ICT YT - 2022-02-26 - ICT Mentorship 2022 Episode 13.srt
Last modified by Drunk Monkey on 2022-02-28 11:17
| 1 | 00:00:03,840 --> 00:00:16,440 | ICT: All right, that's what Mac, this is an extra lesson. But we'll call it episode 13 on the left. So last night, I gave a lesson on market structure for |
| 2 | 00:00:16,440 --> 00:00:30,000 | precision technicians. And advanced price action theory in action is going to be this lesson here. So it's one thing to talk about it and provide the basis as to |
| 3 | 00:00:30,000 --> 00:00:39,930 | what I'm doing when I'm doing these executions. When I'm running these demo accounts up really fast. What am I doing? How am I doing? I love questions as to |
| 4 | 00:00:39,930 --> 00:00:54,450 | how I ran the $10,000 account to which was to earn $86,000 this morning. But it quickly got to a point where it no longer can be appreciated. From students |
| 5 | 00:00:54,450 --> 00:01:05,880 | perspective. It's too fast of growth. And the acceleration just makes it you have no, you have no connection to it. If you don't know how to do this, and |
| 6 | 00:01:05,880 --> 00:01:15,630 | you're new, you start seeing velocity in equity increasing even though to demo. It does not matter. The same principles are applied, whether you're trading with |
| 7 | 00:01:15,630 --> 00:01:29,640 | a live account, or if you're trading with a demo account, and you're learning. I want to take you into what it is I do and how I'm able to run the equity up |
| 8 | 00:01:29,670 --> 00:01:40,050 | quick. What is the mindset behind what is I'm doing. But before I get into it, let me remind you when I stated last night in the video, because of the |
| 9 | 00:01:40,050 --> 00:01:55,500 | heightened volatility, because of the uncertainty and the likelihood of price action moves that would be unexpected in for me. Because it's already delivered |
| 10 | 00:01:55,500 --> 00:02:09,150 | what I wanted to see happen anyway. And I'm technically bearish on equities. I don't feel confident or willing to risk after being profitable in live trading. |
| 11 | 00:02:10,200 --> 00:02:23,070 | Going short, this market making method where again, I don't want to go in. And because it's already arrived down below these lows. So there's an objective I |
| 12 | 00:02:23,070 --> 00:02:36,660 | look for for the week. There's an objective I try to aim for for the day. And there's something I'm aiming for for a goal for the month. So truth be told, the |
| 13 | 00:02:36,660 --> 00:02:51,360 | account that I'm showing with TD Ameritrade, I'm trying to illustrate in my best ability to pantomime how it would likely be for a new student. If they were to |
| 14 | 00:02:51,360 --> 00:03:03,180 | try to do live trading with a model and aiming for 20% per month. Now some of you are gonna think, well, 20% isn't a lot of money. It's not a lot of money. |
| 15 | 00:03:03,480 --> 00:03:16,800 | Well, 20% isn't money. It's a percentage. So I don't care if you start with $1. If you make 20%, consistently, the compounding effects of that is astonishing. |
| 16 | 00:03:17,640 --> 00:03:30,990 | Now, is it my belief that my students can consistently hit 20% every single month, I would never go out on a limb and say that I might not hit 20%, one of |
| 17 | 00:03:30,990 --> 00:03:43,620 | the months. But that is a goal that I'm aiming for. And if you're a new developing student that worked very hard to find and refine your own model with |
| 18 | 00:03:43,620 --> 00:03:51,240 | the things I'm teaching, and you have a trading plan that is well documented, you know what it is you're doing when you're not going to do something, you have |
| 19 | 00:03:51,240 --> 00:04:02,430 | a complete understanding of what it is that's going to allow you to engage or not engage in price. Then how to manage that risk. All those factors involved. |
| 20 | 00:04:02,850 --> 00:04:14,310 | And you've been consistent with a demo account for six months, then and only then would I not necessarily that you need to do this. But I would then only at |
| 21 | 00:04:14,310 --> 00:04:24,840 | that time consider maybe going into life fundraising. But I don't ever tell my students, I never answer an email and they say, Do you think I'm ready to go? |
| 22 | 00:04:24,840 --> 00:04:33,480 | And I don't answer those questions. I say, I don't know You tell me. Or generally I ignore those emails. Because there is never going to be a record of |
| 23 | 00:04:33,480 --> 00:04:41,700 | me saying, I think you're ready to go into life on trading and then when they blow their account, who are they going to blame? Naturally the human you're |
| 24 | 00:04:41,700 --> 00:04:53,100 | gonna say, well, it wasn't my fault. It was a guy that told me I should do it. He told me to jump off the bridge. So I never put myself in a situation. Okay, |
| 25 | 00:04:53,130 --> 00:05:00,660 | and I don't think any mentor or educator worth their salt would ever tell you to go out and risk life money. Because |
| 26 | 00:05:02,490 --> 00:05:14,100 | experience has taught me that I got into live trading way too fast. Way, way too fast 1992 That was the worst thing I could have done. For my development was |
| 27 | 00:05:14,100 --> 00:05:23,820 | rushed to get into the real money trading. And I had no idea what I was doing. I tricked myself into believing it was so easy reading one book, no real bat |
| 28 | 00:05:23,820 --> 00:05:35,430 | testing whatsoever. And I say, Well, you know, I can see this 123 top and move to three bottom idea, you can see it. Yeah, I saw 123 and I was gone. My first |
| 29 | 00:05:35,430 --> 00:05:48,600 | straight 50% history, goodbye. Close the account, send me my money, I was afraid. But when we understand what it is we're trying to do, obviously, you it |
| 30 | 00:05:48,600 --> 00:06:00,660 | comes with a great deal of nervousness and anxiety, because you have not put the time into back testing and forward testing it with a demo account. So if you |
| 31 | 00:06:00,660 --> 00:06:12,480 | feel this tug of war, this butterfly feeling in your stomach where you just can't relax and you're engaging in the marketplace, you're not ready. That's the |
| 32 | 00:06:12,480 --> 00:06:25,290 | bottom line, you're not ready, you have to desensitize yourself, with the results not being a factor. If you lose, it doesn't make a difference to you. |
| 33 | 00:06:26,250 --> 00:06:36,150 | You're indifferent to it. And it doesn't seem possible that you could be indifferent to losing money. But a student that has a solid price action model, |
| 34 | 00:06:36,240 --> 00:06:43,800 | a trade plan that's well documented, they know what they're going to do, why they're doing it, what they're waiting for, what will cause them to push the |
| 35 | 00:06:43,800 --> 00:06:50,670 | button to get in, where their stop loss is going to be how much they're going to risk, what they're going to aim for whether partials are going to be if they're |
| 36 | 00:06:50,670 --> 00:06:57,990 | going to take partials at all, you have to know those things in advance, you can't determine them once you enter the marketplace. And that's what retail |
| 37 | 00:06:57,990 --> 00:07:08,100 | traders do. That's exactly what I did in 1992. I got into a trade. And then I tried to figure out what else to do once I was there. I want you to see what it |
| 38 | 00:07:08,100 --> 00:07:19,410 | is that I was showing last night. And even though I'm not personally willing to risk my Live account right now, because of the conditions that we have at the |
| 39 | 00:07:19,410 --> 00:07:32,460 | present, Ukraine and all that business, all the uncertainties, potential Black Swan event, anytime, can pop off. And I don't want to expose myself to that |
| 40 | 00:07:32,460 --> 00:07:43,230 | measure of risk, especially since I have hit all my numbers. The market has delivered to what I expected in my analysis. So I'm not worrying about trying to |
| 41 | 00:07:43,230 --> 00:07:54,270 | get in and do anything else. So how do I manage that desire to get back in and do some more? I go right to a demo. I work in cyber paper account that provides |
| 42 | 00:07:54,270 --> 00:08:05,640 | me context that keeps me glued, obviously to what the markets doing some staying plugged in, if you will, close to the market, being able to read the tape. So |
| 43 | 00:08:05,640 --> 00:08:15,570 | that way I can answer student questions, I can still teach around the markets doing right now. And that way, my students can still appreciate the level of |
| 44 | 00:08:15,630 --> 00:08:28,380 | depth that I'm providing. But I'm not taking on monetary risk, when I don't believe it's wise for me to do so. Because if I'm wrong, I'm wrong. And I traded |
| 45 | 00:08:28,380 --> 00:08:39,990 | today with live funds, or I traded on Monday. And I lose what I gained in February. That would eat at me all through the month of March. So it's toxic |
| 46 | 00:08:39,990 --> 00:08:51,030 | thinking. And I learned that the hard way many years ago. So what I'm going to show you obviously was executions in the trading view paper trading account. But |
| 47 | 00:08:51,030 --> 00:09:00,660 | I want to make sure you understand because it's so many people out there, they have this issue with me teaching in a demo, which is compliance, like I'm not |
| 48 | 00:09:00,660 --> 00:09:09,330 | licensed to give you trade advice. So I operate through the function of a demo account to protect me and protect you, you know, you can't make that money. |
| 49 | 00:09:09,720 --> 00:09:19,920 | You're not following the trade. So if I was wrong, you don't take a financial loss. And if I'm right, you can't make money and get tricked into thinking that |
| 50 | 00:09:19,950 --> 00:09:27,240 | the only way you're gonna make money is to follow me. So there's a balancing that's being done here. And if I'm wrong, if I don't know what I'm doing, these |
| 51 | 00:09:27,240 --> 00:09:36,990 | things don't work. They'll fail on demo accounts just as easily they would be failing in the light. So with that foundation laid, let's go into the |
| 52 | 00:09:36,990 --> 00:09:39,630 | discussion. So idea is we went below this low. |
| 53 | 00:09:41,909 --> 00:09:49,409 | I don't want to sell it short, even though I'm bearish. So what's it likely to reach up into? Well, I'm thinking it could potentially trade up into this post |
| 54 | 00:09:49,409 --> 00:10:00,089 | came up here. Okay, I'm thinking to trade into that the low or the open of that kingdom. So that's kind of like the magnet withdrawal and liquidity. So it It |
| 55 | 00:10:00,089 --> 00:10:10,289 | also could reach up into this little area here because there's a fair value going up there. Just like we had here, in here and filled in, they can go right |
| 56 | 00:10:10,289 --> 00:10:25,409 | up into this ramp there and then still resumed on lower, it might need to go up into that. So I went in this morning, and I was watching the NASDAQ and even s&p |
| 57 | 00:10:25,979 --> 00:10:38,279 | Emini, s&p had a lot of energy to the upside. And usually these markets move in tandem, that means they're generally moving together. And even though the NASDAQ |
| 58 | 00:10:38,279 --> 00:10:49,709 | was a little bit lethargic and wasn't trying to go up as quick and as fast as Yes, or Emini, s&p, the tendency is that it will be drawn to the same degree |
| 59 | 00:10:49,949 --> 00:11:04,679 | that the other indices were so EAS was hired. And to Nasdaq futures should be brought higher in sympathy, all those rising icon basically, what I'm seeing |
| 60 | 00:11:09,840 --> 00:11:22,590 | now, if we look at the hourly chart, this is what I was seeing. I was trading all this in a demo account, and it ran up into levels that it became absurd. So |
| 61 | 00:11:23,100 --> 00:11:37,230 | I satisfy my itch. When I'm not trying to trade with the Live account, in the demo, and I run them up real quick, there is no fraud required, none of those |
| 62 | 00:11:37,230 --> 00:11:47,340 | things are required to make these things compound and blow up really quick. In terms of the equity increases. I'm going to show you how even with a micro view, |
| 63 | 00:11:47,970 --> 00:12:03,600 | so if you haven't already noticed this is the micro Emini, NASDAQ. So every one point, or four ticks, is equivalent to $2. And I went in with the idea that I'm |
| 64 | 00:12:03,600 --> 00:12:14,820 | using a micro account with a discount broker, and a discount broker, I'm hypothetical using one taking these executions, is I'm hypothetically, trading |
| 65 | 00:12:14,820 --> 00:12:29,370 | with an amp aamp futures account. And I'll show you their margins into the details of basically implying by doing these things here. Down close candle, |
| 66 | 00:12:29,880 --> 00:12:50,190 | after a run up, we retraced went down inside this gap. This area here when it trades down towards this gap. This is the drawl liquidity appears near term. So |
| 67 | 00:12:50,190 --> 00:13:02,520 | above these relative equal highs we have what milestones or by side liquidity. So I'm thinking that the algorithm is not letting price go lower. So it's going |
| 68 | 00:13:02,520 --> 00:13:20,880 | after everyone that's been profitable going short. So where are their stops? So we're just going to call it 14,110. Okay, real simple. So the market starts to |
| 69 | 00:13:20,880 --> 00:13:32,400 | rally and leaves this down close candle. I'm going to watch to see if it can trade back down into that. Because if it does, I'm gonna treat that as a bullish |
| 70 | 00:13:32,400 --> 00:13:46,350 | order block. And then when it's hot last night, if the move has been bullish, down close, candles should not be violated. down close candles should not be |
| 71 | 00:13:46,350 --> 00:14:02,430 | violated. They're going to act as support. bearish market moves up close candles should not be breached and broken through. Never incompatible. So when you're |
| 72 | 00:14:02,430 --> 00:14:12,150 | bearish and you're watching the market go down and you see candles starting to form a potential oppose candle, you as a neophyte that is new to trading. These |
| 73 | 00:14:12,150 --> 00:14:19,710 | are the moments where you get scared and you basically snap yourself out of the desire to hold the trade. And you just collapse the trade because you can't |
| 74 | 00:14:19,710 --> 00:14:30,450 | handle it. It's that overwhelming. uncertainty that eats at you like mental cancer, it just literally makes you want to just get out of trade even when your |
| 75 | 00:14:30,450 --> 00:14:39,780 | profit. You ever feel that the trades profitable. And you're like I just can't stand it anymore. I gotta get out. You're making money. Your trade is |
| 76 | 00:14:39,780 --> 00:14:49,170 | profitable, quote unquote in a demo. It's worse when you have live account funds, and you have a profit because you don't have the wherewithal and the |
| 77 | 00:14:49,170 --> 00:14:59,730 | experience of submitting to these ideas and watching them come to fruition over and over again. months of experience, not just a week or day you're going to |
| 78 | 00:14:59,730 --> 00:15:09,570 | feel Like you just want to collapse the trade. So when I teach my students, when you're looking for a price move, it's going to be long term, price swing, not |
| 79 | 00:15:09,570 --> 00:15:22,380 | that this is a long term price swing in the sense of time. But on this timeframe for one hour, and this is a nice decline. It's prolonged price swing is not like |
| 80 | 00:15:22,380 --> 00:15:32,340 | little tiny little movements in here. And vice versa. We have a here, it's on higher. So all down close candles, does it go below this down close candle and |
| 81 | 00:15:32,370 --> 00:15:45,510 | such retrace? Now. We expect this to be areas where they're going to accumulate more long positions. We retrace going down into an imbalance in the market |
| 82 | 00:15:45,510 --> 00:15:50,370 | rallies above the down close candle. Does it support price? Yes. |
| 83 | 00:15:51,929 --> 00:16:02,519 | Time of day is important. So I'm watching when price comes back down into it here taken up in price extending out in time. When that occurs, then I know I |
| 84 | 00:16:02,519 --> 00:16:11,219 | have a setup where I can go long. But I want to go into the timeframes that will lower than the hourly chart, give me a little bit more context, because we do |
| 85 | 00:16:11,219 --> 00:16:26,459 | have a low that has a higher low to the left and a higher low to the right. So that makes this worse enemy term. This retracement here, this might be trading |
| 86 | 00:16:26,459 --> 00:16:35,849 | into an imbalance, which is what I'm teaching you to look for. But the overall market structure is it's likely to go higher. And aim for a run above these |
| 87 | 00:16:35,849 --> 00:16:49,469 | highs pass adequately resting right up there. So we're going to take these levels, this red level is anchored to this here. relatively equal highs. I |
| 88 | 00:16:49,469 --> 00:17:01,979 | started about the rallies comes back down in, we're looking to see if it wants to run through that. Notice this high this high, it creates what relatively |
| 89 | 00:17:01,979 --> 00:17:12,839 | equal highs, retail Monday traders are going to see that and say Oh, this is exactly what the text say about resistance. So it's acting as a ceiling. Price |
| 90 | 00:17:12,839 --> 00:17:16,679 | acting like a ceiling. What should they expect to see price to go over? |
| 91 | 00:17:22,409 --> 00:17:35,819 | So here's that level where the mind stops are are above it. Here's that hourly, down close candle to the bowl shorter book. Notice the down close candle is made |
| 92 | 00:17:35,819 --> 00:17:46,649 | up of two candles on the 15 minute timeframe. price moves away from it because above it right here. Does it create an imbalance here? Yes. That is how you |
| 93 | 00:17:46,649 --> 00:17:57,809 | determine your high probability bullish order block. It must have the imbalance coupled with the down close candle and the underlying narrative that it's likely |
| 94 | 00:17:57,809 --> 00:18:10,229 | to go higher to reach for by song liquidity. Period. Okay, it's that's That's it. There is no engulfing candle does this Forget all that. You only need that. |
| 95 | 00:18:10,379 --> 00:18:23,849 | Okay. It's the gap plus the down close candle plus the idea that's likely go for my side liquidity. That's it. Okay. So I just noticed, by the way, there's a guy |
| 96 | 00:18:23,849 --> 00:18:40,469 | out there trying to hawk a $7 indicator. And he says he's the real deal. And it's all about order blocks. And my change the name on that. Let you know. So |
| 97 | 00:18:40,499 --> 00:18:51,359 | we're trading down into this imbalance here. But now we're doing it at the time of day after the equities opening on Thursday morning, New York time. So |
| 98 | 00:18:51,599 --> 00:19:04,559 | volatility. The initial move is technically the incorrect move. Going into the opening at 930. So this is like a Judas swing. So think about what we're seeing |
| 99 | 00:19:04,559 --> 00:19:12,779 | here, you the markets likely go up above this level here to take the bison because the markets unwilling to go lower. The algorithm keeps pressing higher, |
| 100 | 00:19:12,779 --> 00:19:24,089 | higher, higher higher. It retraces down into the 930 opening. This is that fake move. Don't chase this. And don't chase going higher right before the equities |
| 101 | 00:19:24,089 --> 00:19:35,789 | opening. I'm dead either. So you have to take a step back if you're at what is you're looking for. Well, I'm looking for discount market low to high and below |
| 102 | 00:19:35,789 --> 00:19:46,229 | 50%. Yes, I'm inside the order block. Yes. The equities opening has happened. I'm bullish and it has traded lower. So public is going to be thinking what its |
| 103 | 00:19:46,229 --> 00:19:57,389 | resistance is going to keep going down to what their support level because it bounced there last time. So they're gonna think there. Well, it doesn't do that. |
| 104 | 00:20:00,869 --> 00:20:17,489 | down to a five minute chart it hits the order block and then rallies What is this your favorite market trades back down in overlaps that gap between this |
| 105 | 00:20:17,489 --> 00:20:32,519 | candles high this candles low this right here that right there that is one order block with a lower time frame order block and a fair value you can take that |
| 106 | 00:20:32,519 --> 00:20:42,659 | trade if you know you're looking for and you understand eyes narrative and where the liquidity matrix is likely to lead to later on, which is drawing up above |
| 107 | 00:20:43,049 --> 00:20:54,269 | this red level here. Stocks are above here. So if they're going to send the price higher from here and start rallying, that supposes that there's someone |
| 108 | 00:20:54,389 --> 00:21:06,179 | that got one board long here, where would their ideal exit be? Six points higher 10 points higher, no, you're gonna want to take it up here where there's willing |
| 109 | 00:21:06,869 --> 00:21:16,649 | buyers with buy stock protect their short positions. So when the market trades above that level, the buy stops become market orders to buy the market which |
| 110 | 00:21:16,649 --> 00:21:26,159 | floods the market with liquidity for those that bought down here, they can sell to those willing buyers at a higher price, which they're waiting for down here |
| 111 | 00:21:27,089 --> 00:21:37,349 | and waiting for that price rally to go up. Now as the market goes higher expectation is my expectation was I want to go long in here and reach for this |
| 112 | 00:21:37,379 --> 00:21:49,049 | high this was my entry idea that it's overlapping filling in that gap and it's an order block here with the higher timeframe waterblock there so there's an |
| 113 | 00:21:49,049 --> 00:22:04,289 | Iraqi higher timeframe to lower timeframe with the idea framed on it's going higher for bison I have an intermediate term low forming and now this when it |
| 114 | 00:22:04,289 --> 00:22:14,639 | fills in that gap once that happens what did I teach you last night this becomes the intermediate term low this low should not be taken out once it starts |
| 115 | 00:22:14,639 --> 00:22:16,259 | rallying it should not come back down here |
| 116 | 00:22:17,550 --> 00:22:28,020 | what else should I teach you? If price is going higher down close candles should support price well it trades above it here this down close candles high right |
| 117 | 00:22:28,020 --> 00:22:35,610 | there. He trades above it on this candle right there it starts going higher but then look what happens it starts to go back down. Like go down here stop me I'm |
| 118 | 00:22:35,610 --> 00:22:43,020 | not thinking I'm looking at this down close candle thinking it's only going right back down into this down close candle to accumulate more long positions. |
| 119 | 00:22:44,400 --> 00:22:57,060 | So smart money traders are going to be buying more here like I did rally. We have down close candles. We went above it. I'm not worrying about the market as |
| 120 | 00:22:57,060 --> 00:23:06,900 | long as it doesn't take out these two damn close candles. trades down gets real close to that. But does it eat up and go through that range of these two down |
| 121 | 00:23:06,900 --> 00:23:18,750 | post candles? No, it just retraces down into what an imbalance why Smart Money can buy again like I did. The market rallies again. It goes into possible |
| 122 | 00:23:18,750 --> 00:23:19,050 | cookie. |
| 123 | 00:23:24,120 --> 00:23:42,060 | Cutter block trade still here get long. Here Vega waterblocks. retracement, get long orderbox in imbalance with the fair value got traded back down, doesn't |
| 124 | 00:23:42,090 --> 00:23:48,870 | even come back down into the order block. This is classic, it generally doesn't like to go all the way back and rebalance when it's that close to the profit |
| 125 | 00:23:48,870 --> 00:24:01,140 | objective. So the algorithm only has a small little retracement inside the fair value gap. So you would be a buyer just hit the candles low right to target. |
| 126 | 00:24:03,990 --> 00:24:15,630 | Now, and there's some of you just don't trust me. These are trading view execution errors and I'm going to log in to TradingView and actually show you by |
| 127 | 00:24:15,630 --> 00:24:25,560 | highlighting these actual arrows. I'm going to take you down into the charts the all the all the way down into a 32nd chart so you can see the grouping of where |
| 128 | 00:24:25,560 --> 00:24:36,930 | I actually entered with this logic. Okay, now remember, enemy turn lows down here. This should never be overtaken until the objectives reached to all of this |
| 129 | 00:24:36,930 --> 00:24:48,990 | price action leg here is I trust that it's going to keep going higher as long as the down close candles keep price above it. above what, above the downforce |
| 130 | 00:24:48,990 --> 00:24:58,530 | candles that's going to be supporting each new leg higher, the market should not retrace back down below those. So what am I saying? For trailing stop losses. |
| 131 | 00:24:59,130 --> 00:25:08,220 | You do not want to Take your stop loss of, say, bought down here like I did. And your stop was below the middle of this kingdom, it's mean threshold or the Bush |
| 132 | 00:25:08,220 --> 00:25:18,330 | or Obama. So I don't think it's going to go down below that once I'm entering, then it starts around as above this candles, Hi, my stop loss must remain below |
| 133 | 00:25:18,330 --> 00:25:28,710 | this candle is low, because it can dig into that candle. Because it's going to act as an order block in the market rallies away, comes back down retraces. Now |
| 134 | 00:25:28,710 --> 00:25:37,530 | if I put my stop loss inside this area here, I'm stopped out prematurely. Chances are you probably wouldn't have the wherewithal to get back in. You |
| 135 | 00:25:37,530 --> 00:25:48,120 | think, Well, I just lost out on potential profit. I made a little game, but I'm afraid to get back in because it took me that's infancy. That's because you |
| 136 | 00:25:48,120 --> 00:25:59,010 | don't know what you're doing. Everybody was like I was like, but you grow out of it. If you do the same thing I'm teaching you over time. It's built into your |
| 137 | 00:25:59,010 --> 00:26:08,970 | understanding, and it's ingrained in your understanding about price delivery. Market rise above, except these two down close candles. Now the stock can be |
| 138 | 00:26:09,000 --> 00:26:17,790 | raised from whatever would be below this down close candle now can be raised below this down close candle. Because the idea is the downs, close candles are |
| 139 | 00:26:17,790 --> 00:26:28,710 | one order block that should not be violated if it's bullish. If it comes down and breaks the low of these down close candles, well, there you go. You probably |
| 140 | 00:26:28,710 --> 00:26:39,690 | did the right thing by getting something because it might be sailing and going lower. How's that for logic? You're not gonna be perfect. I'm not perfect. Even |
| 141 | 00:26:39,690 --> 00:26:48,840 | though you see these arrows on the lowest candle here. And it goes out to the exit here, right above that. This is not Photoshop. I've never had to do a |
| 142 | 00:26:48,840 --> 00:26:56,730 | Photoshop. Okay, I've never had to do that. But I'm teaching you the logic right out of last night's lesson. I went right into the market this morning. No, it's |
| 143 | 00:26:56,730 --> 00:27:08,460 | not done with a live account. But I'm showing you in theory with the application of a demo account, which is the same live data that will be utilized in my TD |
| 144 | 00:27:08,460 --> 00:27:17,520 | Ameritrade account, or your Live account. If you have one. These candles are forming just like they would be in your Live account. But I'm executing with the |
| 145 | 00:27:17,520 --> 00:27:33,180 | logic I'm teaching you right out of last night's lesson. Now. Here is the one minute chart. Alright, so here we're over in trading view. Everything is live |
| 146 | 00:27:33,390 --> 00:27:46,830 | printing, right now this is where we're at at the moment, it's just hanging around that old high. No, I'm not upset, I missed this move here, I could care |
| 147 | 00:27:46,830 --> 00:27:59,430 | less. I'm going for the logical places where liquidity is going to be resting and entering in logical places that would reasonably expect to see price advance |
| 148 | 00:27:59,430 --> 00:28:11,610 | higher from where I'm buying. It's not complicated. But watching last night's lesson can feel like you're trying to learn a foreign language and expected to |
| 149 | 00:28:11,610 --> 00:28:16,860 | understand how to speak it fluently. Two hours later. Don't let that happen. Okay. |
| 150 | 00:28:18,240 --> 00:28:30,990 | I can make these lessons as deep as I want them to be. But I'm showing you how I'm taking very complex topics, and simplifying them in a manner that hopefully |
| 151 | 00:28:30,990 --> 00:28:47,190 | is easily received by you as a student. So I showed you the hard perspective last night, that's advanced market structure. Now I've simplified it within the |
| 152 | 00:28:47,190 --> 00:28:57,420 | scope of what I teach in this YouTube channel. Do you see the difference? It's only in the manner of how I'm teaching it. But it's the same things. It's the |
| 153 | 00:28:57,420 --> 00:29:09,990 | same ideas that I've just simply made it easier. I created the language that helps me communicate what I taught last night in a much more palatable method. |
| 154 | 00:29:10,470 --> 00:29:19,020 | So it's not as complicated seeing it like this. It makes sense to you. You're like okay, now we're back into the stuff that makes sense. Now, I'm teaching you |
| 155 | 00:29:19,020 --> 00:29:31,020 | the same thing I'll tell you last night. I'm just not teaching it to you. At the degree that is in my head. You might be thinking, well, you keep it to yourself. |
| 156 | 00:29:31,020 --> 00:29:41,610 | I see the I don't need to see it like that. And that's okay, I get it. It's fine. But this right here, these are the elements that make up really simple, |
| 157 | 00:29:42,180 --> 00:29:56,520 | logical setups that repeat every single week and many times every day. So I started I ran up the other paper trading account to like 200 Some $1,000 This |
| 158 | 00:29:56,520 --> 00:30:05,520 | morning, and I was thinking myself Okay, now we're in tears. Tory's, it's just gonna feel silly, you're not going to have any interest in seeing it at that |
| 159 | 00:30:05,520 --> 00:30:15,060 | point, it becomes, okay, now we're absurd. It's just ridiculous, you're not going to believe that this is possible. Or maybe some of you do, and you think |
| 160 | 00:30:15,060 --> 00:30:26,160 | you want to get there and try to do the same thing with your Live account. Either one of those things are not my goal. Okay, it's just me losing myself in |
| 161 | 00:30:26,160 --> 00:30:42,540 | price action. So I treat it like a game. It's a puzzle. So I'm looking for the outcome of a specific trading session or a trading day. And I'm trying to |
| 162 | 00:30:42,540 --> 00:30:57,090 | navigate those candlesticks. And that's what you're seeing here. If I hover over top of these little arrows, okay, you can see that they're not photoshopped. And |
| 163 | 00:30:57,660 --> 00:31:07,230 | you make them appear by going into the trading view settings, and you click the little execution box here. Watch below the swing lows, and above that swing |
| 164 | 00:31:07,230 --> 00:31:23,340 | high. You'll see them Cago one, you know, toggle one. Okay. So this is proving precision. Number one, it's proving theory in action. And it's proving that it's |
| 165 | 00:31:23,340 --> 00:31:33,540 | not flawed logic. None of this is retail, absolutely none of it. There's nothing here, that's Elliott Wave. None of its harmonic. None of it is supply and |
| 166 | 00:31:33,540 --> 00:31:43,740 | demand. None of this is Chris Laurie stuff. I have a lot of Chris Laurie students, lots of them. And they'll tell you, this isn't even taught in his |
| 167 | 00:31:43,740 --> 00:31:54,930 | stuff, either. So with that said, let's go over to the paper trading account. This is just again, illustrate for the folks that say, Well, you know, you can't |
| 168 | 00:31:55,140 --> 00:32:05,790 | really grow an account if you're using micro accounts. And that was some of the comments I got also. And I'm like, stop thinking you need a lot to make a lot |
| 169 | 00:32:05,850 --> 00:32:17,970 | you don't, you need to be able to compound. The things that you see me do in these accounts, and they're being parlayed up really quick. Every time I'm |
| 170 | 00:32:17,970 --> 00:32:28,320 | buying like a bot right here, let me see if I can get this to go away for a second. But I bought the three micros here. The next time I see a buy signal |
| 171 | 00:32:28,470 --> 00:32:35,670 | that's below the area I'm aiming for above that red level, I'm gonna try to buy more, but I'm not gonna buy more than three. |
| 172 | 00:32:37,020 --> 00:32:47,700 | I'm gonna buy, you know, two, I'm pyramiding. I'm building the biggest position initially. And then every time I buy in, again, I'm building it with a smaller |
| 173 | 00:32:47,700 --> 00:32:58,830 | position than I had prior to the one I'm entering now. Because I have all the equity behind the entry with three, supporting the two I'm buying here. So if it |
| 174 | 00:32:58,830 --> 00:33:09,750 | starts to retrace too deep on me, I have the ability to weather a little bit more. Whereas if I say I want to be a buyer have one here, two here, three here. |
| 175 | 00:33:10,110 --> 00:33:20,160 | That's an inverted pyramid. It's not stable. Imagine a pyramid upside down. It's bouncing on its point. It's not. It's not a solid foundation, it's wobbly. So |
| 176 | 00:33:20,160 --> 00:33:31,440 | I'm building the biggest base at the bottom of the pyramid or position size, initial position entry. So I'm buying three here, then I'm buying two here. Then |
| 177 | 00:33:31,440 --> 00:33:42,870 | I'm buying one here. And then I'm letting it run to my profit objective. Okay, with that said, starting with a hypothetical $10,000 account, just this morning |
| 178 | 00:33:45,870 --> 00:34:01,560 | over 21% one trade with three scalings. Okay, I consider this all one trade. I don't consider this three separate trades. It's one trade scaled in largest, |
| 179 | 00:34:02,430 --> 00:34:17,910 | middle, last portion. Then it runs to my objective. So the account history starts with $10,000 Here ends with $12,111 demo money. Okay? The History tab |
| 180 | 00:34:17,970 --> 00:34:30,780 | shows you here and if I'm not mistaken. I have everything shown on time. Everything's toggled here. Nothing's hidden. None of that. And you can see over |
| 181 | 00:34:30,780 --> 00:34:47,700 | here, all the business there. Okay, so my question to you is this. Who cares if you got to trade a micro account? Three micros two more micros one more micro |
| 182 | 00:34:47,730 --> 00:35:04,080 | that's six micro contracts. That requires technically $1,200 So I really didn't need the $10,000 to do these things. but in my mind with proper leverage, and |
| 183 | 00:35:04,740 --> 00:35:15,960 | money management $10,000 With this position sizing, gearing that's optimal. Anything more than this would have been too much leverage for that account. And |
| 184 | 00:35:15,960 --> 00:35:34,380 | to make 21% Plus in one trade, he's going to argue against that being well, above average. Now, what happens if you do that? Once a week, and that's your |
| 185 | 00:35:34,380 --> 00:35:48,600 | trade. And you stop, he might you hit it, you entered trading as it is, you go to a demo account. Given the idea, the leaps and bounds that you can have in |
| 186 | 00:35:48,600 --> 00:35:56,820 | your equity, increasing and peace of mind, knowing that you don't have to ever trade. That's what I'm trying to cultivate. Here in this community, folks, I'm |
| 187 | 00:35:56,820 --> 00:36:04,890 | not trying to create monsters that day trade every single day. Because I say these likely form every single day with the absolute form every single week. |
| 188 | 00:36:05,220 --> 00:36:13,800 | That is not an invitation for you to go out and say ICT said trade every day. Now, it's not what I said. I'm saying, if you miss a trade, you're likely to |
| 189 | 00:36:13,800 --> 00:36:22,650 | find one tomorrow. Well, not tomorrow, because it's Saturday, but you know what I mean, the next trading day. So there's a balancing act that you have to have, |
| 190 | 00:36:23,100 --> 00:36:32,250 | when you're listening to me, you just can't take one comment that I say and take it completely out of context and say, well, it is a day trader. And he's proven |
| 191 | 00:36:32,250 --> 00:36:38,430 | he's really precise. And he's concepts work. I watched a couple videos, I trust it. So now I'm gonna go and look into charts. And I think I see it forming right |
| 192 | 00:36:38,430 --> 00:36:49,710 | now. And I'm going in all in a minute. And then you're sitting down writing an email to me saying, I believe my account. Whose fault is that? It's not mine. |
| 193 | 00:36:50,790 --> 00:37:01,590 | It's yours. When I blew my account, it wasn't my broker's fault. It was mine. I did not know what I was doing. I was out of control, taking 6070 trades in a |
| 194 | 00:37:01,590 --> 00:37:18,690 | day. When you lose control, and you have no idea what you're doing, it's impossible for you to execute like this. You have to think about these examples, |
| 195 | 00:37:19,140 --> 00:37:20,100 | as the |
| 196 | 00:37:21,900 --> 00:37:31,590 | goal. Not that you want to be this precise, right from the beginning, cuz you can't be no one is it takes time to grow into that and your understanding. But |
| 197 | 00:37:31,590 --> 00:37:42,060 | it takes some measure of goal setting that you have to have, you know, you listen to some people that pretend to be teachers, they'll say, having a weekly |
| 198 | 00:37:42,060 --> 00:37:52,620 | goal, or a daily goal was a stupidest thing in the world, really. I guarantee you, these people are not profitable that say that they're hit and miss. They |
| 199 | 00:37:52,620 --> 00:38:07,080 | have periods of drawdown that are much longer than most people would be willing to endure. And if you don't aim for a target, you're going to hit nothing 100% |
| 200 | 00:38:07,080 --> 00:38:20,760 | of the time, you have to have a goal. So if your goal is to hit nothing, then obviously don't set a goal. But I set very low hanging objectives in front of |
| 201 | 00:38:20,760 --> 00:38:34,140 | me. These things are extremely easy for my capability. And for many of my students from the 2016 group and 2017 group, they can take trades like this. In |
| 202 | 00:38:34,140 --> 00:38:46,560 | fact, I have a woman in my group, from the first group from Australia, that is phenomenal. She does very, very well. And these are trades that I believe that |
| 203 | 00:38:46,560 --> 00:38:58,950 | even you as a YouTube student in this mentorship on my YouTube channel, I believe in six months of practice and looking at price action, you can do this |
| 204 | 00:38:58,950 --> 00:39:11,160 | yourself and do it consistently. Consistently. We're doing everyday Michael know, one time a week finding something like this, and working that position and |
| 205 | 00:39:11,160 --> 00:39:19,110 | like that. Absolutely. I'm making myself available twice a week. This is an extra video today, because I know last night's video was a little bit more |
| 206 | 00:39:19,200 --> 00:39:28,320 | deeper than you're accustomed to. And I'm not suggesting or implying that the lessons are going to go that direction. I'm just stating that when I'm studying |
| 207 | 00:39:28,320 --> 00:39:41,490 | market structure, I'm studying with that degree and more. But I had to create a language that gets to generally the basis of what that is doing, without all the |
| 208 | 00:39:41,490 --> 00:39:53,100 | complications within it. So be glad I'm not requiring you to understand that degree. Because the language I'm teaching like in here is accomplishing the same |
| 209 | 00:39:53,280 --> 00:40:02,970 | method, just doing it without all of the extra acrobatics because I knew What you're going to be questioning? You're probably looking at your chart thinking, |
| 210 | 00:40:02,970 --> 00:40:09,900 | How do I classify this swing high? Is the immediate term high versus the short term high in the long term? How? How does he know? Right? That's the part you're |
| 211 | 00:40:09,900 --> 00:40:20,700 | never going to get. So I had to create a language that makes it simple. And that's what you see in my lessons on this YouTube channel. I shoot by comparing |
| 212 | 00:40:20,700 --> 00:40:33,630 | and contrasting where I came from, and what I'm providing to the public. I can show you just how complicated the real intricacies are behind these |
| 213 | 00:40:33,630 --> 00:40:43,380 | marketplaces. But you do need new certain things that repeat. And they're very generic in price, and are not linked or built upon the foundation of anything |
| 214 | 00:40:43,380 --> 00:40:52,950 | that's retail logic, none of that stuff, not support resistance, not any of those other disciplines that people use, and you make businesses around selling |
| 215 | 00:40:52,950 --> 00:41:08,520 | books and courses and such. So one of the cool things that if you still are a trader that uses like Elliot wave, and harmonics and things like that, if you |
| 216 | 00:41:08,520 --> 00:41:24,120 | start studying what I'm teaching you, for free right here, you're going to find that your trades, that when I have my information underneath, and when your |
| 217 | 00:41:24,120 --> 00:41:36,300 | trades fail, the things I'm teaching you here, are missing. See, this is what I asked last night in the closing the video and I'm closing this video now, again, |
| 218 | 00:41:37,920 --> 00:41:57,420 | the mystery that plagues all speculators is what trading approach is the one that's gonna make me money. And I don't have to worry about losing more money in |
| 219 | 00:41:57,600 --> 00:42:13,800 | flawed approaches of trading. What you're saying is, there's a method out there, that is better than everyone else. I'm humbly submitting to you, you have found |
| 220 | 00:42:13,800 --> 00:42:13,950 | it. |
| 221 | 00:42:15,330 --> 00:42:24,660 | It's not costing you anything. But it's going to require some work, it's going to require some time, effort, it's going to feel like you can't get it, it's |
| 222 | 00:42:24,660 --> 00:42:35,220 | going to feel like you're never going to understand it. That's all normal. It's all normal. But you'll get it. Just folks in my 2016 group they couldn't get |
| 223 | 00:42:35,850 --> 00:42:48,900 | they got it now. Took a couple of years. Others, they get it real quick. I don't understand why some get it quicker than others. I just know that it's like that. |
| 224 | 00:42:49,440 --> 00:43:01,050 | And you might be one of those slower learners. It's okay. I was a slow learner. But once you learn it, it's yours. You don't forget, it's like riding a bike. |
| 225 | 00:43:02,220 --> 00:43:10,740 | And that should be your passion and your pursuit to get to know how to do this, like riding a bike, you can put the bike down for a couple years, and then get |
| 226 | 00:43:10,740 --> 00:43:22,410 | back on again. And just like you never stop riding it. And that's a comfort and a confidence. That is something that I can't articulate in the words. And if you |
| 227 | 00:43:22,410 --> 00:43:30,930 | are able to find consistency and profitability. It doesn't matter what you're doing in the economies, then it doesn't matter how much it's gonna cost you for |
| 228 | 00:43:30,930 --> 00:43:41,430 | a gallon of gas, or how much it's going to cost you and your groceries. Because you can out pace inflation. If you know what you're doing in these markets. That |
| 229 | 00:43:41,430 --> 00:43:56,370 | should be your goal, always outpace inflation. It should be new concern. I'm not promising you rich. Can you get wealthy with this? Sure you can, in my promising |
| 230 | 00:43:56,370 --> 00:44:06,390 | is going to free new way. Will you lose money in the process? Absolutely. I'm guaranteeing you're going to lose money. Every trading system discipline |
| 231 | 00:44:06,420 --> 00:44:19,230 | educator, everybody loses in trading. They take losses. Some take stunning losses, and others just take mediocre losses that are just nuisance. Other |
| 232 | 00:44:19,230 --> 00:44:29,550 | traders that are really, really good, can have periods of drawdown, and then regain that equity drawdown back. In is like it didn't even happen. Not even |
| 233 | 00:44:29,550 --> 00:44:42,750 | skip a beat. That's experience. These are all breaches that you're going across. You're going to cost them at times in intervals that I can outline in advance |
| 234 | 00:44:42,750 --> 00:44:54,780 | for you but I generally know the concerns and questions that you have at this point. My request to you is to suspend those feelings that you have to have all |
| 235 | 00:44:54,780 --> 00:45:07,530 | the answers right now. Because you don't you have to be more diligent about placing yourself in front of charts and back testing and researching what I'm |
| 236 | 00:45:07,530 --> 00:45:17,340 | showing you, because it's there. And by seeing that over and over again, it's better than a book. It's better than a course. It's better than a mentorship |
| 237 | 00:45:17,340 --> 00:45:30,750 | that you pay. Because I'm teaching you how to go into price and price will teach you. It will teach you it's repeating. So if it's repeating, and you're looking |
| 238 | 00:45:30,750 --> 00:45:45,720 | at it constantly, you are training your eye to see what it does. By default. When you buy a book, and you look at the examples in the book, each chapter has |
| 239 | 00:45:45,720 --> 00:45:55,830 | an idea that it's trying to focus on. How many examples do you generally see? Just a handful at most, right? But remember what it's like when you got a |
| 240 | 00:45:55,950 --> 00:46:03,780 | Trading Book for the first time and you looked at it and you saw bearish divergence and bullish divergence was the classic indicator. And it made a lower |
| 241 | 00:46:03,780 --> 00:46:11,790 | low in price, but it didn't make a lower low and a stochastic and it was a bullish divergence. And you're thinking, Man, I can see that that's easy. And |
| 242 | 00:46:11,790 --> 00:46:23,460 | then you start looking at it on a live chart, and when you thought it was diverging, it's going lower in price. They're only going to show you the |
| 243 | 00:46:23,460 --> 00:46:33,960 | examples to help sell the book because they don't want you to return the book. I'm teaching you how to go through price action in ferret out these repeating |
| 244 | 00:46:33,960 --> 00:46:47,550 | signatures. And it isn't just the handful of examples. It's every week, every day and it won't stop. So enjoy your weekend. I will touch base with you on |
| 245 | 00:46:47,550 --> 00:46:51,570 | Tuesday, Lord willing, and Until then be safe. |