an introduction to simple day trading the what, & how of the day trading cash machine the art of...
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The Status Quo More than 38 million working-age households (45 percent) do not own any retirement account assets, whether in an employer- sponsored 401(k) type plan or an IRA. Copyright The Art of Simple Trading; All Rights ReservedTRANSCRIPT
An Introduction To Simple Day Trading
The What, & How Of The Day Trading Cash Machine
The Art of Simple Trading Presents:
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The Status Quo
The Status Quo
More than 38 million working-age households (45 percent) do not own any retirement account assets, whether in an employer-
sponsored 401(k) type plan or an IRA.
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The Status QuoWhen all households are included— not just
households with retirement accounts—the median retirement account balance is $3,000 for all working-age households and $12,000 for near-
retirement households. Two-thirds of working households age 55-64 with at least one earner
have retirement savings less than one times their annual income, which is far below what they will
need to maintain their standard of living in retirement.
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The Status Quo
A large majority of households fall short of conservative retirement savings targets for
their age and income based on working until age 67. Based on retirement account assets,
92 percent of working households do not meet targets.
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The Status Quo
Average U.S. College TuitionAccording to the College Board, the average cost
of tuition and fees for the 2015–2016 school year was $32,405 at private colleges, $9,410
for state residents at public colleges, and $23,893 for out-of-state residents attending
public universities.
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The Status QuoBLS Fastest Growing Occupations in the United States
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Occupation Growth Rate 2014-2024 2014 Median Pay
Wind Turbine Serv Tech. 108% $48,800
Occupational Therapy Assistants 43% $56,950
Physical Therapist Assistants 41% $54,410
Physical Therapist Aides 39% $24,650
Home Health Aides 38% $21,380
Commercial Drivers 37% $45,890
The Status Quo
In real terms, median weekly wages have only grown by $16 since 1979
— only a 2% rise over a time span of three-and-a-half decades.
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Copyright The Art of Simple Trading; All Rights Reserved
Enter Day Trading
What Simple Day Trading Is Not
Investopedia - investor who attempts to profit by making rapid trades intraday. A day trader often closes out all trades before the market close and does not hold any open positions overnight. Some day traders use leverage to magnify the returns generated from small stock price movements.
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What Simple Day Trading Is Not
SEC.gov - Day traders rapidly buy and sell stocks throughout the day in the hope that their stocks will continue climbing or falling in value for the seconds to minutes they own the stock, allowing them to lock in quick profits.
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What Day Trading Is
The Trader – Day traders reduce/control their risk while simultaneously improving the probability and likelihood of growing their accounts exponentially through the 8th Wonder of the World… Compounding. We look for high probability circumstances to expose ourselves to risk in order to “make a little each day.” True day traders DO NOT take overnight risk.
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Advantages of Day TradingTurnkey
Minimal Startup Costs
Risk ControlTremendous
LeverageNo InventoryNo EmployeesNo Customers
Geographically Flexible
ScalableMeritocracy
Recession ProofGreat Addl Rev
Stream Introverts
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Copyright The Art of Simple Trading; All Rights Reserved
How It Works
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How It Works
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How It Works
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How It Works
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Why It Works
Why It Works
CompoundingYou Make Money On Your
Money
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Why It WorksCompounding
“Consider, for example, the following puzzle. I give you a large piece of paper, and I ask you to fold it over once, and then
take that folded paper and fold it over again, and then again, and again, until you have refolded the original paper 50 times. How tall do you think the final stack is going to be? In answer
to that question, most people will fold the sheet in their mind’s eye, and guess that the pile would be as thick as a
phone book or, if they’re really courageous, they’ll say that it would be as tall as a refrigerator. But the real answer is that
the height of the stack would approximate the distance to the sun. This is an example of what in mathematics is called a
geometric progression.“-- The Tipping Point by Malcolm Gladwell
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Why It Works
ExpectancyWin%*AvgWin-Lose%*AvgLoss
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Why It Works
TRTTime*Return*Turns = Growth
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The 1 Thing You Must Get Right Each Day
What You Must Get Right Each Day
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Trend DirectionakaBias
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What You Must Get Right Each Day
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What You Must Get Right Each Day
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What You Must Get Right Each Day
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What You Must Get Right Each Day
Methods of Bias Determination• Support & Resistance
• H/H and H/L or L/H and L/L• Moving Averages
• “The Force”
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The Myths
A Few Day Trading Myths
The market can’t be timed
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A Few Day Trading Myths
YOU can’t time the market
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A Few Day Trading Myths
You have to take 100s of trades each day
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A Few Day Trading Myths
You have to sit in front of the computer all day
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A Few Day Trading Myths
The market is rigged
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A Few Day Trading Myths
Day trading is easy
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A Few Day Trading Myths
Day trading (profitably) is impossible
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A Few Day Trading Myths
There’s a super secret method
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A Few Day Trading Myths
There’s a super secret magical indicator
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A Few Day Trading Myths
You can win on every trade
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Copyright The Art of Simple Trading; All Rights Reserved
Logistics
LogisticsWhat You Can Day Trade
• Stocks• Currencies
• Options• Other Exotics
• Futures
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LogisticsI trade futures… Mini Equity Index Futures to be
exact. Their advantages include:• Low Margins• High Leverage• High Liquidity
• Clearing House• Online (no pit)• Taxes (60/40)
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How Much To Get Started?Item Cost
Hardware $1,000
Software $0
Training/Mentorship/Guidance/Books Swing Factor ($3,000/yr)
Open Emini Day Account $2,500
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How Much Can You Make?
Always the question of course… and rightfully so…
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A Simple Day Trading Setup
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A Simple Day Trading Setup II
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The Perfect “Laundromat”
Business
The Perfect “Laundromat” Business
Compounding is the best (only?) way to grow your money
Day Trading is the best way to reduce risk and achieve geometric growth (compounding)
Profitable day trading is simple… just not easy
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