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ICT Market Maker Primer Course - 20 - Trade Psychology and Effective Journaling.srt

Last modified by Drunk Monkey on 2021-06-10 06:21
1 00:00:13,740 --> 00:00:20,580 ICT: Okay folks, welcome back. This teaching is going to be specifically dealing with trade psychology and effective journaling.
2 00:00:27,270 --> 00:00:37,050 Okay, trade psychology ineffective journaling, the points of focus in this module major psychological barriers and my personal opinion and solutions for
3 00:00:37,050 --> 00:00:53,490 overcoming them. And effective journaling, how journaling can assist your development. Okay, so major psychological barriers. The first list is the fear
4 00:00:53,490 --> 00:01:08,010 of missing moves. Now believe this personally, is rooted in not fully understanding what your setup is. Now, you see this glibly tossed about in
5 00:01:09,390 --> 00:01:19,650 seminars, webinars, videos, whatever it is, folks that are teaching Today, many of them aren't even qualified to be in the role of a teacher in my opinion. But
6 00:01:20,100 --> 00:01:35,460 we'll leave that for another discussion. The fear of missing moves is rooted in your unique setup. Now, every trade is going to have their specific setup, it
7 00:01:35,460 --> 00:01:43,980 may or may not have an indicator, I personally don't believe that indicators should be a part of your trading. But that's just my personal taste. My faith in
8 00:01:44,100 --> 00:02:00,330 price action is sufficient enough. But if you have a tool, if you have a method, if you will, that relies on an indicator to give you that buy or sell decision
9 00:02:00,330 --> 00:02:13,800 for you, then whatever it is, you need to stick with it and know that that's the one you're going to trade. If you have defined that setup, in a written form, or
10 00:02:13,800 --> 00:02:25,230 two trading plan, you're not going to have many times that same feeling a neophyte trader or less organized trader would have. Now it doesn't mean that
11 00:02:25,230 --> 00:02:33,870 we're going to be profitable, it just means that we're not going to be fearing missing a move. Because once you understand the setup, the setup should be
12 00:02:34,530 --> 00:02:45,630 directly linked to time and price. There should be a time when this setup forms and there should be a consistency to it. If your pattern doesn't have that, and
13 00:02:45,630 --> 00:02:55,470 it's rather ambiguous or untimely, you don't know when it's going to happen, then you probably don't have a valid setup. And you're going to have hit and
14 00:02:55,470 --> 00:03:07,080 miss results. And when it wins, you're going to falsely attribute to your setup when it's really just randomness. So to overcome fear missing moves is obviously
15 00:03:07,080 --> 00:03:18,060 to have a well defined plan. And what your setup is, knowing it intimately will keep you far less anxious about missing a move because you'll know when they're
16 00:03:18,060 --> 00:03:31,260 most likely going to form. This is why I use Killzone this time element of the trading day, I know what I'm looking for. I know my setup. And if I know what
17 00:03:31,260 --> 00:03:40,410 time it should occur, I know what days a week it should form. And I know it should be either a bullish model or a bearish model. I'm not anxious about
18 00:03:40,410 --> 00:03:51,870 missing a move. Even if I do miss that trade. I know when the next one's going to form. Most neophyte or novice traders do not have that luxury. They're on the
19 00:03:51,870 --> 00:04:02,880 seat of their pants all the time, not knowing when it's going to happen, or what it is, it's supposed to happen at all for them to take a trade. fear of losing?
20 00:04:04,020 --> 00:04:16,290 Well, this one's going to have you looking for systems to have high accuracy.  And there's not a real need for high accuracy. It's wonderful to have it but the
21 00:04:16,290 --> 00:04:28,740 fear of losing comes by not having a plan. And if you don't have a plan, if you don't have a method that seeing consistency in hindsight and back testing, and
22 00:04:28,740 --> 00:04:41,820 then walk forward with it, seeing working and having momentary lapses of accuracy. You will not have the wherewithal that's necessary to do what is
23 00:04:41,820 --> 00:04:54,720 necessary as a trader. That means embrace uncertainty. The ability to do this is not going to be for everyone. And there's going to be a fine line between those
24 00:04:54,720 --> 00:05:05,430 individuals that hit this wall that every one of us will hit and we had to determine for ourselves, if this is really right for us, and for some of you, it
25 00:05:05,430 --> 00:05:13,860 isn't, no one's going to have to make that decision for you. But it's important that you understand that there is always that element. If you're a new
26 00:05:13,860 --> 00:05:17,250 developing trader and you're unproven, it may be
27 00:05:18,539 --> 00:05:28,979 that trading isn't for you, you would have to more or less rely on someone else to do the trading for you, or don't trade it at all. But if you're going to
28 00:05:28,979 --> 00:05:42,749 train, you can't fear taking a loss, fearing a loss is many times directly linked to over leveraging and or overtrading, both of those two elements are
29 00:05:42,749 --> 00:05:51,719 very easily fixed, lower your leverage, and you won't be so fearful about taking a loss because it won't hurt you. So many times in a row, if you have a losing
30 00:05:51,719 --> 00:06:05,759 streak. If you slow your frequency down, in terms of your overtrading. Again, even if you're not trading a high accuracy method or setup, the high frequency
31 00:06:05,789 --> 00:06:20,609 won't be quickly eroding your equity, very simple solutions to an otherwise rather routine problem that comes up in many traders. impatience between setups.
32 00:06:21,839 --> 00:06:33,119 This is going to come by way of infancy as a trader, especially if you have a setup that is profitable. And you can be well organized, you could have a well
33 00:06:34,049 --> 00:06:45,449 groomed money management strategy. And you know what your setup is, but you're impatient and waiting for it, or you see the setup forming. But you're trying to
34 00:06:45,449 --> 00:06:54,389 get in just before you're really supposed to. In other words, you're looking for a specific level, you're looking for the 50 level to be buying it. And it's
35 00:06:54,389 --> 00:07:05,549 flirting with 65. And you just can't stand it, he's got to get in, that's going to be dealt with over time and forging discipline by following the rules in your
36 00:07:05,549 --> 00:07:17,279 method. The problem is, is you don't have the time doing it enough in the experience trading to know what this is going to require of you. And you're
37 00:07:17,279 --> 00:07:27,239 going to have many times previous exposure, either by demo, preferably, or eventually go into live trading, which I don't ever try to tell you how to do
38 00:07:27,239 --> 00:07:37,469 that, because it's a decision you're gonna make on your own if you ever do it at all. But if you find success, that feeling or that rush you get when you make a
39 00:07:37,469 --> 00:07:45,539 profitable decision, you want to have it right away as quickly as possible. And many times immediately, as soon as you close a trade or hit your limit order and
40 00:07:45,539 --> 00:07:54,569 you're out with a profit, whether demo or live. Worst case scenario, it's alive, you're going to want to go right back in again, and you're going to jump in
41 00:07:54,569 --> 00:08:03,449 before your setups, you're going to take things that aren't necessarily aren't your setups. And I can tell you as a commodity trader, when I had initial luck,
42 00:08:03,899 --> 00:08:17,939 back in the early 90s, I would have an idea what I wanted to trade. But I would also feel that impulse to want to get back in and be a winner again. So I would
43 00:08:17,939 --> 00:08:25,439 look at the market and say okay, well, that's not my setup, but I still think it's going to go up, and I would buy it. I had no idea what I was doing. But I
44 00:08:25,439 --> 00:08:33,929 still succumb to that impulse that hey, look, you know, I need to be doing something cuz I'm sitting in front the charts, and I want to feel good again. So
45 00:08:33,929 --> 00:08:44,909 let me roll the dice and see what happens. That impatience comes by way of your infancy and your lack of experience, experience is going to teach you one of two
46 00:08:44,909 --> 00:08:57,209 things. One, that losing sucks. It's better that you try not to lose too much when you do lose, or experience is going to teach you that you're not perfect.
47 00:08:57,359 --> 00:09:10,139 So therefore, you have to wait for the best scenarios for your, quote unquote, luck to be in favor. We don't know if our setups are going to be accurate. But
48 00:09:10,139 --> 00:09:21,629 we also don't know if our sales are going to come when we are expecting them to.  So forcing it or jumping ahead and more or less anticipating the setup. Whereas
49 00:09:22,169 --> 00:09:34,319 we're anticipating a next move in price. That's what trading is. It's a statistical guess. Now with that there's a measure of uncertainty. And that
50 00:09:34,319 --> 00:09:44,759 uncertainty and the waiting side of trading. It's just like a water torture.  Okay, it's you can't stand it, especially if you're sitting in front the chart.
51 00:09:45,359 --> 00:09:54,689 You just want to get into get into trade already in except the wider risk if you need it. And that's wrong. You don't want to do that. Demand your price, demand
52 00:09:54,689 --> 00:10:09,449 your setup. And by doing so, you'll combat that impatience. shins that resides between setups that novice traders always feel fear of not being good enough.
53 00:10:09,989 --> 00:10:15,449 Well, this is a byproduct of being on social media, everyone's going to be better than the next guy,
54 00:10:15,450 --> 00:10:31,020 or they're going to be trained by the person that's leading the pack, or they themselves are the rock star. If you are not equipped to handle the tomfoolery,
55 00:10:31,020 --> 00:10:40,620 that takes place on social media, like Facebook, and Twitter and Instagram, it's probably better for you not to be on it. Now, I understand that I have a online
56 00:10:40,620 --> 00:10:53,880 presence on Twitter, and I have a Facebook and I have a YouTube channel. But I have a thick skin. And I like to engage other traders because I like to
57 00:10:53,880 --> 00:11:07,620 feedback, I like to see what their responses will be. And I just like the engage. So if you are quickly feeling like you are not sufficient, or your
58 00:11:07,620 --> 00:11:16,890 learning, speed is not up to snuff, in terms of what you've seen other people, and many times what you see online, they're lying anyway, they may say they have
59 00:11:16,890 --> 00:11:25,200 their things together, you know, they are all, you know, completely figured it all out in terms of what they're doing. Many times the ones that are saying that
60 00:11:25,290 --> 00:11:35,280 aren't really as astute as they claim to be. And they're trying to fake it until we make it so don't let it wear on you too much, or make you feel like you're
61 00:11:35,280 --> 00:11:46,170 insignificant in terms of where you're at in your development. Because your report card on your own results, as you'll hear me refer to in the journaling
62 00:11:46,380 --> 00:11:57,780 section of this video. That's the only opinion that matters. It's not mine or anyone else's that matters. It's Are you seeing development progress. And by
63 00:11:57,780 --> 00:12:05,190 measuring that, and by keeping tabs on that in terms of your journal, that's the scorecard that really matters. And obviously, your bottom bottom line, that's
64 00:12:05,190 --> 00:12:16,830 the one that really makes the case for whether or not you're developing. So fear of not being good enough is simply a game that's between your ears. It's all a
65 00:12:16,830 --> 00:12:25,080 trap. So don't think about being on social media don't engage other people.  That's if you're developing trade, the worst thing you can do for you men, is to
66 00:12:25,080 --> 00:12:33,840 go into this armwrestling match about, you know, what's better, who's better, how much is, you know, a good amount and what you should be making in terms of
67 00:12:33,840 --> 00:12:44,370 pips, all that stuff is the goes back to the proverbial measuring contest you who's the bigger man. And it's not about who's the bigger man, it's about
68 00:12:44,460 --> 00:12:58,050 surviving long enough. So that way you can appreciate and develop as a trader fear of losing streaks in drawdown? Well, this is going to be directly related
69 00:12:58,050 --> 00:13:11,310 to money management. And if you're afraid of taking losses in any set or series, and or fear drawdown is because you have no process or protocol in place, or
70 00:13:11,310 --> 00:13:22,440 what you would reach for, should you have a loss or a losing streak develop.  I've given you a teaching to help you flatline your your losses that way removes
71 00:13:22,440 --> 00:13:35,010 the effects of drawdown in your losing trades. And by implementing something as simple as that quickly changes your perspective on fear and anxiety about taking
72 00:13:35,010 --> 00:13:51,870 losses or a single string of losses. lack of discipline and following rules.  Well, it's in our nature to be human. And I've said this many times, if the sign
73 00:13:51,870 --> 00:14:00,300 says don't walk on the grass, your first impulse is going to be what we're going to tap dance all over that. It's just like your children, you know, God bless
74 00:14:00,300 --> 00:14:15,540 them, you know, I have four boys. And I've literally watched them do these very same things that they should know not to do. But they still do it. Well, with an
75 00:14:15,540 --> 00:14:23,160 account with money or demo, we do those same things. We know we shouldn't be doing something but because there's an opportunity to do it. And there's really
76 00:14:23,160 --> 00:14:34,290 no one keeping you from doing it. You end up doing it. In January you enter the trade or mess around with your trade like you shouldn't. As soon as you do it,
77 00:14:34,290 --> 00:14:42,330 that little voice in your head says I should not be doing this or don't do this.  But you ignore it. You want to see what's going to happen.
78 00:14:43,530 --> 00:14:51,570 And if you want to do experiments, okay, do it somewhere else not in the marketplace. But you have to have discipline and you have to have rules and when
79 00:14:51,570 --> 00:15:02,460 those rules are made, you have to stick to them. Do not deviate from them. And over time this forges discipline plan. And it'll also serve you well, because
80 00:15:02,460 --> 00:15:10,260 you're going to have periods of drawdown, you're going to have periods of losing trades. And if you don't have the discipline to stick to doing the very things
81 00:15:10,260 --> 00:15:21,930 that will eventually lead to longevity in this business, you're not going to fare well. So discipline comes by forcing yourself to follow a set of rules. And
82 00:15:21,930 --> 00:15:32,400 those rules have to be rigid, they have to be concise, detailed, not ambiguous.  They they're very binary in the sense that you do this, or you do that, or you
83 00:15:32,400 --> 00:15:43,200 do nothing at all. And they have to be three conditions. For every decision making process. Either it's a go, it's a no or you sit still, you don't do
84 00:15:43,200 --> 00:15:55,710 anything. Searching for the next best thing. I think this is one of the biggest problems if you just look at twitter. Whoever's hot right? Now whoever's got the
85 00:15:55,710 --> 00:16:05,790 most attention by everyone. That's where everyone's gonna flock. Okay. And it's always been like that, not just in trading, but in anything, okay? whoever's
86 00:16:05,790 --> 00:16:15,960 barking loudest, draws them in the biggest crowd. Now, whether or not they have anything to say, once the crowd gets there, that remains to be seen. But you can
87 00:16:15,960 --> 00:16:29,400 see how folks that are in love with one concept or one guru or method this month will change teams, and go somewhere else in the thought process thinking that
88 00:16:29,610 --> 00:16:39,060 this is the better way of doing it, or this is something different, and it's a amplification of something. And I have learned that there's nothing really
89 00:16:39,060 --> 00:16:47,790 better for me as a trader, so therefore, I don't look anymore. I know everything I need to know in terms of price action, the open, high, low, close, tells me
90 00:16:47,790 --> 00:16:58,410 everything I need. There isn't anything out there that entices me personally.  And like the Bible said, there's nothing new under the sun. So if I have arrived
91 00:16:58,410 --> 00:17:11,160 at something that makes sense for me, even if it's not perfect, I don't need perfect. But I know I have a statistical edge in the things that I do. They're
92 00:17:11,160 --> 00:17:20,160 highly accurate. They're very precise. And they're time based. I know when my setups are going to form, if you were able to pull the majority of individuals
93 00:17:20,160 --> 00:17:29,790 that were trading any asset class, if they could set a time on when their next setup is going to be over 90% would say, I don't think so I don't think I could
94 00:17:29,790 --> 00:17:39,480 do that. And that's why trading is uncertain. To me, it's not because I know what time of day, certain things should happen. I know what days of the week,
95 00:17:39,480 --> 00:17:48,300 certain things should happen. So therefore, I'm not anxious about what my next time it's going to be. I don't care about missing a move. In fact, it's fruitful
96 00:17:48,300 --> 00:17:58,800 for you to take vacation time scheduled time away from the marketplace. And do that. And I would suggest to do that even more. So if you're hot right now, if
97 00:17:58,800 --> 00:18:10,110 you're doing really, really well. Best thing you could do is forge development in terms of your discipline, and also your experience, force yourself as Okay,
98 00:18:10,140 --> 00:18:19,440 I'm taking a break now, I've been killing it, I got 25 winning trades in a row, or whatever it would be. I'm gonna stop trading, I'll take a week off. Don't
99 00:18:19,440 --> 00:18:26,640 even look at the marketplace, you're going to want to look at it, but don't. By doing that, you're going to prove to yourself, there's nothing better than the
100 00:18:26,640 --> 00:18:35,520 thing you're doing right now. Because you understand it doesn't have to be my material. If you found something in another discipline that you've really
101 00:18:36,450 --> 00:18:45,120 gravitated towards, and it made sense for you to use it. Great. That's awesome.  That's all it matters is that you find something that you can make a wager on,
102 00:18:45,510 --> 00:18:52,140 and then wager that with sound money management, because ultimately no matter whether we're talking to order blocks, or
103 00:18:52,919 --> 00:19:02,549 ICT breakers or anything else that's out there, none of that stuff really makes price move. And we can't control price. Once we're in the trade once we're in
104 00:19:02,549 --> 00:19:12,599 the market, all the control the steering wheel is not ours now, the markets driving what we're going to see in terms of profit or loss. So understanding
105 00:19:12,599 --> 00:19:21,059 that everyone's going to have losing trades. And the first thing that happens is folks that go through a losing streak and they experienced drawdown, then they
106 00:19:21,059 --> 00:19:28,469 show their lack of discipline in following roles. So they think there's something better out there. Okay, something easier, something that doesn't have
107 00:19:28,469 --> 00:19:38,879 losing streaks. Everything has losing streaks, folks, believe me, everything does. No one stays hot or the top forever. And there's always going to be some
108 00:19:38,879 --> 00:19:49,079 measure of drawdown in whatever system or method you're using. So the best thing you can do is find something that works enough time to warrant investigation and
109 00:19:49,079 --> 00:20:01,739 stick with it. You sound money management, and you can turn it into something really impressive and you mean surprise yourself. Okay, effective journaling.
110 00:20:04,739 --> 00:20:15,539 When we talk about doing journals, every single day, I make a journal entry in my personal journals. At the end of the week, usually it's on a Saturday, I do a
111 00:20:15,539 --> 00:20:29,159 weekly log in my personal performance. And what I have seen happen in the previous week, more or less, I'm reviewing the total week's range. I do this on
112 00:20:29,189 --> 00:20:38,969 the two pairs that I trade, which is predominantly the euro dollar, and the cable, pound dollar. I don't do a lot of trading, you know, a lot of other
113 00:20:38,969 --> 00:20:47,639 pairs, if I want to be a deviant, I will trade sometimes the Canadian dollar or the Aussie dollar. But generally, that's about it. I don't want to do anything
114 00:20:47,639 --> 00:20:59,879 more than that. And the reason why is because I actually spent a lot of time planning and investigating certain setups and things I'm looking at. And I want
115 00:20:59,879 --> 00:21:13,199 to go through that time. And use that time, the most economical way I can. And I don't want to be doing that with 28 pairs. So if I'm going to put the time into
116 00:21:13,199 --> 00:21:23,459 doing a sound, top down analysis, and or review of my own setups, if I'm following 20 pairs, can you realistically do that every single day, you're never
117 00:21:23,459 --> 00:21:31,229 gonna have any time to do anything else. So I have a life to live. And I can find all the setups I'll ever want to find in these two pairs. In fact, I could
118 00:21:31,229 --> 00:21:43,289 just trade one. But because they're closely correlated, and it fits my model, as far as a short term and day trader, I look at both euro dollar and cable. And if
119 00:21:43,289 --> 00:21:54,749 I want to find something else that may or may not have a setup in the cable or fiber, then I'll trade like I said the loonie or the Aussie. But I tried to make
120 00:21:55,229 --> 00:22:06,929 a daily entry whether I take a trade or not. And I give myself an opportunity to stay in a routine. But every single week, I'm doing a complete review of the
121 00:22:06,929 --> 00:22:19,559 weekly performance as my trader half of me has performed and then the analyst half of me, so I'm always giving a voice to the two people that reside in me
122 00:22:19,559 --> 00:22:30,569 just like you, oh, you all are going to be looked at internally as a trader, but there's actually an analyst inside of you too. And there's also a gambler. So
123 00:22:30,599 --> 00:22:38,399 you have to figure out who's in control at the time, when you're doing the trading in many times, you don't see it before you go into the trade, you always
124 00:22:38,399 --> 00:22:49,559 see it after the trade. Okay, the ones that paint out really, really well. And you're not feeling a lot of exposure to uncertainty or fear and anxiety,
125 00:22:49,949 --> 00:22:57,119 generally, you're going to find that that's going to be the analyst because they're focusing on the numbers, and they're not really worried about it. The
126 00:22:57,119 --> 00:23:10,049 person that finds themselves excited about the results maintains when they're good, or I guess the adverse side of things. They're weighing things in terms of
127 00:23:10,349 --> 00:23:20,099 the outcome, that's the trader. And then you have the gambler, where they're impulsive, they're doing things that are undisciplined, and they're pushing more
128 00:23:20,129 --> 00:23:29,939 leverage than they should. That's the one you want to keep your eye on. Okay, the gambler is going to get you in trouble. The trader will take care of
129 00:23:29,939 --> 00:23:40,079 himself, because the analysts will speak to that side of you through your conscience. But you want to reside in the mindset of the analyst, sticking to
130 00:23:40,079 --> 00:23:49,589 what you see in the chart, sticking to what your processes your your model, okay, the analyst is what's going to keep you on the right path. That
131 00:23:50,760 --> 00:24:00,570 formation that makes a trader is it's made up of three people, but you're all the same person, the analyst, generally, they're the ones that are the most
132 00:24:00,570 --> 00:24:13,680 sober minded, the trader is the one that wants the opportunity, and the right or wrong measurement. But then you have the gambler who wants the thrill of it all.
133 00:24:14,520 --> 00:24:24,510 And it's also going to be the person that takes the hardest in terms of the grief that comes when there's a losing trade. And that part of us is going to
134 00:24:24,510 --> 00:24:35,310 always be negative. It's going to be well, it's not my fault. It's something else that cause that the gambler is only going to be worried about when it was
135 00:24:35,610 --> 00:24:43,950 right and when they made money or when you made money. When it was in your favor. That's when you want to consider it. But when it isn't making money for
136 00:24:43,950 --> 00:24:56,160 you, the game was gonna cry. It's gonna manifest itself into a spoiled perspective, toxic thinking. So you kind of like want to keep that inside of you
137 00:24:56,400 --> 00:25:08,430 on a short leash and you don't want to allow it to manifest. It's In your journaling, how you felt going into the trading day is really important. There
138 00:25:08,430 --> 00:25:17,400 were times in my life as a trader, that my oldest son would had to go into surgery. And I wish I would have stayed out of the market those days, because I
139 00:25:17,400 --> 00:25:30,030 was already anxious, I was already nervous about the outcome of the surgery. So those are days that I wish I would have had the discipline to not trade. But
140 00:25:30,030 --> 00:25:42,270 because I was feeling anxious and helpless, because I couldn't do anything to fix my son's ailment, I would try to satisfy my anxiety by having a win, because
141 00:25:42,300 --> 00:25:53,280 even if I made 100 bucks doing something in the marketplace, it would keep me distracted from what I was feeling in my personal life. So you're going to see
142 00:25:53,280 --> 00:26:00,060 that your losing trades are going to be directly related to things that are going on in your personal life. And the only way you're going to see that trend.
143 00:26:00,390 --> 00:26:13,470 Or that truism, is if you go through your journal, and you index all of your trades based on a negative mindset. Or if you're sick. If you're physically ill
144 00:26:13,860 --> 00:26:22,080 probably not a good idea to trade. If you have a migraine, like I have migraines sometimes. And I have made the mistake of sometimes still trying to take a trade
145 00:26:22,500 --> 00:26:31,500 and force decision ever. Because there's nothing worse than feeling like your head's going to explode. And I already have sensitive eyes. So I can't look at
146 00:26:31,500 --> 00:26:40,410 the chart long to follow out what is the best procedure for me right now? Should I stick with a trade Should I move my staff or do anything with it, when it
147 00:26:40,410 --> 00:26:47,820 would be better for me just to not to be in it at all, and just relax and go to a quiet dark place in the house and just relax and let my migraine take care of
148 00:26:47,820 --> 00:27:01,530 itself. So how you feel? Okay, and this is not only physically but how you feel?  emotionally, you did you just have a death in the family we're seeing in the
149 00:27:01,530 --> 00:27:11,010 world you can do is medicate yourself by rolling the dice. You know, you could have lost in your family, or you and your spouse, and your suffering God forbid,
150 00:27:11,400 --> 00:27:22,560 or something terrible happens, okay? You don't want to open yourself up to gambling, okay, because that's what it's going to become. in those environments,
151 00:27:22,560 --> 00:27:30,540 you want to be relaxed, you want to have a neutral mindset going in, you want to feel healthy. It's why it's important to have a good exercise program, good
152 00:27:30,540 --> 00:27:41,010 healthy diet, and staying active and stretching out and giving yourself hobbies outside of trading. Because you want to have a fresh perspective, you want to
153 00:27:41,010 --> 00:27:52,200 have a alert mind, you want to have a healthy fed body, going into the marketplace with a sickly unrested, which I didn't mention before, but sleep is
154 00:27:52,200 --> 00:28:03,510 important. You need to have it. Especially if you have jobs and businesses, you need to recuperate. I've been blessed to not have a need those things. Because
155 00:28:03,870 --> 00:28:17,040 I'm home most of the time doing whatever I want to do. So sleep for me isn't as needed. versus someone that has a business and you doing all these things or has
156 00:28:17,040 --> 00:28:27,930 a job and they have to commute. I mean commuting alone. Okay, if you're rushing home, from your job, you know, and you had a bad experience on the road, you're
157 00:28:27,930 --> 00:28:35,100 angry. So what are you going to do, you're going to want to take it out on the marketplace, you're, you're upset. So you're looking to have that replaced by
158 00:28:35,100 --> 00:28:44,790 some kind of a feel good feeling. And what better feeling is there as to make money, okay, it's like winning the lottery. So you're going to do things that
159 00:28:44,790 --> 00:28:45,600 you shouldn't do,
160 00:28:46,260 --> 00:28:56,850 because you're acting impulsively, because of the way you feel. So it's important that you always be honest with yourself. When you journal, I always
161 00:28:56,850 --> 00:29:09,210 give myself an opportunity to debrief, okay, and also release those things. And it's almost therapeutic, because you know, what you're doing is the wrong thing
162 00:29:09,210 --> 00:29:16,710 when you do it. And you're acting impulsively, because you want to have a different feeling than whatever it is that's bothering you. Okay, if you're
163 00:29:16,710 --> 00:29:25,590 stressed, if you're worried if you're angry, you just want to replace that with something. Okay. And since we're traders, we can clearly see that there is a
164 00:29:25,590 --> 00:29:32,130 reason to expect the market to go up or down. So all we have to do is roll the dice and just gamble and see what's gonna happen. And our attention will be
165 00:29:32,130 --> 00:29:43,680 diverted from whatever the things that we are stressing over or anxious about, or mad about or sad about or fearful of. All those stimuli will be replaced by
166 00:29:43,740 --> 00:29:52,830 I'm in a trade. And I made the mistake of doing that as a young man. And it filled my head up with all the wrong things as a trader. So the way you want to
167 00:29:52,830 --> 00:30:03,690 avoid that is be sober minded going into the trade and also know what it is you're feeling. At the end of the day, when you're done trading, you want to put
168 00:30:03,690 --> 00:30:12,210 that into Word, and write it out. And be honest, don't if you know you were angry at your spouse, if you angry at your your child, or if you're worried
169 00:30:12,210 --> 00:30:18,810 about something that's taking place, if you have a job, if you're if you're anxious about losing your job, or if you're angry that someone else got a
170 00:30:18,810 --> 00:30:29,970 promotion that you didn't get, okay, make sure that you do that in your journal by allowing it to come out. Because if you don't release it, and put it in your
171 00:30:29,970 --> 00:30:38,850 journal, we can see it in text, read it and release it. If you don't do that, you're going to harbor it, and it's going to become cancerous to you as a
172 00:30:38,850 --> 00:30:47,340 trader, it's going to infect your mind, it's going to infect your your performance, and it's not going to always be what you want. Okay, it's going to
173 00:30:47,340 --> 00:30:57,930 be many times the opposite of what you're expecting. And it's gonna have an adverse effect on your overall development. Anyone record any of your concerns
174 00:30:57,930 --> 00:31:10,200 or fears that you had while you're watching price action. So if you're in a trade, or not in a trade, whenever you feel a sense of anxiousness, or not
175 00:31:10,200 --> 00:31:18,420 trusting the setup, these are beautiful opportunities for you to learn. Because that's when you want to be doing screen captures, okay, if you're in front of
176 00:31:18,420 --> 00:31:25,050 the chart, you have the luxury of being able to do that screen capture that very moment. And then in your chart, you want to make a notation of what you're
177 00:31:25,050 --> 00:31:32,910 feeling in what you're thinking at that time, you may be feeling that it's hearing go up. But it's retraced a little bit deeper than you thought, and
178 00:31:32,910 --> 00:31:41,880 you're starting to have anxiety about it, it may not pan out, that's a time when you want to screen capture, and make that notation and log that. Keep that as
179 00:31:41,880 --> 00:31:52,860 part of your journal entry. Each time you do this, you're going to find that you're going to find less sensitivity, or emotional attachment to these ideas,
180 00:31:52,860 --> 00:32:03,900 because you've been there before. And yes, you see that there may be a opportunity for the trade just to fail, and hit your stop loss. But if you stick
181 00:32:03,900 --> 00:32:11,730 with it, how many times did it really actually go there. And that's the benefit of keeping a journal. Because unless you write the things down and keep a
182 00:32:11,730 --> 00:32:17,940 journal of what the chart looks like, and what you're thinking, you're never going to remember them, you're going to remember that really good trade. And
183 00:32:17,940 --> 00:32:25,800 you're going to try to forget with all your energy and effort and might to forget those trades that you should have never been in, you knew you're getting
184 00:32:25,800 --> 00:32:33,750 into it, he should have never done it. And now you got to do your best to try to avoid it and forget it ever happened. And they're your lessons that you want to
185 00:32:33,750 --> 00:32:45,150 learn from. So journaling is absolutely crucial to your development as a trader, especially if you want to be organized, and you want to be collective and calm
186 00:32:45,150 --> 00:32:54,990 about what you're doing. That only comes by doing this exercise here, journaling. Every professional, whether it be a doctor or lawyer, physician
187 00:32:55,020 --> 00:33:03,750 psychologist, the long and short is they keep good records about what they say what they have done. They do not want to rely on your memory, and you can't rely
188 00:33:03,750 --> 00:33:14,910 on your memory, you're going to forget things. Okay? every seven years, your brain breaks off this little nodule, okay. And part of that, you lose memory. So
189 00:33:15,090 --> 00:33:22,800 it's important to keep a record of things that you've said and done. Because when you have these adverse times in the future as a traitor, because you're
190 00:33:22,800 --> 00:33:30,570 going to, you won't be able to go back and reflect on those times that you forgot how you've been through that before, and what you did, to go through
191 00:33:30,570 --> 00:33:40,440 what's important. Contrast your personal expectations of what you thought was going to happen in the marketplace, and how you were going to do versus the
192 00:33:40,440 --> 00:33:46,410 actual result. This is where you get to be more or less the the scorekeeper
193 00:33:47,190 --> 00:34:04,050 you're able to soberly and balanced give a an opinion about what you did, in terms of your analysis going into the day, for the week. And then what actually
194 00:34:04,050 --> 00:34:13,770 happened. Now, you're not in this section of journaling, to beat yourself up.  That's not what this is. But what you're trying to do is highlight the things
195 00:34:14,460 --> 00:34:24,480 that you missed. But you don't want to draw so much attention to it that it seems like you're writing, you know, a suicide letter like you know, I'm no
196 00:34:24,480 --> 00:34:33,150 good. I'm this or that. What you want to be doing is is highlighting opportunities for you to develop better or spend more time focusing on your
197 00:34:33,150 --> 00:34:42,960 weaknesses, because that's what journaling helps you do. It identifies your weaknesses. You if you were honest with yourself, you probably would have about
198 00:34:42,960 --> 00:34:51,180 10 things that you could list as a weakness, but you're probably going to have four to five times more than that you won't really readily discover until you go
199 00:34:51,180 --> 00:35:00,330 through the journaling process. And it's not something you do for short term and then you abandon it. You always do this. I've been doing it for 25 years. I did
200 00:35:00,330 --> 00:35:07,440 journaling before that and other things in my life. So, to me, it's, it's something I've always done, and you don't need to spend a whole lot of time
201 00:35:07,440 --> 00:35:14,460 doing it. But I've always made a reference to what I've done or said in a previous day, at the end of the day, in other words, I'm looking back and
202 00:35:14,460 --> 00:35:24,990 reflection. Otherwise, if I try to go to bed, my mind will not allow me to, because my mind's going to race, I should write this down. And many times I have
203 00:35:24,990 --> 00:35:32,400 tried to go to bed even after journaling, and I have something on my mind, I can't do it. And so I get up, and I write that down on journal, because then
204 00:35:32,400 --> 00:35:46,800 it's, I've released it. And the only way you're going to trade with a emotion free or as close as you can get it in a well balanced mind is to have a clear
205 00:35:46,800 --> 00:35:50,850 conscience, anything that's bothering you, you release it into your journal,
206 00:35:51,060 --> 00:35:51,540 your journal is
207 00:35:51,540 --> 00:35:58,470 not going to call you a name, it's not going to say at once a divorce is not going to say you don't love me enough, or you don't spend time with me enough,
208 00:35:58,650 --> 00:36:09,180 okay, it's only going to say what you write in it. So when you go back to it, it's going to say the words that you put in. So it's important that what you put
209 00:36:09,180 --> 00:36:18,780 in it is going to benefit you. But you're not sure coding it either. So you want to be honest about your evaluation about what you did, or thought going into the
210 00:36:18,780 --> 00:36:27,030 day or the week, and then what the actual results were. Keep it simple. All you're doing is this is what I thought, and this is what actually happened.
211 00:36:27,330 --> 00:36:34,470 You're not using adjectives, you're just stating the facts. This is what I thought was going to happen. I thought I was going to go here, I thought I was
212 00:36:34,470 --> 00:36:42,480 going to have this effect, I was going to move this much. And this is what the actual result was. And you're not adding anything to it, or attaching any
213 00:36:42,480 --> 00:36:54,870 emotionalism to it. Okay, you want to detail where you felt uncertainty. And this is important, how you actually cope with it, you're going to find that many
214 00:36:54,870 --> 00:37:07,920 of your coping skills for stress aren't really coping skills, they're actually feeding that emotional stimuli. And it creates even more stress, the only way
215 00:37:07,920 --> 00:37:15,540 you're going to find that is by actually recording it, writing it down. And you may be in a trade and it may be flirting with your limit order, you've already
216 00:37:15,540 --> 00:37:25,740 had your profits taken, for the most part scaled out, your stop losses trailed up now. But now you're feeling like it's going, you hit your stop, you get that
217 00:37:25,740 --> 00:37:37,200 last piece of the move? What are you doing to cope with that? are you staring at the chart screaming? Or are you taking a walk? Or are you turning the computer
218 00:37:37,200 --> 00:37:44,430 off into saying I'm going to see what happens at the end of the day, you come hell or high water, it's going to take my staff or it's going to take my limit,
219 00:37:44,490 --> 00:37:52,830 or it's going to trade sideways until the next session, and then whatever it's going to happen is going to happen. Whatever that coping mechanism is that
220 00:37:52,830 --> 00:38:04,080 you've used for that stress trigger, you want to include that. Because it's important, the ones that do not work you're going to see, in that way, when you
221 00:38:04,080 --> 00:38:14,130 start feeling that stress trigger come up, you immediately discount that thought process to follow that same regimen. Again, if it's something that hasn't worked
222 00:38:14,130 --> 00:38:22,800 in the past, it's mean, Taney stressful level. And you know, you're wanting to think about it or do that same thing again, like smoke cigarettes, okay, or grab
223 00:38:22,800 --> 00:38:31,860 a drink that's alcoholic. Those things, you may feel like they're soothing you, but actually they're not. So what you want to doing is focusing on when the
224 00:38:31,860 --> 00:38:41,340 coping mechanism that you've used to get through that stressful environment, when it helps you. It's highlighted on an opportunity for you to use that in the
225 00:38:41,340 --> 00:38:51,330 future. And here's the thing. Many times I've learned coping skills that were in high stressful events, through trading. When I had stressful events and my
226 00:38:51,330 --> 00:39:01,290 personal life, I used those same coping skills. So for instance, you know, while I'm trading, I usually have a deck of cards in my hands. I'm a fidgeter. Okay,
227 00:39:01,680 --> 00:39:10,980 and now we have these things called these fidget spinners, which I love them. I absolutely love them. For me, it keeps me distracted from worrying about what
228 00:39:11,010 --> 00:39:20,010 the next move is going to be in price. I'm allowing my method to pan out and do what it's going to do. Before I did that I used to have a coin and always keep a
229 00:39:20,010 --> 00:39:28,710 coin in my hand. And I'd either roll it through my fingers, or I would just keep it pressed in my palm. And I'll just practice palming. Okay because some of them
230 00:39:28,710 --> 00:39:38,010 amateur magician, nonetheless, I would do those things that keep me distracted and not being hypersensitive to every fluctuation in the marketplace. So,
231 00:39:38,760 --> 00:39:49,140 whatever the coping skills are, okay, that you find work in high stressful environment of, of trading. I found that they were just as equally effective in
232 00:39:49,170 --> 00:39:56,190 high stressful environments, like when my son was in surgery, you know, I would take advantage cards and I would fidget with those or I would have coin in my
233 00:39:56,190 --> 00:40:04,080 hand and it would just keep me distracted enough where I had to go through that experience, I couldn't escape it just like you can't escape the trade unless you
234 00:40:04,080 --> 00:40:11,880 just kill it. If you're going to take the trade, you have to go through the trade. Either it takes your stop or it takes your limit. But you have to submit
235 00:40:11,880 --> 00:40:21,990 to that. So whatever it takes for you to submit to that, over time, these coping skills that you will find that there really isn't a, this is what you do.
236 00:40:22,380 --> 00:40:30,210 Because it's only going to work for you, when you discover it works for you. It may be something as simple as having something in your hands to fidget and maybe
237 00:40:30,210 --> 00:40:40,410 something that requires you to completely step away from the charts and grab a book. In my mind, personally, I can't read if I'm in the market, I can't do that
238 00:40:40,470 --> 00:40:48,840 I have to read when there's no one talking to me. And I have complete silence.  So whatever those things are, that you discover through journaling, to help you
239 00:40:48,840 --> 00:40:49,440 in your trading.
240 00:40:50,310 --> 00:41:00,930 Don't look at it as that's your fix for trading stress. Many times if you apply it to your stressful personal life, it fixes it as well, which many times is
241 00:41:01,110 --> 00:41:11,130 that's a plus. You want to use positive words, for the things you did well on.  You don't want to sugarcoat it, you don't say I'm the best trader in the world
242 00:41:11,130 --> 00:41:23,100 because I did this. But you do want to say I'm happy with my execution with this trade, because I did this. And I had that in mind. And I did exactly as my plan
243 00:41:23,310 --> 00:41:35,880 outlined. And I did not deviate. I'm glad that I used the 25 PIP stop loss in didn't try to get short and sweet with it with a 15 or 10 PIP stop, I follow my
244 00:41:35,880 --> 00:41:43,770 rules. Regardless of what the trade was doing anything that you did that was pre determined and you follow through with it. You want to record that in your own
245 00:41:43,770 --> 00:41:59,250 words, and use adjectives like happy or pleased or proud, okay, those types of things, because your mind's going to retain that. And when you go back to it,
246 00:41:59,280 --> 00:42:05,370 this is where it's important. When you come back to your journal and you read those things. You certainly don't want to literate with things that are just
247 00:42:05,370 --> 00:42:15,030 going to be mundane or not impactful. You want to be well, you want to cheerlead yourself, basically, because there's gonna be times when you're gonna go through
248 00:42:15,030 --> 00:42:23,520 periods of drawdown, and it's gonna feel like trading is the worst thing you could have ever done. So you want to have that old friend of your conscience to
249 00:42:23,520 --> 00:42:34,380 feel soothed. When you read your own words in your journal. You don't want to read it like, Well, you know, I really didn't feel well that day. And I'm lying
250 00:42:34,380 --> 00:42:43,980 to myself in there, you want to be honest. But you also want to be well, you want to be comforting to yourself. But you don't want to sugarcoat and you don't
251 00:42:43,980 --> 00:42:52,980 want to embellish and lie about how you did something right when you really didn't you want to be accurate about what you're describing. But you also want
252 00:42:52,980 --> 00:43:07,290 to do it in a positive light. And here is the kicker. When you do things messed up, okay, and you do the wrong things, and you make errors. You want to avoid
253 00:43:07,320 --> 00:43:18,870 negatively charged words, wherever you struggled in the execution, or the application of money management, or your leveraging. Or if you ever traded, you
254 00:43:18,900 --> 00:43:31,500 do not want to say oh, I'm a stupid so and so. Or I am a failure, or I'm never going to get this do not do those things in your journal. Because your mind will
255 00:43:31,500 --> 00:43:41,730 latch on to that. And whatever you use negative words on your subconscious is going to see that and say, Okay, well, this is a problem, or it's a source of
256 00:43:41,730 --> 00:43:48,810 stress. So I'm going to avoid it. So what's going to happen when you look at the charts, subconsciously, your mind is going to say this is stressful, I want to
257 00:43:48,810 --> 00:43:58,770 avoid this and you're not going to pay attention and or your mind is not going to let that set up, jump off the chart at you. So that way you can engage it
258 00:43:58,770 --> 00:44:11,790 properly. So it's very important not to use negative terms. So while this is not an exhaustive list, I wanted to have some measure of journaling suggestions, and
259 00:44:11,790 --> 00:44:28,410 I wanted to have some measure of psychological well, solutions. And both of these topics can be really explored in greater detail. And it comes by personal
260 00:44:28,410 --> 00:44:36,630 experience. And while there's a lot of books written about both that subject, the subject matter that I mentioned here tonight, I don't think it's something
261 00:44:36,630 --> 00:44:48,240 that you need to make any more complicated than what I have here. Because this is really the bare bones of what I've done for 25 years. And the best trading
262 00:44:48,240 --> 00:44:59,310 book out there is the one you're about to write in your journal. That's the best one because they're going to be directly related to you and your own
263 00:44:59,310 --> 00:45:09,690 experiences. You can't teach your experience to someone else. You can talk about it, you can share it, you can share your journal, let them read it. But it's
264 00:45:09,690 --> 00:45:21,450 still won't have the same impact that your experience has for you. And that's the wonderful treasure and well, secret weapon, if you will, of a trader, by
265 00:45:21,450 --> 00:45:30,360 using a journal. It seems like extra work, it seems frivolous. Oh, I got time for that. Who does that? Well, I'll tell you who does it. Winning traders do it.
266 00:45:30,870 --> 00:45:43,170 And we know what we're looking for. Because we've studied it, we've had days and days and days on end, where we have recorded the same exact setup, the same
267 00:45:43,170 --> 00:45:44,940 winning attitude that we went into
268 00:45:45,090 --> 00:45:53,340 is always there. So these are all signatures, these are hallmarks of classic setups. So that way, when you start feeling a certain way, going into the market
269 00:45:53,340 --> 00:46:01,950 day, if you're not on, you'll know it and you'll be honest with yourself and say, Okay, I got to not be in the market today. I got to take a day off.
270 00:46:03,030 --> 00:46:09,030 Otherwise, how would you know those things? Because you're going to talk yourself into taking a trade if you're feeling bad, that's the normal response
271 00:46:09,030 --> 00:46:16,890 where human distract me, I needed a distraction, or what's the better distraction than getting money, nothing. So you want to play the lottery each
272 00:46:16,890 --> 00:46:28,920 time for casino so many times that result in a negative withdrawal from your equity, whether it be demo or live, and we want to try to avoid those things.
273 00:46:29,340 --> 00:46:39,030 Okay. So what type of things do we look for in terms of adding charts to our journal, and then we can go through the charts now and give you some
274 00:46:39,030 --> 00:46:39,870 suggestions.
275 00:46:45,810 --> 00:46:53,370 Alright, so this is the Canadian dollars, the daily chart. And this particular week, I was looking for the market to want to run above, there's equal highs.
276 00:46:53,730 --> 00:47:04,950 And I'll have that actually in recording. So you can go back and look at that.  But we have double tops, and a third time the market trades up to the same
277 00:47:04,950 --> 00:47:13,830 level. So we know that this is too clean of a level, we had a nice rejection down here. So markets most likely going to want to push above this level. Now,
278 00:47:13,860 --> 00:47:24,240 if it's so clean like that, what's the most likely outcome should it traded at level a blast off and continue higher or retreating back down into the range?
279 00:47:26,220 --> 00:47:32,910 Look what's happened, we've had a sell off, people have made my buyers and also our people have made money. And then we're going right back up to those levels
280 00:47:32,910 --> 00:47:43,470 again. So to take those individuals out, or put new traders in on the wrong side buying the market is going to want to push up there. So in your journal, when
281 00:47:43,470 --> 00:47:49,410 you start seeing these things, you want to print out your chart or screen capture it. And in your notations, you want to write down what you think is
282 00:47:49,410 --> 00:47:57,300 going to happen, what's the most likely outcome, okay, is that where you have a condition that we can wait against what actually happens later on. But you want
283 00:47:57,300 --> 00:48:04,590 to build the context in your chart in your journaling. So that way, when you go back and look at it, if it pans out? Well, you're going to be encouraged in the
284 00:48:04,590 --> 00:48:16,980 future when you have periods of time when your trades don't actually pan out.  Okay, and soon as the event that you've been waiting for occurs, like I share a
285 00:48:16,980 --> 00:48:28,230 lot of my trades at the time of the setup, or the confirmation, if you will, of whatever I'm looking for that sets the idea a lot. This many times is the screen
286 00:48:28,230 --> 00:48:37,860 capture where it either hits a level I was reaching for, or a level I'm trying to get in. This is where you want to take a picture of it again. And this is why
287 00:48:37,860 --> 00:48:47,040 don't do 20 payers or a lot of different markets because I'm only focusing on two things, cable and fiber. So it's very easy for me to dial in and get the
288 00:48:47,040 --> 00:48:55,080 screen capture what I'm looking for. And then I don't share my chart with all the notations on it, because there's a lot of things that I do in my own
289 00:48:55,080 --> 00:49:04,200 finances in your own trading that I don't make public so but I do make references to the things I'm talking about here. In terms of Okay, this is the
290 00:49:04,200 --> 00:49:14,940 run on the buy stops. So um, right now, I would say I would have an expectation of seeing a strong reversal. And I would look for price to want to reach down
291 00:49:15,300 --> 00:49:29,700 into those wicks here and see how far we can go and as far as that low here. Now we can start dropping down into a four hour chart and working to intraday price
292 00:49:29,700 --> 00:49:39,330 action. And we can see how noting areas of stops because if we thought that price is going to go above these highs here. Again, we give more details about
293 00:49:39,330 --> 00:49:48,150 what we're looking for the time of day that this occurred, and how long of a timeframe we would reasonably expect to see this move take place if we're going
294 00:49:48,150 --> 00:49:56,730 to run out this low. All those things you can add in all these open spaces on your chart. You want to make it personal you want to make your journal and your
295 00:49:56,730 --> 00:50:04,980 charts, something that you need that you're comfortable with and it's Something that you're really not aiming to share with anybody, it's comfortable for you to
296 00:50:04,980 --> 00:50:12,570 be able to look at. And it gives you all the information at the time, what you were thinking at the time at the time, that chart was creating the very setup
297 00:50:12,570 --> 00:50:26,730 that's being screen captured. Okay, dropping down to a 30 minute chart. same mindset here, we're adding any details that we're noticing. Okay, and we're
298 00:50:26,730 --> 00:50:37,620 here, we have Monday's trading, and the anticipated rally up. Once we see those types of things, we know that this is the setup. So we won't be a seller up
299 00:50:37,620 --> 00:50:46,770 here. But where are we going to be reaching for what's the draw on price. So you want to have that before the trade really starts to unfold. As it's setting up,
300 00:50:46,770 --> 00:50:54,510 you want to get a screen capture. But at that time, you also want to outline what you're reaching for, and what was the context behind why you would expect
301 00:50:54,510 --> 00:51:04,590 that there occur. We have an old low here, got 20 and 10, Pip grades of swing would be expected to go below it in here just for the sake of keeping the chart
302 00:51:04,590 --> 00:51:17,790 neat. I'm just referencing 10 pips below that low in on Monday, because I don't want to trade on Monday, I would like to use that Monday range. And projected,
303 00:51:17,790 --> 00:51:23,730 like the power three study that was used, that I taught you in the asian session and or power three,
304 00:51:25,350 --> 00:51:34,620 I would take that Monday range. If I'm bearish looking for that run, I'm going to take that range of Monday, and apply it right on top of its daily high. And
305 00:51:34,620 --> 00:51:44,880 that gives me a projected range of one standard deviation. And we take that out in the future. It's proximately what Tuesday's high of the day is. So I know
306 00:51:44,880 --> 00:51:55,230 that I'm looking for a Judas swing. So how far will it go up? Well, it could go this far, which would take us right above that old high. At 129 10. We're touch
307 00:51:55,230 --> 00:52:04,170 three times. And that's what the vise that's where we residing. So we're looking for a move above that. So it could be a seller right there. But before we do
308 00:52:04,170 --> 00:52:13,350 that, we have to remember if this is in fact, a bearish week, and this is the weekly high forming this Judas swing is useful. And we can apply power three
309 00:52:13,350 --> 00:52:26,610 concepts to it, we can get the range of the Judas swing and apply it in one standard deviation below the low and lower some taking this range and adding it
310 00:52:26,970 --> 00:52:35,250 or in this case, subtracting it from this low and projecting it down. Give me one standard deviation. So we're seeing power three, which is accumulation,
311 00:52:36,030 --> 00:52:47,310 accumulate more manipulation, run a stop, put them in by side, we're gonna see, hopefully, I moved down with power three with distribution, and a final area
312 00:52:47,310 --> 00:52:58,980 distribution down here. So we have three measurements of the actual Judas swing, projected down and that gives us just below that old low. So that validates this
313 00:52:58,980 --> 00:53:11,820 potential stop run. While prices like this only, we don't have anything else happening yet. So we have power three scaled out, accumulation, manipulation and
314 00:53:11,820 --> 00:53:16,050 distribution framed before the move even occurs.
315 00:53:22,380 --> 00:53:35,130 You can see that 10 pips below this low is what we're looking for. So 10 pips below that we're going to have a little level there. And now we see Wednesday's
316 00:53:35,130 --> 00:53:46,320 trading. And during the New York setup, we have a optimal trade entry form. And we can run projections on the fit, we can see there's a 400 extension
317 00:53:46,350 --> 00:53:59,580 overlapping exactly with one of the levels we've already arrived at. And here's Wednesday, because an apple trade entry short term swing here, trades back up
318 00:53:59,610 --> 00:54:13,830 optimal trade entry short, sells off aggressively, and reaches down into our template sweep below the old low. And we're going to get a measurement from the
319 00:54:13,860 --> 00:54:24,360 highest body to the lowest body and these two price swings. And that projection down gives us exactly a 300 extension right there and it actually gives you the
320 00:54:24,360 --> 00:54:38,250 low of the day which actually overlaps with the approximate 10 pips swing below the old low. So we have several things being used here that I've given you in
321 00:54:38,850 --> 00:54:51,210 recent teachings. Every one of these screen captures, you would write down any notation that would be necessary for you to have as a benefit. And that way when
322 00:54:51,210 --> 00:54:59,370 you go to the end of the week, usually on Saturday morning for me, may not be Saturday for you. But I like to take about 30 minutes and go through the market
323 00:54:59,550 --> 00:55:10,260 and see What I didn't see, and no dad. But every day, I'm writing down what my expectations are, what the daily high and low should be. And then I'm recording
324 00:55:10,290 --> 00:55:21,990 what actually happened. And it builds a lot of confidence in how many times I'm right. And when I'm wrong, even though I learned something from the while, the
325 00:55:21,990 --> 00:55:32,550 time I was not accurate, it proves that I'm more right than I'm wrong. So therefore, I don't fear being wrong. And I use the times when I'm wrong to learn
326 00:55:32,550 --> 00:55:44,520 what it is I did wrong. So I'm taking no pain at the experience. I'm looking at it as Okay, this is actually like a workout. Okay, I'm, I'm strengthening
327 00:55:44,520 --> 00:55:56,220 myself, I'm, I'm putting stress on my body with the attempt to make it stronger.  Okay, so I don't look at adversities in trading. As a defeat, I look at it as
328 00:55:56,220 --> 00:56:06,870 exercise and strengthening iron sharpens iron. So we can see how using the tools here, we get one more instance of this could be the very weekly low. Okay, if we
329 00:56:06,870 --> 00:56:17,280 trade through it, so be it. But if this is all I would ever get, that's fine.  Because this would be power three applied to the weekly range, okay, and I apply
330 00:56:17,280 --> 00:56:28,680 that on the weekly, Sunday opening vertical, it hit Ctrl y. And I use the thickest trim line to draw radio on top of that, and then I delete the actual
331 00:56:29,070 --> 00:56:39,240 control y line. And I draw a little horizontal tick representing the open, and I forecast where I think the close is going to be. And it doesn't have to be where
332 00:56:39,240 --> 00:56:49,200 it's actually going to close. I like to do that just to keep myself entertained and trying to dial in as best I can for where I project. The clothes. Sometimes
333 00:56:49,260 --> 00:57:00,060 I'm really accurate. And other times I'm not so accurate. But I'm more inclined to focus on what if I'm bearish with the highest gonna be and how far of a
334 00:57:00,060 --> 00:57:07,560 reasonable objective How low can go. If it keeps going lower, who cares? long and short it is I want to have an opportunity to get some kind of range of
335 00:57:07,560 --> 00:57:16,560 expansion. And on Wednesday, we can also see that there was no return back to the opening price on Sunday. Once it moved away from it on the New York session,
336 00:57:16,800 --> 00:57:27,690 set up the accelerated away from it. So there's a lot of things that took place in the dollar CAD this week that we have outlined before. They are hallmarks to
337 00:57:27,690 --> 00:57:39,600 the things I've taught you. And we did in fact runners equal highs out as I mentioned in the higher timeframe scenario, and conditions video for this for
338 00:57:39,600 --> 00:57:42,300 exness set of videos for 2017.
339 00:57:48,090 --> 00:57:54,420 certainly enjoyed this presentation. If you'd like to find more you visit my website at the inner circle trader.com