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Last modified by Drunk Monkey on 2022-12-28 09:56
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5 == {{id name="Part1"/}}Part 1 - Where Would I Focus ==
6
7 1. Don't Seek the Approval From Others
8 - People will not understand and will impede your progress with negative reinforcement.  No one cares, or will be jealous of what you are trying to do.  Do it for yourself, not for anyone else.
9 11. Family
10 11. Friends
11 11. Co-Workers
12 11. Strangers
13 1. Learn Risk Management First
14 - You will lose money.  That's the only guarantee.
15 11. Appreciate % Over $ Gain/Loss
16 - the dollar amount doesn't matter as much as the %
17 11. Learn to Limit Trade Frequency
18 - Don't turn a win into a loss.  The more trades you make, the more losses you will get
19 11. Avoid Short Term Into Long Term
20 - That's a good way to turn a winner into a loser. Stick to your rules and targets.
21 11. Be Content With Enough
22 - Like #2, you're going to push your luck and lead to more losses.
23 1. Prevent Life Imbalances
24 - What's the point if you're ignoring your family?  This profession will suck your life away.
25 11. Manage Family Time & Schedule It
26 - This should always be first
27 11. Keep a Study & Trade Schedule
28 - You don't want to become an addicted gambler.  Keep a schedule.
29 11. Off Days are OFF Days
30 - Stick to it, or you'll lose your family time bit by bit
31 11. Be Patient With Your Development
32 - Be realistic with your goals, but it takes time.  But it's not worth what you will lose, and that's time you cannot get back regardless of the amount of money you earn
33 1. Stop Buying Retail Logic & Tools
34 - Retail logic is designed to make you fail, so why buy them?
35 11. Stop Wasting Money On Books
36 - They don't have the secret.  Good books? Consider (need to check all these references)
37 111. For money management, everything from Ralph Vince and Ryan Jones, they do a lot of "optimal f and kelly criterion" (check, not sure what this is) - advanced topic
38 111. //How I Made One Million Last Year Trading Commodities// (1973) by Larry Williams -  most of which is still relevant - teaches about smart money and how it influences the market.  Advanced techniques
39 111. //Trading for a Living: Psychology, Trading Tactics, Money Management// (1993) by Alexander Elder
40 111. Market Wizards 1 and 2 just for inspiration
41 111. //Street Smarts: High Probability Short-Term Trading Strategies// (1996) by Linda Bradford Raschke and Laurence A. Connors
42 111. //Technical Analysis of the Financial Markets// (1999) by John J. Murphy - Retail Traders bible - do the opposite of this and you will find the charts more fun to watch because of the high degree of failing.
43 11. Avoid Looking for Hot Hand Gurus
44 - you won't make money doing this.  At best, you'll become codependent instead of a thinking trader
45 11. Become Your Own Signal Generator
46 - you have to learn, and then trust your own judgement, otherwise you end up stuck looking for someone else to tell you how to trade - and that'll lead to further losses.
47 11. Be Willing To Lose... A Lot Early On
48 11*. it's part of the learning and you don't know what you're doing.
49 11*. It's unavoidable and you'll be wrong a lot.
50 11*. Don't trade with live funds until you know what you're doing.  You cannot lose money this way.
51 11*. Losing is normal.  Control them, and over time you'll make more than you'll lose over the long term
52 11*. It's ok to lose, as long as you continue learning to avoid the mistakes you previously made
53 1. Stay Away From Social Media Drains
54 - don't let others influence your trades.  make your decisions.  if you let others control your trading, it will lead to further failures.
55 11. Don't Join Trading Clubs
56 - Don't join the hive.  everyone has their own trading profile and the group may not be your own style.  make your own analysis
57 11. Don't Subscribe To Alerts
58 - Just like taking signals, it takes the power of the trade away from you and into someone else's hands.  Be responsible for your own trades.  Otherwise, you are gambling.
59 11. Don't count other people's money. 
60 - You will never learn to trade doing this.  You will not develop the skills. You're chasing other people's money.  You can't spend their money.
61 11. Don't Feel Insignificant By Contrast
62 - measure against your own success, not the success of others.  Not everyone is what they claim to be
63 1. Match Your Style To Your Personality
64 - Learned from Larry Williams.
65 11. Scalp If You Make Quick Decisions - If you're a scalper, you'll do great if you make quick decisions.  Don't do it if you can't
66 11. Short Term Trade If You Can Sleep - If you can hold a trade overnight without losing sleep, then you can short term trade
67 11. Don't Force Yourself Into Any Mold - Be what you are, and maybe develop the other skills later
68 11. Don't Try To Copy Someone - they are not you, you are not them.  Their strength are not yours.  Develop or refine your own models
69 1. Don't Change Trading Approaches
70 11. Stick With One Approach - master it, it takes time
71 11. Avoid System Hopping - you will never master it.
72 11. Every Model Loses - Accept It
73 11. Find Your Unique Model & Grow With It - Don't tweak it too much once you have it working and is profitable, but work on more advanced money management techniques instead.  If your method wins more often than it loses, better, more advanced money management will greatly improve your bottom line
74 1. Settle One One Trade Setup Initially - 
75 11. Determine Your Asset Class - Pick an asset class and stick with it.  Then inside that class, pick one market and stick with it.
76 11. Outline When You Want To Buy - what is the criteria that you feel comfortable for a buy.  Detail your plan, on paper.
77 11. Outline When You Want To Short - The same thing applies to shorts.  What are the characteristics and circumstances that would make you short?  Details.
78 11. Build Many Study Journal Cases - Many examples of when it worked, and when it didn't.  The more examples the better.  Thus you will train yourself to recognize when the setup happens in live trading.
79
80 == {{id name="Part2"/}}Part 2 - How Would I Study ==
81
82 (this video should be viewed multiple times)
83
84 you will lose trades - doesn't matter.  Focus on the re-occurring setups
85
86 1. Where do steady setups form?  Focus first on the following because everything else is a distraction.  If you understand how prices flow around these various areas, you will always be able to find setups that will lead to profitable trading.
87 \\There are 4 areas that we need to examine:
88 11. Monthly Highs & Lows
89 11. Weekly Highs & Lows
90 11. Daily Highs & Lows
91 11. Session Highs & Lows
92 1. In detail:
93 \\The open/high/low/close for a period needs to be focused on.  
94 11. Monthly Highs & Lows
95 11*. Look at the last 3 months - mark out the high and the low and then study how the market reacts around it.  Ignore standard support and resistance crap because that will lead to loss.
96 11*. Example marked out - daily GBPUSD Apr 1 2020 to July 10 2020:
97 [[image:image-20221228175525-1.png]]
98 11*. Mark out the monthlies and extend it out into the future.
99 11*. What's happening and is happening as it reacts around that price level?  Is price heading for an old monthly high?  Low?  Where is it aiming?  Has it recently gone below an old low? and rallying up? If so, it's probably just ran stops.  If it ran sell stops, then it'll probably run for the old monthly highs.
100 \\If it's reaching for an old monthly high - then the algorithm is reaching for the liquidity resting above those old highs.
101 \\If it's reaching for the old monthly lows - then it's reaching for the liquidity resting below those old monthly lows.
102 \\"to and through" - important words and we shall see later.
103 11. Weekly Highs & Lows
104 11*. We are going to find key levels defined by the weekly highs/lows and you can see how price sweeps below old monthly/weekly lows and then move gyrate to find other week]ly lows.
105 11*. 4 hour chart with the weekly and the monthly highs and lows marked out.
106 [[image:image-20221228175546-2.png]]
107 11*. We are using different colors to mark the highs and lows. (blue, high, red, low) as well as using different widths to differentiate between the monthly and the weekly points of interest
108 11*. when price breaks above the blue levels (old monthly/weekly highs), is the market going higher?  or is it seeking liquidity and then rejection to go low?
109 11*. if it is taking out multiple blues, then that's indicating a bullish narrative and would appear to be seeking a higher liquidity pool, not a weekly high, but an higher monthly high,  it's giving is an indication/xray of what the underlying market wants to do.
110 11*. the same applies to the opposite direction?  multiple lows taken?  seeking lower liquidity pools
111 11. Daily Highs & Lows 
112 11*. 60M chart
113 11*. you will see setups every day
114 11*. be content to take profit early on in the week (tues-thur).  trades taken later in the week are riskier and are more likely to add to your losses at this stage of your development (maybe always?).
115 11*. daily highs and lows offer the potential for liquidity draws, meaning the market will likely go above our daily highs to reach the buy stops, or go below the daily low to reach the sell stops.
116 11. Session Highs & Lows
117 [[image:image-20221228175607-3.png]]
118 11. Notes:
119 11*. Look at this chart here, 60m time frame, lows where the arrow is
120 [[image:Screenshot 2020-08-07 at 03.50.09.jpg]]
121 11*.
122 1. key points
123 11. breaking of old high/lows at key levels (old monthly/weekly/daily/session high/lows) to help determine the bias as described in this teaching
124 11. time of day for NY {{glossaryReference glossaryId="Glossary" entryId="OTE"}}OTE{{/glossaryReference}} entry
125 11. proper setup of price action from the london timezone
126
127 == {{id name="Part3"/}}Part 3 - How Would I Practice ==
128
129 most important - for the NY {{glossaryReference glossaryId="Glossary" entryId="OTE"}}OTE{{/glossaryReference}} entry, need to declare the rules as they are defined in the {{glossaryReference glossaryId="Glossary" entryId="OTE"}}OTE{{/glossaryReference}} videos
130
131 - directional bias determination for the day/week
132
133 - where do we draw the fib from?  which low, high?  candle sticks or the body? 
134
135 - definition of the TP targets - when to take profit?
136
137 - define the SL target
138
139 * trading view demo platform
140 * treat the demo account as real to build good habits - not overtrading, not overleveraging, using proper risk management
141 * back test by walking through the old data and look for the setups, then test the result
142
143 == {{id name="Part4"/}}Part 4 - How Would I ... ==
144
145 * blah