ICT YT - 2024-08-26 - ICT 2024 Mentorship - Lecture 17-summary

# Summary

ICT YT - 2024-08-26 - ICT 2024 Mentorship - Lecture 17a

The speaker, ICT, discusses technical analysis and trading strategies, focusing on market gaps and price action. He explains the importance of understanding opening range gaps, fair value gaps, and inversion fair value gaps. ICT emphasizes patience and not forcing trades, highlighting the significance of waiting for clear market signals. He mentions the impact of global events on market sentiment and the importance of not being influenced by social media or other traders' actions. ICT also notes that women tend to be better traders due to their more stable and responsible approach. The session concludes with a detailed analysis of specific chart patterns and their implications for trading decisions.

The conversation delves into the psychological and emotional aspects of trading, emphasizing the impact of personal issues on trading performance. ICT highlights that men often approach trading with an ego-driven mindset, while women focus on mastering the model. He stresses the importance of addressing personal insecurities, past traumas, and toxic thinking to succeed in trading. ICT shares his own experiences, including over-leveraging and impulsive trading driven by a desire to impress others. He advises his son, Caleb, to journal personal struggles and maintain humility. The discussion also touches on the benefits of using a YouTube channel for trading, including tax advantages and building a secondary income stream.

 Action Items

[ ] Go through the transcript and journal observations, questions, and key points discussed. (Caleb) [Entire Transcript]

[ ] Review price action from the past week and annotate any areas ICT highlighted such as inefficiencies, gaps, etc. Note reactions to these levels.

[ ] Have a discussion with ICT on Saturday to go over journal entries and questions from reviewing the price data and transcription.

[ ] Caleb will begin implementing the trading strategies ICT outlines, focusing on identifying and coping with any personal issues.

[ ] Caleb and ICT will review charts in the evening after Caleb gets home from work.

[ ] Caleb should journal personal issues and avoid hiding or masking them, as they could negatively impact his trading. (Caleb) [Throughout discussion]

 Outline

# Market Opening and Initial Observations
- ICT discusses technical difficulties with OBS and attempts to start the session.
- The market opens close to the previous session's settlement, with a small discount gap.
- ICT notes the opening range gap high is higher than the opening price, indicating a potential bearish start.
- The focus for the week is on problematic areas in the market, with a minor gap being less volatile.

# Market Gap Analysis and Trading Strategy
- ICT explains the importance of the new week opening gap on August 25, 2024.
- The market is expected to bounce between the new day opening gap and the opening range gap low.
- ICT emphasizes the importance of waiting for clear market signals before making trades.
- The market's reluctance to run is highlighted, with a small gap indicating a cautious start.

# Volatility and Market Sentiment
- ICT discusses the impact of global events on market sentiment, including the Middle East and Russia.
- The market is expected to be fickle due to the weekend's developments.
- ICT advises against rushing into trades and emphasizes the importance of waiting for clear market signals.
- The market's initial movement is monitored closely for any significant changes.

# Technical Analysis and Chart Patterns
- ICT analyzes the two-minute chart for potential inversions and market signals.
- The market's behavior around the new week opening gap and previous settlement is closely watched.
- ICT notes the importance of short-term buy-side liquidity and its impact on market direction.
- The market's movement is compared to previous sessions to identify trends and patterns.

# Patience and Market Observation
- ICT advises against overtrading and emphasizes the importance of patience.
- The market's movement is monitored for any significant changes or signals.
- ICT highlights the importance of not forcing trades and waiting for clear market indications.
- The focus is on understanding the market's behavior and identifying key levels and patterns.

# Market Sentiment and Social Media Influence
- ICT discusses the impact of social media sentiment on market behavior.
- The importance of not being influenced by others' trades and opinions is emphasized.
- ICT advises against making impulsive trades based on social media signals.
- The focus is on understanding the market's internal signals and patterns.

# Long-Term Trading Strategy
- ICT discusses the importance of a long-term trading strategy and not being swayed by short-term fluctuations.
- The market's overall direction is monitored for any significant changes.
- ICT advises against making trades based on short-term market noise.
- The focus is on understanding the market's underlying trends and patterns.

# Market Observations and Chart Analysis
- ICT continues to monitor the market's behavior and identify key levels and patterns.
- The importance of not overtrading and waiting for clear signals is reiterated.
- ICT advises against making impulsive trades and emphasizes the importance of patience.
- The focus is on understanding the market's internal signals and patterns.

# Market Sentiment and Trading Psychology
- ICT discusses the importance of maintaining a positive trading psychology.
- The impact of market sentiment on trading decisions is highlighted.
- ICT advises against making trades based on fear or greed.
- The focus is on understanding the market's behavior and identifying key levels and patterns.

# Final Observations and Market Outlook
- ICT provides final observations on the market's behavior and potential future movements.
- The importance of patience and not forcing trades is emphasized.
- ICT advises against making impulsive trades and emphasizes the importance of waiting for clear signals.
- The focus is on understanding the market's underlying trends and patterns.

# Men and Women in Trading: Perspectives and Challenges
- ICT discusses the differences in how men and women approach trading, noting that women focus on what matters most and are more cautious, while men often try to avoid ego bruises.
- ICT mentions that even gay men tend to think like men, driven by the desire to maximize and impress others.
- The conversation highlights the importance of overcoming personal flaws and toxic thinking to succeed in trading, emphasizing that many traders quit due to internal struggles.
- ICT shares personal experiences of losing money and the impact of external pressures, such as the desire to impress others, on trading decisions.

# Personal Struggles and Their Impact on Trading
- ICT reflects on past relationships and how they influenced his trading behavior, including impulsive decisions and over-leveraging.
- The discussion touches on the emotional toll of past experiences, such as a failed marriage and the embarrassment of losing money to a former partner.
- ICT emphasizes the importance of journaling and addressing personal issues to prevent them from affecting trading decisions.
- The conversation includes anecdotes about how personal struggles can manifest in trading, leading to impulsive and risky behavior.

# The Role of Personal Baggage in Trading Success
- ICT explains how unresolved personal issues can lead to poor trading decisions and increased stress in personal relationships.
- The discussion highlights the importance of identifying and addressing personal issues to achieve success in trading.
- ICT shares his approach to helping his son, Caleb, navigate these challenges by encouraging him to journal and address his personal struggles.
- The conversation includes examples of how personal issues can lead to impulsive trading behavior and the need to reconcile these issues to succeed.

# The Importance of Mental Clarity in Trading
- ICT emphasizes that trading success begins in the mind, and traders must clear their minds of toxic thinking and personal issues.
- The discussion includes the impact of social media and external pressures on traders' mental states and decision-making.
- ICT shares his strategy for helping Caleb avoid these pitfalls by focusing on mental clarity and avoiding external distractions.
- The conversation highlights the importance of maintaining a clear mind to make effective trading decisions.

# The Impact of Social Media on Trading and Personal Life
- ICT discusses the negative effects of social media on traders, including the tendency to seek validation and external approval.
- The conversation includes examples of how social media can lead to increased stress and pressure on traders.
- ICT shares his approach to managing social media interactions and the importance of maintaining a balanced perspective.
- The discussion emphasizes the need for traders to focus on their own progress and not be swayed by external opinions.

# The Role of Humility and Realism in Trading Success
- ICT stresses the importance of humility and realism in trading, encouraging traders to avoid unrealistic expectations and external validation.
- The discussion includes examples of how unrealistic expectations can lead to poor trading decisions and increased stress.
- ICT shares his approach to helping Caleb maintain a humble and realistic perspective on trading success.
- The conversation highlights the importance of focusing on personal progress and not being swayed by external pressures.

# The Importance of Addressing Personal Issues in Trading
- ICT emphasizes the need for traders to address personal issues to achieve success in trading.
- The discussion includes examples of how unresolved personal issues can lead to impulsive trading behavior and increased stress.
- ICT shares his strategy for helping Caleb identify and address personal issues to improve his trading performance.
- The conversation highlights the importance of mental clarity and addressing personal struggles to achieve trading success.

# The Role of Journaling in Personal Growth and Trading
- ICT discusses the benefits of journaling for personal growth and trading success.
- The conversation includes examples of how journaling can help traders identify and address personal issues.
- ICT shares his approach to encouraging Caleb to journal and reflect on his personal struggles.
- The discussion emphasizes the importance of mental clarity and addressing personal issues to achieve trading success.

# The Impact of External Pressures on Trading Success
- ICT discusses the negative impact of external pressures on trading success, including the tendency to seek validation and external approval.
- The conversation includes examples of how external pressures can lead to increased stress and poor trading decisions.
- ICT shares his approach to managing external pressures and maintaining a balanced perspective on trading success.
- The discussion highlights the importance of focusing on personal progress and not being swayed by external opinions.

# The Importance of Mental Clarity and Focus in Trading
- ICT emphasizes the importance of mental clarity and focus in trading success.
- The discussion includes examples of how mental clarity can lead to better trading decisions and improved performance.
- ICT shares his strategy for helping Caleb maintain mental clarity and focus on his trading goals.
- The conversation highlights the importance of addressing personal issues and maintaining a clear mind to achieve trading success.