ICT YT - 2017-09-19 - Breaking Bad Habits Webinar and Intraday Scalp Example.srt

Last modified by Drunk Monkey on 2022-12-22 08:33
1 00:00:17,490 --> 00:00:27,750 ICT: Okay, folks, good morning. Good morning. Good morning. This is your first time here in the questions box. Give me a number one. If you've been here before
2 00:00:27,900 --> 00:00:29,640 my mentorship, no need to tell me.
3 00:00:37,620 --> 00:00:45,000 actually surprised there's a lot of a lot of you that are new, or at least you're at least you're telling me you're now I'm not sure. Okay, so what we're
4 00:00:45,000 --> 00:00:53,100 gonna do is I'm gonna be asking for credit card numbers today. So security numbers, and I'm just kidding, I'm just kidding. I'm asking you for anything.
5 00:00:55,350 --> 00:01:06,330 All right, first things first, we're looking at the Twitter account, did I activate it? So that way everyone knows that it is me. You hear my voice. It's
6 00:01:06,330 --> 00:01:17,250 at AI underscore, m underscore ICT. So if you've seen it or heard about it, and you're watching the video, I wasn't gonna record this. But now I'm going to
7 00:01:17,250 --> 00:01:24,030 because I think I could answer a couple different things that came by way of email over the weekend. So a lot of it had to do with is this really me, because
8 00:01:24,030 --> 00:01:33,180 there's two goobers on Twitter pretending to be me. But nonetheless, it's me. So I'll be sharing stuff. Beginning in October, I just want to get to Twitter
9 00:01:33,180 --> 00:01:42,840 account activity later by notes me. And that's about it. As far as that goes, it's pretty self explanatory. I'm not going to be doing the stupid stuff I did
10 00:01:42,840 --> 00:01:50,310 in the past, or I was trolling all the other people. So if you're looking for that, unfortunately, that won't be there. I'll just be talking about the markets
11 00:01:50,310 --> 00:02:01,830 and whatever else goes on in, in the charts. Alright, so let's go over to Mt four. That way, we'll get started on the things I want to discuss this morning.
12 00:02:03,000 --> 00:02:12,030 Now, admittedly, I'm a little rusty, because I've been away from live sessions for a couple weeks. I'm used to doing it on a day by day basis. But not taking
13 00:02:12,030 --> 00:02:22,830 some time off, because I've been burned out. But I want to kind of like, give the opportunity to voice my opinion on some of the things that I think plague
14 00:02:23,490 --> 00:02:33,810 traders. In terms of bad habits. Actually, I'll refer to some of the things I've done. From the beginning. Back in the 90s, when I first started as a trader, and
15 00:02:33,810 --> 00:02:44,430 one of the one of the one of the things that I think, if you first tackle it, and I'll talk about before we close today's session, if we can overcome this one
16 00:02:44,430 --> 00:02:53,130 particular habit, I think that would be a huge milestone, for everyone stay in and eat, it doesn't matter if you're a new trader, or if you're someone that's
17 00:02:53,130 --> 00:03:02,250 been trading for a long time. There's one particular habit that always plagues everyone. And I'm not suggesting I have figured it out for everyone, but I'll
18 00:03:02,250 --> 00:03:14,370 just give you my suggestion how I personally overcome it, or at least battle it. Alright, so when we're, when we're considering trading, obviously, the beginning
19 00:03:14,370 --> 00:03:22,530 or genesis of everything is, is you have to have an idea of what you're going to act on. Everyone first gets into this business, and they want to think about how
20 00:03:22,530 --> 00:03:29,910 much money they're going to make. They don't take any consideration that how much money they're going to lose, or whether in terms of adversity. So
21 00:03:29,940 --> 00:03:38,310 obviously, that's the first habit that, you know, becomes a bad habit is expectations, you know, and the unfortunate thing for me is, when I first
22 00:03:38,310 --> 00:03:52,260 started, I had initial luck. And everyone knows the storyline. I'm not going to rehash all that. But the barrier at which begins to build in a traders mind is
23 00:03:52,290 --> 00:03:59,640 as soon as they have initial block, like for instance, I had he start thinking, you know, more than you really do, you start thinking that you're better than
24 00:03:59,640 --> 00:04:11,340 you really are. And that was all what I experienced in the beginning. So I don't want to have this session without at least bringing that up first. Because a lot
25 00:04:11,340 --> 00:04:21,900 of you may be new, I don't know what your length of trading or how long you've been doing it. Just for record sake, I can't see it now because I'm not looking
26 00:04:21,900 --> 00:04:30,360 at it. But if you don't mind in the comment section, for question boxes, tell me how long you've been trading or when you first started doing it. You know, just
27 00:04:30,360 --> 00:04:36,600 give me some feedback. I can't read it all here while we're doing because there's a lot of things that supposedly had to close to the questions box. So I
28 00:04:36,600 --> 00:04:47,550 can keep my train of thought but the low expectation approach I think is the best way because it allows a lot of room to grow. What you think you're going to
29 00:04:47,550 --> 00:04:58,800 be able to do when you first start or before you start is going to be strongly contrast that by what you see in reality. In other words, everyone has this rose
30 00:04:58,800 --> 00:05:06,420 petal colored the Classes perspective, you know, they're never going to have a problem, because they feel hyped up, they get encouraged by whoever's told him,
31 00:05:06,780 --> 00:05:15,360 you know, this is how you make money, even in myself. And I've been guilty of that because of the things I promoted on baby pips and my tutorials and
32 00:05:15,900 --> 00:05:24,540 everything that created around the buzz of trading. Everyone subscribes to the idea that they're only going to make money for getting the very first post I put
33 00:05:24,540 --> 00:05:34,950 on here, talking about how everyone blows it, including myself at one several accounts. It wasn't just an AdWords account, you know, I've dusted a commodity
34 00:05:34,950 --> 00:05:35,820 account or two.
35 00:05:36,300 --> 00:05:47,970 So if you have these unrealistic expectations, you're going to quit your job and you have 30 days or within a year, your chances are, you're not, you're not
36 00:05:47,970 --> 00:05:54,780 going to do that, because you're going to do things to try to rush to that objective. And if you have initial luck, chances are, you're probably going to
37 00:05:54,780 --> 00:06:04,080 do a lot more leverage, you're going to be doing a lot more trading, your frequency, and you're going to be doing things that are probably gonna be
38 00:06:04,080 --> 00:06:11,250 outside the scope of what you originally sat down with in terms of a trading plan. And if you've traded, at least with live money, you know exactly what I
39 00:06:11,250 --> 00:06:20,310 mean, by saying all these things, you've probably done a laundry list of things beyond that. But the taste topic, I kinda want to talk about bad habits and
40 00:06:20,310 --> 00:06:28,830 breaking them. And I only want to speak in terms of myself, okay, because it's very easy for me to sit back here and armchair quarterback, everyone else I see
41 00:06:28,830 --> 00:06:36,450 around the world and on social media and non forms and odd stuff. I've done that before. And I kind of like want to divert away from that. While it was fun to be
42 00:06:36,450 --> 00:06:44,310 in Italy at the time. I don't want to do that again. Okay, so I'm just gonna keep the focus on me. So that way you guys can hear what I had to go through
43 00:06:44,310 --> 00:06:51,300 what I did, and how to compensate for those things. And I'll kind of give you an idea what you can do with it in the marketplace that we leave today with
44 00:06:51,300 --> 00:07:02,910 something useful, not just rhetoric. So number one, he had to have expectations in line with reality, you're not going to be you know, George Soros and own
45 00:07:02,910 --> 00:07:13,050 whole currency markets in Canaan, subjugate the world. He has a master puppeteer, you pull pulling strings, causing all kinds of ruckus around the
46 00:07:13,050 --> 00:07:20,790 world now, because he's so loaded. And you're not going to be Warren Buffett here. So you have to be just you. And you don't know what the trade is going to
47 00:07:20,790 --> 00:07:30,450 be, that resides in you. But you have to give that trader he or she, the room to grow. So number one, the first habit you need to break is rushing. And I've
48 00:07:30,450 --> 00:07:38,940 taught this and nauseum that ever since I began online talking about trading. The first one you have to conquer is the impatience. That's it. That's the
49 00:07:38,940 --> 00:07:51,540 biggest, biggest, biggest, bad habit, every trader has impatience. And patients have a setup and patience of getting in your trade waiting for that pattern you
50 00:07:51,540 --> 00:08:03,360 look for, okay, that that is the biggest barrier to being consistent. and patience is the hardest thing to develop. Because you can't develop discipline,
51 00:08:03,870 --> 00:08:16,230 until your patience is honed first. So it's the biggest barrier. It's not a brick wall, it's an iron wall, okay. And you literally have to find a way around
52 00:08:16,230 --> 00:08:26,190 it cuz you're not breaking through it, you got to go around it at means that journey you thought was going to be short, from A to B is now been extended
53 00:08:26,190 --> 00:08:34,080 because you don't know how long your personal experience is going to take you to the left or the right around that iron wall of impatience. It's not going to be
54 00:08:34,080 --> 00:08:41,190 where you're at we first started and then you to next stage of independence or financially independent doesn't work like that. It feels like that when you
55 00:08:41,190 --> 00:08:47,520 watch people online teaching or talking about what they're going to do or if they have a service or you they have a mentorship you know, you like myself,
56 00:08:47,520 --> 00:08:54,450 everyone thinks that the mentorship is going to be easy. These plug in, in this information and they get instant wealth and it doesn't work like that. It's a
57 00:08:54,450 --> 00:09:03,180 lot more work than the praetorians work. And believe me if they were talking about what what they learned, they would know they would tell you rather, it's a
58 00:09:03,180 --> 00:09:12,930 lot more work. So the the other side of it is yes, you have the impatience factor you have to overcome, but then you have to have work ethic. And you can't
59 00:09:12,930 --> 00:09:23,460 be lazy, you cannot be lazy because the markets do not reward laziness. Now, it does reward stupidity. I am a poster child for that because in the beginning, I
60 00:09:23,460 --> 00:09:35,940 had no idea what I was doing. And I was gifted, okay, either by charity or you know, the financial gods were playing, you know. I don't know it was just every
61 00:09:35,940 --> 00:09:42,810 all the things lined up when I first started, and I was on dying and I made money doing that only but then suddenly the markets turned into a traders market
62 00:09:43,140 --> 00:09:55,050 and I couldn't make a penny everything I do is losing. Which leads me to the next bad habit. When you take a loss. You cannot take it personally. It's a cost
63 00:09:55,050 --> 00:10:03,750 of business. And if you are allowing even a demo account because I've talked to so many people around The world, they have been very honest with me, and told me
64 00:10:03,780 --> 00:10:05,310 that even when they have
65 00:10:07,379 --> 00:10:17,819 a demo loss, it's debilitating. It totally fries their brain, it's like they don't want to even enter that. And that's a big, big problem. That means you
66 00:10:17,819 --> 00:10:28,619 have a complex with being right or wrong, and possibly over leveraging, even in a demo account, because everybody wants to see how much they could make, you
67 00:10:28,619 --> 00:10:38,489 know, maximizing the total amount of leverage that can use on a demo account. But not understanding or respecting the level of financial risks that you're
68 00:10:38,489 --> 00:10:45,809 incurring. If you were doing that with live funds, no one would be doing that with the funds in their right mind. Now people do it. But I said, in my right
69 00:10:45,809 --> 00:10:56,039 mind, they wouldn't do it. So they're either blinded by unrealistic expectations, or they're impatient about leaving the rat race. And believe me, I
70 00:10:56,039 --> 00:11:06,599 know that feeling, I wanted to get out of the job I was doing nine DS was killing me, I wanted to get out of it. So yes, the financial markets can bring
71 00:11:06,599 --> 00:11:16,229 those things to fruition, you can leave your job and replace it with this job, because it's not what everyone thinks it is. Okay, it's not, well, I'm gonna sit
72 00:11:16,229 --> 00:11:24,269 home and relax, I'm gonna kick back and not worry about anything. No, you're worrying all the time, you may not have that same degree of worry and anxiety
73 00:11:24,449 --> 00:11:33,929 that every other trader has, that's even making money. But you still have replaced what you're doing at a nine to five, with a job. And the perspective is
74 00:11:33,929 --> 00:11:44,399 as you're leaving a nine to five schedule, but it's defined, you know, when you have to be at work, and you know, when you have to leave work. So you have
75 00:11:44,399 --> 00:11:53,459 limitations and parameters, you know, your off days, you know, your times of service where you have to be there and give your time for money. Trading isn't
76 00:11:53,459 --> 00:12:00,209 like that. You don't have a schedule, you don't know if the one that session is going to give you a trade. You don't know if the New York session gonna give you
77 00:12:00,209 --> 00:12:08,759 a trade. So the idea or perspective of going into this business thinking, well, I want the traders lifestyle, most of you if you understood what it was, would
78 00:12:08,759 --> 00:12:18,299 not want the traitors lifestyle, because it's so uncertain, especially as a new trader, because you don't even know what you're going to do. Once you start
79 00:12:18,299 --> 00:12:24,419 trading, you don't know what your reaction is going to be when you have five winning trades in a row, I can tell you, it's probably going to do, you're going
80 00:12:24,419 --> 00:12:31,169 to overlap, but you're going to be in a rush to get that sixth trade name checked out to the questions, but make sure you guys are engaging. Give me a
81 00:12:31,169 --> 00:12:40,439 one, if you have had a series of winning trades, and let's say five winning trades, and you feel rushed to get in there to do the next one. Because you've
82 00:12:40,439 --> 00:12:48,329 had five winning trades, you want to get and get that feeling again, because you're addicted to that high. Say I'm if everyone's giving me a one. And some of
83 00:12:48,329 --> 00:12:57,659 them are being commentating, you're declining even beyond number one, explain it to me, that's me. So no one's no one's controlling you. The markets are just
84 00:12:57,659 --> 00:13:05,999 moving around. But in your mind, okay, you're creating all these if then scenarios? Well, I should have held on to that trailer, but longer,
85 00:13:06,090 --> 00:13:15,390 let me buy it again. Or it's may not, it's been going on for a while, it's a nice move. I don't want to buy here. So now I have to short it because I got to
86 00:13:15,390 --> 00:13:25,860 get back in again, because I could make more money. And the worst thing you can do is fall into that trap. You have to have very low objectives in the
87 00:13:25,860 --> 00:13:37,110 beginning. Because if you don't do that, number one, you're going to chase profits. And that's how they get you. Everyone knows what it feels like to get
88 00:13:37,170 --> 00:13:44,850 the thing right, where they made the right move they bought or they sold and it moved in their favor. It's even worse, okay, if you're new, and you don't know
89 00:13:44,850 --> 00:13:52,800 what you're doing, and it didn't even have any draw down. Because all of a sudden, now you figured it out, you know that you're now in Oracle, you want to
90 00:13:52,800 --> 00:14:00,330 go out and start a Twitter account, you want to go on Facebook, Instagram, now you know what's going on. And chances are, you might have a string of losses,
91 00:14:00,480 --> 00:14:09,030 okay, that come, but you're not going to pay attention to them, where that's where your learning is going to occur. The losses of what teach you. And the
92 00:14:09,030 --> 00:14:17,940 other half I want to talk about is how I focused initially on what I was doing right? When I was making money when I had their trade ideas, right. Even when I
93 00:14:17,940 --> 00:14:26,940 was paper trading as a commodity trader, I first started when I would be right, I focused on why I was right. And every time I was wrong, I ignored it because I
94 00:14:26,940 --> 00:14:35,040 didn't want to see it. I didn't want to talk about it. I want to pretend it didn't even happen. And that is a death trap. You cannot have that mindset as a
95 00:14:35,040 --> 00:14:43,890 trader. You got to go into this thinking, alright, now if I have adversity, and I get knocked out of a trade or trade doesn't pan out. That's my opportunity.
96 00:14:43,890 --> 00:14:52,500 That's that big neon sign. Is there one Look, everyone looks at the marketplace in the charts for the neon sign to pop off for entries. But the real traders
97 00:14:52,500 --> 00:15:02,730 mindset is if they have a loss if they incur adversity or the idea doesn't pan out or come to fruition That in itself is the part where you have to dig in
98 00:15:02,730 --> 00:15:12,840 deeper and find out what you didn't see, or what you misinterpreted. And the problem with that is you have to overcome. Number one, the initial shock and all
99 00:15:12,840 --> 00:15:21,000 of understanding that you're human. Okay? Everyone thinks that I have spark shooting out my ass, and I wear a cape every day. And I'm bulletproof. And I can
100 00:15:21,000 --> 00:15:30,630 leap tall buildings in a single bound. Book 800 people saw if I sit down every single trading day, I cannot be right, every single trading day, I said that in
101 00:15:30,630 --> 00:15:40,470 the beginning, you can't be that person, no one's going to be that person. But there is a framework that you can arrive at, that allows you to see setups that
102 00:15:40,500 --> 00:15:48,210 number one fits your trade, psyche, your personality, and the time that you can be available for the marketplace. Not everyone can be a swing trader, not
103 00:15:48,210 --> 00:15:56,610 everyone can be a short term trader or a day trader, it has to fit the way you and you live your life, are you a quick decision maker, you fly off the handle
104 00:15:56,610 --> 00:16:04,260 real quick, you get happy you swing back and forth real quick. That's a scalper or day traders mindset, you would do very well with that. If you're real lazy,
105 00:16:04,260 --> 00:16:10,590 and you felt lethargic and just can't come up with an idea right away. Yeah, your position trader, because chances are, you're not going to be swayed back
106 00:16:10,590 --> 00:16:18,450 and forth. Once you get a decision, once you arrive at an opinion about what you think the market is going to do. Chances are, you're gonna be so lazy about
107 00:16:18,450 --> 00:16:26,070 changing your opinion, you're just gonna stick with that. And that's a perfect role for someone that doesn't have a lot of ambition. And believe me, there's a
108 00:16:26,070 --> 00:16:34,830 lot of people that make tons of money, being lazy as a long term trader, but they has to have a model that matches that because some people just can't get
109 00:16:34,830 --> 00:16:42,300 it, you can't get together, they can't get motivated, they don't want to do a lot of work. And there's ways to do that. But it's very passive investing and
110 00:16:42,300 --> 00:16:51,930 you're not very active, doesn't mean you can't be profitable, it just means that you have to wait a long time to see the returns. So it is given take there. But
111 00:16:52,890 --> 00:17:00,780 if you're seeing profitable trades, you want to spend far less time worrying about them, because you can't make any more money than you've already made on
112 00:17:00,780 --> 00:17:11,670 it. But you can take away lessons and experience from the losses. And the worst thing you need to do is push them to the side and say to yourself, okay, I took
113 00:17:11,670 --> 00:17:19,170 a loss that's part of the business, I know that it's cliche, and I'm just gonna go to my next trade, huh, no, not what not as a new trader, eventually when
114 00:17:19,170 --> 00:17:28,800 you're mature, and you know that that is in fact what goes on, you take a loss, and that's part of it. If you're new and when I say new, three years or less,
115 00:17:29,160 --> 00:17:36,270 okay, to me, you're a neophyte still, you just don't know everything you need to know about yourself. Personally, you don't know what the markets have done. You
116 00:17:36,270 --> 00:17:44,130 don't have you don't have a track record enough to warrant saying that you're anything but a neophyte, I mean, three years is to me that the minimum
117 00:17:44,130 --> 00:17:51,120 threshold, then you're experienced, that's all it doesn't mean that you've mature, it just means you have some experience. Some of these folks, they get
118 00:17:51,120 --> 00:17:58,350 out here, you need to go into a demo account in six weeks, because they've done something and a profit and demo account,
119 00:17:58,350 --> 00:18:07,590 they suddenly want to start their own advisory services, you know, I'm talking about long short is if you have losses, that's where you have to roll your
120 00:18:07,590 --> 00:18:17,220 sleeves up and dig in and see where you got it wrong, or what you're missing. And one of the biggest things I personally did was ignore all the losing trades
121 00:18:17,220 --> 00:18:25,080 I had as a beginning commodity trader, I didn't understand what it was actually teaching me was shorting but I was afraid of shorting. I didn't understand the
122 00:18:25,080 --> 00:18:33,930 concept. How can you sell something you know, own? long and short of it is, once I had my ass kicked enough times, I had to, I had to force myself, okay, look,
123 00:18:34,230 --> 00:18:41,880 I'm now definitely afraid of taking a trade. I was at one point in time afraid to take a trade. In the beginning, I wasn't afraid of anything. Now today, I
124 00:18:41,880 --> 00:18:51,270 still not afraid to do anything I can get in no problem. The problem and I'll talk about taking profits as a bad habit later on. But I had a moment in my
125 00:18:51,270 --> 00:19:02,220 career when I was beginning and coming up. Where, because I was taking losses, I got traders paralysis, where I could see something that would be there. But as
126 00:19:02,220 --> 00:19:09,990 soon as I got the idea that I thought it was going to trade higher, because I was only a buyer. I was a bull market trader and I first started I couldn't take
127 00:19:09,990 --> 00:19:22,380 the trade because I was afraid of the loss. Because I was losing lots of money, lots of money, tons of money. And some of it was annual salaries, typical
128 00:19:22,410 --> 00:19:31,800 American annual salary and a trade. That's how bad it was, because I was hemorrhaging money. I didn't want to endorse any of that anymore. Or even in you
129 00:19:31,800 --> 00:19:38,910 know, indoor the uncertainty of just being in the trade because you know, that feels like a demo. We'll see what works off the bat. If it's profitable, I look
130 00:19:38,910 --> 00:19:44,850 great. I feel good. If it's wrong, I just ignore it. It didn't happen. It didn't take any money from me and you know exactly what that feels like as well. That
131 00:19:44,850 --> 00:19:52,830 does not happen when you trade with live funds change you put the money at work where they are less if it's a micro account or meaning or a standard lot
132 00:19:52,890 --> 00:20:04,530 account. You need to put that trade on something physiologically changes in your brain because now your acids almost You have a real loss, it's going to take
133 00:20:04,530 --> 00:20:12,780 money from you. If it puts money in your account, that's great. But suddenly everything changes. It's a paradigm shift where as a demonstrator, you're
134 00:20:12,780 --> 00:20:19,440 thinking, how much money can I make, and I don't care what it's going to take in terms of a loss, because I don't feel it. When you put a trade on with live
135 00:20:19,440 --> 00:20:30,030 funds, it reverses. Now you're thinking, holy shit, how much money am I going to lose on this trade, I'm afraid constantly, and you're not worrying about what
136 00:20:30,030 --> 00:20:37,500 you can make. That's where you should be focusing on where's the market going. That's the part you need to be studying, not worrying about the fear of losing,
137 00:20:37,830 --> 00:20:46,260 your stop loss is going to take care of it. If you put a stop loss in, that's its job, let it do what you're paying good money to do it. So let it do its job,
138 00:20:46,590 --> 00:20:54,840 you need to be focusing on where is the market going. That's your job as a trader managing that the risk is defined once you put your stop loss in unless
139 00:20:54,840 --> 00:21:07,860 it gets through. And there's conditions like that, that occur. That's the risk every one of us take, but you have to know what it is. Anyway, the the have to
140 00:21:07,860 --> 00:21:15,930 get to know what the objective is for your for your trading plan, or your objective and your trade idea. And focus on that when you're in live funds. But
141 00:21:15,930 --> 00:21:26,430 the problem is, and give me a one if this is happening for you. If you're now in the funds, you're thinking only about the fear of getting stopped out, and how
142 00:21:26,430 --> 00:21:34,740 much that's going to hurt your account versus when you got in the trade. Is it still going to your objective and managing that? Again, everybody? One on One
143 00:21:34,740 --> 00:21:44,250 mice all flying right now. So the long and short of it is that's a normal thing. But did you know the reason why that occurs is number one, your chances are
144 00:21:44,250 --> 00:21:55,620 you're using too much risk, you have way too much leverage. And your stop loss is probably too tight. Excuse me. So many times, I sat down with individuals
145 00:21:55,620 --> 00:22:04,590 because they watch people on Facebook, or they have Twitter accounts. And people they'll put a trade up. Okay, they'll put a trade on and share it online. And
146 00:22:04,680 --> 00:22:08,940 initially, they probably didn't have a stop loss on it all but they waited to the trade got into their
147 00:22:10,200 --> 00:22:19,440 in their direction. And then they put a stop loss in making it seem as if they had a four PIP stop loss. Come on. I'm just gonna, I'm gonna call it bullshit
148 00:22:19,440 --> 00:22:28,800 right there. That's, it's bogus. Okay, no one's trading consistently with five PIP stop losses. It's not happening. Believe me, it's not happening. Because
149 00:22:28,860 --> 00:22:37,470 they can do that in a demo. But when you put it in a Live account, five pips as a standard spread variance that they can do, it's legal, they can spread that
150 00:22:37,470 --> 00:22:44,970 open and grab your order. And believe me that that's exactly what would happen. If you had that order in a Live account. They're not trading with these sub 10
151 00:22:44,970 --> 00:22:53,880 PIP stop losses. It's not happening, not consistently, not now. It can I sit here and say, I've done that I've done it. Yes, but not enough to make the case
152 00:22:53,880 --> 00:23:06,120 that I believe that no more than eight warrants superiority because it doesn't. These markets are so engineered to screw you. You're asking for it when you have
153 00:23:06,120 --> 00:23:17,460 that. My stop losses generally, are 20 pips to 30 pips that's about it. And I want to know that I have enough room, number one to allow myself to be human.
154 00:23:17,820 --> 00:23:28,860 Okay. And this is the next habit you need to overcome, avoid this notion that you have to have the absolute best entry and the absolute best exit, because
155 00:23:28,860 --> 00:23:38,010 you're never going to get that it's never going to happen for you. The markets are so diverse, and rich with volatility, especially the asset classes that were
156 00:23:38,370 --> 00:23:46,680 primarily dealing with today's forex, but it kind of bleeds across all of them. It's not limited just to forex, but long and short it is you don't want to focus
157 00:23:46,680 --> 00:23:56,430 on or demand if you will, the absolute best, lowest low or highest high for your entry, you just need to have a setup that gives you the criteria to make a
158 00:23:56,730 --> 00:24:06,150 profitable move between those two points. Now you have to be I would be able to identify them. Okay, what's the what's an ideal entry point, okay. And chances
159 00:24:06,150 --> 00:24:14,280 are, you might get that once in a while or get very close to it. But you don't need that price lock. You don't need it, you need to have the ability to
160 00:24:14,280 --> 00:24:22,020 determine or decipher where price is right now. And within a reasonable amount of time, whatever fits your traders perspective. And that may be different for
161 00:24:22,020 --> 00:24:31,590 all of us. It may be 10 minutes for a scalper it may be a trading session or a day for day traders. Or for short term trader it could be a couple days, you
162 00:24:31,590 --> 00:24:39,330 know in terms of how I trade one shot, one kill or as a swing trader where you're trading for weeks up to a month. And then for a position trades where
163 00:24:39,330 --> 00:24:46,860 it's multi months in terms of duration, but you're in a trade. But you have to be able to frame that idea where you believe that prices right now if it's
164 00:24:46,860 --> 00:24:54,780 undervalued or overvalued, or oversold, how you want to call it if you believe it's going to go higher, how far How far away are we right now in terms of
165 00:24:54,780 --> 00:25:06,030 price, and where you believe price will be at a later time. Number one, you have to define the length of time that fits your trader mindset. And that I can't
166 00:25:06,030 --> 00:25:12,990 give you that answer that has to be done by yourself, no one can give that answer to you. And that's why I think that, for the most part, when people try
167 00:25:12,990 --> 00:25:25,500 to give trading signals or trading models or plans, they're plagued to fail, because you're trying to get a wooden square peg to go into a triangle hole, and
168 00:25:25,500 --> 00:25:32,910 it isn't going to, it ain't gonna work, okay, and it'll be frustrating for that person to constantly try to make that, that adjustment, and it's not going to
169 00:25:32,910 --> 00:25:44,070 happen happen for most The problem is, is sometimes you can find the person that can make that adjustment, or it fits them perfectly. And marketers and people
170 00:25:44,070 --> 00:25:53,400 that sell things, they will focus on that that's their trick pony, don't go out and parade them around. And that's why you have only one student or two students
171 00:25:53,400 --> 00:26:02,790 at most, and no one ever comes up to that level of understanding or attitude. Because it's too hard to form fit this stuff. This, this is such a hard thing to
172 00:26:02,790 --> 00:26:10,860 do. Even though it's so easy, it's either going to go up, or it's gonna go down, or it's gonna go nowhere. And you get to decide what you're doing. Why so many
173 00:26:10,860 --> 00:26:22,500 people failing, because of the thing that resides between your ears, that little seven pound universe, okay gets in the way. It's so wonderfully designed to be
174 00:26:22,500 --> 00:26:30,510 able to crunch numbers, it's it's processing power, the brain is what I'm talking about, for those that aren't really paying attention. That organ in our
175 00:26:30,510 --> 00:26:43,200 body is such a wonderful resource, but it's also our biggest adversary. Because we have said it all the wrong things toxic thinking. When you're in a demo
176 00:26:43,200 --> 00:26:53,820 account, you're focusing on the stimuli that makes you feel smart. You want to do the rewarding scenario, the routine where I buy, it goes up, I was right.
177 00:26:53,850 --> 00:27:03,720 This is how much money I want an eight. Pay your car payment with that? You can. But that's reality. So why aren't you thinking that way? And we have a demo
178 00:27:03,720 --> 00:27:08,010 loss. When you have a loss in your demo. You're you should be thinking shit
179 00:27:08,040 --> 00:27:16,410 that David took that much money from me. And then now what are you thinking? If that was real money coming in your account? You're thinking, Okay, I gotta get
180 00:27:16,410 --> 00:27:26,100 that back right away, right? Wrong. That's not what traders do. Traders first perspective, as soon as they have a loss, regardless of the size of the loss,
181 00:27:26,340 --> 00:27:35,160 what is a consistently profitable traders mindset and merely going to at the time of a loss once the stop loss has happened? What is a mature traders
182 00:27:35,160 --> 00:27:36,810 mindset? What do you think they're thinking immediately?
183 00:27:49,470 --> 00:28:02,970 Got to get it back, I need to get into the next trade. One, one person saying Why did I lose? I'm not seeing what you should be thinking yet, though. Number
184 00:28:02,970 --> 00:28:17,070 one, my number one rule is if you had a loss, you got to stop, do not rush back in to take another trade. Don't ever take a loss and feel like you have to go
185 00:28:17,070 --> 00:28:28,890 back in and get it right away. That is a huge mistake. You cannot, you cannot get your money back right away every time. Even though you think you got time in
186 00:28:28,890 --> 00:28:38,130 the day, the markets maybe move around maybe volatile. Okay? It doesn't equate to opportunity for you to get your money back. You may have to wait a day or
187 00:28:38,130 --> 00:28:46,350 two. And there's nothing wrong with that. That's normal. The problem is, is if you're new to this, and you've just started trading prematurely in live funds,
188 00:28:47,520 --> 00:28:56,400 the human tendency is I want to get my money back right now. Because immediately what you're thinking is, I shouldn't have never done this, I should have never
189 00:28:56,400 --> 00:29:04,230 traded with live funds, I want to get my money back, I want to close my account. And this could probably happen with this a $200 loss. I mean, it's such a minor
190 00:29:04,260 --> 00:29:12,090 amount of money, but you're all thinking it, believe me, the first loss you're taking with life funds is regret. I want to get my money back I want to I want
191 00:29:12,090 --> 00:29:19,050 to at least get back to the point where if I want to close my account, I didn't lose anything. I I don't want to do this again. Everyone feels that their first
192 00:29:19,080 --> 00:29:26,940 Live account loss. That's what you're feeling, you will probably admit to it. But that's exactly what you're thinking. So you have to have that mindset as a
193 00:29:26,940 --> 00:29:37,590 mature trader because that string of losses that blows your account all starts with that one first losing trade and how you react and respond to that loss.
194 00:29:38,370 --> 00:29:49,710 Everyone goes into a tailspin at some time and loses Do you never gonna get it right? But if you take the initiative to say I've taken a loss I cannot lose any
195 00:29:49,710 --> 00:29:57,480 more money I'm already have the money. I'm already having the account. I'm sorry, the trade my accounts at static. It's not moving now. The markets moving
196 00:29:57,480 --> 00:30:06,540 around but my equity is not moving I'm not in a hurry to get that money back. I want to take a breath, take a step back away from the marketplace and say, Okay,
197 00:30:07,350 --> 00:30:18,090 what did I do wrong? Is the trade still viable? If it is paper trade that do not go back in with lifelines, and this is for people that have less than three
198 00:30:18,090 --> 00:30:27,960 years experience. Because chances are, you're going to see that you're going to be very emotional about getting in to get your money back. And emotions aren't
199 00:30:27,960 --> 00:30:41,100 always clarity in terms of analysis. Either you're irrationally excited, or you're fearful. There's two things as a new trader, and chances are, it's the
200 00:30:41,100 --> 00:30:47,310 first not the latter, you're not worried about losing money as a new trader, you're worried about how much money you're gonna make. And that's not what you
201 00:30:47,310 --> 00:30:56,940 should be doing, how much money can you lose, because everyone goes out the same way lost it. Very rarely does anybody retire wealthy, they go in with the
202 00:30:56,940 --> 00:31:05,640 expansion, expectation of having that as the outcome, but everyone leaves this game the same way with less than they started. Think about it. So you know that
203 00:31:05,640 --> 00:31:14,280 the the likelihood of the scenario when you get into this business, so if you cannot control yourself, believe me, the market will help you. Okay, it will
204 00:31:14,280 --> 00:31:22,050 help you lose your mind. Okay, if you came into a lack of control and discipline, it will help you do a better job of that. It'll give you perfect
205 00:31:22,050 --> 00:31:30,060 opportunities to do that. And yet little seven pound universe between your ears, your brain is going to also fill in those gaps when the marketplace isn't
206 00:31:30,060 --> 00:31:37,710 providing this little stimuli that he didn't because our RSI is doing Nasser get in because the moving averages crossed over there. What all these things happen?
207 00:31:39,060 --> 00:31:48,240 You're going to be looking at. Alright. Hang on here one second.
208 00:31:55,950 --> 00:32:07,560 Yeah, one more chance Bubba and he going. So the you cannot force yourself to get back in to get your money right away, won't happen can't happen. If you do,
209 00:32:07,590 --> 00:32:16,320 you're going to be bringing yourself to a level of novice and you're gonna stay in reside in that thought process the rest of your trading career which may be
210 00:32:16,320 --> 00:32:29,490 very short lived. If you relax and go at bat, taking the loss and saying okay, I took a loss, I can't go past this anymore in terms of losing money, it's already
211 00:32:29,490 --> 00:32:39,480 taken the money out of my account. What should I do now? That bad habit is going back and trying to get it right away. You can't do that. The best way and the
212 00:32:39,480 --> 00:32:47,400 mature way is okay, I've taken a loss. I'm not going to do any more today, I'm going to sit back and if I still think the trades Bible, I'm going to in my mind
213 00:32:47,430 --> 00:32:56,220 paper trade Say hi, had I done it, what's going to happen is you're going to teach yourself. Number one, if it was another losing trade, it doesn't pan out
214 00:32:56,220 --> 00:33:04,920 as you thought you didn't incur any more live money loss or demo loss. But it's going to teach you an opportunity to go in and dig in what is it you're saying
215 00:33:05,250 --> 00:33:14,610 is there's a lot of times we feed into these ideas of what you think the markets going to do. Okay, we think the markets gonna go higher, you'll come up with all
216 00:33:14,610 --> 00:33:23,100 these excuses as to why you believe it's going to be there. You'll paint the picture, you'll give yourself all the evidences in your mind, why it's there,
217 00:33:23,130 --> 00:33:33,060 and you sell the idea to yourself, which is the reason why I think the other bad habit is spending too much time in the charts. Either your setup that you didn't
218 00:33:33,060 --> 00:33:43,560 look for and you trust is either there or it's not sitting in front of charts all day long is not going to make that formation occur. So investing way too
219 00:33:43,560 --> 00:33:52,260 much time, way too much effort. Okay, in terms of looking at price action, unless you're studying just simple price action but looking for a setup, you
220 00:33:52,260 --> 00:34:00,420 don't want to spend a whole lot of time either there or it's not. It's it's black and white in terms of that. That's about the only absolution there isn't
221 00:34:00,450 --> 00:34:06,060 in trading stuff for losing money, you're going to absolutely mine guaranteed it's going to happen. It happens to everyone you can't escape, it's like death.
222 00:34:06,510 --> 00:34:16,470 But if you know what your setup is, you don't spend that much time looking at it. You know what you're looking for? Okay, so that's the other I'm gonna close
223 00:34:16,470 --> 00:34:25,380 it with this bad habit is not having an idea what it is you want to operate on. Like what is the trading pattern that you look for? Now, when I first came out
224 00:34:25,410 --> 00:34:37,260 with baby pips, the first thing I taught was optimal trade entry. And there's no mystery there. There's no new alchemy, nothing new. It's a standard 62 to 79
225 00:34:37,320 --> 00:34:48,450 retracement level. That typically happens in more retracements That's all it is. And it in terms of a bias. Okay, looking at things like the move here, up and
226 00:34:48,450 --> 00:34:59,100 then back. This move here is what you have to internalize in terms of price action. This is what it looks like conceptually. The market rallies away. Right
227 00:34:59,100 --> 00:35:10,140 about here. Excuse me, right about in here. This is where all the traders on social media and on forums, they will say, Okay, I'm buying, I think that the
228 00:35:10,170 --> 00:35:17,670 cable, which is what we're going to show here, British Pound versus US dollar, right about here, that's where the retail minded traders are going to be looking
229 00:35:17,670 --> 00:35:27,450 to buy. Because why would they look at currency? in their mind, they see this as confirmation. So that means that it's confirmed that it's going up, well, yes,
230 00:35:27,450 --> 00:35:30,330 it's already gone up. So retail they'll buy in here.
231 00:35:31,590 --> 00:35:40,470 And without a doubt, and you've all experienced this, you buy it. And it retraces deeper, chances are well beyond what your stop losses would have been
232 00:35:40,470 --> 00:35:49,260 had you used them or to your stop loss. Okay, because you've used something down in here. Or maybe you use the 50% retracement level, because you want some guy
233 00:35:49,260 --> 00:35:58,560 on the forum say everything should be below the 50% level in stop losses. And it goes down to 62 to 79 cent treatment, and then does something to the effect of
234 00:35:58,560 --> 00:36:07,320 creating another short term low and then rallies. So if you can't see your pattern, or even identify and define it, that's a that's a problem. That's a
235 00:36:07,320 --> 00:36:14,550 habit because what you're doing is you're reacting to price, you're doing what everyone else is doing. They're watching it go up after it's gone up a certain
236 00:36:14,550 --> 00:36:24,990 number of pips, and it could be completely wide, very variety of terms of range of what everyone would love to see in terms of providing, quote, unquote,
237 00:36:24,990 --> 00:36:35,010 confirmation. You don't need confirmation, if you're going to be consistently trading profitably, you need to have a setup and you trading in the opposite
238 00:36:35,010 --> 00:36:42,420 direction you intend to profit. In other words, if you're looking to go long, you have to be buying when prices dropping. If you don't learn to do that, in
239 00:36:42,420 --> 00:36:51,420 forex, you're going to sit through a lot of drawdown, you're going to be very hard pressed to have to endure before your dealer spread is covered. And you're
240 00:36:51,420 --> 00:36:58,650 going to get stopped out a lot. So you want to be anticipating this type of move. So obviously you have to come up with a framework that provides
241 00:36:58,650 --> 00:37:06,060 bullishness, for some of you, you might like trend lines, okay, you might have a trend line that you see on a monthly and a weekly chart. And you think that it's
242 00:37:06,060 --> 00:37:12,540 bullish? Okay, I'm not gonna argue and say that he can't make money with it. I just don't personally believe in them. But if that's what you believe, you know,
243 00:37:12,540 --> 00:37:22,080 that's your bias that leads you to believe you're bullish on cable coin, great. What you would look for is you want to see this willingness to go up, okay, I
244 00:37:22,080 --> 00:37:30,150 taught this in the snipers series and precision trading concepts. They're free tutorial stuff. I'm not teaching you anything in terms of the mentorship stuff
245 00:37:30,150 --> 00:37:40,080 here. But the general premise is, is you want to see this displacement in the marketplace where there's an underlying willingness to go higher. And we see
246 00:37:40,080 --> 00:37:48,540 that in price. So when price rallies and this could be on all timeframes, it's not limited to any one particular timeframe. But when price rallies, you want to
247 00:37:48,540 --> 00:37:57,330 wait for that retracement back and identify, you know what those levels are going to be based on running a fib from the low up to the high because you're
248 00:37:57,330 --> 00:38:09,240 bullish. So when you have that, you'll get this Fibonacci layer on top of your price swing, and right in here in this little area. This is what you'd look for
249 00:38:09,240 --> 00:38:20,760 for your setup. So the habit you want to overcome is staring at the charts blindly not knowing what it is that you should be looking for. Right in here is
250 00:38:20,760 --> 00:38:27,210 the setup. You can see how price will you can see that now the candles here so I'm gonna change the color the background with the candles, you can see exactly
251 00:38:27,210 --> 00:38:38,190 what happened. But this is a sweet spot. There's no magic in that level. It's simply the 70.5 level on the Fibonacci seven 0.5. Okay, and that level, is what
252 00:38:38,190 --> 00:38:49,200 I've taught on baby pips from 2010. On until I finally left there. This was the level I like to see price trade to just for completeness sake. And because I'm
253 00:38:49,200 --> 00:38:58,980 sure everyone's wanting to know, do I buy on retracements at the 70.5 or 260 2% tradesmen level with a 79% tracing level, like I taught on baby pips, I try to
254 00:38:58,980 --> 00:39:08,670 get my entry at 262. I don't know if it's going to go down to the 70.5 or 79. I don't know that no one knows that. So because I trade with a higher timeframe
255 00:39:08,670 --> 00:39:16,560 model in mind, I'm already allowing myself to have some measure of drawdown from my entry. I'm comfortable with that, because it's expected it's built into my
256 00:39:16,560 --> 00:39:26,880 model. So I don't freak out when I buy to 62. And it goes down to 70.5 or 79. Because I've allowed the trading and the the gearing on that trade to permit
257 00:39:26,880 --> 00:39:34,890 that in terms of the risk, it's not going to hurt my account that much, even if it trades beyond that and stops me. The next point is is this is where you would
258 00:39:34,890 --> 00:39:42,390 look for your entry. Okay, that part's done. That's the easy part. It doesn't feel like it's the easy part. Everyone else is struggling with that. I want to
259 00:39:42,390 --> 00:39:50,730 tell you now what the hard part is where to get out. You have to know where you're getting out at. This is what gives you your risk reward models if you
260 00:39:50,730 --> 00:40:02,160 believe in that myth. Okay. If we know that this is the retracement level and this is where we're trying to buy at okay if this is our entry How much are we
261 00:40:02,160 --> 00:40:11,820 willing to hold to trade for? Now notice what I said there. I did not say, how much are you are is your risk reward going to be? Because that's speaking in
262 00:40:11,820 --> 00:40:18,960 absolutions. And everyone knows what it's like when you get into trade. The market may do something once it gets up to here. Okay, it may give signs and
263 00:40:18,960 --> 00:40:25,440 evidence is that it doesn't want to go beyond this high here. So is the risk reward model still the same? Hell no.
264 00:40:25,680 --> 00:40:34,590 It's gone out the window. Because now you have wrestled and now are wrestling with emotions, psychology, I have profits. Now. Do I want to hold on to the full
265 00:40:34,590 --> 00:40:45,300 position? No, forget about it. Real traders learn to scale out and they do no work, let's say this way. Real consistently profitable, traders learn to scale
266 00:40:45,300 --> 00:40:53,940 out those individuals that teach on social media, that scaling is stupid, because your risk is the highest at the beginning. And you're taking smaller
267 00:40:53,940 --> 00:41:01,770 profits along the way. Forget what everyone else is saying. Because they just said what everyone else is not doing. Taking profits is what everyone can't do.
268 00:41:02,460 --> 00:41:13,650 The 90% plus club is not profiting. So those individuals are commenting on how people are doing it wrong taking profits, you are not taking anything negatively
269 00:41:14,940 --> 00:41:21,810 out of your trading. By taking profit you're in you're investing you're depositing where everyone else is getting withdrawals from their account you're
270 00:41:21,810 --> 00:41:29,940 depositing, you're here in this industry to make money. You're not in here to look good. You're not in here to be smarter than the next guy. You want to be
271 00:41:29,940 --> 00:41:36,990 profitable. You put this much money in the account. Your idea is you want to have more than you did when you first started. How much time is it going to take
272 00:41:36,990 --> 00:41:45,930 to get to that number you have as a goal? I don't know. You don't know. But you have to have at least an initial comfort level where you think reasonably the
273 00:41:45,930 --> 00:41:54,120 market may go how you do that? Well. This is the impulse price swing that I taught for displacement and sniper series. Then you wait for the retracement
274 00:41:54,150 --> 00:42:01,890 back down in the 60 to 70% retracement level in a bullish market environment. And again, I'll leave that to you that makes what makes the market bullish and I
275 00:42:01,890 --> 00:42:11,070 given you several different reasons why you can expect the market to go higher or lower in this lecture series and my free tutorial. So if we know that it's
276 00:42:11,070 --> 00:42:19,680 most likely going to go higher, where do we look to get out? Where's the target level or Where's several targets? Okay, so we can consider taking multiple
277 00:42:19,830 --> 00:42:36,300 scaling out profits to high down to the anticipated low. Here. That's the low on the price, I'm going to use the 70.5 level right there. So what I did was I drew
278 00:42:36,300 --> 00:42:43,590 the high down to the 70.5 level gradient here, this is going to be a target.
279 00:42:49,560 --> 00:42:57,630 Okay, and we always use to hide retraces from because it can just go right to that point. And that's a real good level to take some profits at. Here's another
280 00:42:57,630 --> 00:43:06,420 objective. And here's another objective. Okay, so now we have our entry. That's easy. That's the easy part. We know where it's most likely going to go. If it's
281 00:43:06,420 --> 00:43:14,760 bullish, it's going to go back and retest this high. And then we want to see if it has a willingness to go higher. That's this one. And here, and right about
282 00:43:14,760 --> 00:43:23,520 here, that's about as high as I would like to go. Okay, because this could be in remember, I taught this in my free stuff, that reflection pattern, where we have
283 00:43:23,520 --> 00:43:31,710 a high short term high and market trade through that to some degree and creates like a mirror version of optimal trade entry for ourself. By making a higher
284 00:43:31,710 --> 00:43:40,560 high becomes the turtle suit so it goes lower. I have that in mind. Every time the market trades to a new high or a new low. I'm thinking take some profits,
285 00:43:40,920 --> 00:43:50,970 the other traders making its breakout, it's going to continue not me. liquidity is resting above old highs and below lows. So their liquidity pools if we can
286 00:43:50,970 --> 00:44:00,540 now frame an entry cream targets here in here. Okay, I like to take something ahead of the high because I've seen many times my trading aid may not get back
287 00:44:00,540 --> 00:44:10,800 there, it could create a lower high here fail and go lower. So that's why in here, what I do is I take another fib draw from the high down to the entry, and
288 00:44:10,800 --> 00:44:14,700 where 70 lines of tradesmen level is here. And I'll show you what that looks like you didn't get this off
289 00:44:21,360 --> 00:44:32,100 the high retracement down to the entry. Point 71 70.5. rating here is 79 centuries and I would like to take profit and scale right there. Why? Because I
290 00:44:32,100 --> 00:44:43,470 could be wrong. They could trade up to their fail and go lower and reverse. Now think about what this gave you. I gave you a way of still profiting when you're
291 00:44:43,470 --> 00:44:52,440 wrong. Because the idea in premises this high should break this is bullish. But there's nothing saying that's going to happen. That's not going to always
292 00:44:52,440 --> 00:45:01,050 happen. So here's your objectives. This is what you're left with. At least this is how I do it. You get down here how much of a range Do you have from first
293 00:45:01,050 --> 00:45:09,000 profit from here to here, because that's my first target. And everyone saw this happening. When I was doing my mentorship, if I had to trade that was panning
294 00:45:09,000 --> 00:45:20,850 out, I was taking profits ahead of where I thought the market was gonna go. Now, to a lesser, mature mindset, when they see this, they think, oh, he doesn't have
295 00:45:20,850 --> 00:45:27,810 the discipline to hold out for his trade idea. And that tells me a whole lot about that person that makes those comments because they aren't profitable.
296 00:45:28,410 --> 00:45:37,440 They're not because they're holding for all of it. They want every piece of the pie. And you cannot do this consistently, because their markets are going to
297 00:45:37,440 --> 00:45:45,510 move around. You don't know if they're going to drop a bomb in North Korea and cause the markets to have a ripple. So how can you with any degree of absolute
298 00:45:45,510 --> 00:45:53,490 certainty, know that the market just goes back to the old high, it just makes you think it's bullshit, something's gonna happen. So you have to build in
299 00:45:53,490 --> 00:46:01,410 models that allow you still be profitable, even if you're wrong. So the idea is I want to go back to this old high from my entry down here. If it gets back to
300 00:46:01,410 --> 00:46:09,960 this high here, that's a level where I can take profits. But it may not get there. But if it does, great, I'm gonna see if I can go to the next level, which
301 00:46:09,960 --> 00:46:20,820 is 127, extension, and then 162 extension, that's what these levels are. Okay. So now with this in mind, we can frame from this point here to my first target,
302 00:46:20,820 --> 00:46:30,690 how much could I reasonably expect to make? Is that enough in terms of pips, if it's like 10 pips, that's not a trade for me. If this is like 30 pips, or 40
303 00:46:30,690 --> 00:46:41,160 pips, then yes, that's a trade for me, my personal model my personal tastes, because it allows me to make enough money in terms of movement and magnitude of
304 00:46:41,160 --> 00:46:50,400 price move, and it gives me enough to profit, I can take half the position off here, okay, and take a portion at the high, take a portion off here, and a
305 00:46:50,400 --> 00:46:59,310 portion off here. And the moral victory of knowing it went to the ultimate high, that's what I get, I do not always get full entry for exit where I say it's
306 00:46:59,310 --> 00:47:08,490 going to go. That's not happening all the time. rarely, if ever, is it happening like that. I know, by looking at a trade like this, it gives me framework. So
307 00:47:08,490 --> 00:47:16,050 now if I have this in mind, I have my entry you want to get in it, I haven't done anything, this is the things I'm doing. And these are the things that you
308 00:47:16,050 --> 00:47:25,050 have to do. If you don't do this, you're going to have your trading filled with bad habits, this is the good habit that you have to do. So this is how you frame
309 00:47:25,050 --> 00:47:35,400 a trade you set about for entry, you define what your objectives are to get out. And now once you understand this, now you can determine what your risk is. Then
310 00:47:35,400 --> 00:47:43,110 it also makes or breaks the trade for you. So now you have to look at how much can I make here in terms of pips, and how does that relate to putting a stop
311 00:47:43,110 --> 00:47:53,700 loss rate at this low here. Now, trading circles will say you got to go down here like 10 pips below this low, not me. I don't want to I don't want to have
312 00:47:53,700 --> 00:48:04,260 that. If I believe that I have 40 pips, or say 60 pips here, okay, in terms of range, because I'm not looking at here in terms of the actual cable movement.
313 00:48:04,590 --> 00:48:14,280 I'm giving you kind of like a blanket concept to use on all timeframes. But if we get like a range of 60 pips here, okay. And I know some of you're looking at
314 00:48:14,280 --> 00:48:24,210 it's not 60 pips Michael, but belong short is, is if that's the range that we have here. 40 to 60 pips, if we buy here, we're buying it as it drops down, not
315 00:48:24,240 --> 00:48:33,150 once it starts going up, you don't need to do that you want to be buying it as it drops and hits that level. Okay, either 62 or 70.5, you can be a hard ass and
316 00:48:33,150 --> 00:48:41,100 wait for it to go down to 79. But many times it doesn't go there. And you'll see once the colors that you can see actually here, it never went down that low. But
317 00:48:41,100 --> 00:48:51,000 I like to anticipate it reaching to 70.5 for optimal trade entry. But my entry most 90% plus times is right at the 62% trades level. That's what I'm looking at
318 00:48:51,000 --> 00:48:59,070 the price I'm trying to get. So either I'm trying to wait for the trade so allows me at market to get that price or I use limit orders at or just above the
319 00:48:59,070 --> 00:49:05,760 70.5 level that will get me at the 62 as an entry. The risk is defined right at the old low.
320 00:49:07,230 --> 00:49:15,360 Why am I comfortable with putting it right at the old low and not 10 pips low or five pips or 20 pips below it. Because if it's going to go below the 79% level,
321 00:49:16,200 --> 00:49:24,900 it's going to run the stocks below that low anyway. And I don't want to have too much risk below that low, late it opportunity for them to take that for my
322 00:49:24,900 --> 00:49:34,500 account as it could skip and get down and hit that and too fast of a movement for me save it's safe to stop. So I have my stock rate too low. So if he does
323 00:49:34,500 --> 00:49:43,020 skip and jump down here, I'm not going to whether 10 or 20 or 3040 pips below that low depending on how your trading teacher taught you with an old low
324 00:49:43,050 --> 00:49:51,780 putting a stop below that. I'm going to rate at that low because in this condition if I'm bullish, it should not go below 79 if it goes below 80 it I'm
325 00:49:51,780 --> 00:50:00,360 wrong. So I'm going to collapse the trade personally and I'm going to say the stop to now what I just teach you cut your losses short. Define your risk. Know
326 00:50:00,360 --> 00:50:09,930 your objectives, how to hold on for them. we've replaced a lot of bad thinking and toxic thinking you probably had or didn't even know what you're looking for
327 00:50:09,930 --> 00:50:19,590 in terms of price action, I've given you a complete model of how to interpret price. Replace bad habit thinking and replace it what the things you're supposed
328 00:50:19,590 --> 00:50:33,990 to be looking for, what is it you focusing on primarily? So with that in mind, let's go into really I know there are some people that are not inside my group
329 00:50:33,990 --> 00:50:50,370 here, and your news is the first time you're here. Get to the meat of it, get to show us the account. Since you made your video really. Right. I'll use this said
330 00:50:50,370 --> 00:50:57,180 that like I usually had a bull candle. ampere candle.
331 00:51:04,830 --> 00:51:17,190 Okay. And that's what price look like in reality. So you can see how price rally up to the seventh level of the retracement leg, this is first profit. Okay, then
332 00:51:17,190 --> 00:51:28,290 it pray price trades up to the old high, there's an objective there. Here's an objective here is that and then finally hit the 6162 extension. So all this
333 00:51:28,440 --> 00:51:37,290 unfolds with the idea that you have to believe that the market is going higher. So that means you have to anticipate the market moving higher, wait for it to
334 00:51:37,290 --> 00:51:46,980 happen. Don't rush, when it does retrace, know where you're gonna be looking to to take the trade stop loss around here, turtle soup entry, it doesn't have to
335 00:51:46,980 --> 00:51:54,240 be optimal trade entry. This could be your trading pattern here, this old low being violated when it's bullish. There you go, as this is all free tutorial
336 00:51:54,240 --> 00:52:03,720 stuff. But the problem is, is many of you are trying to do too many things. And you're worrying about the wrong things. And by having the right perspective,
337 00:52:03,900 --> 00:52:18,240 applying it doing consistently, then and only then will you overcome bad habits and replace them with positive. Really, really look. This is not why had you
338 00:52:18,240 --> 00:52:34,920 here. But the account now is it 15 to 81. I did a little little movement in the Euro this morning. We'd see the last one I got stopped out on that video. And
339 00:52:34,920 --> 00:52:48,630 here it is. So now I haven't taken any losses I'm hiding from so please don't send those things. Guys worry about the wrong things. Anyway. So hopefully this
340 00:52:48,630 --> 00:52:58,230 has given you some some framework to work within in terms of developing the right mindset, and overcoming bad habits. Obviously, there's a lot of things
341 00:52:58,230 --> 00:53:08,370 that could be answered or discuss. And I could probably go on and on and on. But I don't want to spend any more time that have a lot in for. So I want to know is
342 00:53:08,370 --> 00:53:18,720 have you had any kind of if you've had any ideas stimulated, if you've given at least a context of how to use it. That would be appreciate if you share with me
343 00:53:18,720 --> 00:53:37,410 in the comment box. I don't I didn't want to do this. But let's go through real quick. There's the trade. And you can see how very similar to what I did with
344 00:53:37,410 --> 00:53:48,600 the cable idea. I went long here, you can see the trade idea is how about me show 2 million times you can see it's not me adding a line and putting all this
345 00:53:48,600 --> 00:53:59,040 stuff here did a long here I had the objective of getting up here. And we had a price drop. And I did an extension with an extensive fib from the high down to
346 00:53:59,040 --> 00:54:07,590 the low and it rallied back up. And once we got to a level that would be reasonable for optimal trade entry as a potential reversal. That's where I was
347 00:54:07,590 --> 00:54:17,430 scaling out at. And my initial scaling was just pay off. I took two of the four I bought initially down here because I was unsure about the willingness to want
348 00:54:17,430 --> 00:54:28,080 to go higher. So I was paying myself even though I was wrong. You have to learn to be profiting. When you're wrong about your outcome. If you don't see the
349 00:54:28,080 --> 00:54:36,360 things panning out, you need to at least know how to get that out of the marketplace to pay you. I had it pointed with entry. The market rally that while
350 00:54:36,360 --> 00:54:44,340 I was sleeping, it didn't hit my limit order. didn't give me the objective to move higher. We dropped down I woke up I saw price trading at this level in
351 00:54:44,340 --> 00:54:51,960 here. I gave it some time. And once it moved into a level retracement from this high down to the low. I scaled out and it didn't give me any more positive
352 00:54:51,960 --> 00:55:00,150 movement scale out another portion. It didn't give me any more and I just collapsed the trade. And did I do the right thing? Yes. Was I wrong about The
353 00:55:00,150 --> 00:55:09,120 trade? Yes, because I thought I was gonna go up here. Did I lose money? No. Did I make money? Yes. In demo for disclosure, I'm teaching through a demo account.
354 00:55:09,570 --> 00:55:12,030 But this is what you do. You have to have
355 00:55:13,410 --> 00:55:23,970 free, drop the ego leave the I got to be better than the next guy attitude or I have to live up to some measure of expectation to be profitable. No, you don't.
356 00:55:24,450 --> 00:55:34,950 It's about making more deposits in the account than withdrawals. That's all this is. But there's a lot of room for flamboyance. There's a lot of room for pomp
357 00:55:34,980 --> 00:55:43,590 and arrogance. And believe me, I'm a showcase for that. But if you try to do those things, and try to make it manifest into profitability in your trading,
358 00:55:44,370 --> 00:55:51,720 many times it's going to be a barrier. I've been doing this for 23 plus years. So I know me, I know the markets enough where I can play around in it. New
359 00:55:51,720 --> 00:56:01,170 traders don't have that. And they can get in trouble wearing their ego, or trying to be a big shot, and pretending to do something they don't. And when you
360 00:56:01,170 --> 00:56:08,160 look at their accounts, or they look at their trading, it's pretty apparent. They don't know what you're doing. But long and short is, there's plenty of bad
361 00:56:08,160 --> 00:56:16,200 habits I didn't list today. But the ones that I like talked about and covered today. They're the ones I had to actually endure and wrestle with. And what I
362 00:56:16,560 --> 00:56:24,450 what I ended up doing by showing the end of the this video and this presentation, was what I actually did to overcome it, know what I'm looking for,
363 00:56:24,840 --> 00:56:34,440 know how to define that risk, know how to pay myself when I'm wrong. Because you have to do that. And this is an example. I was expecting your to go higher. It
364 00:56:34,440 --> 00:56:45,780 didn't. But I knew how I was going to react to it failing, not chasing price or freaking out. I woke up. Yeah, I would have had a wonderful opportunity to get a
365 00:56:45,780 --> 00:56:52,920 higher price. But I was sleeping. My limit order was doing its job up here should price trade there. my stop loss was already at a point where I couldn't
366 00:56:52,920 --> 00:57:01,770 lose. In the long short is it woke I woke up a saw market had dropped down. This could have very easily stopped me out at you know, well my stop was a little bit
367 00:57:01,770 --> 00:57:09,450 lower than here. But at the time, when we started rallying up, I move my stop to a point where I couldn't lose any money and watched and I manage how much of a
368 00:57:09,480 --> 00:57:19,020 retracement we're getting here. And it was stalling between this high and this low. So I had to pay myself. That's what this leg is here. And you can see I had
369 00:57:19,020 --> 00:57:19,770 all the other ones.
370 00:57:24,780 --> 00:57:36,120 You can see all the portions of which did I took out for the remaining balances. So long short, it is I was wrong. But my account showed positive deposit. It
371 00:57:36,120 --> 00:57:45,240 doesn't have to be I'm right all the time, you're never going to be right ever. Because had I been right in terms of my directional bias in it say it hit this
372 00:57:45,240 --> 00:57:55,920 level and it took out my my target and then went 50 pips higher than that. Online, I'd have 1000 people saying you didn't hold it the right way, you know,
373 00:57:55,920 --> 00:58:06,120 you didn't get to this level by ignoring the fact that it was a positive deposits going into the account. So everyone on the outside of you are going to
374 00:58:06,120 --> 00:58:13,680 have all of these opinions about what you should be doing. When they can't spend your money. And they sure as heck ain't going to help you. If you lose money,
375 00:58:13,680 --> 00:58:19,170 they're not gonna get Hey, I feel sorry for you, pal. Here's some money, they're not going to do that. But they all have an opinion about what you're doing and
376 00:58:19,170 --> 00:58:30,210 what you should be doing. Unless they have given you something of value in terms of education, and opinion, or money. Okay, there's nothing wrong with someone
377 00:58:30,210 --> 00:58:39,030 giving you money, if they give you money to help you, okay, great. But otherwise, their opinions don't matter much at all. But because a new traders
378 00:58:39,030 --> 00:58:48,270 mindset is if somebody tells me I've been trading, leave and trade rather trading longer than me, when I was a new trader right away, I knew that that
379 00:58:48,270 --> 00:58:55,890 person had more experience, and I want to listen to them. But I wasted so much time listening to other people, when all they were doing was pretending they had
380 00:58:55,890 --> 00:59:04,950 no idea what they were doing. They were selling this idea themselves because they couldn't make money in an account. They went online and pretended. So the
381 00:59:04,950 --> 00:59:13,380 last thing I'm gonna close with is know who you're getting the information from. Okay, it's one thing to listen to somebody that may sound genuine may sound very
382 00:59:13,620 --> 00:59:22,200 well in law intended. But there's a lot of well intended sounding people out there that are clueless, they have no idea what you're doing. And you'll know
383 00:59:22,200 --> 00:59:32,250 right away, if they have any idea what they're doing, if they teach the similar very, very close to what I've taught today, number one reality you're going to
384 00:59:32,250 --> 00:59:40,860 lose, you have to have the right perspective. And toxic thinking is easy to replace, once you know what it is that you should be doing. But most people
385 00:59:40,860 --> 00:59:47,280 don't know what they're supposed to be seeing in the charts, or how they're supposed to operate from a personal standpoint, like a like a personality trait.
386 00:59:47,730 --> 00:59:55,920 Whether it be a search term trader, scalping swing, trader day trader, all those things have to relate directly to your personality. And if they aren't, you're
387 00:59:55,920 --> 01:00:04,200 going to have adversity in your trades, because you're going to be wrestling with holding onto something that your comfort level doesn't promote. Like, I
388 01:00:04,200 --> 01:00:13,470 can't be a long term trader, I can't do it. My personality is too short fused. I make decisions too quick. So I do day trading and short term trading, because it
389 01:00:13,470 --> 01:00:21,330 makes sense for me to do it that way. I can't I tried it, I can't do it. So I'm not saying because I can't do it. That's the model for everyone else. I'm just
390 01:00:21,330 --> 01:00:30,960 telling you, statistics prove that. That's why people fail. They try to do something they personally can't align themselves mentally and psychologically,
391 01:00:31,170 --> 01:00:41,730 to do. And Larry Williams did a study on this, and I didn't believe it at first. But after years of trading, I'm 100% certain he had it right. You have to match
392 01:00:41,760 --> 01:00:52,590 up your personal personality and the way you live your life. If you're fast and quick, and witty. Chances are you'd be a great day trader. If you're an
393 01:00:52,590 --> 01:00:59,970 adrenaline junkie, and you're out there doing all kinds of extreme sports. Again, that's a day trader, scalpers model, because you're engaging constantly a
394 01:00:59,970 --> 01:01:10,530 more passive investors mindset, where you really want to avoid drama, you want to avoid excitement, you probably do very well as a swing trader or a position
395 01:01:10,530 --> 01:01:19,770 trader. And day trading just isn't going to work for you because you think that it's too much noise on a lower timeframe. It's not noise, it's volatility. And
396 01:01:19,770 --> 01:01:28,650 that same volatility would scare you away as a position trader or swing trader is a wonderful Wonderland for a scalp or day trader because they can work in
397 01:01:28,650 --> 01:01:37,500 that model of volatility and be able to find setups find ways to be able to pick out a buys and sells so you have to do a lot of work in terms of knowing your
398 01:01:37,500 --> 01:01:46,800 personal self. Okay, so I'm going to escape wish you all a very pleasant day. Appreciate you coming on. If you didn't learn anything, I apologize for wasting
399 01:01:46,800 --> 01:01:56,040 your time. If you did, let me know in the comments box and inside that on Twitter, let me know I appreciate that. It is recorded so I will throw this up
400 01:01:56,040 --> 01:02:04,590 on the YouTube channel and that way everyone can talk about me on there and spread it spread the word that I'm and again so I will catch up with you when I
401 01:02:04,590 --> 01:02:11,010 catch up with you new promises when the next one's going to be I just wanted to give you guys a shout out let you know that I do have that Twitter account. It
402 01:02:11,010 --> 01:02:21,060 is mine. No one's holding it and pretending to be me with this one. So I am ICT is the Twitter handle. In October I'll be a little bit more busier than I am
403 01:02:21,060 --> 01:02:23,820 now. So with that wish you good luck and good trading.