Classic

Compounding

Compounding is when you are already in a trade and another setup presents itself. This would be a setup that you would certainly take if you were in no position.

For example: Let's say you are in a $1000 long position on NVDA which you entered when the price was at $100, and since then NVDA has now reached $200. Next, NVDA retraces 10% to $180, which has a strong support level and Fibonacci confluence for a bounce and continuation to the upside.

You are already in a profit, but the market has presented a strong setup which you would certainly take if you were in no trade. So in this circumstance, you add another $1000 to NVDA at $180, while moving your stop loss up to protect your current profits.

These setups are for advanced traders and allow for one to maximise their profit potential.

 

 

Time Stamps

3:14 – REN Previous COTW (DO NOT TRADE THIS)

  • Daniel uses 1H bullish OB and 0.382 for confluence
  • You expect OB to hold on the way down BUT not just any random one, it is a skill to recognise it

 

21:30 – COMPOUNDING TRADES

  • You are in a setup already and then another setup presents within the setup
  • You would take this trade regardless – it is a trade itself
  • You are moving SL up as the price goes up towards targets

 

31:00 – AVERAGING DOWN IN TRADES

  • ADVANCED method!
  • You are adding to a losing position as you are presented with another setup
  • Daniel usually closes trade on break even after a bounce and reviews it. If he sees it is a good trade, he enters again with a fresh mind
  • Do NOT do this often

 

38:35 LADDERING INTO TRADES

  • You place multiple orders and get an average entry price

 

41:57 – EXAMPLES and Q&A

  • Always make sure SL is not too wide!
  • TIP: if you are missing setups make a list of 3-5 coins and follow them every single day!
  • Most important are horizontal levels

 

1:07:30 – TRADING JOURNAL

  • It is a must!!

 

1:10:10 – PAUSE AND READ (MOTIVATION)

 

1:11:54 – BTC TA and Q&A

Entering Trades