ICT YT - 2020-08-27 - ICT Forex Price Action Lesson - Seek and Destroy Profile.srt
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ICT: Welcome back, folks, just a quick little video on the
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market environment for your dollar. In kinda like recap on
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what I mentioned in the previous recording for the YouTube
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channel, so I mentioned on the Euro, we would most likely
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sweep that 118 50 level and directly related to this high
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these relatively equal highs, and I said we would likely see
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it, run those, and we got it on Thursday today, August
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27 2020. The economic calendar came with, obviously the Fed
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Chairman Powell speaking in New York session His comments
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were basically in line with allowing the current environment
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to remain intact. So that was met with a repricing
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aggressively higher and lower. Now, in the comments I've
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been placing on my community tab on the inner circle trader
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YouTube channel. I mentioned the importance of market
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profiles. Now when I say that invariably people that trade
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market profile, they will think that I'm referring to that
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and that's not what I'm referring to. Market profiling, by
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my definition is very specific. Like, templates, okay. How
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the market should pan out or or deliver in price. One of the
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hardest ones to operate in Is Seek and Destroy, as I
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mentioned, on the community tab this week, and we are
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looking at that profile. Okay, so one of the things I get
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questioned a lot about an email from members that follow
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this YouTube channel. And my teachings is how to know when a
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market environment is a seek and destroy. Because if you can
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learn those characteristics, those traits, then hopefully,
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you will avoid demolishing your account and trading back and
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forth, you're trying to capture the next big move, because
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that's generally what this profile will end up enticing
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traders to do. A big move will happen on the upside, and
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they'll think it's either a reversal or it's a continuation,
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and it's just back and forth and just completely grind you
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down. So I don't want to speak to much about this, cuz
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obviously most of you are not going to see value in this
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because you probably really knew. And you want to see me
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point to this is a buy signal and this is a sell signal.
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This is a secret order block. This is the secret breaker,
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all those things, I think if you were versed enough, or at
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least seasoned with trading with live funds and have lost
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money, a discussion like this, even though it may be as
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brief as it is, will be more meaningful to you. Now, if
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you're a new trader or student, that idea will go right over
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your head, okay, not because of a lack of intelligence. It's
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just because your perception and perspective on the
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marketplace is not yet in line with what would be closely
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related to someone who has engaged in real risk. Okay, so
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one The main focuses of my channel here is to help you avoid
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pain and pain. in its purest sense in trading is the
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removal funds.
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When you are no longer solvent, okay, you blow your account
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and that's what I'm trying to help you avoid because if you
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can avoid doing that you'll stay in the game long enough to
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find your own method and own approach to using the things
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that I teach. Okay, so right away, you can see that we have
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had a market it is been range bound, okay, it's been
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consolidating. And when you see markets that are stuck like
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this, right away, my mind says, Okay, try not to expect the
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whole lot in terms of big moves higher or lower, and watch
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how price tends to gravitate back to the middle, okay or
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equilibrium. There may be quick surges of price movement
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higher That fizzle out quickly, and then it pulls back to
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the middle. And then there'll be moves that drop down
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quickly. It fizzles out and come straight back to the middle
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range as well. So if you look at how the market has just
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moved back and forth all week until today, Thursday, we had
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this event here, which is what I was suggesting at, we would
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run the 118 50 buyside liquidity. And if you watch the video
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I put on prior to this one, you'll actually hear me say that
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that's what we were doing. And I covered the difference
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between wycoff and into interbank price delivery algorithm.
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And when you look at price action like this, it's not hard
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to understand how it's being controlled and it's
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manipulated. So if you look at the annotations I'm going to
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put here it's really simple stuff. We're looking at Monday's
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high here, and then Wednesday's low and All the vital
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liquidity there will be resting above these levels here.
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That's what I took your attention to. I said that we would
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look for this event here. Now this was a lot more than I
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personally expected. So I didn't expect this much of a run
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up just today. I didn't expect that. So I'm not going to sit
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here and tell you Yeah, I saw this coming. I traded it. I
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didn't, I didn't have any participation in any all that. So
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I didn't see it coming. I wasn't able to capitalize on any
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of it. And the fact that we have Jackson Hole today, and if
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you don't know what that is, it's basically when all the the
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folks come together to help formulate the, the next agenda.
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I'll just say it that way. And they have a lot of influence
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in the marketplace and the things that they talk about the
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things that they're planning. Sometimes they get leaked,
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sometimes they don't and again, without trying To sound to
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tinfoil hat, just know that it can create volatility. The
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marketplace now introduced that also with the Fed chair
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speaking today. And dawn in New York session, and we got
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this here. Okay, now this is still an optimal trade entry
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here and a run above the 1850 level that I hinted at that
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you should be focusing on this week. expanded my 51 pips
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beyond that quickly reversed and traded all the way back
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down and took out Wednesday's low so that was the intro
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week, the lowest low of the week. It took that out and now
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we went right back to the middle of the range. Okay, so if
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you don't know what a Seek and Destroy market profile is,
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that's what it looks like right here. This is what it looks
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like. So in your own journals and your own note taking you
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want to print this out. Not, not necessarily my chart but
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you want to do it on your own platform, and then save those
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charts and then study how prices moved back and forth, but
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generally back into consolidation. So now what does it mean?
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What do you do with this information? Well, this is why I
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sit on my hands and I try not to engage the marketplace. And
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as I mentioned on my community tab on the YouTube channel, I
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put levels on and I watch to see if they get checked. Okay,
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now when a levels checked, I want to see how it trades after
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it hits it. Obviously the 118 50 level, we breached it, and
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then quickly gave up the ghost and went right back down
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below. Wednesday's low. So this liquidity was also taken as
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well. So think about what's happened here. We've
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consolidated the entire week. Then Powell comes out, gives
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us a jawboning
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markets react with a run here and then collapses and then
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right back to the middle. So what are we left with Right
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now, uncertainty, okay, there's no clear indication, at
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least for me, okay, so I'm kind of like showing you my hand.
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And I've already elaborated on it in the community tab in my
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posts. But when you see a market environment like this, or
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at least I see it like this, I'm not in a hurry to take a
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trade, because we haven't had really any displacement. We've
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had a run on liquidity, both sides and we're back in the
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middle. There is no clear, discernible direction as of right
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now at this moment. Now, there are things that could lead to
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a directional bias unfolding over the coming days and weeks.
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But as for right now, gun to my head, I have to fold my
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hands and say there's nothing I can do here. There's nothing
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there's absolutely no, there's no trade here for me
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personally, that I would feel comfortable assuming the risk
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on so As I was building up into this discussion, we were
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looking at market profiles for a point of discussion on the
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community tab on the YouTube channel. And you can see the
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effects of it here. Okay, so again, in summary, when we see
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market environments that are consolidating, okay, now, this
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is spread out over the entire week. So this would be a, this
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will be a Seek and Destroy market profile for a weekly
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profile. And it can exist in intraday where we have market
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environments that have consolidations, and then it has a
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whipsaw effect, and it goes right back to the middle of the
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range. So we don't want to operate or engage the market.
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When it's like this. We want to wait for the large funds to
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start building in positions and allow the central bank to
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provide the liquidity for that and then these larger moves
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when they start and they become very clear in the charts.
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Then it's easy to ride the coattails. But until we get those
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very clear indications and price action, we are sitting on
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our hands. And there's absolutely no shame in that there's
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no fear of missing a move. And we're not feeling impulsive
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to chase any little minor reaction, if you will, in price,
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and we're not believing that we can forecast the next big
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price move higher or lower when it's in this environment. We
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let the professionals at the Central Bank level in the large
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funds, do their dance together. Okay, whatever the large
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funds start building in, in terms of the next position, the
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central banks will facilitate that and allow the liquidity
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for them to do so. Right now, it's not clear as to what that
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is yet. And when it starts to develop, it'll be clear it'll
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be obvious we will leave the range that was created today.
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Moving below this low or above this high in a decisive
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manner and then we can watch price for the next month, the
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three months in terms of what the next directional bias
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would be, as of right now, if you were trading euro, or
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really majority of the pairs right now, you're gambling,
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you're absolutely gambling because there's no clear
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discernible direction. For any of them at the moment, we
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could be in transition where there could be a longer term
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trend change, which I try not to forecast and try to pick
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bottoms and tops. I don't try to do that. Or we could just
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be in a long pause that continues higher for euro and lower
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for dollar. So because of that 5050 nature, I don't trade
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with 5050 gearing, I don't like to see those types of
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setups. I want to know what the bank is most likely going to
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reprice to higher or lower and if it's not one sided, then
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I'm not engaging. Now I can share my ideas and comments and
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suggest about what might take place. But that's not the same
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as putting down money in a trade and saying, I'm going to
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assume risk on that. So regardless of where you are in your
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journey, as a trader, it's important to understand topics
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like this because it gives you the confidence and the
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patience that's required to sit still, and not feel the
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impulse to go into the marketplace and trade. Because
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there's not always a time to be doing something. Okay? Many
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times you're going to be doing nothing. And knowing when not
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to do anything, is wisdom. And when you have that wisdom,
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it allows you to operate objectively in the marketplace and
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you don't feel the effects of fear and greed or fear of
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missing out on anything. And if you can conquer that,
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regardless of where you are in your development. That's one
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of the major hurdles in consistency. Because if you can
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cross that and understand why You're not looking to take a
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trade, why are you willing to sit on the sidelines and not
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even care too much about what the price is doing? Because
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eventually, there's going to be some excitement to come into
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the marketplace and be more meaningful than we see here.
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Okay. So I just want to kind of comment on it a little bit
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and bring the light a little bit more to what I was saying
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in the community tab. And hopefully now you can see with a
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chart in front of us what Seek and Destroy looks like it's a
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lot of volatility that goes right to liquidity, and then
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back to the middle. And while that is, in theory, tradable,
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it has to be done. So in a nimble fashion, and most traders
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aren't that nimble. So hopefully you got something out of
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this. I know it's not an exciting topic, but is one that is
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necessary for you to have longevity in this industry. So I'm
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Todd, talk to you next time. Good luck and good trading.