ICT YT - 2021-02-11 - What Trading Books Influenced ICT Early On.srt
Last modified by Drunk Monkey on 2021-06-07 05:14
| 1 | 00:00:00,030 --> 00:00:08,850 | ICT: Okay, folks, welcome back. This is going to be a little bit of a different type of video, I get a lot of questions over the years, pointing to like, where |
| 2 | 00:00:08,850 --> 00:00:25,320 | where's my influences early on? What was I inspired by? What helps me become the analyst that you see me today. And it all started with this particular mentor of |
| 3 | 00:00:25,320 --> 00:00:40,380 | mine. This was my, quote, unquote, first mentor, but nothing that I learned from him profited, except for the respect that those things are being taught. People |
| 4 | 00:00:40,380 --> 00:00:50,640 | believe it, and they're going to fall victim to it. So I reversed my opinion, and view on the things that I'm going to show you in this book. All of these |
| 5 | 00:00:50,640 --> 00:01:03,990 | books are not meant to be a sales pitch for you to buy, you'll take notice that there is no affiliate link very easily set up an affiliate link with Amazon and |
| 6 | 00:01:03,990 --> 00:01:17,100 | such and receive some kind of a kickback. That's not what I'm trying to do here. So I'm trying to show you that these books that I'm including are just |
| 7 | 00:01:17,910 --> 00:01:28,290 | milestones in my early development. And I'll talk a little bit about each book, what I gleaned from them, and how it impacted who I am as a trader. But it all |
| 8 | 00:01:28,290 --> 00:01:41,760 | starts on November 5 1992. It was a Thursday evening at nine o'clock, I had come home late from work. And my package that I ordered, came in the mail. And I |
| 9 | 00:01:41,760 --> 00:01:51,420 | remember hurrying up eating, running upstairs, getting washed up, had a shower. And I was living with my aunt at the time. I was paying room board with the |
| 10 | 00:01:51,450 --> 00:02:03,780 | uncle that first introduced me to trading and I was 16. And really wasn't all that interested. But in 1992 I responded to a classified ad in the back of a |
| 11 | 00:02:03,930 --> 00:02:15,570 | Entrepreneur Magazine and little time classified ad said real money real people and hadn't money 100 number. So that's all it said it just simply information |
| 12 | 00:02:15,570 --> 00:02:26,970 | like anybody else would look at that and say, Well, I'm not going to call that phone number. But I was bored. And I called it and it gave you a little audio, |
| 13 | 00:02:27,480 --> 00:02:37,080 | talking about how some people can take $500, turn it to 35,000. Some people take 12 $100 turn into 6000, you know, that type of thing. So I was hungry for money |
| 14 | 00:02:37,080 --> 00:02:46,830 | back then I wasn't making a lot of money, I was working a lot. And I replied to the information package that they get your phone number and your mailing |
| 15 | 00:02:46,830 --> 00:02:55,560 | address, and then they send you out a mailer. And when I got it, it was this little tiny little pamphlet and I wish I could find it still, it's probably |
| 16 | 00:02:55,560 --> 00:03:06,780 | packed away in something somewhere. But it was actually very well done. It made me feel motivated to buy the guy's course. And the gentleman's name was Ken |
| 17 | 00:03:06,780 --> 00:03:15,660 | Roberts. And if you do a Google search on him, he actually still has a YouTube channel, on YouTube, it has nothing really to do with trading anymore. He was |
| 18 | 00:03:15,660 --> 00:03:27,210 | probably the most influential person to bring new people into trading commodities than any other person at that time. And I was one of those people, I |
| 19 | 00:03:27,210 --> 00:03:40,320 | bought his course. And you got a handful of cassette tapes. And and you had a couple little pamphlets and you had this main main book or manual. And it's |
| 20 | 00:03:40,320 --> 00:03:51,870 | basically this one here. And if you go to Open Library dot o RG, this has actually been made available. So it's like when a borrow basis, as you'll see in |
| 21 | 00:03:51,870 --> 00:04:01,170 | a minute. It lets you borrow it for like an hour. And my advice to you because you can't really find this in print anymore. At least not for sale. Okay, you |
| 22 | 00:04:01,170 --> 00:04:13,950 | know, you can buy a used copy of it. And it isn't a book that was bound very well. So mine's in very, very delicate condition. Like I don't want to mess with |
| 23 | 00:04:13,950 --> 00:04:23,100 | it more than I already do. Because of me, it's meaningful to me, it doesn't mean that I made any money with it. And it's also probably a question in your mind, |
| 24 | 00:04:23,100 --> 00:04:30,990 | like, why am I even talking about it? Because I get a lot of questions as to where I started. What was the origin of the ICT? Where did inner circle trader |
| 25 | 00:04:30,990 --> 00:04:40,350 | begin? Originally, it was my Uncle, uncle Stan. And he actually made money in the 80s and made money in sugar and bought a condominium in Ocean City, |
| 26 | 00:04:40,350 --> 00:04:49,560 | Maryland. And everybody saw him do it. And we were all like, Well, that was pretty neat. But nobody really was interested because it was basically the stock |
| 27 | 00:04:49,560 --> 00:04:56,130 | market. So stock market is gambling. So nobody else in the family was really actively trying to pursue it. |
| 28 | 00:04:57,540 --> 00:05:08,220 | But later in my life I was working for a vending company and gentlemen that I was working for had an Entrepreneur Magazine on his desk. And I would always |
| 29 | 00:05:08,220 --> 00:05:16,200 | stay after work after working 13 hours. And I've watched him count the money, and it would just be inspiring. And I asked him if I could borrow the |
| 30 | 00:05:16,200 --> 00:05:31,050 | Entrepreneur Magazine, so you can keep it. And that was fate. Because by buying this guy's book, or I guess course, it was the beginning of all of my journey, |
| 31 | 00:05:31,080 --> 00:05:40,230 | because buying this course actually put me on the mailing list of my real first mentor. Now this is technically my first mentor. When it comes to trading |
| 32 | 00:05:40,530 --> 00:05:53,850 | techniques. I was first introduced to trading by my uncle, Stan Crites. And this guy here, Ken Roberts. This is the book that you end up getting. Now I'm not |
| 33 | 00:05:53,850 --> 00:06:03,000 | going to go through for copyright purposes and such, but I think what I'm going to show you here is within fair use, but I'm going to take you right to the page |
| 34 | 00:06:03,000 --> 00:06:12,300 | that started the whole thing with optimal trade entry. So this is actually the the book that I actually have, it looks exactly like it. This is actually the |
| 35 | 00:06:12,300 --> 00:06:26,910 | print of the book cover exactly, it doesn't look any different. It's a little bit more vibrant, I think in color, but I purchased mine in 1992. And it took a |
| 36 | 00:06:26,910 --> 00:06:41,700 | couple weeks to get to me. But it was November 5, Thursday at 9pm. I sat down, cracked open the package. And I literally sat there from cover to cover and |
| 37 | 00:06:41,700 --> 00:06:57,120 | absorbed it. Because it was something that was simple, but yet intriguing. It you're gonna see that the way it's written, it's not very intellectual. It's not |
| 38 | 00:06:57,450 --> 00:07:10,590 | snobbery in print, it's just an average guy putting to paper, some ideas that he was given by someone else, and say, Well, I'm gonna make a course with this. And |
| 39 | 00:07:11,310 --> 00:07:18,720 | he made lots of money selling this. And a lot of people reportedly made a lot of money. And of course, there's a lot more people that said that they lost money. |
| 40 | 00:07:20,010 --> 00:07:27,210 | Long story short, the Commodity Futures Trading Commission ended up tapping him saying, hey, look, you know, you're, you're promising people, they're gonna make |
| 41 | 00:07:27,210 --> 00:07:39,900 | money. And he had to really, really go into paper trading as the basis of his education. So I learned that also from him that every time I talk about trading |
| 42 | 00:07:39,900 --> 00:07:49,530 | or education, it's in the scope of demo, demo demo demo, because there's a legal threshold that I don't want to cross and open myself up to liability. So I wear |
| 43 | 00:07:49,530 --> 00:07:59,430 | the crown demo baller as an educator, because I don't want the responsibility of having someone else's losses. And having them try to put that on me, because |
| 44 | 00:07:59,430 --> 00:08:05,820 | it's not my responsibility. If you put that trade on, I didn't put your finger on there, I didn't tell you to get in that trade and put it at that price. But |
| 45 | 00:08:05,820 --> 00:08:15,300 | that stop loss or not have a stop loss, or hold for that particular target. I didn't do that. So he would have a hotline that came with this, and it gave you |
| 46 | 00:08:15,390 --> 00:08:25,680 | I think like a month or two of just free access. And then you had to pay if you wanted to have more access to it, which I found wasn't all that accurate or even |
| 47 | 00:08:25,680 --> 00:08:38,910 | interesting. And in fact, it made me feel like I wasted my money. But this is the book. And I'm gonna take you to the page. If I can do it without showing too |
| 48 | 00:08:38,910 --> 00:08:48,540 | much, but you are welcome to go on this website. And you'll see it yourself. Alright, so here is what the book looks like on the inside. Okay, and it's this |
| 49 | 00:08:48,540 --> 00:09:00,600 | chart right here. That first started framing the idea of the optimal trade entry. Now, what is optimal trade entry? Now, over the years, people have seen |
| 50 | 00:09:00,600 --> 00:09:09,600 | me talk about this. And it's like, oh, yeah, he's saying he invented the Fibonacci retracement. Now, I didn't say that. Okay, every time I've ever talked |
| 51 | 00:09:09,600 --> 00:09:21,630 | about it, I credited this pattern as the original idea behind it. But like everyone else that bought this course and ever tried to trade 123 tops and 123 |
| 52 | 00:09:21,630 --> 00:09:34,320 | bottoms. Okay, that proved to be somewhat difficult, because how do you know if it's really going to go up or down based on that pattern. So what frustrated me |
| 53 | 00:09:34,320 --> 00:09:44,580 | and I'm gonna zoom in here a little bit. So if you look at this little area in here, I'm gonna zoom in a little bit more. So we can see it because these are |
| 54 | 00:09:44,580 --> 00:09:48,630 | not candlesticks. They're open high low close bars. |
| 55 | 00:09:49,050 --> 00:09:58,560 | And this is what I cut my teeth on as a trader, back in 1992. All of my charts looked like these. Now it's a little harder on the eye and can appreciate now |
| 56 | 00:09:59,160 --> 00:10:08,130 | the benefit of using A candlestick, which I reluctantly went to initially, but I'm so thankful I did, because my eyes probably would have deteriorated even |
| 57 | 00:10:08,160 --> 00:10:19,170 | even more than he did over the years. So what is a 123? bottom. And that's what's being shown here. Well, the idea is this course this book, and Ken would |
| 58 | 00:10:19,200 --> 00:10:31,890 | teach that every time we made a new 12 months low, if it created a low of fresh, brand new 12 month low, if it's done that and starts to trade up, you're waiting |
| 59 | 00:10:31,890 --> 00:10:44,280 | for that to happen. And then it trades down. So you're looking for a point to buy when it goes to the point number two, so you're buying strength. Now, for |
| 60 | 00:10:44,280 --> 00:10:55,650 | those that are fans of beat the market maker system, or course, a lot of the ideas that I taught as my entry strategy was actually wrapped around this |
| 61 | 00:10:55,650 --> 00:11:09,780 | particular pattern right here that I was first introduced to by Ken Roberts, okay. Everything in beat the market maker is buying it late. Okay, it's really |
| 62 | 00:11:09,780 --> 00:11:22,470 | based on this here. Now, you can look at this here and say, Well, you know, I can see this as 123, easy as 123. What I later learned and did not teach my |
| 63 | 00:11:22,470 --> 00:11:33,720 | students when I was teaching in America Online, because greed, okay, I was admittedly very greedy, very prideful, very arrogant, very self centered, very |
| 64 | 00:11:33,840 --> 00:11:46,200 | stingy, you get what I'm saying here, like it was all about me. I did not want to teach how I was finding point number three. I was teaching buying it up here. |
| 65 | 00:11:46,680 --> 00:11:56,070 | And if you look at all of the water down, ideas that are in other courses that are quote, unquote, market maker, they're always buying it after it's done |
| 66 | 00:11:56,070 --> 00:12:07,110 | moved. And I was in private, doing the trade entries that are down in here, which are based on the low, the high. And then when it retraces most of you that |
| 67 | 00:12:07,110 --> 00:12:15,480 | are familiar with me already know that this right here is a fair guy you got this is an order block. All these down close candles here consecutively, one |
| 68 | 00:12:15,480 --> 00:12:30,240 | two, with a fair value gap stand out in time, bam. That's what I was buying. That's what I was dealing. In 1994 1995, I really refined it. And I had eight |
| 69 | 00:12:30,240 --> 00:12:40,800 | months behind me where it was consistent and phenomenal. And then I opened up myself to private mentorship one on one. And those individuals were the only |
| 70 | 00:12:40,800 --> 00:12:54,060 | ones that were learning this. Okay. So all of the things that you see in this book, are really Elementary. I mean, just it's not a lot of highly technical |
| 71 | 00:12:54,060 --> 00:13:04,440 | things. The only thing that I got out of this book was the little expression that I've used many times when I was on baby pips, I was on Twitter, I was |
| 72 | 00:13:05,070 --> 00:13:15,510 | posting things on my timeline on social media wherever I was at. And it would be this little thing which said, opportunity is nowhere. And I got that from this |
| 73 | 00:13:15,510 --> 00:13:24,780 | book. And I don't know exactly which page it's on, I'm not going to use you scroll through it to find it. But it was all one word, no separations. And if |
| 74 | 00:13:24,780 --> 00:13:35,370 | you give that little expression, opportunity is nowhere. If you give that to someone and ask them read that out loud what they see, usually pessimistic |
| 75 | 00:13:35,370 --> 00:13:48,810 | people will see opportunities nowhere. But optimistic people tend to see opportunity is now here. So I thought that was clever. Maybe it wasn't original |
| 76 | 00:13:48,810 --> 00:13:57,720 | with him. But I adopted that. And I've always credited him as the the reasons why I got that just like when you hear me close my video. Good luck, good |
| 77 | 00:13:57,720 --> 00:14:09,780 | trading. That's a fingerprint by my first real mentor, which we'll talk about in a moment, Larry Williams, his books and his teachings. When he was talking, he |
| 78 | 00:14:09,780 --> 00:14:19,770 | would always end and he still does, you know, I wish you good luck and good trading. That always felt sincere to me. You know, as a young man in 1995, when |
| 79 | 00:14:19,770 --> 00:14:30,180 | I was placed on a mailing list by buying this course here by Ken Roberts, it put me on a mailing list. And les Williams must have purchased that mailing list and |
| 80 | 00:14:30,180 --> 00:14:38,430 | had my name and information and anybody else that was on that mailing list received a flyer from Larry Williams, you know, this is what I'm teaching. And |
| 81 | 00:14:38,430 --> 00:14:47,730 | at the time, it was the futures millionaires confidential trading course by Larry Williams. It was a four VHS tape |
| 82 | 00:14:47,969 --> 00:14:56,699 | course. And many of you have been with me for a long time know about this. I've talked about it many, many times. When I watched those videos, I literally could |
| 83 | 00:14:56,699 --> 00:15:05,729 | not sleep. Because here's the guy that made million dollars in a year 1987, it was documented, you can actually pull up his statements on the internet, if you |
| 84 | 00:15:05,729 --> 00:15:18,059 | look hard enough, his statements are on the internet still. But nobody else was the more talk of the town, then Larry, back in the late 80s and early 90s. Like |
| 85 | 00:15:18,059 --> 00:15:27,899 | he was the man, nobody could touch that type of return. And it was documented, it was in everybody's face. And obviously, he was perfectly set up to do |
| 86 | 00:15:27,929 --> 00:15:36,179 | teaching circuits and writing books and, and what have you, and courses and you know, all kinds of systems and such. And he took advantage of that as he should |
| 87 | 00:15:36,179 --> 00:15:49,499 | have. But I was on this mailing list. And I started receiving all kinds of other literature and books of this nature. And I started buying everything. And it |
| 88 | 00:15:49,499 --> 00:15:59,399 | soon became, like 80% of my pay. every single week, I was going to the traders library, which is a store in Maryland, I'm not sure if it's still there. But it |
| 89 | 00:15:59,399 --> 00:16:07,589 | was in like Columbia, Maryland. And I would drive like 45 minutes to go there one direction. And I would spend like 80% of my paycheck, which at the time |
| 90 | 00:16:07,589 --> 00:16:21,659 | wasn't much. I was making $273 a week, and $51 bills that my boss would give me as extra he was paying me under the table. And my check was $273. And then I'd |
| 91 | 00:16:21,659 --> 00:16:32,579 | 50 ones. So 80% of that I was wasting that on buying books every single week. Because I felt this insatiable desire to be buying more and learning and |
| 92 | 00:16:32,579 --> 00:16:43,229 | learning and learning. Looking back, I can see how that was a terrible waste of money, and time. So don't take this video as an inspiration for you to go out |
| 93 | 00:16:43,229 --> 00:16:53,309 | there and do this because you don't need to. There's so many things made available to you just on YouTube. And I'm not talking just about my YouTube |
| 94 | 00:16:53,309 --> 00:17:01,169 | channel. Because obviously, I'm biased, I think I'm going to put out the best content that's useful to you, am I the only one that puts out useful content. |
| 95 | 00:17:01,169 --> 00:17:10,589 | Now there's a lot of people out there that don't even trade like me, have very good trade psychology videos, money management videos, things of that nature, or |
| 96 | 00:17:11,189 --> 00:17:21,749 | how they themselves trade their own method or model. I'm inspired by watching other people even though I may not agree with their retail logic, I'm inspired |
| 97 | 00:17:21,749 --> 00:17:31,529 | by their ability to stay disciplined with what they're trading with. And they're comfortable with the ebb and flow of the given take profitability and |
| 98 | 00:17:31,529 --> 00:17:40,799 | profitability, you know, as interest or trade history, they're not deviating that they themselves are following or believing. And you have to have a strong |
| 99 | 00:17:40,799 --> 00:17:49,979 | conviction in this industry. Because if you don't have faith in what you're doing, it doesn't make a difference, you know, if it's liked by other people, or |
| 100 | 00:17:50,159 --> 00:17:59,969 | if you make a million dollars, because if you can find just something that makes a profit that's consistently profitable, doesn't have to make a lot. If you |
| 101 | 00:17:59,969 --> 00:18:08,099 | apply money management to that, that you can turn that small little thing into something enormous. And that's the real key, like you need to understand how to |
| 102 | 00:18:08,099 --> 00:18:20,969 | manage your money. Because if you can find something that gives you a positive return. And for me, I needed something simple. I was freshly out of school |
| 103 | 00:18:21,029 --> 00:18:31,229 | trying to get a computer science degree, specializing in Information Systems. And I was in my head, I was writing code every week, I'm writing code, I'm |
| 104 | 00:18:31,229 --> 00:18:45,779 | writing code. And when I saw this pattern, it just allowed me to see something that was very easy, very visually obvious in the chart. The problem was, every |
| 105 | 00:18:45,779 --> 00:18:57,059 | time I was trying to trade this number two point, if it traded up there, I would get in on a on a nearby stop. So it would trip me in the marketplace buying |
| 106 | 00:18:57,059 --> 00:19:08,039 | long. But my stop loss would have to be below this number three point. And sometimes the trades would be too big. And it opened me up to ideas like Well, I |
| 107 | 00:19:08,039 --> 00:19:18,899 | don't need to use a stop loss. So it started all the bad habits that everybody has fallen victim to over the years as a as a trader. And they |
| 108 | 00:19:20,400 --> 00:19:30,090 | really stunted my growth. But when I first started saying, I don't want to be a buyer up here, I want to be the guys that buy down here. This to me were the |
| 109 | 00:19:30,090 --> 00:19:38,850 | smart people, I want to be like them. Why should I wait to get up here? Because that's what this book was teaching. Trust that once it goes up here and it |
| 110 | 00:19:38,850 --> 00:19:46,200 | breaks out, you want to be a holder of that and catch these big moves. And you'll see a lot of these examples in this book, if you go through it, that it's |
| 111 | 00:19:46,200 --> 00:19:55,110 | just one of those. Here's where it works type thing, and no real discussion is down here. And that's the real, that's the real secrets, okay, and I actually |
| 112 | 00:19:55,110 --> 00:20:06,510 | teach you this on my YouTube channel. So that was my first mentor that The first thing you can actually find this again on the Open Library on the internet. So |
| 113 | 00:20:06,630 --> 00:20:16,410 | it doesn't cost anything, I think you got Krita, screen name or whatever, just create a email address that you don't want to get spammed by and use that to |
| 114 | 00:20:16,410 --> 00:20:28,920 | subscribe to this. And you can actually have access to this something of you that are actually crafty, you may want to have a screen capturing application |
| 115 | 00:20:28,920 --> 00:20:38,010 | and you can record and just cycle through the pages, you know, like one or two seconds at a time. And then you'll have a recording of it. And you can just |
| 116 | 00:20:38,010 --> 00:20:44,670 | pause the video and watch it and read it at your own leisure. But you can't get it in print anymore. It's it's no longer in print, another guy bought the |
| 117 | 00:20:44,670 --> 00:20:56,400 | company's rights to teach. And I think he's created another version of this book, it's updated. But it's not really all that I wouldn't buy it. So that's |
| 118 | 00:20:56,400 --> 00:21:05,010 | where I started. That was the original beginnings of optimal trade entry. And you're probably asking yourself, how does this relate to optimal trade entry? |
| 119 | 00:21:05,040 --> 00:21:13,020 | Well, this is the framework that starts it now he doesn't teach in this book, and no one else really teaches it anywhere else either. Unless they must mean |
| 120 | 00:21:13,080 --> 00:21:24,840 | they talk about it. But optimal trade entry is when you see this pattern at a specific time and a specific day. So if you get that pattern within a specific |
| 121 | 00:21:24,840 --> 00:21:36,360 | time and day, with a bias that's already predisposed to you see prices going higher. That's optimal. The optimal trade entry is what is classically shown |
| 122 | 00:21:36,360 --> 00:21:45,600 | here, as point three, I want to be in three not getting in after it's already moved, that's chasing price to me. Now, you can use strategies like this if you |
| 123 | 00:21:45,600 --> 00:21:56,010 | are not a day trader, or if you have no ability to be in London trading or New York trading. This type of style trading can still be done using intraday |
| 124 | 00:21:56,010 --> 00:22:05,100 | charts, where you're using a buy stop or a sell stop to enter. And there's nothing wrong with that if you're framing it with the right narrative and logic. |
| 125 | 00:22:07,080 --> 00:22:14,730 | It depends on what you want to do. But the idea of framing of February top of this, and then using what you see here, the imbalance and the order block. |
| 126 | 00:22:14,760 --> 00:22:24,030 | That's what makes the optimal trade entry. See, there's no but no one's talked about that stuff. Prior to me that this never, it never happened. But it came by |
| 127 | 00:22:24,030 --> 00:22:33,450 | looking at charts like this open high, low and close, not candlesticks, and seeing where all these classic turning points in these big moves back in the 90s |
| 128 | 00:22:33,450 --> 00:22:42,990 | for me, and I was thinking myself, you know, all these books are writing about stuff. But I can't make it work. Like I can't make these indicators line up. It |
| 129 | 00:22:42,990 --> 00:22:52,350 | just didn't make sense to me. And the reason why is because I didn't understand narrative. And I didn't understand where the market was being drawn to. So when |
| 130 | 00:22:52,350 --> 00:23:00,540 | we look at price charts, and you're trying to draw horizontal lines for support and resistance ideas, or you know these patterns and such harmonic, this and |
| 131 | 00:23:00,540 --> 00:23:10,320 | Fibonacci, that moving average crossovers, they all are supposed to be doing something. And it's unfortunate that many times they aren't doing what they're |
| 132 | 00:23:10,320 --> 00:23:19,020 | expected to do, which is give you peace of mind about knowing where the markets going. That's why I teach on this channel, that absence of indicators is a |
| 133 | 00:23:19,020 --> 00:23:30,390 | benefit to you, you'll see things clear, if you're not being distracted by the output of mathematically derived number crunching the indicators do all you're |
| 134 | 00:23:30,390 --> 00:23:38,580 | doing is taking what's already happened, and compiling it into a number and then spitting that out into a visual representation of something that you should |
| 135 | 00:23:38,580 --> 00:23:46,620 | already see in price Anyway, you need a moving average that tell you this markets going up. What's the chances of a moving average crossover in this area |
| 136 | 00:23:46,620 --> 00:23:53,550 | here giving you the indication is going to cross over and be bullish, you're not going to see that until it's over here. Anyway, I'm not interested in that. I |
| 137 | 00:23:53,550 --> 00:24:03,450 | want to see what down here at point one is likely to cause that initial run up. Because I'm anticipating this run here. I'm not waiting for a new 12 month low. |
| 138 | 00:24:03,960 --> 00:24:16,530 | I'm looking at every new week low or new week high. Now, I'm trying to trade above the previous high of the week or trade below the previous weekly low. |
| 139 | 00:24:17,190 --> 00:24:28,590 | That would set up this scenario for me to looking at previous day's high and low. Not a 12 month higher low being traded to okay. The idea was if this works |
| 140 | 00:24:28,590 --> 00:24:38,970 | on daily charts, and he's framing it on the yearly how many opportunities are going to get a year, not many. So I need to be doing something. So I started |
| 141 | 00:24:38,970 --> 00:24:47,460 | thinking about hourly charts. And I said okay, well, what happens if I look at the last five days trading? What happens if I look at the last four weeks |
| 142 | 00:24:47,460 --> 00:24:57,930 | trading? And then what happens if I look at the last three months trading? And then you'll see this pattern here is always there and every three months that's |
| 143 | 00:24:57,930 --> 00:25:06,180 | a quarterly shift. That's what I Teach in my mentorship, how to go in and hunt those types of moves. And you don't necessarily have to be in point number |
| 144 | 00:25:06,180 --> 00:25:17,490 | three, you know, as the only entry, it sets the stage for a, maybe as many as four months sometimes where the market will continuously move off of this |
| 145 | 00:25:18,150 --> 00:25:30,270 | retracement in the sense that you know how I teach it optimal trade entry. And then ride that out with a long term position or short term trade it every time |
| 146 | 00:25:30,270 --> 00:25:43,350 | it gives you a short term buy or swing trade it in here. So there's lots of different ways but the mentality that I adopted from this really simple book |
| 147 | 00:25:43,350 --> 00:25:57,780 | that doesn't do a whole lot for improving your ability as a trader, it just for a brand new trader that's never traded the markets, this book was comfortable |
| 148 | 00:25:57,780 --> 00:26:12,540 | for me to read, not because I'm not versed in like mathematics. And my strong points are math. So I don't think that I'm an average intellect, I think I'm a |
| 149 | 00:26:12,540 --> 00:26:21,390 | little bit above average intellect. I'm not a mental giant by no means. But nonetheless, this book, you'll see is so much that it's simplistic to a fault. |
| 150 | 00:26:22,410 --> 00:26:35,040 | It makes it seem too easy. And I fell victim to that, and I wasted money. So when I went into the orange juice market, and I bought an option, I lost 50% of |
| 151 | 00:26:35,040 --> 00:26:45,870 | the value of that option the very next day. So that was very sobering for me. And I've since learned how I messed that up. But I didn't know what I was doing. |
| 152 | 00:26:45,930 --> 00:26:55,470 | And I was baptized in the fires of real market loss. And it taught me that I wasn't ready yet. So I had to go back to paper trading, not demonstrating |
| 153 | 00:26:55,470 --> 00:27:04,020 | because we didn't have demo accounts back then, in 1992, you had paper trading and every one of these charts here something else. When you're updating these |
| 154 | 00:27:04,020 --> 00:27:12,960 | charts, here, you're doing it by hand. And you're roughly estimating where the high and the low is, with two dots, you're drawing a line with a ruler, and then |
| 155 | 00:27:12,960 --> 00:27:27,660 | put a little dash to the left for the open a little dash to the right, for the close. That's what we did back then. And then in 1994, I had purchased a couple |
| 156 | 00:27:27,660 --> 00:27:38,070 | different platforms. One was like Mehta stock, which was really good trading platform, where it allows you to download an ASCII format, open high, low and |
| 157 | 00:27:38,070 --> 00:27:46,830 | close data. So every day, at the end of the day, when the markets closed, you would subscribe to your little service, and you download the information, you |
| 158 | 00:27:46,830 --> 00:27:54,510 | gotta wait for it to pull the information down. And then sometimes if the decimal point was off, or if the number didn't download, right, your charge will |
| 159 | 00:27:54,510 --> 00:28:08,040 | be all screwed up. You have a high way up here. And it was it was so hard compared to what you have today. Like we had so many disadvantages. And the |
| 160 | 00:28:08,040 --> 00:28:17,040 | collection of data, the management of your charts was just ridiculous. So you really had to be in love with what you're trying to do, or you gave up real easy |
| 161 | 00:28:17,220 --> 00:28:24,510 | today, it's amazing to see how some of you go into this. And you have all of these applications like trading view, even meta stock. I mean, it's got a bad |
| 162 | 00:28:24,510 --> 00:28:32,310 | rap in recent years. But as long as you're not an educator, you know, there's nothing wrong with meta stock. If you're trading that with your life account. |
| 163 | 00:28:32,310 --> 00:28:40,260 | There's nothing wrong with that, as an educator, you need to change your venue and go somewhere else and use something like tradingview or go so far as to use |
| 164 | 00:28:40,260 --> 00:28:44,010 | your own Live account if you feel so inclined, teach. But the point is |
| 165 | 00:28:45,780 --> 00:28:59,400 | you have many advantages now today that folks like myself and even before me didn't have. So the resources that were made available to us were limited. And |
| 166 | 00:28:59,400 --> 00:29:10,500 | you should have no problems finding your way of trading and what model using what's available to you for free. Like there's so many ways for you to go out |
| 167 | 00:29:10,500 --> 00:29:21,630 | there and find your own niche and not have to be buying all these books because I could literally buy the new car Corvette cash money with the amount of money I |
| 168 | 00:29:21,630 --> 00:29:33,900 | purchased in books, like it's a lot of money. And most of them are useless books. And I'm going to show you the ones at my collection over 2000 books, |
| 169 | 00:29:34,500 --> 00:29:46,200 | which ones are the most impactful that I have had the most influence from? Alright, and we'll go into my first real mentor after Ken Roberts is Mr. Larry |
| 170 | 00:29:46,200 --> 00:29:58,740 | Williams. Very first book I purchased after seeing his four video course I mentioned earlier, which you can't find anymore. I wish there was a digital |
| 171 | 00:29:58,740 --> 00:30:09,150 | version of it because I was I just like to have it for sentimental purposes, you know, for nostalgia. But if we were together, sitting in there, in a room |
| 172 | 00:30:09,150 --> 00:30:18,660 | watching those videos, I could tell you what he was going to say verbatim. Like, I know what he says in these videos, verbatim. I know all his pauses, I know his |
| 173 | 00:30:18,660 --> 00:30:28,800 | quirky changes in shifts. That's how much I studied those videos. Now, that might sound a little creepy, but that's how obsessive I am. And I've always |
| 174 | 00:30:28,800 --> 00:30:40,110 | looked to this man since being first introduced to him as a huge influence in my life, huge influence. And while I don't agree with the majority of the things he |
| 175 | 00:30:40,110 --> 00:30:49,230 | teaches, the things that I do subscribe to, I subscribed to wholeheartedly. And we'll talk a little bit about those and what books I felt were important, and in |
| 176 | 00:30:49,230 --> 00:30:59,640 | my influence, and how it impacted me as ICT. But this book here, you've seen me many times, call this one out as something that everybody should have. And it's |
| 177 | 00:30:59,640 --> 00:31:08,010 | how I made a million dollars trading commodities last year, okay, or how I made a million dollars last year trading commodities by Larry Williams, this book |
| 178 | 00:31:08,190 --> 00:31:19,950 | here, I've already did a video on and talked about how chapter four, five and six, if I'm not mistaken, are the real heart of the book. And those things in |
| 179 | 00:31:19,950 --> 00:31:32,820 | that book that those chapters particularly talk about, are still valid today. And this book was written in 1973. I was one years old when this book was |
| 180 | 00:31:32,820 --> 00:31:44,070 | printed, so I'm sure he was writing the book The year prior. And that means before I was even born, he was writing this book. And to me, if I were to say, |
| 181 | 00:31:44,910 --> 00:31:53,460 | apart from the Bible, what's my favorite book in my whole library? It's this one here. Because I can tell you and I'm feeling a little bit emotional, as I'm |
| 182 | 00:31:53,460 --> 00:32:04,980 | talking about it. It gave me so much hope. When I read it, and when I started seeing what the book would talk about, in my own charts, it was exciting. I was |
| 183 | 00:32:04,980 --> 00:32:19,770 | like, man, I am not working when I'm 40 years old. Now think about the idea of saying, Okay, I'm 20 years old. And I believe that 20 years from now, I'm going |
| 184 | 00:32:19,770 --> 00:32:28,680 | to not have to work. Contrast that with today, where people watch a video, or they watch an infomercial. And they think I'm going to quit my job next week, |
| 185 | 00:32:29,340 --> 00:32:40,980 | I'm going to get rich in the next 30 days, I'm going to double my account in the next four weeks. See the difference? Like it's the expectation in today's world. |
| 186 | 00:32:41,040 --> 00:32:55,170 | I want it right now. And no matter how fast you get to me, I waited too long. That sense of entitlement is very, very disturbing to me, because I'm from a |
| 187 | 00:32:55,170 --> 00:33:04,320 | different error. And we did things at a slower pace. And we had realistic expectations where people today don't have realistic expectations. And I think |
| 188 | 00:33:04,320 --> 00:33:16,980 | it's a reason why they feel offended all the time. And truth be told, I can relate to a lot of the reasons why because they're our culture today, kind of |
| 189 | 00:33:16,980 --> 00:33:27,420 | like forces that on people and you have a hard time as a trader, if you are like a millennial, they have this sense of you know, you owe it to me, No, nobody |
| 190 | 00:33:27,420 --> 00:33:40,200 | owes you anything, you have to work for it. And when I was working my job, every evening, when I came home, I would read this book again. Every night, I would |
| 191 | 00:33:40,200 --> 00:33:45,300 | come home, after doing all my chart updates going through all of it, I'll go back to this book. |
| 192 | 00:33:46,020 --> 00:33:58,230 | And I literally wore the dust jacket off of it. The dust jacket is that little paper covering that's on the outside of hard book texts that you purchase at a |
| 193 | 00:33:58,230 --> 00:34:08,310 | bookstore. So I don't use dust covers on my books anymore. Because no matter how delicate you are with your books, they'll always Tatar at some point, so I take |
| 194 | 00:34:08,310 --> 00:34:19,740 | them off. And I have the very first print edition of this book, and also have the PDF and Kindle version of it. So no matter what, I have a way of pulling it |
| 195 | 00:34:19,740 --> 00:34:28,740 | up, because I may be at a time where I'm sitting somewhere and I gotta wait for something. And it's one of those books that immediately taking me back to a time |
| 196 | 00:34:29,130 --> 00:34:38,880 | that like time travel, it allows me to go back and watch how it was for me when I first started looking at specific chapters in this book. And I had told you |
| 197 | 00:34:38,880 --> 00:34:50,970 | what they were chapters four, five and six, I think we talked about his million dollar tools and such, those things are so good. And they still work and I use |
| 198 | 00:34:50,970 --> 00:35:03,420 | those things as I mentioned in the previous video. That was the basis of how I called out soybeans as a big run up this year. also used it to talk about the |
| 199 | 00:35:03,840 --> 00:35:15,930 | corn market. So these are market moves that are not forex, you all knew me predominantly as a forex guru. But I cut my teeth on commodities. In 1992. I was |
| 200 | 00:35:16,020 --> 00:35:23,760 | at first a commodity trader. So this book here is really good. I think everybody should have this book in their library period and a story, you should have it, |
| 201 | 00:35:23,790 --> 00:35:30,480 | it's just a good read. There's things in this book that I don't subscribe to, which is like the phases of the moon and things like that. I don't believe in |
| 202 | 00:35:30,480 --> 00:35:40,770 | all that. I think that's nonsense. I think he does include it as an observation. But I don't think he trades with it. The other books from him, this is actually |
| 203 | 00:35:40,830 --> 00:35:52,890 | a good one here, talks about commitment, traitors, and how you can use some of it. I got some ideas off of that book here with how I do the hedging program, |
| 204 | 00:35:53,220 --> 00:36:04,350 | application of the co2 data. So that idea was inspired, but it's not copied. It's inspired by this book here. And so that's where I got that idea from. And I |
| 205 | 00:36:04,350 --> 00:36:11,280 | kind of went like I wanted to do this video years ago. And the reason why I didn't want to do it, because I already know what's going to happen. Okay, now |
| 206 | 00:36:11,310 --> 00:36:20,820 | you watch and see how this doesn't take place. The people out there that say, they trade smart money, but they're teaching order blocks, breakers, and things |
| 207 | 00:36:20,820 --> 00:36:29,850 | like that. And market structure as I teach it. There's two forms of market structure that I teach the market structure that I learned from Larry Williams, |
| 208 | 00:36:29,970 --> 00:36:41,280 | and that was found in his four VHS tape course, I mentioned the futures millionaires confidential trading course, on VHS, if you can find it, try to get |
| 209 | 00:36:41,280 --> 00:36:51,000 | it. But if you can't, and, you know, the next best thing is, I guess, cracking the money code, I think it's, or something like something like that, or the |
| 210 | 00:36:51,000 --> 00:37:01,590 | money tree. And like the two courses I think he did, he kind of like us a real brief view of market structure. But the very simple approach to market |
| 211 | 00:37:01,590 --> 00:37:13,110 | structure, it's been condensed in this book here long term secrets to short term trading. This book right here, the only real gem in it, to me, is his discussion |
| 212 | 00:37:13,110 --> 00:37:27,150 | on market structure. And it's basically a concise little teaching about market structure through the lens of Larry Williams, and I think it is worth the other |
| 213 | 00:37:27,150 --> 00:37:37,680 | book purchase. But don't expect more from that book than that. Okay. It's enough, that makes a whole different approach to looking at the market that you |
| 214 | 00:37:37,680 --> 00:37:45,540 | wouldn't otherwise have, unless you were introduced to something like I teach it. But the original framework for market structure, I learned that from here, |
| 215 | 00:37:45,750 --> 00:37:53,820 | it was not wycoff. And there's a lot of people out there to try to say that, you know, I learned from like, wycoff, I did not learn from wycoff everything I've |
| 216 | 00:37:53,820 --> 00:38:05,220 | learned, I had learned and then looked at wycoff and said, Yeah, cuz I used to make fun of it, because I had an understanding of other things that wycoff |
| 217 | 00:38:05,220 --> 00:38:18,300 | didn't touch on. And to me wycoff talks about and explains, it's more along with history in price charts, whereas I'm talking about predicting what's gonna |
| 218 | 00:38:18,300 --> 00:38:27,540 | happen with precision. wycoff is more of a, here's what happened in yesterday's news. I'm telling you what the news headlines are going to be months ahead. |
| 219 | 00:38:27,870 --> 00:38:35,910 | Okay. That sounds arrogant. I know. But I had to spend some time with me. And you'll see there's a strong contrast. But there's another form of market |
| 220 | 00:38:35,910 --> 00:38:38,730 | structure that I teach, which is institutional market structure. |
| 221 | 00:38:39,120 --> 00:38:49,680 | And that is something altogether different, because you're looking at certain things and signatures and price action, that are not even lined up with what |
| 222 | 00:38:49,680 --> 00:39:02,220 | Larry Williams teaches is market structure. And it sounds like a total departure from what you may think you know, and it is because it changes everything you |
| 223 | 00:39:02,220 --> 00:39:10,920 | think you understand about price action, and reverses it. And that's the market efficiency paradigm that I teach. So understanding the market efficiency |
| 224 | 00:39:10,920 --> 00:39:21,570 | paradigm, which is looking at the market through the lens of where is the liquidity for me to get positioned or offload my position. As a institutional |
| 225 | 00:39:21,570 --> 00:39:32,370 | trader, I'm not looking at the charts for buying a pattern, I'm looking at buying somebody liquidity and selling it to someone else that wants to execute |
| 226 | 00:39:32,400 --> 00:39:42,030 | at that area. And I use that liquidity. That's the paradigm shift. Okay, that that a mark that market efficiency paradigm only takes place when you understand |
| 227 | 00:39:42,030 --> 00:39:52,380 | the markets in that vein, not looking at buy signals and patterns, but you're looking at from the narrative standpoint that I need execution in deep pools of |
| 228 | 00:39:52,380 --> 00:40:02,340 | liquidity. So these deep pools of liquidity are very easy to find in price action if you know what you're looking for. It's not just below an old low or |
| 229 | 00:40:02,340 --> 00:40:11,580 | above an old high. I teach that in this channel, because it's easy. Everyone can see that. But there's other deep pools of liquidity that are internal range. You |
| 230 | 00:40:11,580 --> 00:40:17,760 | are familiar with the concept of external range liquidity pools, because I've made it very clear, and you can see them. And the easiest one is those are |
| 231 | 00:40:17,760 --> 00:40:27,420 | relatively equal highs, and relatively equal lows that everybody now includes in their little courses. But this book is good for market structure. And this one |
| 232 | 00:40:27,420 --> 00:40:38,550 | here, the secrets to selecting stocks for immediate and substantial gains. If you're a stock trader, or an aspiring stock trader, if you read this book, you |
| 233 | 00:40:38,550 --> 00:40:52,620 | will absolutely understand where my SMT divergence came from. Okay, originally, it's Dow Theory. There's a lot of Dow Theory there. But the idea of using SMT |
| 234 | 00:40:53,730 --> 00:41:04,050 | came right out of this book right here. And to me, if you're a stock trader, this book with William J. O'Neill's How To Make Money in Stocks, and investment |
| 235 | 00:41:04,050 --> 00:41:11,880 | business daily subscription to that newspaper, you don't necessarily have the newspaper delivery, because I had it for years, and they don't do a delivery |
| 236 | 00:41:11,880 --> 00:41:17,880 | very well, I think they do it on purpose. Because they don't want to spend the money on the paper. And they want you to have the electronic format, which is |
| 237 | 00:41:17,880 --> 00:41:27,030 | fine, because you can actually download the entire newspaper, you know, when they release it, and it's in a PDF format, which is really convenient. But as a |
| 238 | 00:41:27,030 --> 00:41:40,680 | stock trader, this book here, phenomenal, it doesn't really go into a lot of the fundamental aspects of it. And there's ways that you can incorporate the IBD or |
| 239 | 00:41:40,680 --> 00:41:51,660 | Investor's Business dailies approach to fundamentally sorting strong stocks. And basically, it's the CAN SLIM approach. If I could just Google it, you'll see, |
| 240 | 00:41:52,140 --> 00:42:01,050 | but instead of spending 1000s of dollars going through what will William J. O'Neill's company puts out in terms of their educational material, which I have |
| 241 | 00:42:01,410 --> 00:42:11,250 | gone through and it's, it's good. Is it worth that much money? I don't think so. But Investor's Business Daily is absolutely a service I subscribe to I have it. |
| 242 | 00:42:11,250 --> 00:42:26,610 | I have had it for years. I've had Wall Street Journal. I've had other I guess, financial resources. I used to have Barron's, I don't have it anymore. I have |
| 243 | 00:42:26,610 --> 00:42:34,680 | subscription to technical analysis in stocks and commodities magazine. That I think is a good resource. You don't have to take these things and say, okay, ICT |
| 244 | 00:42:34,680 --> 00:42:42,600 | doesn't I'm going to spend my money on it, too. I'm answering questions that I get all the time, like, what resources do I use, and these are things that I've |
| 245 | 00:42:42,600 --> 00:42:49,530 | even talked about in my mentorship group, I just want to put it out here because I know there's a lot of you, they're probably going to want to eventually send |
| 246 | 00:42:49,530 --> 00:43:01,290 | me this email. And with me, not likely replying to it, at least you knew now that I've covered it. But this book here was the real beginnings of how I |
| 247 | 00:43:01,440 --> 00:43:14,850 | started using SMT. And if you take that book, and you couple it with a chapter in this book here, where it talks about how I trade charts, or something close |
| 248 | 00:43:14,850 --> 00:43:25,440 | to that effect in that book. Excellent. See if I can pull this up. Alright. So if you click on this here, and I think it's Chapter |
| 249 | 00:43:25,860 --> 00:43:40,560 | Eight, seven, how I read charts. Okay, if you look at this here, it'll also give you the ideas I got for relative strength analysis. Now, relative strength |
| 250 | 00:43:40,560 --> 00:43:49,710 | analysis, when you hear that as a new trader, you think that's the RSI indicator on your charts. And it's not. Larry Williams taught this in his four VHS course, |
| 251 | 00:43:49,770 --> 00:44:02,640 | I mentioned multiple times in this video so far. And it was how this chapter here focuses in on, but he really amplified it very well, in his VHS course, he |
| 252 | 00:44:02,640 --> 00:44:12,450 | didn't really touch on it any better anywhere else in any of his works. So unless you get that four VHS tape course, from him, the futures millionaires |
| 253 | 00:44:12,450 --> 00:44:22,590 | confidential trading course, by Larry Williams, you're not going to get the real nitty gritty that he shares that's only really available widely in this chapter |
| 254 | 00:44:22,590 --> 00:44:38,940 | here. Okay, so it's just a really, really good book. So back to our list here. Another one that I have that this is actually a two volume set. Volume One, the |
| 255 | 00:44:38,940 --> 00:44:52,380 | Definitive Guide to futures trading. This is Volume Two. Both of these books only have one chapter, each that I felt were influential to me. One of them is |
| 256 | 00:44:52,380 --> 00:45:05,550 | in an off the top my head don't recall what they are but one of these volumes have a topic on zero Balance. And I thought that was part of my trading early |
| 257 | 00:45:05,550 --> 00:45:19,590 | on. But it led to understanding institutional market flow. And while it's not discussed in his book, it's not even remotely close to what I ended up pursuing |
| 258 | 00:45:19,590 --> 00:45:32,250 | in my studies. The ideas really were inspired by his concept of zero balance. And I don't know if this book is the one. But we'll take a look at and see what |
| 259 | 00:45:32,250 --> 00:45:46,440 | the table contents shows. Let's see if it offers it. There's a chapter in one of these books, that is zero balance the other book, because this is not in the |
| 260 | 00:45:46,440 --> 00:45:53,910 | same book, that zero balance is covered. But the other book in the series of two volumes, he talks about how to measure accumulation and distribution and |
| 261 | 00:45:53,910 --> 00:46:06,750 | commodities. That chapter was huge in my development, and they helped me look at price action differently. Whereas you may be looking at charts and you say, |
| 262 | 00:46:06,750 --> 00:46:16,590 | okay, the market is making higher highs, higher highs, higher highs, I'm looking at the relationship between the open close and in yesterday's close to |
| 263 | 00:46:16,590 --> 00:46:28,500 | yesterday's open. Because that if you compare the relationships to that now think about this for those that you can make indicators and, or scientific, |
| 264 | 00:46:28,920 --> 00:46:38,220 | okay, and, and you want mechanical things and you'd like indicators, I want you to come up with a indicator that plots the difference on a cumulative line |
| 265 | 00:46:38,220 --> 00:46:54,210 | basis. If you assess a value, like points between yesterday's close to today's open, however much difference that is above or below, assess that in points, say |
| 266 | 00:46:54,210 --> 00:47:03,420 | for instance, say it's 10 pips, okay. 10 pips, but it's negative, so you take away 10 pips and you start to count up like that, you know, whatever number or |
| 267 | 00:47:03,420 --> 00:47:14,100 | value you want, just use 1000 as a beginning point. And then you add or subtract based on the next new day's opening from the previous close. Did you can do this |
| 268 | 00:47:14,100 --> 00:47:21,900 | on any timeframe, but I'm just saying on a daily chart do this. And what will happen is, over time, this cumulative line, if you plot that against price |
| 269 | 00:47:21,900 --> 00:47:31,650 | action, you'll start seeing price making higher, runs higher, but that count of line will be diverging. And what it's actually measuring is the professional |
| 270 | 00:47:31,650 --> 00:47:40,560 | distribution that's going on. And I never understood, that was even a thing until I read that chapter, how to measure accumulation of distribution and |
| 271 | 00:47:40,560 --> 00:47:54,600 | commodities. He talked about that idea, briefly. But it went over my head in the four VHS course series that he did, or seminar. But when I went through the |
| 272 | 00:47:54,600 --> 00:48:00,930 | chapter that covers this, and for the life of me, I wish I could have the book in front of me right now, I'm not going to go upstairs and grab it to do it. So |
| 273 | 00:48:00,930 --> 00:48:07,590 | you just know that one of these volumes have one chapter on zero balance. And in another volume, the opposite |
| 274 | 00:48:08,849 --> 00:48:17,699 | book in the series is going to have a chapter on how to measure accumulation distribution and commodities. Those two chapters, one chapter per book is the |
| 275 | 00:48:17,699 --> 00:48:29,159 | only real gem in the book. Okay. But that idea, I used that to create an indicator in meta stock. And I was able to see real accumulation and |
| 276 | 00:48:29,159 --> 00:48:38,249 | distribution in these markets. And when I was able to go short, finally, because I didn't understand short selling when I first started and it never made any |
| 277 | 00:48:38,249 --> 00:48:48,659 | sense to me. And no new traders that start trading, they will have the same problem today, how can I sell something I don't have, but your accumulation and |
| 278 | 00:48:48,659 --> 00:48:59,249 | distribution can be measured in his chapter in this book. And again, I'm saying this book because it's one of volume one or two, that has it but it's the |
| 279 | 00:48:59,249 --> 00:49:10,199 | chapter, how to measure accumulation distribution in commodities. That chapter, although it's short, it's just rich with ideas. And the way you see professional |
| 280 | 00:49:10,229 --> 00:49:23,129 | accumulation and distribution is you're measuring the cumulative line. And the effects of yesterday's close or the previous bars close versus the new bars |
| 281 | 00:49:23,159 --> 00:49:40,139 | open. And usually indicators are plotting the difference between the open and close. But I want to measure the opening versus yesterday's close. Because |
| 282 | 00:49:40,349 --> 00:49:56,339 | that's that's the real picture. And here's the real benefit. If you can have two punitive lines, okay. If you can run the difference between a punitive line of |
| 283 | 00:49:56,819 --> 00:50:05,909 | the difference between today or this candles open to this candles close, whatever timeframe you're using, you plot that on a cumulative line basis. And |
| 284 | 00:50:05,909 --> 00:50:18,209 | you plot the same chart with the relationship of the previous candles close to this new candles opening, when you start seeing the effects of both of those |
| 285 | 00:50:18,209 --> 00:50:27,689 | lines together, and you overlay that with a chart, that's like an X ray view. And you can literally see the institutions that work they're buying when they're |
| 286 | 00:50:27,689 --> 00:50:36,239 | making these lows, and they're selling short when they're making the highs, it's so phenomenal to see it, it's really fascinating when you see it like that, and |
| 287 | 00:50:36,239 --> 00:50:45,149 | I have never shared it, my mentorship doesn't see it, because it's something that I inspire you, and I'm giving it to you for free right here, I talk about |
| 288 | 00:50:45,149 --> 00:50:54,239 | it in mentorship, I've never showed them a chart, I don't ever show them, my personal charts, or my screens or anything, I only show them what I mark up in |
| 289 | 00:50:54,239 --> 00:51:06,119 | my trading view. But I just gave you the absolute best way to see an x ray view behind price action. Some of you aren't gonna be able to have that. Okay, and I |
| 290 | 00:51:06,119 --> 00:51:14,699 | know some of you're gonna want to send me an email, can you can you? No, no, no, I'm not going to do that. Somebody is going to hear me in this video, and |
| 291 | 00:51:14,699 --> 00:51:21,419 | they're gonna make a indicator, and they're gonna make it available for free. On trading view, I already know that because there's a lot of my tools that they've |
| 292 | 00:51:21,419 --> 00:51:31,919 | already made as a trading view indicator. And I think that's kind of cool. I don't have any problem with that. And I'm actually inspiring you all that can do |
| 293 | 00:51:31,919 --> 00:51:42,989 | it. To do that. Listen to the video instructions again. And you'll see if you can get your hands on Larry Williams formula for his accumulation distribution |
| 294 | 00:51:42,989 --> 00:51:53,099 | formula, use that as like a model to make it. But comparing the difference between yesterday or the previous candles close and where the new candle opens. |
| 295 | 00:51:53,669 --> 00:52:06,779 | If you plot that against his new, other indicators, you can see real accumulation and distribution and price action. And it's unbelievable. And you |
| 296 | 00:52:06,779 --> 00:52:15,269 | can really see it like it's visually there. But you don't see it in the candlesticks, you don't see it in open high low close bars, you have to see it |
| 297 | 00:52:15,269 --> 00:52:24,749 | as a cumulative line basis. So you're looking through price. And that's one of the things I talk about when I facetiously say, I'm focused on the things that |
| 298 | 00:52:24,749 --> 00:52:33,599 | are not in the chart, I'm looking at things outside the chart, what I mean by that, a lot of other things, but one of them is what I just said here, and you |
| 299 | 00:52:33,599 --> 00:52:42,449 | got it for free. And it's also an exercise for those that know how to make indicators. And you're going to see it's you are going to fall off your chair |
| 300 | 00:52:42,449 --> 00:52:53,489 | when you see it. Because it works in stocks. It works in commodities, it works in bonds. And I don't know if it works in crypto, but it's something that you |
| 301 | 00:52:53,489 --> 00:53:04,319 | can use on all asset classes as long as they have a chart. So it's something that's tradable. And we have data on it, I'm thoroughly convinced that you're |
| 302 | 00:53:04,319 --> 00:53:07,019 | going to see these patterns of |
| 303 | 00:53:07,320 --> 00:53:20,280 | accumulation and distribution. So you'll end up with a chart that has two overlays, basically. And one's basically plotting the human to change on the |
| 304 | 00:53:20,280 --> 00:53:30,330 | relationship of the open and close have the same candle. And then the relationship of the previous candles close and the new candles open. And the |
| 305 | 00:53:30,330 --> 00:53:40,650 | difference between that visually. As you compare the new highs that form and price action, or the new lows in price action, you will see real meaningful |
| 306 | 00:53:40,650 --> 00:53:56,160 | divergence that has narrative based not mathematically derived nonsense, you're seeing the real works of algorithms in play working in this area. Now, it's not |
| 307 | 00:53:56,160 --> 00:54:04,200 | useful when it's trending. So don't think that that's something that's you know, going to communicate anything to you. It's only useful when you're at extremes, |
| 308 | 00:54:04,620 --> 00:54:12,540 | where it's been trading up to a you know, period where that's creating, you know, a topping type formation where you suspect there's some topping, or maybe |
| 309 | 00:54:12,540 --> 00:54:23,640 | it's trying to find a bottom, it'll generally like confirm your suspicions, it's probably making an important higher low. Alright, so that's that one. And I'm |
| 310 | 00:54:23,640 --> 00:54:30,090 | gonna try to get through this because this is already becoming a really long video. And I know some of you want to thumbs down because it's too long. But |
| 311 | 00:54:30,090 --> 00:54:38,370 | this is actually kind of fun going over this stuff. See this one here? Sure thing commodity trading. This book got me really inspired even though it has low |
| 312 | 00:54:38,370 --> 00:54:49,230 | ratings, and it's because it's outdated in the sense that there's a lot of markets in this that don't exist anymore. One pork bellies, pork bellies is a |
| 313 | 00:54:49,260 --> 00:54:59,070 | commodity that if you'd like to eat bacon, that's where it came from. So that market was very, very thinly traded. It didn't have a whole lot of activity but |
| 314 | 00:54:59,070 --> 00:55:08,280 | when it would really run, it would be crazy. Like it would be limit up days and limit down days where you were forced, you couldn't get out of the market. And |
| 315 | 00:55:08,280 --> 00:55:17,340 | if you were making money, that's scary, but it's also really fun. But if you're on the wrong side, you cannot get out, you're stuck losing the maximum that the |
| 316 | 00:55:17,340 --> 00:55:26,250 | market will be allowed to take from you. And it can do it for days on end. That's kind of scary. But if you're on the right side, man, oh, man, it's, it's |
| 317 | 00:55:26,250 --> 00:55:36,510 | fun. It's really fun. It's like winning the lottery every day, and you have no choice. It's been thrown at you. But this book opened my eyes to the idea of |
| 318 | 00:55:36,510 --> 00:55:47,400 | seasonal tendencies. And while some of these seasonal tendencies in this book still do work, and if you are a purchaser of this book, you'll go through them |
| 319 | 00:55:47,400 --> 00:55:54,840 | and, like I do is look at the chart, and you'll see that they're not hard to find. But it opened my eyes up to seasonal tendencies. And at that time, I |
| 320 | 00:55:54,840 --> 00:56:04,380 | started buying everything. One in particular was everything that Jake Bernstein put out, and every time I used his stuff, I lost money. So I'm not gonna say |
| 321 | 00:56:04,380 --> 00:56:13,620 | anything more than be disrespectful. I just never could make his stuff work. This book here shorting commodity trading, there are seasonal items in here that |
| 322 | 00:56:13,620 --> 00:56:26,460 | do hold up, not every year, but by foreign large, there's a lot of things that repeat. And because of the inspiration of this book, and his four VHS course, |
| 323 | 00:56:27,690 --> 00:56:35,430 | I've been talking about, I don't want to repeat the name of it, because I always butcher it all off. He talked about seasonal tendencies in his four video |
| 324 | 00:56:35,430 --> 00:56:50,940 | course. And he mentioned, Steve Moore. More research is the best for seasonal tendencies. Like if you have any interest whatsoever, with pursuing seasonal |
| 325 | 00:56:50,940 --> 00:57:05,610 | tendencies, Steve Moore, is the man. Okay, this guy service is unbelievable. The seasonal tendency graphs that he produces are just they're amazing. Like he has |
| 326 | 00:57:05,730 --> 00:57:15,240 | collected all the data, he's providing in a way where you can see it was a like a five year trend against the 10 year trend, and a 20 year trend, some charts |
| 327 | 00:57:15,240 --> 00:57:24,360 | show 25 year. So you're you're able to compare and contrast if this seasonal tendency held up over the last five years. And did it hold up over the last 10 |
| 328 | 00:57:24,360 --> 00:57:33,930 | years? does it hold up over the last 20 years or 25 years, and the ones that show up across all those measurements, they're really strong. If you go into |
| 329 | 00:57:33,930 --> 00:57:45,150 | your charts, and this look, you'll see it's there. And it's a short term or swing trader, man, it's nothing better than having a road map like that. And you |
| 330 | 00:57:45,150 --> 00:57:54,990 | just, it doesn't mean it's gonna happen all the time. It's not a panacea. But it is such a good resource. And I teach this, and everybody out here |
| 331 | 00:57:55,440 --> 00:58:06,030 | that has any interest in seasonal tendencies. There are certain individuals out there that you're going to lose money falling. I am absolutely convinced that if |
| 332 | 00:58:06,030 --> 00:58:16,740 | you give Steve more your time, and consideration, I don't get paid anything. There's no paid placement for ads or products in here. None of these people have |
| 333 | 00:58:16,740 --> 00:58:27,210 | told me to say anything. I'm saying, This is my own experience with them. I've spent my own money. So I know that these things are meaningful. If I say it, and |
| 334 | 00:58:27,210 --> 00:58:34,710 | I'm not getting any kickback. He doesn't even know who I am, I'm sure. Okay, maybe not so much now, because I've sent a lot of people there. But the point |
| 335 | 00:58:34,710 --> 00:58:45,570 | is, I don't get anything for it. And I'm thoroughly convinced, if you give his service a chance, you will see that the things he's creating, nobody can touch |
| 336 | 00:58:45,570 --> 00:58:56,220 | that, like you can google search seasonal tendencies for markets. And you'll get all these ridiculous line charts that people have created. And they're |
| 337 | 00:58:56,220 --> 00:59:07,080 | contrived. There's just there's no data to support any of it. Okay. The only person that I trust, in the form of seasonal tendencies is Steve Moore. Okay, so |
| 338 | 00:59:07,080 --> 00:59:20,880 | more research. And that was the beginning of seasonal tendencies. My interest in that and once I found Steve stuff that Larry uses in his own trading, I never |
| 339 | 00:59:20,910 --> 00:59:29,550 | looked anywhere else. I never dabbled in any kind of other service and never looked for any cheaper service. It's it meets and exceeds every expectation of |
| 340 | 00:59:29,550 --> 00:59:39,420 | our head. But it was all inspired by this original book right here. And I think batting 800 that was also a derivative course that came after the one I was |
| 341 | 00:59:39,420 --> 00:59:50,520 | talking about. So you can see it's ridiculous to charge that now. trying to think if there's anything else here, before I go to the next one, cracking the |
| 342 | 00:59:50,520 --> 00:59:59,070 | money code that was another derivative course that came after the one I mentioned. And I think that's pretty much it from Larry Williams. So he was my |
| 343 | 00:59:59,070 --> 01:00:10,380 | original mentor. I never met him in my life. I would love to meet him. But I'm gonna take this guy's record away when he's no longer with us. I just won't do |
| 344 | 01:00:10,380 --> 01:00:21,360 | it while he's here at a respect. But I know that sounds arrogant, but it's going to happen. next book in the influential early stages of my development, this |
| 345 | 01:00:21,360 --> 01:00:35,130 | book, street smarts 1995, purchase this book. And in this, I will tell you the chapters that were most meaningful to me and influential. I'm not sure if it's |
| 346 | 01:00:35,130 --> 01:00:50,130 | going to give me a table of contents. Hopefully it does, yeah. Alright, so the idea of the turtle soup now, on baby pips, when I started talking about reversal |
| 347 | 01:00:50,130 --> 01:01:02,190 | patterns and false breakouts and stop hunts. I made an allusion to this pattern here. And the idea that inspired at all, like I didn't understand stop hunts |
| 348 | 01:01:02,610 --> 01:01:12,360 | early on until this book, okay, this book made it simple for me to understand, stop runs, and hit in raids and hitting stops and going the other direction. |
| 349 | 01:01:13,650 --> 01:01:29,100 | There are lots of different ways of looking at the idea. And for the life of me, there's so many different names, you know, false breakout fakie, the, this |
| 350 | 01:01:29,100 --> 01:01:39,180 | here's a turtle soup. And if you read this book, you'll see that what I teach, and even when I was doing in my free free teachings, we use the name turtle |
| 351 | 01:01:39,180 --> 01:01:48,990 | suit, because it was a it was a way for me to communicate the idea, because it didn't have a really good name for it. Like, is this a friggin stop run? That's |
| 352 | 01:01:48,990 --> 01:02:01,170 | all it is. It's nothing more than just that. But the name was clever. And even though I don't teach the last 20 days, okay, high and low. Initially, I outlined |
| 353 | 01:02:01,170 --> 01:02:11,490 | it on baby pips saying this is the pattern that this book talks about. I don't personally trade that. Is it a pattern that's valid? Yes. But it taught me as a |
| 354 | 01:02:11,490 --> 01:02:21,870 | trader in 1995, the real mechanics of stop hunts, and how often that takes place. Whereas I was looking for continuation patterns, you know, reversal, |
| 355 | 01:02:21,870 --> 01:02:33,210 | pattern head and shoulders type thing. I didn't think about the market as hunting stops. And then everything changed. In 1995, where everything started |
| 356 | 01:02:33,540 --> 01:02:43,770 | coming together, where I could see liquidity pools, I can start seeing trends, I could see smart money in large moves with seasonal tendencies, and quarterly |
| 357 | 01:02:43,770 --> 01:02:49,680 | moves, the head Commitment of Traders behind it and seasonal tendency supporting it in the year of 1995. |
| 358 | 01:02:50,190 --> 01:03:02,970 | So it really started to come together for me, and I had something to really work at. And I pushed really, really hard in the year 1995. And things clicked. And I |
| 359 | 01:03:02,970 --> 01:03:14,310 | implemented a lot of things that you knew me now as the author of a lot of the HIPAA concepts that people use today. I'm in fact, the author of it all, the |
| 360 | 01:03:14,310 --> 01:03:31,860 | idea of looking for the specific signatures and price that work within the grand scheme of the delivery on a daily chart that was carved out from my experience |
| 361 | 01:03:31,860 --> 01:03:44,430 | in this 1995 year. It all started with these chapters here, turtle soup and turtle soup plus one. I like the anti pattern down here. You know, when I was |
| 362 | 01:03:44,430 --> 01:03:52,140 | when America Online, I was really pushing this one because it was basically around the stochastics indicator, and I was really fascinated with stochastics |
| 363 | 01:03:52,140 --> 01:04:00,450 | back then. And all this is is like a little hook against the underlying direction of the stochastic indicator. And if you get the book, you can probably |
| 364 | 01:04:00,450 --> 01:04:09,960 | google it really and see somebody has done some kind of discussion about this pattern. And the ante and the turtle suit was my favorite topics in this book. |
| 365 | 01:04:11,790 --> 01:04:24,390 | The overall approach to teaching little patterns, little setups, little criteria, you know, these one shot, little, pick them off when it creates it in |
| 366 | 01:04:24,390 --> 01:04:34,140 | a chart type opportunities, patterns, basically. That really resonated with me because what I was trying to have is a kitchen sink approach. Like I wanted to |
| 367 | 01:04:34,140 --> 01:04:44,640 | bring all my tools with me every single time I went into the marketplace. Every tool was with me and helped me become a minimalist. Now, when you hear that it |
| 368 | 01:04:44,640 --> 01:04:55,950 | sounds like Well, it sounds like you're lazy. No, it is taking away things that you don't need. And this book helped me do that. I was only looking for one |
| 369 | 01:04:56,130 --> 01:05:08,640 | setup, one setup per week. It was framed on the things I've learned from those two particular chapters. I think the whole book is good. But the really gems for |
| 370 | 01:05:08,640 --> 01:05:18,990 | me and my development were those chapters here. Chapters four, five, and I guess it's nine is it? Make sure I'm telling you the right ones here, the turtle soup, |
| 371 | 01:05:19,200 --> 01:05:28,950 | the turtle soup plus one and in the ante, so it looks like chapter nine, four and five. Okay, so that's that for that book. And I'm gonna try to go through |
| 372 | 01:05:28,950 --> 01:05:41,940 | these a little bit quicker now. This one was inspirational to me both Volume One and two. The rest of them sucked. This book here, I liked Marcus's interview. |
| 373 | 01:05:42,360 --> 01:05:56,760 | It's Dakota's interview, William J. O'Neill's interview. And in market wizards, or the new market wizards book, I liked Linda raschke interview, where she draws |
| 374 | 01:05:56,760 --> 01:06:05,850 | an analogy of reading, sheet music and the price charts. I thought that was a really clever analogy, because I don't have to read music. I wish I could play |
| 375 | 01:06:05,850 --> 01:06:17,220 | the guitar I've been trying for years. I don't know how to read it. But I thought to her analogy, and the observations that she shared was the the gem in |
| 376 | 01:06:17,220 --> 01:06:26,790 | that one. Apart from that, you know, I'm really don't care about the other guys not to be ignored or anything. But those are the interviews that were inspiring |
| 377 | 01:06:26,790 --> 01:06:44,430 | to me. And this guy here, Georgia and Joe, he had a seminar, and he taught his trading methodology called Spyglass. And Spyglass was a SMP trading system. And |
| 378 | 01:06:44,430 --> 01:06:57,300 | he taught the mechanics behind it, where he used specific tools and indicators and things in tried to predict the morning trend, the afternoon trend of the SMP |
| 379 | 01:06:57,300 --> 01:07:11,790 | market. And it's real hard to get any of that Spyglass stuff anymore. But I was introduced to his SMP trading. And he was actually a floor trader, on the floor |
| 380 | 01:07:11,820 --> 01:07:26,160 | when, I guess right before these books and things were produced, but it opened my eyes up to intraday trading. And also price vacuums, which is what everybody |
| 381 | 01:07:26,160 --> 01:07:37,020 | refers to now today as an inefficiency or a imbalance. They have always been referred to as a price vacuum before me. Before Chris Laurie |
| 382 | 01:07:38,039 --> 01:07:45,179 | did a lot of people like to say he invented that. And if you ever asked him intimately, he'll tell you that he learned from a trader that he never names. He |
| 383 | 01:07:45,179 --> 01:07:55,649 | never gives you the person's name, nobody would know him. And the sort of conversations I had with him as well. But imbalances and liquidity voids, these |
| 384 | 01:07:55,649 --> 01:08:08,399 | are all names that people have attributed to, but they've always been referred to as a price vacuum. And this guy was the first one to introduce that idea. To |
| 385 | 01:08:08,399 --> 01:08:17,309 | me, now, it's been obviously in the industry longer than even him. But they understood where they were, because when they are operating on the floor, they |
| 386 | 01:08:17,309 --> 01:08:24,959 | just had a notepad in front of them, they have the high the low, the last couple days, the previous week's high and low, and then they write down every time it |
| 387 | 01:08:24,959 --> 01:08:31,439 | creates a new high, they're writing down that new high, because they know what's interesting about that new high as it starts to drop down to handles three |
| 388 | 01:08:31,439 --> 01:08:42,719 | handles, it's probably gonna expand up and run through the high again. So as a floor trader, they can make the money for the day, running out that earlier |
| 389 | 01:08:42,869 --> 01:08:52,499 | morning high or running out that early morning low if they're bearish. And they run pivot numbers. So that's the floor numbers. When you see the end, it's been |
| 390 | 01:08:52,499 --> 01:09:02,339 | around for a long time, the pivot numbers or pivot points? Well, they they were floor traders numbers, that's where they originated from. And while they still |
| 391 | 01:09:02,339 --> 01:09:10,409 | have a little bit of influence traders like myself where I like to use them, because I know people are going to look at the market and think that they see |
| 392 | 01:09:10,409 --> 01:09:17,669 | something because of those lines. If I see something in the price action that is contrary to what I think retail is going to anticipate with using pivot points |
| 393 | 01:09:17,669 --> 01:09:26,189 | or moving averages or indicators. I'm really fascinated with that. And I'm going to probably take the trade more so because of that because I know I'm |
| 394 | 01:09:26,189 --> 01:09:39,659 | armwrestling the weak handed Mark market participants. But this guy here his approach to using the intraday charts and the idea of equilibrium, equilibrium. |
| 395 | 01:09:40,259 --> 01:09:49,319 | And looking at ranges like that. I got that from Georgia and Jill. And I started to mention a little bit ago in this video i said i was a little reluctant to |
| 396 | 01:09:49,319 --> 01:09:58,379 | make this kind of video. I've been wanting to do it for years. But I started to say, you know people that study under me, and then you want to go out and |
| 397 | 01:09:58,379 --> 01:10:06,779 | rebrand it or repackage it. And they know that wycoff is going to come out of the grave and start talking about doing lawsuits against them for plagiarizing |
| 398 | 01:10:06,779 --> 01:10:16,439 | and, and copyright infringement and everything else. they elect to use him, they'll say, young using wycoff, when really they're learning from me. And |
| 399 | 01:10:16,439 --> 01:10:24,389 | they're using wycoff as a smokescreen to hide behind for legal purposes. But anybody who ever studies, anything I teach, it's completely different. It's |
| 400 | 01:10:24,389 --> 01:10:34,499 | absolutely night and day different. And we're predicting before it happens. Whereas wycoff does a really good job of explaining history. I didn't want to do |
| 401 | 01:10:34,499 --> 01:10:43,409 | this type of video before because I know somebody and this is what I challenge you all and didn't quite finish my thought on the process. You're gonna start |
| 402 | 01:10:43,409 --> 01:10:53,909 | seeing people using the same sources, and say they learned from here, because I did a video before. And it was mentors, and basically the people I'm showing you |
| 403 | 01:10:53,909 --> 01:11:09,539 | here, and everybody that was in IML, that are still trying to teach my stuff and can't trade. But they use all those same, quote unquote, mentors that they |
| 404 | 01:11:09,539 --> 01:11:20,699 | supposedly learn from. And they didn't, they learn from me. And all I did was parrot to people I said, were influential in my trading. So I'm actually taking |
| 405 | 01:11:20,699 --> 01:11:28,949 | you in this video to the very books and things and some of the courses, obviously, I can't pull up because they're not available anymore. For instance, |
| 406 | 01:11:28,949 --> 01:11:45,869 | like this one here, I have a first edition of this book here, you can't even get it anymore. A diligent seeker will find this book in a PDF format. On the |
| 407 | 01:11:45,869 --> 01:11:55,649 | internet, it's pretty widely shared out there. And you may not even find any value in it. But to me, as a short term intraday trader, the ideas that this |
| 408 | 01:11:55,649 --> 01:12:10,529 | book, put in me, helps me crack the idea that Larry Williams mentioned in his material, he didn't quite understand how to buy the low or be below the opening |
| 409 | 01:12:10,529 --> 01:12:20,789 | price, he was always still buying strength. And that was like the thing back then in the 90s, like, everybody wanted to be a buyer of strength. And to me, it |
| 410 | 01:12:20,789 --> 01:12:29,969 | just made no sense. Like, if it's going to go up, why not try to buy it at the lowest point. And because Larry, I had such an I still have such a high respect |
| 411 | 01:12:29,969 --> 01:12:37,319 | for the man. And he's, he didn't have to talk about the things he used to make money, he could have kept it to himself. And |
| 412 | 01:12:38,280 --> 01:12:43,860 | there's lots of people that have made money with his stuff. And if lots of people that will report and give him bad review, saying they sucked us to trader |
| 413 | 01:12:43,950 --> 01:12:54,720 | using what he's doing, what's the difference? The difference is the person that's using it. And if you read a book like this one here, it is very data |
| 414 | 01:12:54,720 --> 01:13:09,750 | heavy, it's very, very dry. It's very, the word escapes me, but it's not going to be fascinating to anyone that's used to seeing visual charts of overlays and |
| 415 | 01:13:09,750 --> 01:13:26,430 | indicators and things like that. This is all data driven, like, what's the likelihood of the difference between the open and the close on being up or down? |
| 416 | 01:13:26,490 --> 01:13:37,470 | That type of thing? Okay, measuring the probabilities of what the closing price is going to do in relationship to the opening price. A lot of the ideas I got on |
| 417 | 01:13:37,470 --> 01:13:46,770 | how to crack the mystery that Larry said he had in his trading, like he wanted to be able to do that. And that's why he teaches buying one strength. Now, does |
| 418 | 01:13:46,770 --> 01:13:55,950 | he mean that in secret, he's just not going to be bothered by people asking, because he's never going to teach it? Does he really buy the low? I don't know. |
| 419 | 01:13:56,250 --> 01:14:05,370 | I mean, I'd like to believe if he did. He was facetiously to say, well, you're not going to get that because in one of his courses, he said, when when being |
| 420 | 01:14:05,370 --> 01:14:12,870 | asked, Hey, can you teach us this or that he goes, I'm teaching you right, here he goes, will you ever gonna put this in a book? He's No, it's too good to be in |
| 421 | 01:14:12,870 --> 01:14:22,020 | a book. So like, I hold back things, even though intership knows that I'm never going to teach my Enigma model that's not going to ever happen. You don't need |
| 422 | 01:14:22,020 --> 01:14:33,990 | that the things I teach on this YouTube channel can be profitable. But that question of how do you know when to be buying bulldozing price, a lot of the |
| 423 | 01:14:33,990 --> 01:14:42,870 | ideas were inspired by the things I read in this book. Now, this book does not teach how to do that. Now, this is again, one of those things where I'm trying |
| 424 | 01:14:42,870 --> 01:14:54,210 | to remind you folks, that these were all inspirations to what led me to finding the things in my own studies that you all have the benefit of having as a lesson |
| 425 | 01:14:54,210 --> 01:15:05,220 | in a video. But it takes years of going through these books and trial and error. Putting real money trades on making money losing money, why did I lose money |
| 426 | 01:15:05,550 --> 01:15:13,560 | going in and figuring out what I was doing wrong and what things were working. Okay, that's the benefit that you all have. You don't have to worry about going |
| 427 | 01:15:13,560 --> 01:15:25,140 | into here and losing fortunes, to see if this stuff works. I did all that. So this book here, to be credible is an excellent book for someone that's really |
| 428 | 01:15:25,140 --> 01:15:37,620 | fascinated with intraday trading, and probabilities and how to go back through and do case studies and build confidence around your model. Alright, and here is |
| 429 | 01:15:37,860 --> 01:15:51,420 | the next guy here. The trading game, it says Ryan Jones, he is basically a disciple of Ralph Vince, which we'll talk about next. Ryan Jones is a little bit |
| 430 | 01:15:51,420 --> 01:16:04,950 | easier to read than Ralph, Vince, Ralph ences, little bit more math based, whereas Ryan Can, can be a little bit more wordier, but makes it a little bit |
| 431 | 01:16:04,950 --> 01:16:15,390 | more palatable, you can kind of like get what he's getting to without having all the dry pneus of railfans. Like, you got to get through it. Like if you're a |
| 432 | 01:16:15,390 --> 01:16:24,930 | math person, you'll have no problem. But if you are not a math person, you're gonna have a real hard time getting through references works. I think they're |
| 433 | 01:16:24,930 --> 01:16:34,740 | fascinating, like I've read them multiple times, but it is impactful to your trading if you already have something that is measurable in terms of |
| 434 | 01:16:34,740 --> 01:16:46,380 | profitability. So you don't need to have a system that makes a lot of money. So let's use forex as as a instance. We're having an expectation that our model |
| 435 | 01:16:46,440 --> 01:16:58,080 | tries to capture 10 pips. Okay 10 pips big deal, nobody makes a big deal about 10 pips. But that 10 pips, if it's consistently done, can make millions. And |
| 436 | 01:16:58,080 --> 01:17:13,410 | that's what an algorithm does. And high frequency trading algorithm can take that same 10 PIP model, and destroy the subjective trading analysis trader that |
| 437 | 01:17:13,410 --> 01:17:20,370 | goes out there and just looks and says, Well, I'm gonna trade this pattern here. If the algorithm can operate on a |
| 438 | 01:17:22,830 --> 01:17:33,570 | high probability basis, that mark is going to move in one direction for 10 pips, and it can capitalize on that. It doesn't matter if that 10 pips is initially |
| 439 | 01:17:33,570 --> 01:17:47,220 | starting with 10 cents per Pip. Because if you're making $1, essentially, because it's 10 cents per Pip, and you're capturing 10 pips, that's $1 anyone |
| 440 | 01:17:47,220 --> 01:17:57,030 | listening to this right now that's full of themselves, and they think that it takes 200 pips or 300 pips a week or day. And that's a real trader, okay? You're |
| 441 | 01:17:57,030 --> 01:18:08,550 | fooling yourself. Because the real geniuses in his industry know that as little as five pips. They can make algorithms that do that and wipe the floor with you. |
| 442 | 01:18:09,750 --> 01:18:23,820 | Like, you can design this stuff to be ridiculous, and not require a whole lot. Now, think about that. If you have a result that consistently, but not all the |
| 443 | 01:18:23,820 --> 01:18:39,480 | time, but consistently delivers 10 pips. How much money can you make if you apply money management to that? Theoretically infinite. Now, I'm not saying that |
| 444 | 01:18:39,480 --> 01:18:57,840 | you're all going to be billionaires trading with 10 PIP models. I'm saying that this book helped me change and shift my ideas about making money with big moves. |
| 445 | 01:18:58,410 --> 01:19:11,730 | And I changed and started applying a lot of algorithmic ideas with what he helped convey in his book and what Ralph Vince also included in his treatise on |
| 446 | 01:19:12,480 --> 01:19:26,310 | money management. And finally, Ralph Vince. Alright, so this is basically his library. I have all of these books here. And the one that has the least impact |
| 447 | 01:19:26,340 --> 01:19:37,770 | is this one here. And you'll be not surprised when you see the stars on it, because much like the reviews will tell you. It's basically a watered down |
| 448 | 01:19:37,770 --> 01:19:51,780 | rehash of the things he's already said in nice, okay. The books, again, like I said, are very, very dry. And it's really designed for someone that is |
| 449 | 01:19:53,490 --> 01:20:06,300 | profitable has a model that does well, but they want to tweak it and supercharge it. With gaming theory, and how to structure your price action models that will |
| 450 | 01:20:06,780 --> 01:20:24,780 | incorporate the highest level of output for profits, but also trying to balance the risk aspect. And he teaches optimal F, and how you can parlay small, small |
| 451 | 01:20:24,780 --> 01:20:36,000 | accounts into large accounts used in the money management plan that Larry Williams used in 1987, when he won the World Cup in Robins trading contest. So |
| 452 | 01:20:36,000 --> 01:20:45,660 | he took $10,000 to $1.2 million, but a lot of people don't realize is that he had actually over $2.2 million at one time, but got hurt in the crash and then |
| 453 | 01:20:45,660 --> 01:20:58,950 | traded it back. But he was using a lot of the ideas that came from Ralph fence. And I took what I learned from railfans, in how Larry Williams used what he |
| 454 | 01:20:58,950 --> 01:21:11,100 | learned from Robbins, and I tweaked some of that and created my own money management approach. And it's not for the faint of heart. It takes a lot of |
| 455 | 01:21:11,100 --> 01:21:27,120 | conviction to trust what you're doing. And if you do it, you will see crazy, crazy equity increases. But when you have your first loss, that first loss is |
| 456 | 01:21:27,930 --> 01:21:40,500 | painful, but then you immediately adjust and you dial it back. Now I teach some parts of that in my mentorship, and how to basically weather periods of drawdown |
| 457 | 01:21:40,500 --> 01:21:50,220 | that would otherwise take a couple years in the marketplace. This here, this collection of books is not meant for everyone. In fact, it's probably not meant |
| 458 | 01:21:50,220 --> 01:22:02,310 | for 99% of you. But these books were very influential in my view of money management, it helps me get very serious about that aspect. Because when I first |
| 459 | 01:22:02,310 --> 01:22:12,420 | started in 1992, I didn't care. Like I figured, you know, I'm going to lose a lot anyway. So I had already adopted the mindset that, you know, if I lose, |
| 460 | 01:22:12,630 --> 01:22:15,330 | that's okay, I still have plenty of time before I'm 40. |
| 461 | 01:22:16,590 --> 01:22:24,300 | So if I have to work a second job to put money back in the account, I will that was the that was the mindset I had, like, I knew it was going to be hard. And I |
| 462 | 01:22:24,300 --> 01:22:32,610 | knew there's probably gonna take me more work than I'm already anticipating to get there. Whereas most people coming to me and other people that educate, they |
| 463 | 01:22:32,610 --> 01:22:41,460 | want it right now. And like I always say, you know, they want it nailed last week is too late. Like they they want to immediately and that's unrealistic. So |
| 464 | 01:22:43,590 --> 01:22:53,970 | again, I'm going to close this video with the idea that I want you to understand that these are books that were influential to me in my development, they are not |
| 465 | 01:22:54,000 --> 01:23:06,030 | framing out the things that I teach verbatim, the ideas of market structure. When I'm talking about microstructure, I'm absolutely using what I was taught |
| 466 | 01:23:06,030 --> 01:23:15,210 | through the mediums that Larry Williams produced. I've always credited him, I've always stated that. But he does not. And none of these people talk about |
| 467 | 01:23:15,240 --> 01:23:29,400 | algorithms, none of these people that I've talked about as a mentor, we're forex. inspirations to me, none of them, not one of them. The ideas that I got |
| 468 | 01:23:29,430 --> 01:23:40,680 | from using their books and insights, they were stepping stones, to me seeing what I see. And that's why I have people that have been in this industry for a |
| 469 | 01:23:40,680 --> 01:23:52,200 | long time when they sit under me. They see things totally different now. And it's exciting. It's, it's a pioneering work on my part, because I already know |
| 470 | 01:23:52,230 --> 01:24:02,220 | by sharing these things and ideas. It's gonna, it catches fire inside the minds of the traders that are learning from me, because they see something that's |
| 471 | 01:24:02,220 --> 01:24:12,900 | different. And a lot of people that are just very jealous, very envious. They love to come to circles where I'm being discussed, okay, or my concepts are |
| 472 | 01:24:12,900 --> 01:24:25,260 | being discussed. And they'll say, I copied this person, I renamed this so that you just heard the real facts of all that stuff. Okay. There's nothing else that |
| 473 | 01:24:25,260 --> 01:24:38,760 | talks about that's not entirely true. Chris Laurie. He has the Asian range. Okay. I took what he says about the Asian range, and supercharged that and you |
| 474 | 01:24:38,760 --> 01:24:52,530 | can go and chase all that. I didn't learn how I used Asian range from anyone. Live is something I did. That's completely me. No one takes those Asian ranges |
| 475 | 01:24:52,770 --> 01:25:02,220 | and projects them above or below and gets in alignment with a deviation at lines out with a pdra like you, Larry I don't even know what that is. Chris Laurie |
| 476 | 01:25:02,220 --> 01:25:09,930 | doesn't even know what that is. Okay. rapids certainly doesn't know what that is. Ryan Jones doesn't know what that is George and Joe. I mean, I'm sure he's |
| 477 | 01:25:09,930 --> 01:25:20,370 | alive anymore. He wouldn't know what that is. Ken Roberts, he's not even a trader anymore. So you're kind of stuck, you know, cuz wycoff didn't talk about |
| 478 | 01:25:20,370 --> 01:25:37,020 | it either. Where'd I get it from? Well, there's another book. And it is 66 books written by about 40 different authors. Okay, and they were inspired by one |
| 479 | 01:25:37,020 --> 01:25:51,600 | person. The greatest inspiration I had coming up, and motivation, and clarity, when everything was falling apart around me. All of the struggle and the stress, |
| 480 | 01:25:51,990 --> 01:26:03,420 | and the fear and anxiety was quieted by reading one book. Now, I already know some of you atheists are already flipping out and ready to turn the video off, |
| 481 | 01:26:03,420 --> 01:26:15,360 | and you're welcome to do that. But most of the clarity and inspiration I had, and the way I see things and the way I live my life, the way I teach, is all |
| 482 | 01:26:15,360 --> 01:26:27,090 | patterned from the Bible. I do things that I learned from the Bible, and I try to pattern my life as much as I can. I am not a poster boy for Christianity. |
| 483 | 01:26:27,750 --> 01:26:38,970 | Okay, I'm not perfect. I'm a human being. Do I lose control my tongue sometimes and cuss? Yes, I do. Do I get angry and say things? I shouldn't say? Yes, I do. |
| 484 | 01:26:39,780 --> 01:26:51,660 | You don't see it. But I feel convicted later. And I apologize, and I repent. But that book is the best investment book you're ever gonna find. You won't see it |
| 485 | 01:26:51,660 --> 01:27:01,380 | as such, because you think it's a book I've written 1000s years ago, years ago, about myths and fairy tales and Invisible Man in the sky. I don't believe in an |
| 486 | 01:27:01,380 --> 01:27:06,240 | invisible man in the sky. I believe in a creator. And that |
| 487 | 01:27:06,240 --> 01:27:17,250 | book, to me is your life's instruction manual. And it teaches you everything you need to know about yourself about others how to interact, and how to interact |
| 488 | 01:27:17,250 --> 01:27:28,140 | with the person that put us here? And what's the purpose of being here? How should we interact with one another? And how should we be good stewards of the |
| 489 | 01:27:28,140 --> 01:27:36,360 | things that were given? If you're not a good steward with the things you have? Why would you be reasonably expected receive more for little effort? Nothing, |
| 490 | 01:27:36,480 --> 01:27:49,440 | you didn't do anything to get it? And why should you be expecting or entitled to something that you didn't earn or work for? So there's a way to get through this |
| 491 | 01:27:49,740 --> 01:28:02,280 | journey. And there's a way to go through it very stressed out. And I tried it the first way, stressed out with no support structure behind me. And there was |
| 492 | 01:28:02,280 --> 01:28:15,900 | no ICT talking to me, in videos on a click in demand. It's right there, you're on there talking to you. I was on my knees crying, praying that the trade I'm |
| 493 | 01:28:15,900 --> 01:28:31,950 | about to blow my account on isn't going to hit my stop loss. And it did. And I can look back now and say, I was being trained. In that moment, at the height of |
| 494 | 01:28:31,950 --> 01:28:44,280 | me feeling all that pain and blowing another account. If I could enter the world, I was never going to learn how to do this. But the Bible says, we endure |
| 495 | 01:28:44,280 --> 01:28:54,990 | suffering so that way other people can see our faith carries us through and just because we have problems, stress and things don't work out like we want them to |
| 496 | 01:28:56,100 --> 01:29:06,060 | you don't lose faith in it. You came into this industry because you want to be successful. Well, guess what? it's gonna cost a lot. And you're gonna fail all |
| 497 | 01:29:06,060 --> 01:29:17,430 | along the way. And that's all part of it. You're gonna get there with bumps and bruises and scratches and scars. And I try to do my best to try to make sure |
| 498 | 01:29:17,430 --> 01:29:28,920 | that those things are not terribly debilitating, because there's no way for me to cause you to avoid every adversary in every adversity, and everything that |
| 499 | 01:29:28,920 --> 01:29:37,710 | causes you pain and discomfort. That's where you're going to learn. But to completely take you out of the game. If you listen, I will help you in that |
| 500 | 01:29:37,710 --> 01:29:47,610 | regard. And I'll keep you in there long enough for you to see the things I teach will get you where you want to go. But these books are not sales pitches. I |
| 501 | 01:29:47,610 --> 01:29:55,890 | don't want really any of you to think you got to go out and buy any of them. But these are the books out of the 2000 plus that I have. We're the only important |
| 502 | 01:29:55,890 --> 01:30:05,580 | ones that I think are worth their print. Everything else is a waste. And I don't want to throw them away. Because, number one spend a lot of money to the lessons |
| 503 | 01:30:05,580 --> 01:30:16,320 | I learned from that stuff helped me become who I am. I look at all those books. And I reverse the logic they have in them. And it works. This does not work |
| 504 | 01:30:16,350 --> 01:30:25,860 | based on the way they produced, wrote and outlined the logic in them, because it's all retail. So again, probably a boring video for you probably didn't learn |
| 505 | 01:30:25,860 --> 01:30:35,490 | anything from it, and probably just the waste of your time. But for the few people that were asking for years for me to touch on this subject matter, here |
| 506 | 01:30:35,490 --> 01:30:47,670 | it is. There is no other books that I would say are useful. The only other one that would have made this list is john Murphy's technical analysis of financial |
| 507 | 01:30:47,670 --> 01:30:58,380 | markets. That book is only useful in the sense that it's all retail logic. In other words, if the retail universe of traders had a Bible, it's john Murphy's |
| 508 | 01:30:58,380 --> 01:31:11,850 | book. That one is absolutely perfect. Because if you trade like I trade, and you see retail lining up, the way they see their trades in that idea, or that book, |
| 509 | 01:31:13,110 --> 01:31:22,920 | you got it like a 90% accuracy rating when it comes to things like that, because you're wrestling with strong, smart money on your side against the weak handed |
| 510 | 01:31:22,920 --> 01:31:35,850 | street money, and who's gonna win in that instance? Well take a look at the GameStop stock. You see who won that one, didn't you? There's no shortcuts here, |
| 511 | 01:31:35,850 --> 01:31:41,700 | folks. So that I'll talk to you next time. Wish you good luck and good trading. |