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

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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

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my mentorship, no need to tell me.

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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

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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.

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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account or two.

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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whole currency markets in Canaan, subjugate the world. He has a master
puppeteer, you pull pulling strings, causing all kinds of ruckus around the

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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

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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

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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

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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

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that even when they have

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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out here, you need to go into a demo account in six weeks, because they've done
something and a profit and demo account,

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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

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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

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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

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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,

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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,

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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,

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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

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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

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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

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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

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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

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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

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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

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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

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initially, they probably didn't have a stop loss on it all but they waited to
the trade got into their

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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

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loss. When you have a loss in your demo. You're you should be thinking shit

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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

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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,

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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

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mindset? What do you think they're thinking immediately?

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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

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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.

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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

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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

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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,

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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?

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You're going to be looking at. Alright. Hang on here one second.

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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,

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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

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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

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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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

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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,

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it's already gone up. So retail they'll buy in here.

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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evidence is that it doesn't want to go beyond this high here. So is the risk
reward model still the same? Hell no.

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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the high down to the 70.5 level gradient here, this is going to be a target.

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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where 70 lines of tradesmen level is here. And I'll show you what that looks
like you didn't get this off

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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70.5 level that will get me at the 62 as an entry. The risk is defined right at
the old low.

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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,

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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

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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

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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

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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

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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

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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

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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

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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

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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

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that like I usually had a bull candle. ampere candle.

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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But this is what you do. You have to have

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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.

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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

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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,

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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

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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

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all the other ones.

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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

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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

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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,

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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

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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,

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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telling you, statistics prove that. That's why people fail. They try to do
something they personally can't align themselves mentally and psychologically,

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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now. So with that wish you good luck and good trading.