From $1,000 to $1,000,000: A Guide to Strategic Compounding📕

This guide will explore the fundamental principles of compounding gains while simultaneously minimizing losses, a crucial skill for long-term success in trading.

In this comprehensive thread, I will present and detail the 12 entry models that I personally used on a daily basis. These strategies were key to my journey as a spot markets day trader, enabling me to grow my initial capital to over one million dollars, all without the use of leverage or exposure to high-risk, volatile assets🧵 1. Sell Side Liquidity Model📈

This section explains a trading concept called Sell-Side Liquidity (SSL). Think of liquidity as a pool of pending orders waiting to be filled. Sell-side liquidity is a concentration of "buy stop" orders, often found at low points on a price chart.

When a trading chart shows a candle with a large wick pointing downward, this often indicates that price initially dropped but was then pushed back up by a large number of buyers as well as triggered buy stop losses. This large wick is a key sign of a potential Sell-Side Liquidity (SSL) zone. It suggests that many sell orders were triggered, but the price quickly recovered.

🎯The Trading Strategy: Sweep and Reclaim
A common trading strategy involves identifying this SSL zone and waiting for a specific pattern to occur: the "sweep and reclaim."

👉The Sweep: First, you wait for the price to drop and "sweep" or briefly go below the low of the candle that created the SSL wick. This action triggers any remaining sell orders.

✅The Reclaim: Immediately after the sweep, the price should quickly reverse and "reclaim" the level by moving back above the previous low. The best way to confirm this is to wait for a 4-hour (4H) candle to close above that low. A successful 4H candle close provides a strong signal that the upward move is likely to continue.

Setting Your Targets and Stops
Once you have identified the sweep and reclaim, you can set your target and invalidation levels.

Target: The goal is to profit from the price moving higher. A common target is the first significant high left on the chart, or the area known as Buy-Side Liquidity (BSL). BSL is the opposite of SSL; it's a zone with a concentration of "sell stop" orders, typically located at highs on the chart.

🚨Invalidation: This is your risk management tool. You should place a "hard stop" or a protective stop-loss order just below the lowest point of the recent low created by the sweep. If the price falls below this point, your trade is considered "invalidated" and the position is automatically closed to prevent further losses. This is a crucial step for managing risk.

If you can’t identify the Liquidity- You will be the Exit Liquidity🩸

In this thread, you will learn about all 6 forms of liquidity without having to purchase a mentorship course from any influencer ever again🧵 1. Range Bound Liquidity:

Understanding how price moves within and around trading ranges is key to making smart decisions and avoiding common mistakes. This concept, known as range-bound liquidity, helps you identify where other traders might be "puking" their positions, creating opportunities for those who wait patiently.

🧐 The Core Idea: What Is It?

Imagine a price range, defined by a high and a low. Most traders see these clear levels and place their orders right there. We, however, want to do the opposite: we look for liquidity just outside the range's boundaries to "fade" or go against the immediate herd.

Why? Because these immediate, obvious levels are what we call "retail liquidity"—the easy-to-see targets that many traders chase. The real opportunity lies in the "latent" or hidden liquidity beyond these levels, which a patient trader can use to their advantage.

🎯 The Rule of Thumb: Patience Pays

A crucial principle to remember: before price makes a significant move in one direction, it will almost always sweep the liquidity above or below its current range pivots (the range high/low). This is a deliberate move to "trap" traders who enter too early.

Think of it this way: everyone sees the same thing. Everyone who rushes in gets stopped out when the price briefly moves against their intended direction. Your job is to wait for this predictable "liquidity sweep" and then enter the trade.

📉 Traps to Avoid: The Double Tap

History shows that if price "taps" or "raids" a pivot level more than twice, it's a signal that the initial move is likely to fail. This happens because the majority of traders who bet on that initial direction are getting stopped out, or "puking" their positions, into latent levels like Order Blocks, Demand, or Supply zones.

You have two choices here:

Passive Liquidity: Place a limit order into the "fade" (the move against the initial direction) and wait.

Active Liquidity: Wait for the price to reclaim the range pivot after the sweep. This is a much safer, more confident entry. By waiting for confirmation, you are entering with the new momentum, not against it.

👶 The "Developing Range" Problem

The third type of range I mentioned is a "developing range" that forms right next to a higher time frame (HTF) range. This is a common trap! When a new range "smooches" or overlaps with an existing one, it often creates a confusing, choppy environment where it's hard to establish a clear bias.

This is where most traders, including myself, get faked out and lose money. The best move here is to do nothing. Wait for a confirmed area of interest (POI) to form before taking any action.

💡 Putting It All Together: A Real Example

Consider the example I shared:
Price first swept the low because there was a lot of obvious, "visible" liquidity there.
Even if you missed that initial low, there was still an opportunity to enter on the continuation higher.

This is because the overall trend-based liquidity was still in place. The main trend was still up, and the sweep of the low was just a temporary hunt for liquidity before continuing the main move.

The lesson? Don't get fixated on catching the absolute low or high. By understanding the overall liquidity flow and the trend, you can still make substantial profit even if you miss the perfect entry. The key is to have a clear bias and wait for confirmation.

setup that makes me $13,000 (1R) per day, a thread with parameters🧵 I’m going to talk to in configuration of a long setup (vice versa applies to shorting)

Step 1 is to identify an uptrend that has started to cool down by ranging sideways. Depending on the time frame it can vary (this can be days to hours)

Scaling from making $100 a day to over $200,000 sounds pretty unrealistic, but it's possible !!

In this thread, I'll share my trading plan designed to help you establish a strong baseline for compounding capital over the next 3 years like I did🧵 [I stopped taking partial profits]

While many traders opt for multiple TP targets to secure partial profits along the way, this strategy can often dilute the overall risk-reward ratio (RR) of the trade. In contrast, having a single TP target can lead to more consistent and substantial profits.

Understanding Risk-Reward Ratio (RR)
The risk-reward ratio is a measure of the expected return of an investment relative to the amount of risk taken. It is calculated by dividing the potential profit by the potential loss. For example, a 2:1 RR means that for every dollar risked, the potential reward is two dollars.

Let's consider a BTC/USDT trade with the following parameters:

Entry Price: $30,000
SL: $29,500 (risk of $500 per BTC)
Single TP Target: $31,000 (reward of $1,000 per BTC)
With a single TP target, the RR is straightforward:
RR = Potential Reward / Potential Loss = $1,000 / $500 = 2:1

Now, let's examine a scenario with multiple TP targets:

First TP at $30,500 (50% of position)
Second TP at $31,000 (50% of position)

If you achieve the first TP:
Profit from 50% position: $250 ($30,500 - $30,000) x 50% = $250

If the price continues to the second TP:
Profit from the remaining 50% position: $500 ($31,000 - $30,000) x 50% = $500

Total Profit: $250 (first TP) + $500 (second TP)= $750

In this case, the effective RR changes:
Effective RR = Total Profit / Total Loss = $750 / $500 = 1.5:1

While securing partial profits can provide some immediate gains, it reduces the overall RR from 2:1 to 1.5:1. This reduction means that you need a higher win rate to achieve the same profitability. Furthermore, if the trade stops out at the SL, the full loss is incurred, which can disproportionately impact the overall performance. By sticking to a single TP target, you maintain a clear and consistent RR, making it easier to evaluate the performance of your trades. Capturing the full potential of a trade without diluting the reward ensures that successful trades significantly outweigh the losses.

I turned $1000 into $3,678,519 in 3 years without cracking my mind over what everybody else already knows!

If you can't identify the Liquidity, you will be the Exit Liquidity🩸

Here's how you can spot 6 different forms of Liquidity to manifest a high win rate from today🧵 1. Range Bound Liquidity:

As the name suggests, you are looking for liquidity inside the range but the core of which lies outside the actual range; to fade in order to not turn into what they call retail liquidity. For this example, I am using latest BTC Price Action (PA) between March until present day. On the chart, 1 represents a Lower Time Frame (LTF) range, 2 for Higher Time Range (HTF) and 3 for a developing range.

Rule of thumb to note among all 3; Price will at least once, seek latent liquidity above/below its pivots (which is the range high/low) before moving in the initial direction you intended to aim for. This is because, just like you- plenty of same brains across the world were aiming for the same direction except those that sought patience, sometimes even weeks, waiting for them to puke LTF decisions into HTF levels.

Now coming to some facts proven by history and of course own memory (since this thread is how I use liquidity amongst the general concept used by all). If price taps/raids more than twice above/below its pivot, its more likely to fail into those that wait. Right, this is because, at all times, price will fade into latent levels (Order blocks, demands or supply) and since a good number of people who are against technical analysis are being born daily and alive, they will puke into what is clearly on the chart; basic human psychology hehe. You are presented with 2 options; limit order into the fade and become passive liquidity yourself or wait for the reclaim of a range pivot to be a part of active liquidity. If you haven’t noticed yet, 3 is where most including myself could be wrong to form a bias too early, and that is because if you look further, range 3 is smooching the same area occupied by range 2. Now they make babies together which is your negative PNL, just kidding. Now is when you just wait and see where and when, a good area of interest (POI) is created to establish a confirm bias to act upon. One more thing, between 1 and 2, price swept the low first because a ton of visible liquidity was at the lower levels. At 3, there is an order block below too, most including myself waited for it, but never got it so we waited to get into the continuation higher. Despite missing the low, money was still made (substantially) not because the liquidity raid did not happen, instead- trend based liquidity was kept in mind, which is going to be our next point.

$1000 to $1,000,000 in 3 years then almost $2,500,000 since October 2023🤨

How come I can compound trades while keeping losses minimum?

In this thread, I'll explain 12 Entry Models I use on a daily basis to rapidly increase my net-worth as a spot markets day trader | No Leverage, No Shitcoins !! 🧵 Before going through each entry model, I recommend to watch this video about ranges, order-blocks and supply/demand explained in under 35 minutes!

I’ve traded $1000 to $600,000 in less than 2 years without an investor approach, one question I get asked often is; where should a beginner start?

In this thread I’ll list some major references from start to finish which I’ve mastered functional for the current market… https://t.co/O2YYHVpACatwitter.com/i/web/status/1…
1. Technical Analysis does work & you shouldn’t fall prey to people that say it doesn’t. In-fact, TA can help predict news events too like I do for myself before major events like FOMC.

The best channel I recommend for beginners to learn everything about traditional TA is… https://t.co/NOX5wpk5betwitter.com/i/web/status/1…