A Quick Trading Guide by Kevin Trades

1. There are a few ways to trade breakouts, and the easiest way is to use a smaller time
frame to try to get in at the earliest possible time. The trick is to go down 2 frames from
where you’ve made the trendlines. In this case, we are looking at the daily time frame. In
order for me find a potential entry on a BREAKOUT, then i must go down to the 1 hour
chart to find an entry. Anything lower, can potentially lure me into a fakeout. And
anything higher, does not give me enough data for a conviction.
2. For reversals to the downside, there is a different approach you can take. You can use
the Moving Averages you implemented on your chart to help you. In order to use the
MA’s to help you, you have to think of the MA’s as its own resistance and or support.
If the moving average is forming within a demand / supply zone, then you have to
assume that the candlesticks will move in the direction of the zone, regardless of
whether you get a potential crossover on the EMA. This is one reason why trusting the
EMA’s themselves can’t be its own strategy,. There are times where, if you were to trust
the EMA’s and assume its going to go in the direction you want it to, you get caught in a
reversal. If the moving averages crossover to the upside in a supply zone, expect a
bearish move in the near future. Price Action will always overcome indicators.
If you get an EMA crossover to the upside, in a demand zone, then its a good time to
trade calls. Also, sometimes the moving average will form right where the resistance
trendline is, and if they are both at the same level, this doubles the chances of the
candlesticks to reverse back down, IF the candlesticks test either of these two as
resistance. If the candlesticks continue to pierce through both of these lines, then expect
a bullish move. Usually when they do pierce through, a crossover on the EMA must have
happened shortly before. Charting is like doing LEGO. You have different pieces right in
front of you, and you have to find the ones that fit.
3. Trading bounces is probably one of the easier trades to take because there’s not really
much to it. Believe it or not, i believe bounces are easier to read than reversals.
You can apply the GP strategy when trading bounces, or you can just look at the weekly
chart, and see where there are big demand levels. Also, by going to the weekly chart,
you can find demand zones that happened in the past, and use that zone as an area of
value, where you will buy.

I know that charting might look hard to you, but the more time you spend on the chart,
the more things will make sense. I believe that there are so many ways to trade and be
profitable, because i think that the charts speak differently to everyone. By this i mean,
each person can interpret the charts differently. What i see, someone else might not see,
and what they see, i probably don’t see. This is why, sometimes, when we do a lesson
on charting, i might point out things that you could have never have seen unless i
pointed them out to you. This is also why sometimes, you can find a bull flag, a
symmetrical triangle, and a wedge all in one chart within the same candles.
 A Quick Trading Guide by Kevin Trades

Here are some methods to give your trading an Edge:

Have a basket of stocks/ETFs on a list.

Maybe about 12-20.
Familiarize yourselves with these stocks or ETFs

ETF: SPY (EXAMPLE)

Nobody wants to look at hundreds of stocks everyday or every week. It gets

confusing and time consuming.

Keep it small. Focus on these names, and watch them.

Figure out how they’ve moved over the past week, month, 6 month, even
year.
Recent News, etc.

Create your resistance and support levels based on a 6 month, 1 month, 1

week time, 1 Day time frame. For resistance and support levels to be more
effective, make sure to use the “3 touch rule”.

Meaning, based on your chart, has these stocks “touched” these

supply/demand levels at least 3 times over the last 6 months,1 month, or
week, days.

Support and Resistance levels allows you gauge where buyers or sellers
are sitting. If a stock has reached a high of $150 4 times this week and
fails to break that level again, this means that $150 is the level where sellers
are heavy, and buyers aren’t.

If a stock has reached a series low of $100 4 times this week and is always
bouncing off of that level, this gives you the idea that, at $100, the buyers
are heavy.
 A Quick Trading Guide by Kevin Trades

Knowing these types of levels allows you to make better trades because you
start to understand the trading range. Trading ranges form when the stock
is trading between a
series of highs and lows.

Accept the RISK of your trades.

Use proper risk-management when entering trades.

Trading Plan

Account Size: $1,000

Risk per trade: $100
10% risk
10 / day
10 x 2: 200
Month 1
(20) trades per month out of 200
20% profits each trade
End of month profits:
$400
Ending Balance on Month 1: $1,400
Best Stocks: SQ/ SNAP/VZ/HD/EA/FB

Account Size: $1,400

Risk per trade: $140
Month 2
20 trades per month
20% profits each trade
End of month profits: $560
Ending Balance on Month 2: $1960
Best Stocks: SQ/ SNAP/VZ/HD/EA/FB

Account Size: $1,960

 A Quick Trading Guide by Kevin Trades

Risk per trade: $196

Month 3
20 trades per month
20% profits on each trade
End of month profits: $784
Ending Balance on Month 3: $2,744
Best Stocks: SQ/ SNAP/VZ/HD/EA/FB

Account Size: $2,744

Risk per trade: $274
Month 4
20 trades per month
20% profits on each trade
End of month profits: $1097
Ending Balance on Month 4: $3,841
Best Stocks: FB/AAPL/VZ/HD/EA/FB

Account Size: $3,841

Risk per trade: $384
Month 5
20 trades per month
20% profits on each trade
End of month profits: $1,536
Ending Balance on Month 5: $5,377
Best Stocks: FB/AAPL/VZ/HD/EA/FB

Account Size: $5,377

Risk per trade: $500
Month 6
20 trades per month
20% profits on each trade
End of month profits: $2,151
Ending Balance on Month 6: $7,528
Best Stocks: FB/AAPL/VZ/ROKU/FB/NVDA
 A Quick Trading Guide by Kevin Trades

Account Size: $7,528

Risk per trade: $752
Month 7
20 trades per month
20% profits on each trade
End of month profits: $3,008
Ending Balance on Month 7: $10,008
Best Stocks: FB/AAPL/ROKU/FB/NVDA

Account Size: $10,008

Risk per trade: $1,000
Month 8
20 trades per month
20% profits on each trade
End of month profits: $4,008
Ending balance on Month 8: $14,000
Best Stocks: FB/AAPL/ROKU/FB/NVDA/AMD/DIS

Account Size: $14,000

Risk per trade: $1,400
Month 9
20 trades per month
20% profits on each trade
End of month profits: $5,600
Ending balance on Month 8: $19,600
Best Stocks: FB/AAPL/ROKU/FB/NVDA/AMD/DIS

Account Size: $19,600

Risk per trade: $1,960
Month 10
20 trades per month
20% profits on each trade
 A Quick Trading Guide by Kevin Trades

End of month profits: $7,840

Ending balance on Month 9: $27,440
Best Stocks: FB/AAPL/ROKU/FB/NVDA/AMD/DIS

Account Size: $26,440

Risk per trade: $2,744
Month 11
20 trades per month
20% profits on each trade
End of month profits: $10,976
Ending balance on Month 10: $37,416
Best Stocks: FB/AAPL/ROKU/FB/NVDA/AMD/DIS

Account Size: $36,416

Risk per trade: $3,741
Month 12
20 trades per month
20% profits on each trade
End of month profits: $15,000
Ending balance on Month 11: $51,416
Best Stocks: FB/AAPL/ROKU/FB/NVDA/AMD/DIS/AMZN/ TSLA

Account Size: $51,416

Risk per trade: $5,141
Month 13
20 trades per month
20% profits on each trade
End of month profits: $20,556
Ending balance on Month 12: $71,982
FB/AAPL/ROKU/FB/NVDA/AMD/DIS/AMZN/ TSLA
 A Quick Trading Guide by Kevin Trades

Account Size: $71,982

Risk per trade: $7,198
Month 14
20 trades per month
20% profits on each trade
End of month profits: $28,792
Ending balance on Month 13: $100,774
FB/AAPL/ROKU/FB/NVDA/AMD/DIS/AMZN/ TSLA

$1000 to $100,000
GROWTH IS KEY/ PATIENCE IS KEY
You can use 20% risk instead to do this in HALF the time, but you’re adding
on more risk.
This can always change and you can always end up getting more than 20%
profit per trade because the example above is being CONVSERVATIVE.
Using the power of compounding you are able to make the most on Month
11 & 12.

$5,000 Account | AGGRESSIVE

Month 1: $5,000
20 trades per month
20% risk per trade
20% Profits in each trade
End of month profits: $4,000
Ending balance on Month 1: $9,000

Month 2: $9,000
20 trades per month
20% risk per trade
20% profits in each trade
End of month profits: $7,200
Ending balance on Month 2: $16,200
 A Quick Trading Guide by Kevin Trades

Month 3: $16,200
20 trades per month
20% risk per trade
20% profits in each trade
End of month profits: $12,960
Ending balance on Month 3: $29,160

Month 4: $29,160
20 trades per month
20% risk per trade
20% profits in each trade
End of month profits: $23,328
Ending balance on Month 4: $52,488

Month 5: $52,488
20 trades per month
20% risk per trade
20% profits in each trade
End of month profits: $41,990
Ending balance on Month 5: $94,478

Month 6: $94,788
20 trades per month
20% risk per trade
20% profits in each trade
End of month profits: $75,582
Ending balance on Month 6: $170,370

$5,000 Account | CONSERVATIVE

Do the first example, except with this account.
Risk 10%, and just aim for 20% profits per trade, 20 times per month.
 A Quick Trading Guide by Kevin Trades

If you use 10% risk on a $5,000 account, you have essentially 200 trades
you can do in one month.
All you need is 20, at 20% profits each.
You can include the losses in this, because you can lose 10-20 times while
using 10-20% stop loss and you can have multiple trades at 30% profit and
it will make up for those losses.

The point here is to utilize the power of compounding in your Options

Trading.

Don’t focus on the profits, but focus on trading well every day. Focus on
finding high probability setups and always execute on these setups.

The main reason why people fail to how their accounts is they try to grow it
too fast thus using terrible risk management.

Here are some methods to give your trading an Edge:

Have a basket of stocks/ETFs on a list.

Maybe about 12-20.
Familiarize yourselves with these stocks or ETFs

ETF: SPY (EXAMPLE)

Nobody wants to look at hundreds of stocks everyday or every week. It

gets confusing and time consuming.

Keep it small. Focus on these names, and watch them.

Figure out how they’ve moved over the past week, month, 6 month,
even year.
Recent News, etc.
 A Quick Trading Guide by Kevin Trades

Create your resistance and support levels based on a 6 month, 1

month, 1 week time, 1 Day time frame. For resistance and support
levels to be more effective, make sure to use the “3 touch rule”.

Meaning, based on your chart, has these stocks “touched” these

supply/demand levels at least 3 times over the last 6 months,1 month,
or week, days.

Support and Resistance levels allows you gauge where buyers or

sellers
are sitting. If a stock has reached a high of $150 4 times this week and
fails to break that level again, this means that $150 is the level where
sellers are heavy, and buyers aren’t.

If a stock has reached a series low of $100 4 times this week and is
always bouncing off of that level, this gives you the idea that, at $100,
the buyers are heavy.

Knowing these types of levels allows you to make better trades because
you start to understand the trading range. Trading ranges form when
the stock is trading between a
series of highs and lows.

Accept the RISK of your trades.

Use proper risk-management when entering trades.

The different approaches you can take

when attacking the market
 A Quick Trading Guide by Kevin Trades

There are 3 ways you can approach the market…

1. Conservative
2. Moderate
3. Aggressive

Now, the most important piece of information for you to understand isa the
simple fact that trading is 90% PSYCHOLOGICAL.

What I mean by that is, you can have 100 people using the same
strategies, but only 20% of them succeed. Why is that a fact?
Because everyone has different emotional capabilities. Some people are
able to handle their emotions well early on in their trading career, while the
rest of us (including myself) finally learn after years of losing.

The technical aspect of trading is very important to learn even though the
importance of charting knowledge is nothing compared to being able to fully
conquer your emotions.

Now, lets talk about approaches.

Conservative….
When you take a conservative approach to trading, it essentially means
that you are afraid to lose money. As f*** up as that sounds, it just sounds
like you want to minimize as much risk as possible.
It is possible to be profitable being conservative, but again, coming back to
the psychological aspect of things, people usually do not have the patience
required to grow an account conservatively.

An example of a conservative approach…

Let’s say you have a $1,000 account.
You buy each contract for $25-50. And use a 20$ stop loss, meaning you’re
risking $5-$10 per trade. Which isn’t bad, but wouldn’t it be nice to grow
your account at a faster rate?
 A Quick Trading Guide by Kevin Trades

Try to move your way up from conservative to at least moderate.

In order for you to gain confidence, use the THINKORSWIM app, and trade
ON DEMAND.

ON DEMAND trading allows you to choose any trading days from the past
and trade them as if it was real time. The platform gives you fake money for
you to use so you can buy the same exact contracts that were sold that
particular day.

Also, UNLESS you have been consistently profitable, understand charts,

and have mastered your emotions, rushing to grow your account will only
lead to failure. Sure you can get lucky here and there, but it won’t work out
in the end because without extensive knowledge, your ego kicks in and
somehow deep inside you develop a god-like concept as a trader. Then the
market will humble you.

I’ve been humbled by the market plenty of times.

The reason why i have been so profitable (and brett as well) is because i’ve
used all of my lessons i’ve learned from losing, and i get rid of the
emotional attachment i’ve ever had with money, at least during those few
trading hours where i have to be able to perform at an optimal level.

Moderate approach…

A moderate approach to me, means that you are willing to risk money, but
you’re smart enough to know how much money to allocate into each trade.
A moderate trader has a lot of great risk management skills, and moderate
traders tend to be the most consistently profitable ones.
Being moderate will allow you to produce more high percentage trades.

Example of a moderate trader:

$1,000 account and he uses $100 per trade with a 25% stop loss. This
allows the moderate trader to make more money percentage wise because.
 A Quick Trading Guide by Kevin Trades

A Moderate trader does not set a timeline in how long they expect to flip
their accounts, instead, they focus on what’s in front of them.

Aggressive traders:
Aggressive trades allocate 20-25% to their positions because we like to
trade high probability setups such as:

This oval that you see represents a breakout of a huge pattern.

Now my trick is, looking for breakouts on the 4 hour level, and using the 5
minute candle that breaks out of the 4 hour line, you have more of a
chance the stock will go your way because the momentum of buyers are
coming in on the bigger time frames.
Regardless of what kind of a trader you are, and no matter how much
knowledge you know about the stock market, or the charts, etc, you can’t
always be right because sometimes the market will just do what it wants to
do, and at that point, it’s out of your control.

The GAME PLAN is to

 A Quick Trading Guide by Kevin Trades

1. Use money you aren’t afraid to lose (to help your conscious)
2. Follow a strict risk management plan. Meaning, If you are going to
use 5% of your account for a single trade, have a 20-30% stop loss.
If you are going to use 10% of your account for a single trade, have a
15-25% stop loss.
If you are going to use 20% of your account for a single trade, have a
10-15% stop loss.
If you are going to use 30% of your account for a single trade, have a
5% stop loss.
3. Focus on HIGHLY probable trades. Meaning you have to find points
in the chart that have been tested multiple times, and when and if it
reaches that certain level again, you can trade the breakout of the
level.
4. Finding Breakout patterns aren't the only way to execute some of the
best trades. Extensive knowledge of candlesticks will allow you to
dissect each candle to and allow you to see and pinpoint areas of the
chart with the most demand just by using candlesticks.
5. Most of all, Brett and I are trying to help you. We are here for you and
we only want to see you win. We want to change your life and change
your outlook on your future and remind you that there is so much out
there for you, and you need to step up and take control of your life
and destiny.