How Did He Make $400,000 Day Trading and Spend It on a Porsche 911 GT3 RS?

TL;DR

The trader reports making $400,000 by shorting GBP/CAD after confirming a daily head-and-shoulders retest, EMA rejection, a small double top, and a one-hour bearish structure shift. He risked roughly $110,000 to $130,000 from a $2 million live account, endured substantial drawdown, and closed near $2.4 million on January 8. Read on for his entry, stop-loss, risk-to-reward, and exit process.

Transcript

rela my eyes flashing lights good morning ladies and gentlemen today is a very special day why you may ask well because I need to make money I need to make money it's a new year shit's getting expensive and I need to make money to buy another super car Wait Alex but if you need money why do you need it for a super because I need it I need the rush ... Read More

Key Insights

• The initial trading plan evaluates four yen, Canadian dollar, British pound, Australian dollar, and New Zealand dollar pairs through daily and four-hour chart structures. The trader waits for specific closes, retests, rejection candles, or structural confirmation instead of immediately entering every identified setup.
• CAD/JPY is treated as a conditional short setup built around an accumulation area that had persisted for about 10 days. The trader says a daily close above the relevant level would cancel his interest, while a close below would require a break and retest before selling.
• AUD/JPY is analyzed near resistance where the EMA also acts as resistance. Although a four-hour doji provides rejection evidence, the trader requires an additional bearish candle before considering a short, demonstrating his stated preference for confirmation rather than relying on one candle alone.
• GBP/CAD becomes the preferred trade because price returns toward the neckline of a daily head-and-shoulders pattern. The eventual entry follows a retest of the EMA and area of interest, a small double top, and what the trader identifies as a one-hour shift from bullish structure.
• Stop-loss placement is presented as essential because normal market movement can invalidate an unrealistically tight stop without invalidating the broader setup. The trader argues that a stop should sit where being triggered would demonstrate that the complete trade thesis was wrong.
• The GBP/CAD position risks approximately $110,000 to $130,000, with the trader calculating that $130,000 multiplied by 2.5 could yield about $325,000. He describes this as positive risk-to-reward because the intended reward exceeds the capital placed at risk.
• The position reportedly moves close to its stop loss before recovering into gains of $30,000 and then $45,000. The trader uses this reversal to support his set-and-forget method, but the description separately warns that foreign exchange losses can include the entire initial investment.
• The final account balance is shown and described as approximately $2.4 million after the GBP/CAD position is closed for a reported $400,000 profit on January 8. The trader says he used a stop loss but no fixed take-profit order, allowing him to close manually.

Questions & Answers

Q: How did the trader report making $400,000 day trading?

He shorted GBP/CAD after price retested the neckline of a daily head-and-shoulders pattern, the EMA, and his area of interest. A small double top and a one-hour bearish structure shift provided further confirmation. He later reported closing the trade for $400,000 in profit.

Q: Why did the trader select GBP/CAD over the other currency pairs?

GBP/CAD was his favorite because its daily chart showed a strong left shoulder, head, and right shoulder, with price returning toward the neckline. He then saw a retest of the EMA and area of interest, a small double top, and a one-hour shift away from bullish structure.

Q: Which forex pairs did the trader analyze before entering the trade?

He reviewed CAD/JPY, AUD/JPY, GBP/CAD, and GBP/NZD. His analysis covered daily, four-hour, and one-hour charts and used support, resistance, accumulation, EMAs, candlestick rejection, neckline retests, and market-structure shifts.

Q: Why did the trader wait instead of entering GBP/CAD immediately?

Price had not fully reached his preferred area of interest, and his initial stop-loss location could have been hit without invalidating the overall setup. He therefore waited for price to move higher, retest the intended structure and EMA area, and provide more confirmation.

Q: How did the trader determine his stop-loss placement?

He said the stop loss should be placed where being triggered would prove the complete trade thesis wrong. He avoided an excessively tight stop because normal price movement could take him out before the expected move occurred. The GBP/CAD position later approached his stop before reversing.

Q: What was the reported risk-to-reward plan for the GBP/CAD trade?

The trader reported risking approximately $110,000 to $130,000 while targeting a reward around 2.5 times the risk. Using $130,000 in his calculation produced a projected gain of about $325,000, while the eventual reported profit was $400,000.

Q: What happened while the GBP/CAD position was open?

The trade initially entered substantial drawdown and came close to its stop loss. Later updates showed gains of approximately $30,000 and then $45,000. On January 8, the trader reported closing the position and increasing the account from $2 million to about $2.4 million.

Q: Why did the trader use a stop loss without a fixed take-profit order?

He believed a fixed take-profit order could limit the position's potential profit. Instead, he used a stop loss, followed a set-and-forget approach, and closed the trade manually. He reported that the final $400,000 gain exceeded his earlier projection of about $325,000.

Summary & Key Takeaways

• The trader begins with a $2 million live account and reviews four possible currency trades: CAD/JPY, AUD/JPY, GBP/CAD, and GBP/NZD. His analysis uses support and resistance, accumulation, head-and-shoulders formations, double tops, EMAs, candlestick rejection, neckline retests, and market-structure shifts across daily, four-hour, and one-hour charts.

• GBP/CAD becomes the selected short after price retests the head-and-shoulders neckline, the EMA, and an identified area of interest. The trader also observes a small double top and a one-hour bearish structure shift. He reports risking approximately $110,000 to $130,000 while seeking a reward around 2.5 times the risk.

• The position initially approaches its stop loss and experiences major drawdown before moving into profit. After updates showing gains of $30,000 and $45,000, the trader closes the account near $2.4 million on January 8 and reports $400,000 in profit. The description emphasizes that comparable results are neither promised nor guaranteed.