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

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ICT: Okay folks, welcome back.

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This teaching is going to be specifically dealing with trade

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psychology and effective journaling.

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Okay trade psychology ineffective journaling, the points of

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focus in this module major psychological barriers and my

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personal opinion and solutions for overcoming them. And

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effective journaling, how journaling can assist your

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development? Okay, so major psychological barriers the first

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on our list is the fear of missing moves. Now, I believe

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this personally is rooted in not fully Understanding what

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your setup is. Now you see this glibly tossed about in

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seminars, webinars, videos, whatever it is, folks that are

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teaching today. Many of them aren't even qualified to be in

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the role of a teacher in my opinion. But we'll leave that

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for another discussion. The fear of missing moves is rooted

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in your unique setup. Now, every trade is going to have

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their specific setup. It may or may not have an indicator I

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personally don't believe that indicators should be a part of

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your trading but that's just my personal taste. My faith in

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price action is sufficient enough. But if you have a tool if

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you have a method, if you will, that relies on an indicator

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to give you that buy or sell this For you, then whatever it

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is, you need to stick with it and know that that's the one

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you're going to trade. If you have defined that setup, in a

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written form, or two trading plan, you're not going to have

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many times that same feeling a neophyte trader or less

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organized trader would have. Now it doesn't mean that we're

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going to be profitable, it just means that we're not going

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to be fearing missing a move. Because once you understand

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the setup, the setup should be directly linked to time and

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price. There should be a time when this setup forms and it

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should be a consistency to it. If your pattern doesn't have

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that, and it's rather ambiguous or untimely, you don't know

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when it's gonna happen, then you probably don't have a valid

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setup. And you're going to have hit and miss results and

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when it wins, you're going to falsely attribute To your

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setup, when it's really just randomness. So to overcome fear

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of missing moves is obviously to have a well defined plan.

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And what your setup is, knowing it intimately will keep you

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far less anxious about missing a move, because you'll know

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when they're most likely going to form. This is why I use

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kill zones. This time element of the trading day, I know

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what I'm looking for. I know my setup. And if I knew what

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time it should occur, I know what days a week it should

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form. And I know it should be either a bullish model or a

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bearish model. I'm not anxious about missing a move. Even if

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I do miss that trade. I know when the next one's going to

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form. Most neophyte or novice traders do not have that

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luxury. They're on the seat of their pants all the time, not

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knowing when it's going to happen, or what it is. It's

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supposed to happen at all for them to take a trade fear of

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losing? Well, this one is going to have you looking for

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systems to have high accuracy. And there's not a real need

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for high accuracy. It's wonderful to have it. But the fear

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of losing comes by not having a plan. And if you don't have

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a plan if you don't have a method that seen consistency in

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hindsight and back testing, and then walk forward with it

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seen working and having momentary lapses of accuracy, you

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will not have the wherewithal that's necessary to do what is

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necessary as a trader, that means embrace uncertainty. The

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ability to do this is not going to be for everyone. And

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there's going to be a fine line between those individuals

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that hit this wall that every one of us will hit, and we had

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to determine for ourselves, if this is really right for us,

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and for some of you, it isn't, no one's gonna be able to

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make that decision for you. But it's important that you

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understand that there is always that element. If you're a

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new developing trader and you're unproven, it may be

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that trading isn't for you, you would have to more or less

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rely on someone else to do the trading for you. Or don't

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trade it at all. But if you're going to trade you can't fear

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taking a loss, fearing a loss is many times directly linked

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to over leveraging and or overtrading. Both of those two

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elements are very easily fixed, lower your leverage, and you

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won't be so fearful about taking a loss because it won't

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hurt you so many times in a row if you have a losing streak.

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If you slow your frequency down in terms of your overtrading

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again, Even if you're not trading a high accuracy method or

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setup, the high frequency won't be quickly eroding your

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equity. Very simple solutions to an otherwise rather routine

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problem that comes up in many traders. impatience between

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setups. This is going to come by way of infancy as a trader,

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especially if you have a setup that is profitable. And you

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can be well organized, you can have a well groomed money

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management strategy, and you know what your setup is, but

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you're impatient and waiting for it or you see the setup

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forming, but you're trying to get in just before you're

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really supposed to know the words, you're looking for a

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specific level, you're looking for the 50 level to be buying

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at and it's flirting with 65 and you just can't stand it.

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You just got to get in. That's going to be dealt with over

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time and forging discipline by following the rules and your

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method. The problem is, is you don't have the time doing it

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enough in the experience trading to know what this is going

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to require of you. And you're going to have many times

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previous exposure, either by demo, preferably, or he

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eventually go into live trading, which I don't ever try to

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tell him to do that because it's a decision you're going to

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make on your own if you ever do it at all. But if you find

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success, that feeling or that rush you get when you make a

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profitable decision, you want to have it right away as

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quickly as possible. And many times immediately, as soon as

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you close the trade or hit your limit order and you're out

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with a profit or demo or live. Worst case scenario, it's

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alive. You're going to want to go right back in again and

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you're going to jump in before your setups you're going to

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take things that aren't necessarily aren't your setups, and

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I can Are you as a commodity trader? When I had initial

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luck, back in the early 90s, I would have an idea what I

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wanted to trade. But I would also feel that impulse to want

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to get back in and be a winner again. So I would look at the

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market and say, Okay, well, that's not my setup, but I still

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think it's going to go up, and I would buy it. I had no idea

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what I was doing. But I still succumb to that impulse that,

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hey, look, you know, I need to be doing something because

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I'm sitting in front of charts, and I want to feel good

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again. So let me roll the dice and see what happens. That

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impatience comes by way of your infancy and your lack of

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experience. Experience is going to teach you one of two

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things. One, that losing sucks. It's better that you try not

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to lose too much when you do lose, or experience is going to

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teach you that you're not perfect. So therefore, you have to

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wait for the best scenarios for your, quote unquote, luck to

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be in favor. We don't know if our setups are going to be

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accurate. But we also don't know if our setups are going to

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come when we are expecting them to. So forcing it or jumping

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ahead, and more or less anticipating the setup. Whereas

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we're anticipating a next move in price. That's what trading

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is. It's a statistical guess. Now, with that, there's a

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measure of uncertainty. And that uncertainty and the

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weighting side of trading. It's just like a water torture,

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okay. You can't stand it, especially if you're sitting on

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the charts. You just want to get in, get into trade already

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in except the wider risk if you need it. And that's wrong.

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You don't want to do that. Demand your price, demand your

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setup. And by doing so, you'll combat that impatient that

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resides between setups that novice traders always feel

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fear of not being good enough. Well, this is a byproduct of

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being on social media. Everyone's going to be better than

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the next guy or they're going to be trained by the person

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that's leading the pack, or they themselves are the rock

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star. If you are not equipped to handle the tomfoolery that

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takes place on social media like Facebook and Twitter and

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Instagram, it's probably better for you not to be on it. Now

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I understand that I have a online presence on Twitter, and I

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have a Facebook and I have a YouTube channel.

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But I have thick skin.

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And I like to engage other traders because I like to

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feedback I like to see what their responses will be. And I

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just like the engage So, if you are quickly feeling like you

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are not sufficient, or your learning speed is not up to

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snuff in terms of what you've seen other people, and many

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times what you see online, they're lying anyway, they may

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say they have their things together, you know, they are all,

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you know, completely figured it all out in terms of what

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they're doing. Many times the ones that are saying that

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aren't really as astute as they claim to be. And they're

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trying to fake it until they make it so don't let it wear on

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you too too much or make you feel like you're insignificant

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in terms of where you're at in your development. Because

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your report card on your own results, as you'll hear me

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refer to in the journaling section of this video. That's the

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only opinion that matters. It's not mine or anyone else's

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that matters. It's Are you seeing development progress, and

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by measuring that and by keeping tabs in In terms of your

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journal, that's the scorecard that really matters. And

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obviously, your bottom bottom line, that's the one that

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really makes the case for whether or not you're developing.

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So, fear of not being good enough. It's simply a game that's

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between your ears. It's all a trap. So don't think about

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being on social media don't engage other people. As if

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you're developing trade, the worst thing you can do for you

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men, is to go into this armwrestling match about, you know,

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what's better, who's better, how much is, you know, a good

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amount and what you should be making in terms of pips,

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all that stuff is the

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goes back to the proverbial measuring contest, you know,

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who's the bigger man and it's not about who's the bigger

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man. It's about surviving long enough so that way you can

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appreciate and develop as a trader. fear of losing streaks

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and drawdown? Well, this is going to be directly related to

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money management. If you're afraid of taking losses in any

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set or series, and or fear drawdown is because you have no

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process or protocol in place, or what you would reach for,

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should you have a loss or a losing streak develop. I've

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given you a teaching to help you flatline your your losses

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that way, removes the effects of draw downs in your losing

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trades. And by implementing something as simple as that

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quickly changes your perspective on fear and anxiety about

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taking losses or a single string of losses. lack of

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discipline in following roles. Well, it's in our nature to

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be human. And I've said this many times, if the sign says

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don't walk on the grass, your first impulse is going to be

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what? I'm going to tap dance all over that. Just like your

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children, you know, God Lesson, you know, I have four boys.

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And I have literally watched them do these very same things

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that they should know not to do. But they still do it. Well,

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with an account with money or a demo, we do those same

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things, we know we shouldn't be doing something, but because

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there's an opportunity to do it, and there's really no one

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keeping you from doing it. You end up doing it. Just you

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enter the trade or mess around with your trade like you

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shouldn't. As soon as you do it, that little voice in your

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head says I should not be doing this, or don't do this. But

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you ignore it. You want to see what's going to happen. And

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if you want to do experiments, okay, do it somewhere else,

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not in the marketplace. But you have to have discipline and

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you have to have rules and when those rules are made, you

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have to stick to them. Do not deviate from them. And over

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time this forges discipline It'll also serve you well,

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because you're going to have periods of drawdown, you're

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going to have periods of losing trades. And if you don't

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have the discipline to stick to doing the very things that

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will eventually lead to longevity in this business, you're

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not going to fare well. So discipline comes by forcing

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yourself to follow a set of rules. And those rules have to

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be rigid. They have to be concise, detailed, not ambiguous.

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They're very binary in the sense that you do this, or you do

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that or you do nothing at all. And they have to be three

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conditions. For every decision making process. Either it's a

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go it's a no or you sit still, you don't do anything.

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Searching for the next best thing. I think this is one of

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the biggest problems if you just look at twitter. Whoever's

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hot right now. Whoever's got the most attention. Bye,

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everyone. That's where everyone's gonna flock okay. And it's

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always been like that not just in trading but in anything,

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okay? whoever's barking loudest, draws them in the biggest

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crowd. Now whether or not they have anything to say once the

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crowd gets there, that remains to be seen. But you can see

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how folks that are in love with one concept or one guru or

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method this month will change teams and go somewhere else in

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the thought process thinking that this is the better way of

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doing it, or this is something different in its

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amplification of something. And I have learned that there's

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nothing really better for me as a trader, so therefore, I

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don't look anymore. I know everything I need to know in

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terms of price action, the open high, low and close, tells

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me everything I need. There isn't anything out there that

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entices me personally. And like the Bible said, there's

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nothing new under the sun. So if I have arrived at something

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that makes sense for me, Even if it's not perfect, I don't

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need perfect. But I knew I have a statistical edge in the

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things that I do. They're highly accurate. They're very

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precise. And they're time based. I know when my setups are

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gonna form you, if you were able to pull the majority of

246
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individuals that were trading any asset class, if they could

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set a time on when their next setup is going to be over 90%

248
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would say no, I don't think so. I don't think I could do

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that. And that's why trading is uncertain.

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To me, it's not because I know what time of day certain

251
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things should happen. I know what days of the week certain

252
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things should happen. So therefore, I'm not anxious about

253
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what my next steps gonna be. I don't care about missing a

254
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move. In fact, it's fruitful for you to take vacation time

255
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scheduled time away from the marketplace, and do that. And I

256
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would suggest to do that even more. So if you're hot right

257
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now, if you're doing really, really well. best thing you can

258
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do is forge development in terms of your discipline, and

259
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also your experience, force yourself to say, Okay, I'm

260
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taking a break now, I've been killing it, I got 25 winning

261
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trades in a row, or whatever it would be. I'm gonna stop

262
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trading, I'll take a week off. Don't even look at the

263
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marketplace, you're going to want to look at it, but don't.

264
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By doing that, you're going to prove to yourself, there's

265
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nothing better than the thing you're doing right now.

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Because you understand it doesn't have to be my material. If

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you found something in another discipline that you've really

268
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gravitated towards, and it made sense for you to use it.

269
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Great. That's awesome. That's all it matters is that you

270
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find something that you can make a wager on, and then wager

271
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that with sound money management, because ultimately no

272
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matter whether we're talking to order blocks, or ICT

273
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breakers or anything else that's out there, none of that

274
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stuff really makes price move and we Can't control price

275
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once we're in the trade once we're in the market, all of the

276
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control of the steering wheel is not ours now, the markets

277
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driving what we're going to see in terms of profit or loss.

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So understanding that everyone's going to have losing

279
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trades. And the first thing that happens is folks that go

280
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through a losing streak and they experienced drawdown, then

281
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they show their lack of discipline in following roles. So

282
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they think there's something better out there, okay,

283
00:19:26,940 --> 00:19:28,770
something easier, something that doesn't have losing

284
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streaks. Everything has losing streaks, folks, believe me,

285
00:19:32,430 --> 00:19:37,230
everything does. No one stays hot or the top forever. And

286
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there's always going to be some measure of drawdown and

287
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whatever system or method you're using. So the best thing

288
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you can do is find something that works, enough time to

289
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warrant investigation and stick with it. You sound money

290
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management, and you can turn it into something really

291
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impressive and you mean surprise yourself. Okay, effective

292
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journaling. When we talk about doing journals, every single

293
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day, I make a journal entry in my personal journals. At the

294
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end of the week, usually it's on a Saturday, I do a weekly

295
00:20:15,930 --> 00:20:21,810
log in my personal performance and what I have seen happen

296
00:20:21,810 --> 00:20:25,140
in the previous week, more or less, I'm reviewing the total

297
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week's range. I do this on the two pairs that I trade which

298
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is predominantly the euro dollar, and the cable, pound

299
00:20:34,380 --> 00:20:39,330
dollar. I don't do a lot of trading in a lot of other pairs.

300
00:20:39,330 --> 00:20:42,600
If I want to be a deviant. I will trade sometimes the

301
00:20:42,600 --> 00:20:46,290
Canadian dollar or the Aussie dollar, but generally that's

302
00:20:46,290 --> 00:20:48,540
about it. I don't like to do anything more than that. And

303
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the reason why is because I actually spent a lot of time

304
00:20:53,070 --> 00:20:58,290
planning and investigating certain setups and things I'm

305
00:20:58,290 --> 00:21:03,960
looking at and I want to go through that time, and use that

306
00:21:03,960 --> 00:21:08,790
time, the most economical way I can. And I don't want to be

307
00:21:08,790 --> 00:21:12,900
doing that with 28 pairs. So if I'm going to put the time

308
00:21:12,900 --> 00:21:17,820
into doing a sound, top down analysis, and or review of my

309
00:21:17,820 --> 00:21:21,390
own setups, if I'm following 20 pairs, can you realistically

310
00:21:21,390 --> 00:21:24,060
do that every single day, you're never gonna have any time

311
00:21:24,060 --> 00:21:27,300
to do anything else. So I have a life to live. And I can

312
00:21:27,300 --> 00:21:30,450
find all the setups I'll ever want to find in these two

313
00:21:30,450 --> 00:21:33,630
pairs. In fact, I could just trade one, but because they're

314
00:21:33,630 --> 00:21:38,760
closely correlated, and it fits my model as far as a short

315
00:21:38,760 --> 00:21:43,080
term and day trader, I look at both eurodollar and cable and

316
00:21:43,080 --> 00:21:45,810
if I want to find something else that may or may not have a

317
00:21:45,810 --> 00:21:49,830
setup in the cable or fiber, then I'll trade like I said the

318
00:21:49,830 --> 00:21:52,170
loonie or the Aussie

319
00:21:53,340 --> 00:21:57,690
but I tried to make a daily entry whether I take a trade or

320
00:21:57,690 --> 00:22:03,390
not. And I give myself opportunity to stay in a routine. But

321
00:22:03,390 --> 00:22:07,440
every single week, I'm doing a complete review of the weekly

322
00:22:07,740 --> 00:22:12,870
performance as my trader, half of me has performed and then

323
00:22:12,870 --> 00:22:17,430
the analyst half of me. So I'm always giving a voice to the

324
00:22:17,430 --> 00:22:22,080
two people that reside in me just like you all. You all are

325
00:22:22,080 --> 00:22:25,740
going to be looked at internally as a trader, but there's

326
00:22:25,740 --> 00:22:29,130
actually an analyst inside of you, too. And there's also a

327
00:22:29,130 --> 00:22:33,090
gambler. So you have to figure out who's in control the time

328
00:22:33,510 --> 00:22:35,820
when you're doing the trading, and many times you don't see

329
00:22:35,820 --> 00:22:39,420
it before you go into the trade. You always see it after the

330
00:22:39,420 --> 00:22:44,190
trade. Okay, the ones that paint out really well and you're

331
00:22:44,190 --> 00:22:48,870
not feeling a lot of exposure to uncertainty or fear and

332
00:22:48,870 --> 00:22:51,630
anxiety. Generally, you're going to find that that's going

333
00:22:51,630 --> 00:22:54,750
to be the analyst because they're focusing on the numbers

334
00:22:55,020 --> 00:22:58,110
and you're not really worried about it. The person finds

335
00:22:58,110 --> 00:23:01,680
themselves excited about the Results maintains when they're

336
00:23:01,680 --> 00:23:08,130
good, or I guess the adverse side of things. They're

337
00:23:08,130 --> 00:23:12,090
weighing things in terms of the outcome, that's the trader.

338
00:23:13,260 --> 00:23:15,780
And then you have the gambler, where they're impulsive.

339
00:23:15,810 --> 00:23:19,080
They're doing things that are undisciplined, and they're

340
00:23:19,080 --> 00:23:23,910
pushing more leverage than they should. That's the one you

341
00:23:23,910 --> 00:23:27,210
want to keep your eye on. Okay. The Gambler is going to get

342
00:23:27,210 --> 00:23:30,420
you in trouble. The trader will take care of himself,

343
00:23:30,450 --> 00:23:33,330
because the analysts will speak to that side of you through

344
00:23:33,330 --> 00:23:38,100
your conscience, but you want to reside in the mindset of

345
00:23:38,100 --> 00:23:42,090
the analyst, sticking to what you see in the chart, sticking

346
00:23:42,090 --> 00:23:46,410
to what your process is your your model, okay, the analyst

347
00:23:46,410 --> 00:23:49,620
is what's going to keep you on the right path. That

348
00:23:50,760 --> 00:23:55,050
formation that makes a trader is it's made up of three

349
00:23:55,050 --> 00:23:58,830
people, but you're all the same person, the analyst,

350
00:23:59,130 --> 00:24:01,350
generally, they're the ones Instead of most sober minded,

351
00:24:01,650 --> 00:24:05,850
the trader is the one that wants the opportunity and the

352
00:24:05,880 --> 00:24:11,310
right or wrong measurement. But then you have the gambler

353
00:24:11,760 --> 00:24:15,570
who wants the thrill of it all. And it's also going to be

354
00:24:15,570 --> 00:24:20,670
the person that takes the hardest in terms of the grief that

355
00:24:20,670 --> 00:24:24,420
comes when there's a losing trade in that part of us going

356
00:24:24,420 --> 00:24:29,610
to always be negative, it's going to be well, it's not my

357
00:24:29,610 --> 00:24:33,630
fault. It's something else that caused that the gambler is

358
00:24:33,630 --> 00:24:36,330
only going to be worrying about when it was right and when

359
00:24:36,330 --> 00:24:39,450
they made money or when you made money. When it was in your

360
00:24:39,450 --> 00:24:42,840
favor, that's when you want to consider it. But when it

361
00:24:42,960 --> 00:24:45,960
isn't making money for you, the game was gonna cry, it's

362
00:24:45,960 --> 00:24:52,680
gonna manifest itself into a spoiled perspective, toxic

363
00:24:52,680 --> 00:24:56,160
thinking. So you kind of like want to keep that side of you

364
00:24:56,370 --> 00:24:59,370
want to short leash and you don't want to allow it to

365
00:24:59,370 --> 00:25:04,800
manifest. It's In your journaling. How you felt going into

366
00:25:04,800 --> 00:25:09,660
the trading day is really important. There were times in my

367
00:25:09,660 --> 00:25:13,380
life as a trader, that my oldest son would have to go into

368
00:25:13,380 --> 00:25:16,680
surgery. And I wish I would have stayed out of the market

369
00:25:16,680 --> 00:25:19,800
those days because I was already anxious, I was already

370
00:25:19,800 --> 00:25:24,390
nervous about the outcome of the surgery. So those are days

371
00:25:24,390 --> 00:25:29,400
that I wish I would have had the discipline to not trade.

372
00:25:29,760 --> 00:25:33,870
But because I was feeling anxious and helpless, because I

373
00:25:33,870 --> 00:25:38,250
couldn't do anything to fix my son's ailment. I would try to

374
00:25:38,850 --> 00:25:43,140
satisfy my anxiety by having a win because even if I made

375
00:25:43,440 --> 00:25:46,710
100 bucks doing something in the marketplace, it would keep

376
00:25:46,710 --> 00:25:50,520
me distracted from what I was feeling in my personal life.

377
00:25:51,330 --> 00:25:55,380
So you're going to see that your losing trades are going to

378
00:25:55,380 --> 00:25:57,540
be directly related to things that are going on in your

379
00:25:57,540 --> 00:25:59,550
personal life and the only way you're going to see that

380
00:25:59,550 --> 00:26:03,930
trend. For that truism, is if you go through your journal

381
00:26:04,380 --> 00:26:09,810
and you index all of your trades based on a negative mindset

382
00:26:09,870 --> 00:26:14,280
or if you're sick, if you're physically ill probably not a

383
00:26:14,280 --> 00:26:17,190
good idea to trade. If you have a migraine like I have

384
00:26:17,190 --> 00:26:20,400
migraine sometimes, and I have made the mistake of sometimes

385
00:26:20,400 --> 00:26:24,900
still trying to take a trade and force decision ever,

386
00:26:25,110 --> 00:26:27,750
because there's nothing worse than feeling like your head's

387
00:26:27,750 --> 00:26:31,080
going to explode. And I already have sensitive eyes. So I

388
00:26:31,080 --> 00:26:35,670
can't look at the chart long to fall out what is the best

389
00:26:35,670 --> 00:26:37,770
procedure for me right now? Should I stick with a trade

390
00:26:37,770 --> 00:26:40,530
Should I move my stuff or do anything with it when it would

391
00:26:40,530 --> 00:26:42,750
be better for me just to not to be in it at all, and just

392
00:26:42,750 --> 00:26:46,020
relax and go to a quiet, dark place in the house and just

393
00:26:46,050 --> 00:26:50,700
relax and let my migraine take care of itself? So how you

394
00:26:50,700 --> 00:26:51,360
feel

395
00:26:52,440 --> 00:26:56,670
okay, and this is not only physically but how you feel?

396
00:26:57,210 --> 00:27:00,570
emotionally. You did you just have a definite The family

397
00:27:00,900 --> 00:27:03,900
we're seeing in the world you can do is medicate yourself by

398
00:27:04,140 --> 00:27:06,810
rolling the dice. You know, you just had a loss in your

399
00:27:06,810 --> 00:27:10,470
family, or you and your spouse, you're separating God

400
00:27:10,470 --> 00:27:15,990
forbid, or something terrible happens, okay? You don't want

401
00:27:15,990 --> 00:27:20,310
to open yourself up to gambling, okay? Because that's what's

402
00:27:20,310 --> 00:27:23,100
going to become. in those environments. You want to be

403
00:27:23,100 --> 00:27:25,860
relaxed. You want to have a neutral mindset going in, you

404
00:27:25,860 --> 00:27:28,500
want to feel healthy. That's why it's important to have a

405
00:27:28,500 --> 00:27:32,760
good exercise program. good healthy diet, and staying active

406
00:27:32,760 --> 00:27:36,480
and stretching out and giving yourself hobbies outside of

407
00:27:36,480 --> 00:27:40,830
trading. Because you want to have a fresh perspective, you

408
00:27:40,830 --> 00:27:44,460
want to have a alert mind, you want to have a healthy fed

409
00:27:44,550 --> 00:27:50,070
body, going into the marketplace with a sickly unrested

410
00:27:50,340 --> 00:27:53,100
which I didn't mention before, but sleep is important. You

411
00:27:53,100 --> 00:27:57,150
need to have it especially if you have jobs and businesses.

412
00:27:57,480 --> 00:28:01,740
You need to recuperate. I've been blessed to not have a need

413
00:28:01,740 --> 00:28:05,160
those things. Because I'm home most of the time doing

414
00:28:05,160 --> 00:28:10,680
whatever I want to do. So sleep for me isn't as needed.

415
00:28:11,790 --> 00:28:16,380
versus someone that has a business and, you know, doing all

416
00:28:16,380 --> 00:28:18,930
these things or has a job, and they have to commute. I mean

417
00:28:18,930 --> 00:28:23,700
commuting alone, okay? If you're rushing home, from your

418
00:28:23,700 --> 00:28:27,270
job, you know, and you had a bad experience on the road,

419
00:28:27,630 --> 00:28:29,910
you're angry. So what are you going to do? You're going to

420
00:28:29,910 --> 00:28:32,400
want to take it out on the marketplace, you're, you're

421
00:28:32,400 --> 00:28:35,880
upset. So you're looking to have that replaced by some kind

422
00:28:35,880 --> 00:28:38,790
of a feel good feeling. And what better feeling is there is

423
00:28:38,790 --> 00:28:42,120
to make money, okay? It's like winning the lottery. So

424
00:28:43,320 --> 00:28:46,740
you're going to do things that you shouldn't do, because

425
00:28:46,740 --> 00:28:51,480
you're acting impulsively because of the way you feel. So

426
00:28:51,510 --> 00:28:54,630
it's important that you always be honest with yourself. When

427
00:28:54,630 --> 00:28:59,910
you journal, I always give myself an opportunity to debrief.

428
00:29:00,360 --> 00:29:03,900
Okay, and also release those things. And it's almost

429
00:29:03,900 --> 00:29:09,030
therapeutic because you know what you're doing is the wrong

430
00:29:09,030 --> 00:29:11,550
thing when you do it, and you're acting impulsively, because

431
00:29:11,550 --> 00:29:15,270
you want to have a different feeling than whatever it is

432
00:29:15,270 --> 00:29:17,430
that's bothering you. Okay? If you're stressed, if you're

433
00:29:17,430 --> 00:29:20,640
worried if you're angry, you just want to replace that with

434
00:29:20,640 --> 00:29:23,730
something. Okay. And since we're traders, we can clearly see

435
00:29:23,730 --> 00:29:27,210
that there is a reason to expect the market to go up or

436
00:29:27,210 --> 00:29:30,120
down. So all we have to do is roll the dice and just gamble

437
00:29:30,120 --> 00:29:32,130
and see what's going to happen. And our attention will be

438
00:29:32,130 --> 00:29:35,850
diverted from whatever the things that we are stressing over

439
00:29:35,850 --> 00:29:39,930
or anxious about, or mad about, or sad about or fearful of.

440
00:29:40,470 --> 00:29:45,480
All those stimuli will be replaced by I'm in a trade. And I

441
00:29:45,480 --> 00:29:48,630
made the mistake of doing it as a young man, and it filled

442
00:29:48,630 --> 00:29:52,530
my head up with all the wrong things as a trader. So the way

443
00:29:52,530 --> 00:29:56,100
you want to avoid that is be sober minded going into the

444
00:29:56,100 --> 00:30:01,020
trade and also know what it is you're feeling. At the end of

445
00:30:01,020 --> 00:30:04,380
the day, when you're done trading, you want to put that into

446
00:30:04,380 --> 00:30:07,650
Word, and write it out. And be honest thought if you know

447
00:30:07,650 --> 00:30:10,350
you were angry at your spouse, or if you're angry at your

448
00:30:10,380 --> 00:30:12,990
your child, or if you're worried about something that's

449
00:30:12,990 --> 00:30:15,870
taking place, if you have a job, if you're anxious about

450
00:30:15,870 --> 00:30:18,810
losing your job, or if you're angry that someone else got a

451
00:30:18,810 --> 00:30:22,770
promotion that you didn't get, okay, make sure that you do

452
00:30:22,770 --> 00:30:27,600
that in your journal by allowing it to come out. Because if

453
00:30:27,600 --> 00:30:30,540
you don't release it, and put it in your journal, you can

454
00:30:30,540 --> 00:30:35,250
see it and text, read it and release it. If you don't do

455
00:30:35,250 --> 00:30:37,740
that, you're going to harbor it and it's going to become

456
00:30:37,740 --> 00:30:40,380
cancerous to you as a trader, it's going to affect your

457
00:30:40,380 --> 00:30:44,310
mind, it's going to affect your your performance, and it's

458
00:30:44,310 --> 00:30:47,460
not going to always be what you want. Okay, it's going to be

459
00:30:47,460 --> 00:30:50,340
many times the opposite of what you're expecting. It's going

460
00:30:50,340 --> 00:30:55,260
to have an adverse effect on your overall development. You

461
00:30:55,260 --> 00:30:59,520
want to record any of your concerns or fears that you had

462
00:30:59,520 --> 00:31:01,770
while you're watching price action. So if you're in a trade

463
00:31:02,850 --> 00:31:07,410
or not in the trade, whenever you feel a sense of

464
00:31:08,130 --> 00:31:12,990
anxiousness or not trusting the setup, these are beautiful

465
00:31:12,990 --> 00:31:16,200
opportunities for you to learn. Because that's when you want

466
00:31:16,200 --> 00:31:18,480
to be doing screen captures, okay, if you're in front of the

467
00:31:18,480 --> 00:31:21,450
charts, you have the luxury of being able to do that screen

468
00:31:21,450 --> 00:31:23,820
capture that very moment. And then in your chart, you want

469
00:31:23,820 --> 00:31:26,250
to make a notation of what you're feeling and what you're

470
00:31:26,250 --> 00:31:29,790
thinking at that time. You may be feeling its gearing go up.

471
00:31:30,060 --> 00:31:32,910
But it's retraced a little bit deeper than you thought. And

472
00:31:32,910 --> 00:31:35,340
you're starting to have anxiety about it, it may not pan

473
00:31:35,340 --> 00:31:38,940
out. That's a time when you want to screen capture, and make

474
00:31:38,940 --> 00:31:42,360
that notation and log that. Keep that as part of your

475
00:31:42,360 --> 00:31:46,200
journal entry. Each time you do this, you're going to find

476
00:31:46,200 --> 00:31:49,470
that you're going to find less sensitivity

477
00:31:50,280 --> 00:31:54,060
or emotional attachment to these ideas because you've been

478
00:31:54,060 --> 00:31:57,870
there before. And yes, you see that there may be a

479
00:31:58,170 --> 00:32:00,600
opportunity for the trade this year. To fail,

480
00:32:01,080 --> 00:32:02,160
and hit your stop loss.

481
00:32:02,580 --> 00:32:05,520
But if you stick with it, how many times did it really

482
00:32:05,520 --> 00:32:08,460
actually go there. And that's the benefit of keeping a

483
00:32:08,460 --> 00:32:11,700
journal. Because unless you write the things down and keep a

484
00:32:11,700 --> 00:32:13,530
journal of what the charts look like and what you're

485
00:32:13,530 --> 00:32:15,990
thinking, you're never going to remember them, you're gonna

486
00:32:15,990 --> 00:32:18,450
remember that really good trade. And you're going to try to

487
00:32:18,450 --> 00:32:22,380
forget with all your energy and effort and might to forget

488
00:32:22,380 --> 00:32:25,350
those trades that you should have never been in, you knew

489
00:32:25,350 --> 00:32:27,810
you were getting into it. And you should have never done it.

490
00:32:28,080 --> 00:32:30,210
And now you got to do your best to try to avoid it and

491
00:32:30,570 --> 00:32:33,450
forget it ever happened. And they're your lessons that you

492
00:32:33,450 --> 00:32:37,440
want to learn from. So journaling is absolutely crucial to

493
00:32:37,440 --> 00:32:39,990
your development as a trader, especially if you want to be

494
00:32:41,550 --> 00:32:45,570
organized and you want to be collective and calm about what

495
00:32:45,570 --> 00:32:49,590
you're doing. That only comes by doing this exercise here,

496
00:32:49,620 --> 00:32:53,520
journaling. Every professional, whether it be a doctor or

497
00:32:53,520 --> 00:32:56,790
lawyer, physician psychologist, the long and short is they

498
00:32:56,790 --> 00:32:59,700
keep good records about what they say what they have done.

499
00:33:00,270 --> 00:33:03,780
They do not want to rely on your memory. And you can't rely

500
00:33:03,780 --> 00:33:07,050
on your memory. You're going to forget things. Okay? every

501
00:33:07,050 --> 00:33:11,490
seven years, your brain breaks off this little nodule, okay?

502
00:33:11,670 --> 00:33:16,140
And part of that you lose memory. So it's important to keep

503
00:33:16,170 --> 00:33:19,650
a record of things that you've said and done. Because when

504
00:33:19,650 --> 00:33:22,500
you have these adverse times in the future as a traitor,

505
00:33:22,530 --> 00:33:24,900
because you're going to, you won't be able to go back and

506
00:33:24,900 --> 00:33:27,390
reflect on those times that you forgot how you've been

507
00:33:27,390 --> 00:33:30,720
through that before and what you did to go through it's

508
00:33:30,720 --> 00:33:36,990
important. Contrast your personal expectations of what you

509
00:33:36,990 --> 00:33:39,090
thought was going to happen in the marketplace and how you

510
00:33:39,090 --> 00:33:42,420
were going to do versus the actual result. This is where you

511
00:33:42,420 --> 00:33:49,020
get to be more or less the, the scorekeeper you're able to

512
00:33:49,020 --> 00:33:55,950
soberly and balanced give a an opinion about what you did,

513
00:33:56,340 --> 00:34:02,220
in terms of your analysis going into The day for the week.

514
00:34:03,360 --> 00:34:06,870
And then what actually happened. Now, you're not in this

515
00:34:06,870 --> 00:34:10,230
section of journaling, to beat yourself up. That's not what

516
00:34:10,230 --> 00:34:13,110
this is. But what you're trying to do is highlight the

517
00:34:13,110 --> 00:34:18,600
things that you missed. But you don't want to draw so much

518
00:34:18,600 --> 00:34:22,110
attention to it that it seems like you're writing, you know,

519
00:34:22,620 --> 00:34:26,160
a suicide letter, like, you know, I'm no good. I'm this or

520
00:34:26,160 --> 00:34:28,260
that. What you want to be doing is highlighting the

521
00:34:28,260 --> 00:34:31,410
opportunities for you to develop better or spend more time

522
00:34:31,410 --> 00:34:35,130
focusing on your weaknesses, because that's what journaling

523
00:34:35,130 --> 00:34:39,900
helps you do. It identifies your weaknesses. You if you were

524
00:34:39,900 --> 00:34:43,200
honest with yourself, you probably would have about 10

525
00:34:43,200 --> 00:34:45,900
things that you could list, it's a weakness, but you're

526
00:34:45,900 --> 00:34:48,210
probably going to have four to five times more than that,

527
00:34:48,210 --> 00:34:51,390
that you won't really readily discover until you go through

528
00:34:51,390 --> 00:34:54,030
the journaling process. And it's not something you do for a

529
00:34:54,030 --> 00:34:58,170
short term and then you abandon it. You always do this. I've

530
00:34:58,170 --> 00:35:01,320
been doing it for 25 years. I did journaling before that and

531
00:35:01,320 --> 00:35:05,100
other things in my life. So, to me, it's, it's something

532
00:35:05,100 --> 00:35:07,170
I've always done and you don't need to spend a whole lot of

533
00:35:07,170 --> 00:35:10,140
time doing it. But I've always made a reference to what I've

534
00:35:10,140 --> 00:35:13,500
done or said in the previous day, at the end of the day. In

535
00:35:13,500 --> 00:35:16,830
other words, I'm looking back and reflection. Otherwise, if

536
00:35:16,830 --> 00:35:21,510
I try to go to bed, my mind will not allow me to, because my

537
00:35:21,510 --> 00:35:24,420
mind's going to race, I should write this down. And many

538
00:35:24,420 --> 00:35:27,690
times I have tried to go to bed even after journaling, and I

539
00:35:27,690 --> 00:35:30,240
have something on my mind. I can't do it until I get up and

540
00:35:30,240 --> 00:35:33,090
I write that down in my journal, because then it's, I've

541
00:35:33,090 --> 00:35:37,440
released it. And the only way you're going to trade with a

542
00:35:37,890 --> 00:35:43,560
emotion free or as close as you can get it in a well

543
00:35:43,560 --> 00:35:48,510
balanced mind is to have a clear conscience. Anything that's

544
00:35:48,510 --> 00:35:51,210
bothering you, you release it into your journal, your

545
00:35:51,210 --> 00:35:53,340
journal is not going to call you a name. It's not going to

546
00:35:53,340 --> 00:35:56,850
say it wants a divorce is not going to say you don't love me

547
00:35:56,850 --> 00:35:59,280
enough or you don't spend time with me enough. Okay? It's

548
00:35:59,310 --> 00:36:03,690
only going to What you write in it? So when you go back to

549
00:36:03,690 --> 00:36:06,930
it, it's going to say the words that you put in. So it's

550
00:36:06,930 --> 00:36:11,850
important to what you put in it is going to benefit you. But

551
00:36:11,850 --> 00:36:14,490
you're not sugarcoating it either. So you want to be honest

552
00:36:14,490 --> 00:36:18,420
about your evaluation about what you did or thought going

553
00:36:18,420 --> 00:36:21,120
into the day or the week, and then what the actual results

554
00:36:21,120 --> 00:36:25,170
were. Keep it simple. All you're doing is this is what I

555
00:36:25,170 --> 00:36:28,080
thought, and this is what actually happened. You're not

556
00:36:28,110 --> 00:36:31,530
using adjectives, you're just stating the facts. This is

557
00:36:31,530 --> 00:36:33,840
what I thought was gonna happen. I thought I was going to go

558
00:36:33,840 --> 00:36:36,330
here, if I was going to have this effect, if I was going to

559
00:36:36,330 --> 00:36:39,750
move this much, and this is what the actual result was, and

560
00:36:39,750 --> 00:36:42,480
you're not adding anything to it, or attaching any

561
00:36:42,480 --> 00:36:48,090
emotionalism to it. Okay, you want to detail where you felt

562
00:36:48,090 --> 00:36:52,080
uncertainty, and this is important, how you actually coped

563
00:36:52,080 --> 00:36:55,590
with it. You're going to find that many of your

564
00:36:57,750 --> 00:37:00,990
coping skills for stress aren't really coping skills,

565
00:37:01,560 --> 00:37:05,520
they're actually feeding that emotional stimuli. And it

566
00:37:05,520 --> 00:37:08,580
creates even more stress, the only way you're going to find

567
00:37:08,580 --> 00:37:12,060
that is by actually recording it, writing it down. And you

568
00:37:12,060 --> 00:37:14,640
may be in a trade and it may be flirting with your limit

569
00:37:14,640 --> 00:37:18,030
order, you've already had your profits taken, for the most

570
00:37:18,030 --> 00:37:22,290
part scaled out, your stop losses trailed up now. But now

571
00:37:22,290 --> 00:37:25,560
you're feeling like it's gonna hit your stop, you know, get

572
00:37:25,560 --> 00:37:30,210
that last piece of the move. What are you doing to cope with

573
00:37:30,210 --> 00:37:34,020
that? are you staring at the chart screaming? Or are you

574
00:37:34,020 --> 00:37:37,950
taking a walk? Or are you turning the computer off into the

575
00:37:37,950 --> 00:37:40,170
saying, I'm going to see what happens at the end of the day,

576
00:37:40,770 --> 00:37:43,470
you come hell or high water, it's going to take my stop or

577
00:37:43,470 --> 00:37:45,750
it's going to take my limit, or it's going to trade sideways

578
00:37:45,750 --> 00:37:48,180
until the next session, and then whatever it's going to

579
00:37:48,180 --> 00:37:52,590
happen is going to happen. Whatever that coping mechanism is

580
00:37:52,620 --> 00:37:56,700
that you've used for that stress trigger. You want to

581
00:37:56,700 --> 00:38:01,950
include that because it's important the one that do not work

582
00:38:01,980 --> 00:38:04,500
you're going to see. And that way when you start feeling

583
00:38:04,500 --> 00:38:10,380
that stress trigger come up, you immediately discount that

584
00:38:10,380 --> 00:38:13,230
thought process to follow that same regimen. Again, if it's

585
00:38:13,230 --> 00:38:16,110
something that hasn't worked in the past, and it's mean to a

586
00:38:16,140 --> 00:38:19,020
stressful level, and you know, you're wanting to think about

587
00:38:19,020 --> 00:38:22,440
it or do that same thing again, like smoke cigarettes, okay?

588
00:38:22,440 --> 00:38:26,460
or grab a drink that's alcoholic, those things. You may feel

589
00:38:26,460 --> 00:38:29,040
like they're soothing you, but actually, they're not. So

590
00:38:29,070 --> 00:38:32,400
what you want to be doing is focusing on when the coping

591
00:38:32,400 --> 00:38:34,770
mechanism that you've used to get through that stressful

592
00:38:34,770 --> 00:38:39,540
environment, when it helps you. It's highlighted on an

593
00:38:39,540 --> 00:38:42,480
opportunity for you to use that in the future. And here's

594
00:38:42,480 --> 00:38:46,590
the thing. Many times I've learned coping skills that were

595
00:38:46,590 --> 00:38:50,040
in high stressful events, through trading. When I had

596
00:38:50,040 --> 00:38:52,860
stressful events and my personal life, I used those same

597
00:38:52,860 --> 00:38:58,440
coping skills. So for instance, you know, while I'm trading

598
00:38:58,440 --> 00:39:00,720
I usually have a deck of cards in my hands. I'm a fidgeter.

599
00:39:00,840 --> 00:39:03,600
Okay? And now they have these things called these fidget

600
00:39:03,600 --> 00:39:07,470
spinners, which I love them. I absolutely love them. For me,

601
00:39:07,500 --> 00:39:11,310
it keeps me distracted from worrying about what the next

602
00:39:11,310 --> 00:39:14,370
move is going to be in price. I'm allowing my method to pan

603
00:39:14,370 --> 00:39:17,940
out and do what it's going to do. Before I did that, I used

604
00:39:17,940 --> 00:39:21,540
to have a coin and always keep a coin in my hand, and I'd

605
00:39:21,540 --> 00:39:24,030
either roll it through my fingers, or I would just keep it

606
00:39:24,030 --> 00:39:27,240
pressed in my palm. And I would just practice palming. Okay,

607
00:39:27,240 --> 00:39:31,260
because I'm somewhat of an amateur magician. Nonetheless, I

608
00:39:31,260 --> 00:39:34,470
would do those things to keep me distracted and not being

609
00:39:34,530 --> 00:39:38,010
hypersensitive to every fluctuation in the marketplace. So

610
00:39:38,760 --> 00:39:43,350
whatever the coping skills are, okay, that you find work in

611
00:39:43,350 --> 00:39:47,220
high stressful environment of trading. I found that they

612
00:39:47,220 --> 00:39:50,010
were just as equally effective in high stressful

613
00:39:50,130 --> 00:39:52,740
environments, like when my son was in surgery, you know, I

614
00:39:52,740 --> 00:39:55,590
would take cards and I would fidget with those, or I would

615
00:39:55,590 --> 00:39:58,620
have coin in my hand and it would just keep me distracted

616
00:39:58,620 --> 00:40:01,200
enough where I have had to go through that experience, I

617
00:40:01,200 --> 00:40:03,810
couldn't escape it just like you can't escape the trade

618
00:40:03,810 --> 00:40:06,330
unless you just kill it. If you're going to take the trade,

619
00:40:06,450 --> 00:40:08,910
you have to go through the trade. Either it takes your stop

620
00:40:08,910 --> 00:40:12,840
or it takes your limit. But you have to submit to that. So

621
00:40:12,870 --> 00:40:15,900
whatever it takes for you to submit to that, over time,

622
00:40:16,440 --> 00:40:19,410
these coping skills that you will find that there really

623
00:40:19,410 --> 00:40:23,250
isn't a, this is what you do, because it's only going to

624
00:40:23,250 --> 00:40:27,000
work for you. When you discover it works for you. It may be

625
00:40:27,000 --> 00:40:29,880
something as simple as having something against a fidget and

626
00:40:29,880 --> 00:40:34,920
maybe something that requires you to completely step away

627
00:40:34,920 --> 00:40:37,830
from the charts and grab a book. In my mind, personally, I

628
00:40:37,830 --> 00:40:40,800
can't read if I'm in the market. I can't do that I have to

629
00:40:40,800 --> 00:40:43,620
read when there's no one talking to me. And I have complete

630
00:40:43,620 --> 00:40:47,550
silence. So whatever those things are, that you discover

631
00:40:47,550 --> 00:40:51,720
through journaling, to help you in your trading. Don't look

632
00:40:51,720 --> 00:40:55,380
at it as that's your fix for trading stress. Many times if

633
00:40:55,380 --> 00:40:58,950
you apply it to your stressful personal life, it fixes it as

634
00:40:58,950 --> 00:41:05,280
well. What's Many times is that's a plus. You want to use

635
00:41:05,280 --> 00:41:09,210
positive words, for the things you did well on. You don't

636
00:41:09,210 --> 00:41:10,980
want to sugarcoat it. You don't say I'm the best trade in a

637
00:41:10,980 --> 00:41:14,460
room because I did this. But you do want to say, I'm happy

638
00:41:14,460 --> 00:41:20,100
with my execution with this trade, because I did this. And I

639
00:41:20,100 --> 00:41:24,450
had that in mind. And I did exactly as my plan outlined, and

640
00:41:24,450 --> 00:41:30,000
I did not deviate. I'm glad that I used the 25 pips stop

641
00:41:30,000 --> 00:41:33,840
loss, and didn't try to get short and sweet with it. With a

642
00:41:33,840 --> 00:41:37,290
15 or 10 PIP stop, I followed my rules, regardless of what

643
00:41:37,290 --> 00:41:39,990
the trade was doing anything that you did, that was pre

644
00:41:39,990 --> 00:41:42,570
determined, and you follow through with it. You want to

645
00:41:42,570 --> 00:41:50,070
record that in your own words, and use adjectives like happy

646
00:41:50,700 --> 00:41:52,350
or pleased

647
00:41:52,559 --> 00:41:56,549
or proud, okay, those types of things because your mind's

648
00:41:56,549 --> 00:41:59,519
going to retain that and when you go back to it, this is

649
00:41:59,519 --> 00:42:01,799
where it's actually When you come back to your journal and

650
00:42:01,799 --> 00:42:04,049
you read those things, you certainly don't want to litter it

651
00:42:04,049 --> 00:42:07,799
with things that are just going to be mundane or not

652
00:42:07,829 --> 00:42:12,659
impactful. You want to be well, you want to cheerlead

653
00:42:12,659 --> 00:42:14,579
yourself basically, because there's going to be times when

654
00:42:14,579 --> 00:42:16,799
you go through periods of drawdown, and it's going to feel

655
00:42:16,799 --> 00:42:19,829
like trading is the worst thing you could have ever done. So

656
00:42:19,829 --> 00:42:23,789
you want to have that old friend of your conscience to feel

657
00:42:23,789 --> 00:42:27,869
soothed. When you read your own words in your journal. You

658
00:42:27,869 --> 00:42:31,739
don't want to read it like, Well, you know, I really didn't

659
00:42:31,739 --> 00:42:35,309
feel well that day, and I'm lying to myself in there. You

660
00:42:35,309 --> 00:42:40,769
want to be honest, but you also want to be well, you want to

661
00:42:40,769 --> 00:42:43,619
be comforting to yourself, but you don't want to sugarcoat

662
00:42:43,619 --> 00:42:48,599
and you don't want to embellish and lie about how you did

663
00:42:48,599 --> 00:42:50,609
something right when you really didn't you want to be

664
00:42:50,729 --> 00:42:53,039
accurate about what you're describing, but you also want to

665
00:42:53,039 --> 00:43:00,149
do it in a positive light. And here is the kicker when You

666
00:43:00,149 --> 00:43:04,859
do things messed up, okay, and you do the wrong things and

667
00:43:04,859 --> 00:43:08,789
you make errors. You want to avoid negatively charged words,

668
00:43:09,299 --> 00:43:13,559
wherever you struggled in the execution, or the application

669
00:43:13,559 --> 00:43:18,029
of money management, over leveraging. Or if you over traded,

670
00:43:18,599 --> 00:43:24,809
you do not want to say, Oh, I'm a stupid so and so. Or I am

671
00:43:24,809 --> 00:43:28,199
a failure, or I'm never going to get this do not do those

672
00:43:28,199 --> 00:43:32,159
things in your journal. Because your mind will latch on to

673
00:43:32,159 --> 00:43:36,839
that. And whatever you use negative words on your

674
00:43:36,839 --> 00:43:40,349
subconscious is going to see that and say, Okay, well, this

675
00:43:40,349 --> 00:43:42,869
is a problem or it's a source of stress, so I'm going to

676
00:43:42,869 --> 00:43:44,639
avoid it. So what's going to happen when you look at the

677
00:43:44,639 --> 00:43:47,879
charts, subconsciously, your mind is going to say, this is

678
00:43:47,879 --> 00:43:50,129
stressful, I want to avoid this and you're not going to pay

679
00:43:50,129 --> 00:43:55,289
attention and or your mind is not going to let that set up,

680
00:43:55,919 --> 00:43:58,769
jump off at the chart at you. So that way you can engage it

681
00:43:58,769 --> 00:44:02,039
properly. So it's Very important not to use negative terms.

682
00:44:03,989 --> 00:44:07,019
So while this is not an exhaustive list, I wanted to have

683
00:44:07,019 --> 00:44:12,329
some measure of journaling suggestions, and I wanted to have

684
00:44:12,329 --> 00:44:21,329
some measure of psychological. Well, solutions. And both of

685
00:44:21,329 --> 00:44:26,489
these topics can be really explored in greater detail. And

686
00:44:27,329 --> 00:44:31,139
it comes by personal experience. And while there's a lot of

687
00:44:31,139 --> 00:44:33,779
books written about both that solved the subject matter that

688
00:44:33,779 --> 00:44:36,929
I mentioned here tonight, I don't think it's something that

689
00:44:36,959 --> 00:44:40,979
you need to make any more complicated than what I have here.

690
00:44:41,669 --> 00:44:44,879
Because this is really the bare bones of what I've done for

691
00:44:44,879 --> 00:44:50,129
25 years. And the best trading book out there is the one

692
00:44:50,129 --> 00:44:53,729
you're about to write in your journal. That's the best one,

693
00:44:54,239 --> 00:44:59,099
because they're going to be directly related to you and your

694
00:44:59,099 --> 00:45:04,859
own experiences. You can't teach your experience to someone

695
00:45:04,859 --> 00:45:07,799
else. You can talk about it, you can share it, you can share

696
00:45:07,799 --> 00:45:10,619
your journal, let them read it, but it still won't have the

697
00:45:10,619 --> 00:45:14,939
same impact that your experience has for you. And that's the

698
00:45:14,939 --> 00:45:20,039
wonderful treasure and well, secret weapon, if you will, of

699
00:45:20,069 --> 00:45:24,719
a trader by using a journal. It seems like extra work. It

700
00:45:24,719 --> 00:45:26,849
seems frivolous. Oh, I got time for that. Who does that?

701
00:45:27,299 --> 00:45:31,109
Well, I'll tell you who does it. Winning traders do it. And

702
00:45:31,109 --> 00:45:34,139
we know what we're looking for. Because we've studied it.

703
00:45:34,169 --> 00:45:38,459
We've had days and days and days on end, where we have

704
00:45:38,459 --> 00:45:44,069
recorded the same exact setup. The same winning attitude

705
00:45:44,099 --> 00:45:46,919
that we went into is always there. So these are all

706
00:45:46,919 --> 00:45:51,089
signatures. These are hallmarks of classic setups. So that

707
00:45:51,089 --> 00:45:53,069
way, when you start feeling a certain way, going into the

708
00:45:53,069 --> 00:45:57,179
market day, if you're not on, you'll know it and you'll be

709
00:45:57,179 --> 00:46:00,419
honest with yourself and say okay, I got to know in the

710
00:46:00,419 --> 00:46:03,869
market today, I got to take a day off. Otherwise, how would

711
00:46:03,869 --> 00:46:06,389
you know those things? Because you're going to talk yourself

712
00:46:06,389 --> 00:46:08,609
into taking a trade if you're feeling bad, that's the normal

713
00:46:08,609 --> 00:46:11,759
response where a human distract me. I needed a distraction,

714
00:46:11,909 --> 00:46:14,849
or what's about a distraction, then getting money, nothing.

715
00:46:15,209 --> 00:46:20,129
So you want to play the lottery each time for casino so many

716
00:46:20,129 --> 00:46:25,349
times that result in a negative withdrawal from your equity,

717
00:46:25,739 --> 00:46:28,259
whether it be demo or live, and we want to try to avoid

718
00:46:28,259 --> 00:46:33,059
those things. Okay. So what type of things do we look for in

719
00:46:33,059 --> 00:46:36,779
terms of adding charts to our journal, and then we can go

720
00:46:36,779 --> 00:46:39,899
through the charts now and give you some suggestions.

721
00:46:45,809 --> 00:46:47,939
Alright, so this is the Canadian dollars, the daily chart,

722
00:46:48,449 --> 00:46:51,329
and this particular week I was looking for the market to

723
00:46:51,329 --> 00:46:54,449
want to run above is equal highs. And I'll have that

724
00:46:54,449 --> 00:46:56,459
actually in recording so you can go back and look at that.

725
00:46:56,909 --> 00:47:03,419
But we have double tops A third time the market trades up to

726
00:47:04,409 --> 00:47:07,259
the same level. So we know that this is too clean of a

727
00:47:07,259 --> 00:47:10,709
level, we had a nice rejection down here. So markets most

728
00:47:10,709 --> 00:47:14,159
likely going to want to push above this level. Now if it's

729
00:47:14,159 --> 00:47:18,119
so clean like that, what's the most likely outcome? Should

730
00:47:18,119 --> 00:47:22,319
it traded at level a blast off and continue higher or

731
00:47:22,349 --> 00:47:26,549
retreating back down into the range? Well, look what's

732
00:47:26,549 --> 00:47:29,159
happened, we've had a sell off, people have made money,

733
00:47:29,189 --> 00:47:31,649
there's no sell off, people have made money. And then we're

734
00:47:31,649 --> 00:47:34,589
going right back up to those levels again. So to take those

735
00:47:34,589 --> 00:47:38,099
individuals out, or put new traders in on the wrong side

736
00:47:38,129 --> 00:47:42,269
buying the market is going to want to push up there. So in

737
00:47:42,269 --> 00:47:44,549
your journal, when you start seeing these things, you want

738
00:47:44,549 --> 00:47:47,369
to print out your chart or screen capture it. And in your

739
00:47:47,369 --> 00:47:49,709
notations, you want to write down what you think is going to

740
00:47:49,709 --> 00:47:53,039
happen, what's the most likely outcome, okay, is that when

741
00:47:53,039 --> 00:47:55,709
you have a condition that we can wait against what actually

742
00:47:55,709 --> 00:47:58,619
happens later on, but you want to build the context in your

743
00:47:58,619 --> 00:48:01,289
chart in your journaling? So that we wouldn't go back and

744
00:48:01,289 --> 00:48:03,989
look at it. If it pans out Well, you're going to be

745
00:48:03,989 --> 00:48:06,629
encouraged in the future when you have periods of time when

746
00:48:06,629 --> 00:48:13,199
your trades don't actually pan out. Okay, and as soon as the

747
00:48:13,199 --> 00:48:17,009
event that you've been waiting for occurs, like I share a

748
00:48:17,009 --> 00:48:21,179
lot of my trades at the time of the setup, or the

749
00:48:21,509 --> 00:48:24,239
confirmation, if you will, of whatever I'm looking for that

750
00:48:24,239 --> 00:48:28,589
sets the ideal out this many times is the screen capture

751
00:48:28,589 --> 00:48:31,979
where it either hits a level I was reaching for, or a level

752
00:48:31,979 --> 00:48:35,519
I'm trying to get in. This is where you want to take a

753
00:48:35,519 --> 00:48:39,329
picture of it again. And this is why I don't do 20 pairs or

754
00:48:39,329 --> 00:48:41,729
a lot of different markets because I'm only focusing on two

755
00:48:41,729 --> 00:48:46,439
things, cable and fiber. So it's very easy for me to dial in

756
00:48:46,439 --> 00:48:49,739
and get the screen capture what I'm looking for. And then I

757
00:48:49,739 --> 00:48:52,259
don't share my chart with all the notations on it because

758
00:48:52,289 --> 00:48:56,519
there's a lot of things that I do among finances in trading

759
00:48:56,519 --> 00:49:01,529
that I don't make public so but I do make references to the

760
00:49:01,529 --> 00:49:04,229
things I'm talking about here. In terms of Okay, this is the

761
00:49:04,229 --> 00:49:07,919
run on the buy stops. So um, right now, I would say I would

762
00:49:07,919 --> 00:49:13,229
have an expectation of seeing a strong reversal. And I would

763
00:49:13,229 --> 00:49:16,469
look for price don't want to reach down into those wicks

764
00:49:16,529 --> 00:49:21,119
here and see how far we can go and as far as that low here.

765
00:49:24,809 --> 00:49:28,259
Now we can start dropping down into a four hour chart and

766
00:49:28,259 --> 00:49:31,949
work into an intraday price action. And we can see how

767
00:49:32,189 --> 00:49:35,009
noting areas of stops because if we thought that price is

768
00:49:35,009 --> 00:49:38,189
going to go above these highs here, again, we give more

769
00:49:38,189 --> 00:49:41,549
details about what we're looking for the time of day that

770
00:49:41,549 --> 00:49:45,449
this occurred, and how long of a timeframe we would

771
00:49:45,449 --> 00:49:48,149
reasonably expect to see this move take place if we're going

772
00:49:48,149 --> 00:49:51,239
to run out this low. All those things, you can add in all

773
00:49:51,239 --> 00:49:54,119
these open spaces on your chart. You want to make it

774
00:49:54,119 --> 00:49:57,329
personal you want to make your journal and your charts,

775
00:49:57,629 --> 00:49:59,849
something that's unique that you're comfortable with and

776
00:49:59,849 --> 00:50:02,369
it's Something that you're really not aiming to share with

777
00:50:02,369 --> 00:50:05,759
anybody. It's comfortable for you to be able to look at and

778
00:50:05,759 --> 00:50:08,129
it gives you all the information at the time, what you were

779
00:50:08,129 --> 00:50:11,939
thinking at the time at the time that chart was creating the

780
00:50:11,939 --> 00:50:17,909
very setup that's being screen captured. Okay, dropping down

781
00:50:17,909 --> 00:50:22,559
to a 30 minute chart, same mindset here, we're adding any

782
00:50:22,559 --> 00:50:27,899
details that we're noticing. Okay, and we're here, we have

783
00:50:27,929 --> 00:50:32,879
Monday's trading, and the anticipated rally up. Once we see

784
00:50:32,879 --> 00:50:36,659
those types of things, we know that this is the setup. So we

785
00:50:36,659 --> 00:50:39,209
won't be a seller up here. But where are we going to be

786
00:50:39,209 --> 00:50:42,329
reaching for what's the drawing price. So you want to have

787
00:50:42,329 --> 00:50:46,349
that before the trade really starts to unfold? As it's

788
00:50:46,349 --> 00:50:49,289
setting up, you want to get extreme capture, but at that

789
00:50:49,289 --> 00:50:51,929
time, you also want to outline what you're reaching for and

790
00:50:51,929 --> 00:50:54,689
what was the context behind why you would expect it to

791
00:50:54,689 --> 00:50:59,069
occur. We have an old low here, got 20 and 10 PIP grades of

792
00:50:59,339 --> 00:51:02,729
swingers would be expected to go below it in here just for

793
00:51:02,849 --> 00:51:06,239
the sake of keeping the chart neat. I'm just referencing

794
00:51:06,239 --> 00:51:12,389
templates below that low. And on Monday, because I don't

795
00:51:12,419 --> 00:51:16,319
like to trade on Monday, I would like to use that Monday

796
00:51:16,319 --> 00:51:20,159
range and projected like the power three study that was used

797
00:51:20,759 --> 00:51:25,499
taught you in the asian session and or power three. And I

798
00:51:25,499 --> 00:51:28,559
would take that Monday range. If I'm bearish looking for

799
00:51:28,559 --> 00:51:31,469
that run, I'm going to take that range of Monday and apply

800
00:51:31,469 --> 00:51:33,479
it right on top of its daily high.

801
00:51:34,530 --> 00:51:37,650
And that gives me a projected range of one standard

802
00:51:37,650 --> 00:51:40,590
deviation. And we take that out in the future. It's

803
00:51:40,650 --> 00:51:44,850
approximately what Tuesday's high of the day is. So I know

804
00:51:44,850 --> 00:51:47,130
that I'm looking for a Judas swing. So how far will it go

805
00:51:47,130 --> 00:51:49,620
up? Well, it could go this far, which would take us right

806
00:51:49,620 --> 00:51:56,490
above that old high at 129 10. Where touch three times and

807
00:51:56,490 --> 00:51:59,160
that's what the biceps will be residing. So we're looking

808
00:51:59,160 --> 00:52:02,010
for a move Above that, so it can be a seller right there.

809
00:52:03,330 --> 00:52:06,570
But before we do that, we have to remember if this is in

810
00:52:06,570 --> 00:52:10,980
fact a bearish week, and this is a weekly high forming this

811
00:52:10,980 --> 00:52:13,860
Judas swing is useful and we can apply power three concepts

812
00:52:13,860 --> 00:52:20,340
to it, we can get the range of the Judas swing in it, apply

813
00:52:20,340 --> 00:52:24,600
it in one standard deviation below the low. In other words,

814
00:52:24,630 --> 00:52:27,870
I'm taking this range and adding it or in this case,

815
00:52:27,870 --> 00:52:31,500
subtracting it from this low and projecting it down. Give me

816
00:52:31,500 --> 00:52:34,350
one standard deviation. So we're seeing power three, which

817
00:52:34,350 --> 00:52:38,550
is accumulation, accumulate more manipulation on the stock,

818
00:52:38,580 --> 00:52:43,080
put them in by side. We're going to see hopefully a move

819
00:52:43,080 --> 00:52:47,310
down with power three with distribution and a final area

820
00:52:47,310 --> 00:52:51,060
distribution down here. So we have three measurements of the

821
00:52:51,060 --> 00:52:54,630
actual Judas swing, projected down and that gives us just

822
00:52:54,630 --> 00:52:59,460
below that all low. So that validates this potential

823
00:52:59,460 --> 00:53:03,660
stopper. While price was like this only, we don't have

824
00:53:03,660 --> 00:53:07,920
anything else happening yet. So we have power three scaled

825
00:53:07,920 --> 00:53:14,280
out accumulation, manipulation distribution framed before

826
00:53:14,280 --> 00:53:16,050
the move even occurs.

827
00:53:22,380 --> 00:53:26,790
You can see that 10 pips below this low is what we're

828
00:53:26,790 --> 00:53:29,880
looking for. So 10 pips below that we're going to have a

829
00:53:29,880 --> 00:53:36,450
little level there. And now we see Wednesday's trading. And

830
00:53:36,480 --> 00:53:41,070
during the New York setup, we have a optimal trade entry

831
00:53:41,070 --> 00:53:45,120
form. And we can run projections on the fit. We can see

832
00:53:45,120 --> 00:53:48,630
there's a 400 extension overlapping exactly with one of the

833
00:53:48,630 --> 00:53:54,870
levels we've already arrived at. And here's Wednesday

834
00:53:55,740 --> 00:53:59,430
because Apple trade entry short term swing here, trades back

835
00:53:59,430 --> 00:54:03,780
up apple tree Entry short, sells off aggressively, and

836
00:54:03,780 --> 00:54:12,600
reaches down into our template sweep below the old low. And

837
00:54:12,600 --> 00:54:15,720
we're going to get a measurement from the highest body to

838
00:54:15,720 --> 00:54:19,230
lowest body and these two price swings in that projection

839
00:54:19,230 --> 00:54:23,490
down gives us exactly a 300 extension right there and it

840
00:54:23,490 --> 00:54:25,620
actually gives you the low of the day which actually

841
00:54:25,620 --> 00:54:31,320
overlaps with the approximate 10 pips swing below the old

842
00:54:31,320 --> 00:54:37,680
low. So we have several things being used here that I've

843
00:54:37,680 --> 00:54:42,630
given you in recent teachings. Every one of these screen

844
00:54:42,630 --> 00:54:47,070
captures, you would write down any notation that would be

845
00:54:47,100 --> 00:54:51,210
necessary for you to have as a benefit. And that way when

846
00:54:51,210 --> 00:54:54,060
you go to the end of the week, usually on Saturday morning

847
00:54:54,060 --> 00:54:57,630
for me, may not be Saturday for you. But I'd like to take

848
00:54:57,630 --> 00:55:00,600
about 30 minutes and go through the market and see What I

849
00:55:00,930 --> 00:55:05,730
didn't see and note that but every day, I'm writing down

850
00:55:05,730 --> 00:55:08,220
what my expectations are, what the daily high low should be.

851
00:55:09,240 --> 00:55:12,750
And then I'm recording what actually happened. And it builds

852
00:55:12,750 --> 00:55:15,150
a lot of confidence seeing how many times I'm right. And

853
00:55:15,150 --> 00:55:19,020
when I'm wrong, even though I learned something from the

854
00:55:21,060 --> 00:55:26,940
well, the time I was not accurate it proves that I'm more

855
00:55:26,940 --> 00:55:29,400
right than I'm wrong. So therefore, I don't fear being

856
00:55:29,400 --> 00:55:32,790
wrong. And I use the times when I'm wrong to learn what it

857
00:55:32,790 --> 00:55:39,060
is I did wrong. So I'm taking no pain at the experience. I'm

858
00:55:39,210 --> 00:55:42,510
looking at it as okay. This is actually like a workout.

859
00:55:42,930 --> 00:55:46,530
Okay, I'm string telling myself I'm, I'm putting stress on

860
00:55:46,530 --> 00:55:51,030
my body with the attempt to make it stronger. Okay, so I

861
00:55:51,030 --> 00:55:55,740
don't look at adversities in trading as a defeat. I look at

862
00:55:55,740 --> 00:56:00,270
it as exercise and strengthening iron sharpens iron So we

863
00:56:00,270 --> 00:56:03,120
can see how using the tools here, we get one more instance,

864
00:56:03,120 --> 00:56:07,140
well, this could be the very weekly low. Okay? If we trade

865
00:56:07,140 --> 00:56:10,560
through it, so be it. But if this is all I would ever get,

866
00:56:10,710 --> 00:56:15,330
that's fine. Because this would be power three applied to

867
00:56:15,330 --> 00:56:19,350
the weekly range, okay, and apply that on the weekly, Sunday

868
00:56:19,350 --> 00:56:23,100
opening vertical line if you hit Ctrl y, and use the

869
00:56:23,100 --> 00:56:27,630
thickest trendline to draw radio on top of that, and then I

870
00:56:27,630 --> 00:56:32,040
delete the actual control y line. And I draw a little

871
00:56:32,040 --> 00:56:36,300
horizontal tick representing the open, and I forecast where

872
00:56:36,300 --> 00:56:38,940
I think the close is going to be. And it doesn't have to be

873
00:56:38,940 --> 00:56:40,890
where it's actually going to close. I like to do that just

874
00:56:40,890 --> 00:56:46,290
to keep myself entertained and trying to dial in as best I

875
00:56:46,290 --> 00:56:50,700
can for where I project. The clothes. Sometimes I'm really

876
00:56:51,000 --> 00:56:54,300
accurate, and other times I'm not so accurate, but I'm more

877
00:56:54,300 --> 00:56:58,140
inclined to focus on what if I'm bearish with the highest

878
00:56:58,140 --> 00:57:01,740
gonna be and how far of a Reasonable objective, how low can

879
00:57:01,740 --> 00:57:05,730
go. If it keeps going lower Who cares? Long short it is I

880
00:57:05,730 --> 00:57:07,500
want to have an opportunity to get some kind of range

881
00:57:07,500 --> 00:57:10,470
expansion. In on Wednesday, we can also see that there was

882
00:57:10,470 --> 00:57:14,490
no return back to the opening price on Sunday. Once it moved

883
00:57:14,490 --> 00:57:18,660
away from it on the New York session setup, we accelerated

884
00:57:18,660 --> 00:57:22,020
away from it. So there's a lot of things that took place in

885
00:57:22,020 --> 00:57:26,610
the dollar CAD this week that we have outlined before. They

886
00:57:26,610 --> 00:57:30,300
are hallmarks to the things I've taught you. And we did in

887
00:57:30,300 --> 00:57:33,930
fact runners equal highs out as I mentioned in the higher

888
00:57:33,930 --> 00:57:40,170
timeframe, scenario, and conditions video for this for this

889
00:57:40,200 --> 00:57:42,270
set of videos for 2017.

890
00:57:48,119 --> 00:57:50,939
certainly enjoyed this presentation. If you'd like to find

891
00:57:50,939 --> 00:57:54,449
more, go visit my website at the inner circle trader calm