancing their

decision-making process and trading outcomes.

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Lesson 12:

Thank you for taking time out of your days/weeks/months to get through the contents of

this book. Now you are fully prepared to go into the mastermind with a perfect vision of the

concepts that will be implemented. I look forward to seeing you all in there and using the full

month we have together to be able to master your mind, discipline, and strategy to turn you into a

profitable trader.

-TJR
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