Learn Felix Prehn’s simple and effective day trading strategy that made him $3,492 in just one hour. Discover the tools and indicators he uses and how you can apply them to achieve similar results.
Introduction
Day trading can seem daunting, but with the right strategy, it can be a lucrative endeavor. Felix Prehn from Goat Academy shares his straightforward day trading method that earned him $3,492 in just one hour last week. In this blog post, we’ll walk you through the exact indicators and setup Felix uses so you can replicate his success.
The Strategy Breakdown
Felix Prehn’s day trading strategy revolves around using specific indicators and understanding market trends. Here’s a step-by-step guide to his approach.
1. Setting Up Your Chart
The first step is setting up your trading chart. Felix uses TradingView for his chart analysis. You’ll need the following indicators:
- Volume Indicator: This helps you see the trading activity.
- 50-Day Simple Moving Average (SMA): This shows the average price over the last 50 days.
Relative Strength Index (RSI): This measures the momentum and indicates overbought or oversold conditions.
2. Understanding the Indicators
- Volume: Higher volume indicates higher interest in the stock, which can lead to price movements.
- 50-Day SMA: When the stock price is above the SMA, it indicates an upward trend. Conversely, below the SMA indicates a downward trend.
- RSI: A reading above 70 suggests the stock is overbought and may decline, while below 30 indicates it’s oversold and may rise.
3. Trade Positioning
Instead of buying the stock outright, Felix uses options to take advantage of the market movements. Here’s how he positions his trades:
- Identify Recent Lows: Felix positions his trades around recent low points to increase the chances of a profitable trade.
- Use Optionswatch.io: This tool helps him position trades with a higher probability of success. Felix prefers trades that offer at least a 77% chance of making money.
4. Risk Management
Felix emphasizes the importance of risk management. By positioning his trades near support lines, he minimizes potential losses. He looks for multiple support levels to ensure his trades have a cushion against market drops.
5. Automate Your Trades
To save time and reduce the need for constant monitoring, Felix automates his trades. This involves setting up profit-taking and risk management parameters so you can focus on other activities while your trades run automatically.
Conclusion
Felix Prehn’s day trading strategy is simple yet effective, making it ideal for non-traders looking to dip their toes into the world of day trading. By using the right indicators and tools, you can replicate his success and start making profitable trades with minimal effort.