ICT-WENT-02.srt
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ICT: Okay, in the previous video, we
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discussed how 6% compound that over a
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year would more than double your
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account. And you can see that depicted
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here if one hypothetically started with
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$5,000. And you were, in fact
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consistently returning 6% per month,
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after one full year, January of the
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following year 2015, you would have just
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a little bit over, doubling your money
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at 5000 would be 10,000. Again, you can
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see this a little bit $60 and 98 cents.
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And again, as I promised, it's less than
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25 pips per week. Now. I know it sounds
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a little too good to be true. Being able
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to make just a little bit of pips like
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is for over a period of a week, and
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still doing such a dramatic increase in
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your equity. And again, if you guys
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aren't excited about 6% per month, and
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you don't think that is dramatic
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returns, and you obviously aren't really
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aware of what goes on in the investment
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world, because this is a phenomenal
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return. Okay. But that's assuming you're
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using a 30 PIP stop, which is
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essentially what I like to see new
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traders do because it gives you a little
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bit of flexibility for, you know,
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allowing in their price action because
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most of us when we first start doing
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things, we're in a rush to do things or
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we are a little lethargic or
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apprehensive. So we may get in at most
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of opportune time, we'll probably end up
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missing that as we develop as new
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traders. So I allow a 30 PIP stop, and I
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actually encourage traders use the 30
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PIP stop as an initial if you're really
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really green to trading. You could use a
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40 PIP stop and it will give you a lot
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more cushion as well. Now, don't be
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discouraged because it will be
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considered a large stop in some people's
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eyes. It's all relative, really. But
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we're going to assume that 6% is
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understood here as a relatively
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achievable goal. Okay. And we're going
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to give you a case study to think about,
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I'm going to assume that the average
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person out there would require about
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30 $500 per month, it's US currency.
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Okay. And we'll give you a hypothetical
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scenario, if one would have to require a
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income of 30 $500 per month. My question
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to you is if you're trading with just
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this goal in mind 6% per month, in
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aiming for 23 pips for the week, as a
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net Less than 100 pips per month,
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allowing you a 30 PIP stop, you're only
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risking 2% of your equity. Okay, looking
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at that, as it relates to trading with a
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$5,000 account, even after three years,
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you still haven't reached that goal.
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Okay? Now I'm doing this to show you
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realistically how you may encounter you
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may encounter some lag time in your
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goals, that's fine. As long as you're
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moving ahead in the direction of your
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larger, longer term goal. Every small
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incremental movement towards that goal
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is a positive. Okay? Again, it's not a
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race, it's not a sprint. This is a
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journey to be enjoying it as you go
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through it. Otherwise, you're gonna make
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it an arduous task. It's gonna be just
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like the thing you're trying to escape
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now, that j ob. So now let's look at
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what I promised you going forward that
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we would look at ways to make
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exponentially larger returns on our
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equity. And let's assume for a moment
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that you wanted to make it very
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respectable 10% per month and we're not
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changing the amount of risk percentage
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wise we're going to keep it at 2%
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suddenly, just by expecting a larger 10%
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return, we would need to net 38 pips Now
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again, this is rather reasonable,
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there's nothing significantly, you know,
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shocking about the level of pips that
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would be required to earn that. Okay,
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you're only risking $3 and 33 cents per
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Pip. Okay, that's, that's the gearing
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using the 30 PIP stop over the course of
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one year. Okay, your $5,000 would return
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a net balance of $15,692 now Looking at
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that same model, that we would assume
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that 30 $500 would be one's expected
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return per month to live, okay, you'd
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have to have about $37,000 in your
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account to draw that out. Okay, or at
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least to make that over the, over the
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course of a year. Now, my advice is not
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to think that once you get to these
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levels, you can start living off the
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account and start drawing out funds in
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the amount it's shown here. What I'm
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suggesting to you really is, that is if
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that's what you're aiming for, for a
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monthly income, you have to have some
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money in your account. Okay, I'm going
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to refer into your savings account or
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your bank account to survive for the
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year and allow your money to build over
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the course of the 12 months and then as
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long as you average around this same
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amount, obviously, you would be able to
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meet that annual salary requirement to
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live as a as a full time trader. That's
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The way I teach it is the way I tried to
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groom traders to leave the retail world
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of trading and just speculating for
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extra money then moving into full time
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trading. The 10% return is it's pretty
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solid return, there's nothing I can say
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bad about it. It does get you rich over
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a period of time. It doesn't do it
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quickly, but it does significantly
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increase over a period of time. If you
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look at what transpires over the course
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of three years, you're $5,000 obviously
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would grow to about $170,000. Now again,
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this is assuming that you're not paying
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any taxes on it, and you are in fact
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hitting 10% return consistently every
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single month. Now, as you start,
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obviously, you may not hit 10% and then
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there may be other months where you do
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better than 10% Okay, but overall, you
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should average out. If you're doing
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things consistently, it should do
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staying around that 10% if you're
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looking at these returns here, less than
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40 pips per week, and again, we haven't
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done anything to 30 pips stop. Now the
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question is this. assume for a moment
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that you can fine tune your entries a
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little bit more precise. And over the
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course of this presentation in series,
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where every new and or aspiring for our
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share wants to know, we're going to
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teach specific applications, concepts
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and skill sets that will enable you to
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reduce the amount of initial stop loss
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that's required. We're going to assume
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for a moment that we can now reduce our
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stop loss initially to 20 pips, okay. If
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we can take the same trades 2% per risk.
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portrayed rather, now we're trading with
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$5 per Pip. Notice it's still 2% $100 or
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5000 equity. We're aiming to make $500
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or 10% for the month. Notice the
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contrast here. We had moved from needing
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to require making 150 pips now only down
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to 100 pips. Remember it was 90 pips
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before trying to make 6% return with 2%
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risk on 30 pips stops. Now watch what
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happens when we change it to 15 pips.
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Now many are thinking whoa 15 pips
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that's a really small stop. Well,
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there's ways to do that and we're going
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to teach you that in this course. But
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now look what happens. We're under 20
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pips for the week, under 20 pips only
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needed to make 75 pips for the entirety
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of the month. Notice we didn't increase
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our risk, it's still 2% to risk would be
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a lot Loss of $100 still 2% of our net
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equity of 5000. Our bidding beginning
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mounts, again aiming for 10% return.
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Now, this is where it gets interesting.
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Notice that these numbers and figures
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are not changing over here. Do anything
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I'm changing is the amount of initial
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stop loss that's required. Okay, we cut
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the total monthly PIP expectancy from
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150 in half down to 75. Only by
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adjusting and spending more time on
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accuracy and reducing our amount of PIP
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on the stop. So in other words, we cut
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our 30 PIP stop loss in half to 15 pips.
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Now you're probably wondering, is it
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really possible to do that? Yes, it
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absolutely is. And we're going to give
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examples of that in this video. But for
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now, understand that it's going to take
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you a little bit of time to get there.
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So again, it's all about not rushing
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initially. You need to go To this model
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First, if you can't do this model 2323
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pips per week, 90 pips for the month,
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using a 30 PIP Stop, don't think for a
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moment you're gonna be able to do 15
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pips stop loss straight, okay? You got
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to be able to grow into it. And it
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doesn't take long to do that it only
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takes a couple months, we're talking
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about six months. This is the amount of
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time that you would require this whole
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six month bracket up here. If you can do
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6% consistently over six months, the
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only thing you're changing is the
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initial stop loss amount. Because if you
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can prove to yourself and be consistent
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about the way you apply the concepts
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that we're sharing, the only thing
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you're changing is the math. Okay,
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you're reducing the initial risk in half
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from 30 to 15 pips Nothing changes in
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percent risk, nothing changes in the
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dollar amounts over here, okay? But your
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work that's required to do the trades
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and returns drop rather exponentially
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unless you actually build a lot more
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flexibility over here on this end, okay
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in terms of monthly returns and still
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never changing, total risk portrayed.
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Now let's go back and assume for a
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moment that you want to make a 20%
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return now we're entering levels that
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are very, very phenomenal. Again, with a
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30 PIP stop loss you would need to make
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75 pips. Now if you've been a follower
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of mine, for any number of years, in
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2010, I came out with the idea that if
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we're aiming for 50 to 75 pips, this was
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the model I was teaching. Okay. But now
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we're going through The entire ICT
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library again now we're going to give
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you the Amplified view to make 20%
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return. Okay, we're going to use the
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same model here. assume for a moment we
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go down to reducing our initial stop
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loss to 20 pips. We moved from needing
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to make 75 pips a week 250 pips per
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week, notice we have not increased our
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risk per trade at all. 20% is still the
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expected goal. And using $5,000 as an
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equity base example, after one year,
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it's $44,580. In two years, it's
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$397,000. Now, at month seven, you're
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already at the level where you're making
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that hypothetical 30 $500 to sustain
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yourself on a monthly basis. And again,
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I'm not arguing the fact that everyone
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can live on 30 $500 I'm just using it as
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a case study. So please don't send me
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emails saying, I really can't afford to
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live on 30 $500 I'm just Using example
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guy so don't know don't make more of it
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than it really is. Now for a moment,
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let's assume that we are able to again
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trim our stop loss order initial entries
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and reducing the overall risk to 15
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pips. Now again, we're going to be using
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a day traders model for entry. Okay, but
268
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still using a 30 PIP stop, it was still
269
00:13:21,120 --> 00:13:23,490
respectable and you can do 25 pips. But
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00:13:23,490 --> 00:13:25,650
for now, assuming that we can get very,
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very close to the marketplace and allow
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a 15 PIP stop loss. What will happen is
273
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you reduce your total monthly PIP
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expectancy to half again, so now we need
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to only make 150 pips and we only need
276
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to make 38 pips for the week 38 pips for
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the week with an initial stop loss of 15
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pips that's less than three to one Think
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00:14:00,270 --> 00:14:02,370
about that's less than three to one. One
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00:14:02,370 --> 00:14:05,160
trade with a setup of less than three to
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00:14:05,160 --> 00:14:08,400
one would accomplish more than this.
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Okay, so now let's assume for a moment,
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00:14:13,080 --> 00:14:16,620
going back to our original settings, we
284
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want to make 30% return. Now we're
285
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absolutely in error areas where it's
286
00:14:24,810 --> 00:14:27,270
just unheard of for folks to make this.
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00:14:27,570 --> 00:14:30,360
Again, looking at this, we would need to
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00:14:30,360 --> 00:14:35,250
make 113 pips for the week, or 450 pips
289
00:14:35,250 --> 00:14:39,090
per month. Now, I know most of you are
290
00:14:39,090 --> 00:14:41,640
saying, well, I can't make 450 pips per
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00:14:41,640 --> 00:14:43,620
month. Well, you're probably right right
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00:14:43,620 --> 00:14:45,150
now as a new trading or developing
293
00:14:45,150 --> 00:14:47,340
trader, you probably can't do that. But
294
00:14:47,340 --> 00:14:51,390
using 2% risk and a 30 PIP stop, you
295
00:14:51,390 --> 00:14:53,790
would need to make 113 pips per week.
296
00:14:54,510 --> 00:14:58,200
Now looking at our example of trimming
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00:15:01,740 --> 00:15:06,570
20 pips stop loss, we would need to only
298
00:15:06,570 --> 00:15:09,840
make 75 pips for the week, or 300 pips
299
00:15:09,840 --> 00:15:12,270
for the month. Now this is doable, you
300
00:15:12,270 --> 00:15:14,070
can still do 75 pips over a week, even
301
00:15:14,070 --> 00:15:15,510
with the low volatility we have right
302
00:15:15,510 --> 00:15:18,060
now, currently in 2014. At the time of
303
00:15:18,060 --> 00:15:20,430
this recording, this is still doable,
304
00:15:20,490 --> 00:15:21,960
it's going to require some work, but
305
00:15:21,960 --> 00:15:24,540
still yet it can be done. If you go back
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00:15:24,540 --> 00:15:26,550
over to our example again, assume for a
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00:15:26,550 --> 00:15:28,980
moment that we can reduce our risk to
308
00:15:29,160 --> 00:15:30,540
again 15 pips
309
00:15:31,800 --> 00:15:34,320
we only need to make 56 pips for the
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00:15:34,320 --> 00:15:39,030
week, or 225 pips for the month. Notice
311
00:15:39,030 --> 00:15:42,270
that we're not increasing the 2% risk
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00:15:42,480 --> 00:15:45,390
per trade, it still stays locked at 2%.
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00:15:46,380 --> 00:15:49,680
But it's allowing us a larger dollar per
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00:15:49,680 --> 00:15:54,870
PIP risk and still maintain the 2% total
315
00:15:54,870 --> 00:15:58,350
risk portrayed on the $5,000. Again,
316
00:15:58,380 --> 00:16:00,210
these numbers are not changing as We
317
00:16:00,210 --> 00:16:03,720
adjust the PIP amount in terms of
318
00:16:03,750 --> 00:16:06,360
initial stop loss, it just changes the
319
00:16:06,360 --> 00:16:09,810
expectancy on what you need to make to
320
00:16:09,810 --> 00:16:13,950
acquire 30% per month. Now at 30% per
321
00:16:13,950 --> 00:16:16,500
month, your $5,000 will grow to
322
00:16:16,530 --> 00:16:19,170
$116,000. Now, again, going back to our
323
00:16:19,170 --> 00:16:22,860
3500 an hour example of, you know, case
324
00:16:22,860 --> 00:16:25,320
study needing to make 3500 hours to
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00:16:25,320 --> 00:16:27,810
sustain oneself, you get into that
326
00:16:27,810 --> 00:16:30,180
region around the fourth month if you're
327
00:16:30,180 --> 00:16:34,530
able to do 30% return Now, again, this
328
00:16:34,530 --> 00:16:37,560
is assuming that one can consistently
329
00:16:38,370 --> 00:16:40,980
month over month over month to 30%
330
00:16:40,980 --> 00:16:45,270
returns. My question to us this if you
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00:16:45,270 --> 00:16:49,710
can make 56 pips for the entire week,
332
00:16:50,790 --> 00:16:55,440
okay. You'll hit this number. every
333
00:16:55,440 --> 00:16:56,910
single month you'll do it. The only
334
00:16:56,910 --> 00:16:57,840
thing it's going to change is your
335
00:16:57,840 --> 00:17:00,990
dollar per risk. You know, in your On on
336
00:17:00,990 --> 00:17:05,940
your your trades. Now let's go and look
337
00:17:05,970 --> 00:17:16,140
at assuming that we had a 20 PIP stop.
338
00:17:17,100 --> 00:17:27,210
Okay 20 PIP stop and you run this across
339
00:17:27,390 --> 00:17:37,470
the entire 36 month example. Okay, you
340
00:17:37,470 --> 00:17:43,260
would need $5 per Pip, which 2% $100 of
341
00:17:43,260 --> 00:17:46,110
the total equity used for that month
342
00:17:46,650 --> 00:17:50,820
returning 30% it's 1500 dollars you only
343
00:17:50,820 --> 00:17:54,450
need to make 75 pips. Here's a question.
344
00:17:55,950 --> 00:18:00,510
We have a 20 PIP stop loss again Don't
345
00:18:00,510 --> 00:18:02,610
be confused but this is a notation. If
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00:18:02,610 --> 00:18:03,930
you look at what we have here this is
347
00:18:05,250 --> 00:18:08,280
denoting the stop loss with requiring 20
348
00:18:08,280 --> 00:18:13,200
pips. Okay, so now 20 pips stop loss if
349
00:18:13,290 --> 00:18:18,510
one were to make a trade with one to one
350
00:18:18,570 --> 00:18:21,720
reward to risk ratio, that means you
351
00:18:21,720 --> 00:18:24,000
would expect to make what you're risking
352
00:18:24,000 --> 00:18:27,120
20 you're hoping to make what 20 PIP
353
00:18:27,120 --> 00:18:30,060
gain. Okay, so now what if you were
354
00:18:30,060 --> 00:18:35,580
looking for a two to one trait that's
355
00:18:35,910 --> 00:18:39,000
two rewarded for one wrist. You would
356
00:18:39,000 --> 00:18:42,150
need to make a 40 PIP net gain on that
357
00:18:42,150 --> 00:18:44,370
trade. you're risking 20 pips, you're
358
00:18:44,370 --> 00:18:48,720
hoping to make 40 Now watch this. If you
359
00:18:48,720 --> 00:18:53,370
were doing a three to one trade, risking
360
00:18:53,370 --> 00:18:57,630
20 pips you would expect to make 160
361
00:18:57,630 --> 00:19:02,250
pips risking 20 Aiming for 60 that's a
362
00:19:02,250 --> 00:19:04,890
three to one trade. Now, here's another
363
00:19:04,890 --> 00:19:07,650
example. If you're trying to make a four
364
00:19:07,650 --> 00:19:11,010
to one trade, you're risking 20 pips to
365
00:19:11,010 --> 00:19:16,530
make 80 pips. 80 pips made on a trade
366
00:19:16,590 --> 00:19:18,960
that's only risking 20 pips is
367
00:19:18,960 --> 00:19:19,920
absolutely doable.
368
00:19:20,490 --> 00:19:22,890
It's going to take some time and study
369
00:19:22,890 --> 00:19:26,130
to find them. Okay? But they're there.
370
00:19:26,460 --> 00:19:28,860
They're there every single month, every
371
00:19:28,860 --> 00:19:32,130
single week, and sometimes, okay, you
372
00:19:32,130 --> 00:19:33,780
can catch them simply in a day trading
373
00:19:33,780 --> 00:19:36,720
scenario. Many times you have to require
374
00:19:36,720 --> 00:19:39,240
your trade to hold on to it for a few
375
00:19:39,240 --> 00:19:41,220
days to do that, but you can still do
376
00:19:41,220 --> 00:19:45,660
it. Okay. But my question is this. If
377
00:19:45,660 --> 00:19:49,290
you're focused on doing these types of
378
00:19:49,290 --> 00:19:51,360
trades here where I'm trying to make my
379
00:19:51,360 --> 00:19:53,190
20 pips per day or I'm trying to make my
380
00:19:53,400 --> 00:19:56,730
15 pips per day, okay, this right here,
381
00:19:57,690 --> 00:19:59,580
gets most people in trouble because
382
00:19:59,820 --> 00:20:01,530
they're Trying to get in there every
383
00:20:01,530 --> 00:20:03,480
single day and try to make those trades
384
00:20:03,840 --> 00:20:06,990
to make these pips. Okay? I give these
385
00:20:06,990 --> 00:20:09,960
examples here as as models to choose
386
00:20:09,960 --> 00:20:12,090
from because there's several scenarios
387
00:20:12,090 --> 00:20:14,760
that specific traders will find
388
00:20:14,760 --> 00:20:16,020
themselves comfortable in position
389
00:20:16,020 --> 00:20:18,330
trading, swing trading or day trading or
390
00:20:18,330 --> 00:20:20,460
scalping. And that's what this is
391
00:20:20,460 --> 00:20:21,990
designed for. This is the scalpers
392
00:20:22,230 --> 00:20:24,990
mentality here or day traders column.
393
00:20:25,860 --> 00:20:28,320
This is what you would need to make as a
394
00:20:28,350 --> 00:20:32,970
short term trader, okay, or a swing
395
00:20:32,970 --> 00:20:35,580
trader here twice a week. And then for
396
00:20:35,580 --> 00:20:38,640
the weekly is like a position trader you
397
00:20:38,640 --> 00:20:40,980
hold for the weekly range. And obviously
398
00:20:40,980 --> 00:20:42,300
a long term trader would be looking for
399
00:20:42,330 --> 00:20:45,390
the monthly moves, okay. So this is all
400
00:20:45,390 --> 00:20:47,490
broken down with that mindset. You
401
00:20:47,490 --> 00:20:49,470
choose where you're going to be most
402
00:20:50,070 --> 00:20:52,500
appropriate in terms of what you're
403
00:20:52,500 --> 00:20:54,180
allowing your, your your psyche to
404
00:20:54,180 --> 00:20:56,910
absorb. most traders can't do day
405
00:20:56,910 --> 00:21:00,450
trading most traders. You can Get in
406
00:21:00,450 --> 00:21:02,580
front of the charts because of jobs
407
00:21:02,580 --> 00:21:05,310
because of other things that are an
408
00:21:05,310 --> 00:21:07,890
obstacle for them. But there's other
409
00:21:07,890 --> 00:21:10,890
ways to do this. Okay? And let's use the
410
00:21:10,890 --> 00:21:14,580
example that you're, if you're looking
411
00:21:14,580 --> 00:21:17,400
for this scenario right here, okay, we
412
00:21:17,400 --> 00:21:20,010
have the gearing is a 20 PIP stop,
413
00:21:20,070 --> 00:21:22,110
that's what we're going to use. And
414
00:21:22,110 --> 00:21:24,570
we're only risking 2% and we're aiming
415
00:21:24,570 --> 00:21:27,060
for 30% return for the month. That means
416
00:21:27,060 --> 00:21:31,050
we have to do essentially what we have
417
00:21:31,050 --> 00:21:33,120
to find a trade that's four to one
418
00:21:33,150 --> 00:21:36,480
reward the risk that will give us better
419
00:21:36,480 --> 00:21:41,640
than this. Okay, I'm just gonna move
420
00:21:41,640 --> 00:21:43,080
this a little bit just to show you
421
00:21:43,080 --> 00:21:44,070
something because right now it's saying
422
00:21:44,070 --> 00:21:46,500
we need to make 75 pips per week to get
423
00:21:46,500 --> 00:21:53,280
30% return. If Yeah, that would be a
424
00:21:53,280 --> 00:21:56,430
wonderful return women to get 32%
425
00:21:56,430 --> 00:21:58,290
return, you got to get 80 pips and that
426
00:21:58,290 --> 00:22:01,410
would be that four to one scenario where
427
00:22:01,560 --> 00:22:04,350
you're risking 20 pips. Okay? Let me
428
00:22:04,350 --> 00:22:05,610
just change this right now as we're
429
00:22:05,610 --> 00:22:08,430
talking about to make, you know, a 20
430
00:22:08,430 --> 00:22:10,530
PIP stop loss, you're risking $5 per
431
00:22:10,530 --> 00:22:14,280
point per PIP 2% risk total is $100
432
00:22:14,520 --> 00:22:16,890
you're aiming for 32% that would equate
433
00:22:16,890 --> 00:22:20,010
to that for one scenario. Okay? So if
434
00:22:20,010 --> 00:22:22,770
you do four to one reward to risk setups
435
00:22:22,890 --> 00:22:26,400
every single time you do a trade, you
436
00:22:26,400 --> 00:22:29,160
will be in the realm that's required,
437
00:22:29,430 --> 00:22:33,870
okay to do one shot one kill setups per
438
00:22:33,870 --> 00:22:37,560
week, and he would hit 32% return. Okay,
439
00:22:37,950 --> 00:22:39,480
so now let's look at a chart and see
440
00:22:39,480 --> 00:22:41,610
what that looks like and how those types
441
00:22:41,610 --> 00:22:44,520
of trades setup and how we can find four
442
00:22:44,520 --> 00:22:47,100
to one three to one, reward risk
443
00:22:47,160 --> 00:22:50,610
scenarios and keep our our stop losses
444
00:22:50,640 --> 00:22:54,540
really relatively tight. But before we
445
00:22:54,540 --> 00:22:56,040
do, let me go let me do this. Let's go
446
00:22:56,040 --> 00:23:01,140
back and do our gearing for 15 PIP stop
447
00:23:01,680 --> 00:23:05,790
and we'll use the same scenario of
448
00:23:05,790 --> 00:23:08,160
breaking it down What? What's required?
449
00:23:09,030 --> 00:23:11,670
Okay, so we're using a 15 PIP stop, you
450
00:23:11,670 --> 00:23:14,670
would need to make 56 pips for the week.
451
00:23:14,970 --> 00:23:20,700
Okay? So 15 pips right reward the risk
452
00:23:20,730 --> 00:23:23,850
of one to one you would need to make 15
453
00:23:23,850 --> 00:23:27,360
pits net and two to one reward the risk
454
00:23:27,390 --> 00:23:33,480
would be 30 pips for 15 pips risk three
455
00:23:33,480 --> 00:23:39,210
one would be a 45 PIP 215 PIP ratio and
456
00:23:39,210 --> 00:23:40,650
always you're looking to make 45 pips
457
00:23:40,650 --> 00:23:43,140
gain for 45 I'm sorry for 15 pips risk,
458
00:23:43,380 --> 00:23:45,660
you're trying to aim and make 45 pips
459
00:23:46,770 --> 00:23:51,000
four to one would give you 60 pips. Okay
460
00:23:51,000 --> 00:23:54,210
you need to make 60 pips for the 15 pips
461
00:23:54,210 --> 00:23:56,010
risk to make four to one and again that
462
00:23:56,010 --> 00:23:57,810
will be better than this sets, probably
463
00:23:57,810 --> 00:23:58,530
very close.
464
00:24:00,390 --> 00:24:02,280
To this and so that we have here, so you
465
00:24:02,280 --> 00:24:04,500
would need to make 60 pips per week,
466
00:24:04,920 --> 00:24:07,890
risking 15, initially, with a four to
467
00:24:07,890 --> 00:24:11,070
one ratio, reward to risk, and you would
468
00:24:11,070 --> 00:24:14,550
hit 32%. Now, again, this is all we're
469
00:24:14,550 --> 00:24:16,590
dealing with just, this is just math,
470
00:24:16,620 --> 00:24:18,660
okay? And this is how easy it is it's
471
00:24:18,660 --> 00:24:21,750
not hard to come up with a strategy to
472
00:24:21,750 --> 00:24:23,910
get these ridiculous amounts of return.
473
00:24:24,180 --> 00:24:25,980
What makes it difficult is you got to be
474
00:24:25,980 --> 00:24:27,300
able to see how to do that in the
475
00:24:27,300 --> 00:24:29,820
charts. So let's go over to the market
476
00:24:30,330 --> 00:24:32,610
and take a look at how that's done. All
477
00:24:32,610 --> 00:24:34,440
right, we're looking at the British
478
00:24:34,440 --> 00:24:40,440
Pound USD pair. Okay, and I have some
479
00:24:40,680 --> 00:24:43,320
lines on here that we're gonna utilize.
480
00:24:46,200 --> 00:24:50,370
And I want to show you what we have.
481
00:24:51,600 --> 00:24:53,550
We're going to assume for a moment that
482
00:24:53,550 --> 00:24:57,390
you thought that this 170 60 level down
483
00:24:57,390 --> 00:24:59,850
here would be an important support
484
00:24:59,850 --> 00:25:01,920
level. Now I know you're probably
485
00:25:01,920 --> 00:25:03,210
thinking all right, Michael, you're
486
00:25:03,210 --> 00:25:04,560
already starting off with cherry picking
487
00:25:04,560 --> 00:25:08,460
scenario. Trust me, I am not. Let's go
488
00:25:08,460 --> 00:25:10,470
out to a daily chart and I'll show you
489
00:25:10,470 --> 00:25:17,100
where that 170 60 comes from. Okay, we
490
00:25:17,100 --> 00:25:21,270
are looking at the levels on a daily
491
00:25:21,270 --> 00:25:24,810
chart. And you see this old high back
492
00:25:24,810 --> 00:25:28,110
here. The high on this day comes in at
493
00:25:28,110 --> 00:25:33,510
170 63. My concepts teach that we like
494
00:25:33,510 --> 00:25:37,470
to round our numbers to whole numbers,
495
00:25:37,500 --> 00:25:41,100
or if it's very, very, very tight
496
00:25:42,330 --> 00:25:44,220
volatility. In other words, the rains
497
00:25:44,220 --> 00:25:45,750
are very tight. You're looking at
498
00:25:45,750 --> 00:25:47,880
current price action, we'll use the five
499
00:25:47,880 --> 00:25:49,110
numbers. In other words, we'll go
500
00:25:49,230 --> 00:25:52,380
between 20 and 30. We may use 25. Okay,
501
00:25:52,380 --> 00:25:55,590
between 30 and 40, we may use 35. So
502
00:25:55,590 --> 00:25:57,570
we'd like to round the round numbers or
503
00:25:57,690 --> 00:26:00,960
round to fives. Okay. So If you're
504
00:26:00,960 --> 00:26:09,060
looking at a high on this day, you can
505
00:26:09,060 --> 00:26:12,300
get the area's the high of 170 63.
506
00:26:13,200 --> 00:26:19,710
That's essentially 170 60 or 170 65. I
507
00:26:19,710 --> 00:26:22,470
like to go with 160, simply because
508
00:26:22,470 --> 00:26:24,090
that's one of the one I wanted to go
509
00:26:24,090 --> 00:26:27,090
with. If you wanted to use 160 75 as
510
00:26:27,090 --> 00:26:29,610
your support level, it would be nothing
511
00:26:29,610 --> 00:26:32,220
wrong with that at all. Okay, but that's
512
00:26:32,220 --> 00:26:34,560
where the 170 60 comes from. And simple
513
00:26:34,560 --> 00:26:36,420
support resistance teaches us that once
514
00:26:36,420 --> 00:26:38,940
this resistance level is broken to the
515
00:26:38,940 --> 00:26:41,190
upside, once price comes back down to
516
00:26:41,190 --> 00:26:43,650
it, we would reasonably expect a bounce
517
00:26:43,710 --> 00:26:45,780
or reaction at that price point. And it
518
00:26:45,780 --> 00:26:47,250
just so happens that we happen to get
519
00:26:47,250 --> 00:26:53,130
that today on Tuesday. And let's go back
520
00:26:53,130 --> 00:27:02,520
down to a 15 minute timeframe. Okay, and
521
00:27:02,520 --> 00:27:06,840
what we're looking at is the start of a
522
00:27:06,840 --> 00:27:08,460
new day here. This is where Tuesday
523
00:27:08,460 --> 00:27:11,430
began, okay? We had some, some
524
00:27:11,430 --> 00:27:13,170
consolidation in the market drifted
525
00:27:13,170 --> 00:27:14,670
lower and trading right into that level
526
00:27:14,670 --> 00:27:17,160
right there, bang right into it. The low
527
00:27:17,280 --> 00:27:21,870
on this, this candle here, if I can get
528
00:27:21,870 --> 00:27:25,350
things to work with me, okay, we got the
529
00:27:25,350 --> 00:27:29,670
low of 170 60. Beautiful, okay? You may
530
00:27:29,670 --> 00:27:32,160
notice this little blue line here, okay?
531
00:27:32,190 --> 00:27:34,230
And you may know this, this green line.
532
00:27:34,530 --> 00:27:35,790
And this red line we're going to talk
533
00:27:35,790 --> 00:27:37,470
later on in the series about this red
534
00:27:37,470 --> 00:27:41,100
line. And this line here. And this line
535
00:27:41,100 --> 00:27:43,530
here, basically are the times that I
536
00:27:43,530 --> 00:27:46,350
asked you in the previous video to mark
537
00:27:46,350 --> 00:27:49,830
out on your charts and study what takes
538
00:27:49,830 --> 00:27:52,170
place around those times of the day.
539
00:27:53,130 --> 00:27:56,790
Okay, price trades down into this level
540
00:27:56,790 --> 00:27:59,790
here. Okay, we're going to assume that
541
00:27:59,790 --> 00:28:04,860
you Lead that this was a bullish area to
542
00:28:04,860 --> 00:28:10,860
expect a bounce. Right, increase this so
543
00:28:10,860 --> 00:28:16,350
we can see it. Okay, so the level is
544
00:28:16,350 --> 00:28:19,950
170 60 you always have to factor in the
545
00:28:19,950 --> 00:28:21,780
spread. Okay, and we're just going to
546
00:28:21,780 --> 00:28:24,060
add five pips just for slippage and
547
00:28:24,060 --> 00:28:25,710
traditional retail spreads on the
548
00:28:25,710 --> 00:28:28,230
British Pound USD pair, okay? And that
549
00:28:28,230 --> 00:28:31,650
means your limit order would come in
550
00:28:31,680 --> 00:28:35,550
around 170 65. So your entry would be
551
00:28:35,550 --> 00:28:38,400
around here. Okay, we're going to look
552
00:28:38,430 --> 00:28:43,890
at a scenario where you're buying want
553
00:28:43,890 --> 00:28:46,170
to limit once price drops down on this
554
00:28:46,170 --> 00:28:48,300
candle here. You're going to be buying
555
00:28:48,960 --> 00:28:51,420
that level. Okay, and what I just did
556
00:28:51,420 --> 00:28:52,740
was just put a little tiny little
557
00:28:52,740 --> 00:28:54,930
rectangle here. Now watch what happens
558
00:28:54,930 --> 00:28:56,910
it'll, it'll show up over here. Little
559
00:28:56,910 --> 00:28:59,790
numbers will pop up. You see that?
560
00:29:01,469 --> 00:29:03,629
See the eight now it's a nine. There's
561
00:29:03,629 --> 00:29:06,239
10 Okay, the range of the rectangles
562
00:29:06,269 --> 00:29:10,919
height is now 10 pips. There's 11 1213
563
00:29:13,649 --> 00:29:16,109
and I lost it because we went into the
564
00:29:16,109 --> 00:29:19,139
little indicator box here. See if I can
565
00:29:19,379 --> 00:29:21,299
go again some more ground not doing
566
00:29:21,299 --> 00:29:26,339
that. Okay, there's 15 pips. So your
567
00:29:26,339 --> 00:29:32,099
entry would be at 170 65 and your, your,
568
00:29:32,159 --> 00:29:38,999
your stop loss would rest 15 pips below
569
00:29:38,999 --> 00:29:43,529
your entry and that's right here. Okay,
570
00:29:43,679 --> 00:29:47,009
at 170 50 price has to trade down to
571
00:29:47,009 --> 00:29:51,179
that 170 50 level to stop you out. Okay,
572
00:29:51,179 --> 00:29:53,549
so that would be your the selling price
573
00:29:53,549 --> 00:29:54,839
because whenever we're looking at data,
574
00:29:55,139 --> 00:29:58,739
that's the sell price. So if as long as
575
00:29:58,739 --> 00:30:01,139
price stays above that one 7050 level,
576
00:30:01,559 --> 00:30:03,599
you would be in the trade. Now, this is
577
00:30:03,599 --> 00:30:05,909
where it gets interesting. We're going
578
00:30:05,909 --> 00:30:11,249
to zoom in. Okay, and now we're going to
579
00:30:11,249 --> 00:30:15,119
take, just take this range, okay? And
580
00:30:15,179 --> 00:30:16,349
what I'm going to do is I'm going to
581
00:30:16,349 --> 00:30:17,879
just move it over a little bit like
582
00:30:17,879 --> 00:30:23,669
that, just to differentiate. And I'm
583
00:30:23,669 --> 00:30:24,389
going to show you
584
00:30:29,760 --> 00:30:33,780
this would be from your entry. If you
585
00:30:33,780 --> 00:30:35,220
got out right up here at the top of the
586
00:30:35,220 --> 00:30:38,280
rectangle. That is a risk reward of one
587
00:30:38,280 --> 00:30:42,840
to one. Okay? We're going to take a step
588
00:30:42,870 --> 00:30:48,180
out farther. Okay, and that would be an
589
00:30:48,180 --> 00:30:49,500
exit point here.
590
00:30:54,720 --> 00:30:56,700
If you got out there, that will be a two
591
00:30:56,700 --> 00:30:59,370
to one. Okay, you're gaining two for
592
00:30:59,370 --> 00:31:02,850
every $1 risk. Okay, we're going to move
593
00:31:02,850 --> 00:31:05,250
that out farther. Now this is a three to
594
00:31:05,250 --> 00:31:07,410
one see you're using that same amount of
595
00:31:07,410 --> 00:31:11,100
pips. Okay 15 pips now three times for
596
00:31:11,100 --> 00:31:13,200
one risk. This is a three to one reward
597
00:31:13,200 --> 00:31:16,230
risk ratio. We're going to go out one
598
00:31:16,230 --> 00:31:23,640
more step 1234 game to one risk, okay,
599
00:31:23,640 --> 00:31:26,610
so it's a four to one risk to reward
600
00:31:26,610 --> 00:31:27,180
ratio.
601
00:31:36,299 --> 00:31:42,509
We have 12345 ranges of 15 pips each,
602
00:31:42,539 --> 00:31:45,749
okay? So that's five reward to risk of
603
00:31:45,749 --> 00:31:48,719
one to find the one reward risk. Okay.
604
00:31:49,109 --> 00:31:51,299
And to get five to one you would have to
605
00:31:51,299 --> 00:31:57,659
get out at around 171 40. Okay, now we
606
00:31:57,659 --> 00:32:00,959
could go all the way up to The absolute
607
00:32:00,959 --> 00:32:01,499
high
608
00:32:09,179 --> 00:32:14,399
like that, and that would be 12345678 to
609
00:32:14,399 --> 00:32:19,049
one, reward the risk ratio. And I know,
610
00:32:19,769 --> 00:32:21,389
you probably are thinking man, that's,
611
00:32:21,419 --> 00:32:22,439
that's incredible. Well, you'd be
612
00:32:22,439 --> 00:32:24,719
surprised if you'd learned the concepts
613
00:32:24,719 --> 00:32:25,949
that we're going to be teaching in this
614
00:32:25,949 --> 00:32:28,409
series. And for those of you that wants
615
00:32:28,409 --> 00:32:31,079
the initial presentation over the last
616
00:32:31,109 --> 00:32:35,399
four years or so, from 2010 on, you're
617
00:32:35,399 --> 00:32:36,839
going to get the amplification of that,
618
00:32:36,839 --> 00:32:39,209
which is what we're getting here. This
619
00:32:39,209 --> 00:32:45,119
is, this is really where I want you to
620
00:32:45,149 --> 00:32:49,589
focus. Right here. You want this type of
621
00:32:49,589 --> 00:32:53,579
setup right there. You want that? Okay,
622
00:32:53,759 --> 00:32:55,979
you want four to one, and that's wealth
623
00:32:55,979 --> 00:32:59,099
building. Okay. 41 builds millionaires
624
00:33:00,359 --> 00:33:08,159
Notice also that inside inside of this
625
00:33:08,159 --> 00:33:12,359
day, just in Tuesday, okay, this is not
626
00:33:12,449 --> 00:33:16,229
a week. This is not the course of
627
00:33:16,319 --> 00:33:17,999
several days, this is just one day,
628
00:33:18,599 --> 00:33:21,839
price came off that 170 60 level and
629
00:33:21,839 --> 00:33:25,469
trade valia with a range of 132 pips.
630
00:33:27,149 --> 00:33:28,679
Now that's a nice, that's a nice range.
631
00:33:28,679 --> 00:33:30,479
It's, this is what you've probably been
632
00:33:30,479 --> 00:33:31,889
used to if you've been looking at forex
633
00:33:31,889 --> 00:33:34,379
for a number of years. This is about the
634
00:33:34,379 --> 00:33:36,629
standard, a little bit more standard
635
00:33:37,829 --> 00:33:40,919
daily range for the cable. Recently,
636
00:33:40,919 --> 00:33:42,389
we've entered into a small little
637
00:33:43,289 --> 00:33:45,539
volatility squeeze where nothing's
638
00:33:45,539 --> 00:33:48,689
really going on in the markets, unless,
639
00:33:48,719 --> 00:33:51,149
you know, one or two moves a week
640
00:33:51,449 --> 00:33:53,519
creates a significant move and they
641
00:33:53,519 --> 00:33:54,779
haven't really been this significant
642
00:33:54,779 --> 00:33:59,309
many times. But this isn't an area where
643
00:33:59,849 --> 00:34:03,689
you You could use that mindset of
644
00:34:03,689 --> 00:34:05,459
looking for a four to one reward to
645
00:34:05,459 --> 00:34:08,519
risk. Okay, now, I'm going to give you
646
00:34:08,519 --> 00:34:13,139
another drill. We talked about looking
647
00:34:13,139 --> 00:34:16,589
at the swing points and the each candles
648
00:34:16,589 --> 00:34:19,049
high and low, and the opening closing of
649
00:34:19,049 --> 00:34:21,749
those three candles on a swing point and
650
00:34:21,749 --> 00:34:23,219
drawing them out in time and looking at
651
00:34:23,219 --> 00:34:25,319
how the future reactions would occur
652
00:34:25,319 --> 00:34:27,299
around those particular price points.
653
00:34:27,989 --> 00:34:29,879
The levels I have on this chart here,
654
00:34:30,329 --> 00:34:33,569
okay, are rather important. We're gonna
655
00:34:33,569 --> 00:34:38,969
go out to a weekly Okay, and the weekly
656
00:34:38,969 --> 00:34:39,419
chart
657
00:34:41,760 --> 00:34:42,720
students
658
00:34:44,069 --> 00:34:48,599
Okay, what I've shown here is just in
659
00:34:48,599 --> 00:34:51,479
the recent times in recent days, I
660
00:34:51,479 --> 00:34:55,319
delineated the red line is a weekly
661
00:34:55,319 --> 00:34:57,599
high, which is here. Okay, this swing
662
00:34:57,599 --> 00:35:01,439
high and all the greens levels with the
663
00:35:01,439 --> 00:35:02,909
exception of this one here this one is
664
00:35:02,909 --> 00:35:06,179
really should be read. So let's change
665
00:35:06,179 --> 00:35:14,339
that. That is a weekly level okay and
666
00:35:14,339 --> 00:35:15,779
the green are simply going to be based
667
00:35:15,779 --> 00:35:20,399
on daily highs. Okay and what you're
668
00:35:20,399 --> 00:35:22,349
looking at is daily highs and weekly
669
00:35:22,349 --> 00:35:26,219
highs and lows on both. Okay and by
670
00:35:26,219 --> 00:35:28,919
doing that this is the exercise and you
671
00:35:28,919 --> 00:35:31,499
guys may remember this from the initial
672
00:35:32,879 --> 00:35:36,869
installment of excellent of execution by
673
00:35:36,869 --> 00:35:39,959
inner circle trader when I was giving
674
00:35:39,959 --> 00:35:43,409
them those initial videos back 2010 I
675
00:35:43,409 --> 00:35:45,269
did them silent. And now this is the
676
00:35:45,269 --> 00:35:46,589
amplification of it the things that you
677
00:35:46,589 --> 00:35:51,089
were missing by having the this is a low
678
00:35:51,089 --> 00:35:53,909
here, this is a high here, it lines up.
679
00:35:54,419 --> 00:35:59,369
We have a high here we have a high here
680
00:36:00,509 --> 00:36:03,659
We have a high here. The exercise I gave
681
00:36:03,839 --> 00:36:07,439
was that you want to buy support levels
682
00:36:07,469 --> 00:36:11,399
or daily lows or weekly lows and use a
683
00:36:11,399 --> 00:36:13,649
20 PIP stop with a 20 PIP profit
684
00:36:13,649 --> 00:36:15,209
objective. So you're you're trying to
685
00:36:15,209 --> 00:36:18,629
find reward the risk of one to one. Okay
686
00:36:18,629 --> 00:36:21,119
and you want to sell weekly highs and
687
00:36:21,629 --> 00:36:24,899
daily highs with a 20 PIP stop and
688
00:36:24,899 --> 00:36:28,319
looking to make 20 pips gain, okay? And
689
00:36:28,349 --> 00:36:31,949
we're going to look at to simply the
690
00:36:31,979 --> 00:36:34,949
month of June to the present time of
691
00:36:34,949 --> 00:36:37,229
this recording which is the 15th of July
692
00:36:37,229 --> 00:36:40,589
2014. Okay, and we're gonna highlight
693
00:36:40,589 --> 00:36:44,399
that just so we know where we're at. in
694
00:36:44,399 --> 00:36:47,969
deference to what's typically shown in
695
00:36:48,269 --> 00:36:52,079
data. I just want to focus on just this
696
00:36:52,079 --> 00:36:56,729
little area and I'm gonna go off
697
00:36:56,759 --> 00:36:59,579
weightless or change the background a
698
00:36:59,579 --> 00:37:04,469
little bit Now I'm going to go down to a
699
00:37:04,469 --> 00:37:09,449
15 minute timeframe. Okay, and I want
700
00:37:09,449 --> 00:37:12,059
you to notice when we trade down to
701
00:37:12,059 --> 00:37:14,309
these levels here, okay, when we trade
702
00:37:14,309 --> 00:37:17,939
down into that level, okay? We're
703
00:37:17,939 --> 00:37:20,279
looking for reaction, and you would be
704
00:37:20,279 --> 00:37:22,559
trading this reaction with the
705
00:37:22,559 --> 00:37:26,069
expectation of looking for a move of 20
706
00:37:26,069 --> 00:37:30,599
pips. Okay, so when price trades down
707
00:37:30,599 --> 00:37:33,029
into that level, you would use that
708
00:37:33,299 --> 00:37:35,969
specific price point and that would be
709
00:37:35,969 --> 00:37:40,469
167 30 and the low
710
00:37:42,240 --> 00:37:43,800
and it's a little bit
711
00:37:48,390 --> 00:37:53,640
right here. Price trades down into that
712
00:37:53,640 --> 00:37:56,880
level, which is identified by the
713
00:37:56,880 --> 00:37:59,340
exercise we just did, showing you how to
714
00:37:59,430 --> 00:38:02,520
how to arrive at them, the low
715
00:38:08,309 --> 00:38:15,029
is 167 20 so you're buying at 167 32 the
716
00:38:15,029 --> 00:38:18,329
lowest of the low it went was just 10
717
00:38:18,329 --> 00:38:20,369
pips below it. So your stop was never
718
00:38:20,369 --> 00:38:25,409
hit using a 20 PIP stop and looking at
719
00:38:28,199 --> 00:38:29,249
20 pips gain
720
00:38:42,060 --> 00:38:44,100
you'd be buying here and getting out
721
00:38:44,100 --> 00:38:47,430
right there. Okay. That's the exercise.
722
00:38:47,490 --> 00:38:50,130
That's all there is to it. Now again,
723
00:38:50,160 --> 00:38:52,560
the reason why is you're not trying to
724
00:38:52,800 --> 00:38:54,510
find profits. That's not what you're
725
00:38:54,510 --> 00:38:56,400
trying to do. What you're doing is
726
00:38:56,400 --> 00:38:58,350
you're trying to follow a consistent
727
00:38:58,710 --> 00:39:01,470
plan of action. It's to show you how
728
00:39:01,860 --> 00:39:03,960
your, your mind is going to be trying to
729
00:39:03,960 --> 00:39:06,960
resist following the rules of being in a
730
00:39:06,960 --> 00:39:09,930
trading plan, okay? But it's also going
731
00:39:09,930 --> 00:39:13,740
to teach you that you can find a lot of
732
00:39:13,740 --> 00:39:15,990
opportunities where things will line up
733
00:39:15,990 --> 00:39:17,130
for you, but you're also going to
734
00:39:17,130 --> 00:39:20,160
encounter days and opportunities where
735
00:39:20,220 --> 00:39:21,780
it doesn't work out for you, you will
736
00:39:21,780 --> 00:39:23,610
get stopped out for 20 pips. And you'd
737
00:39:23,610 --> 00:39:26,310
be you would do this in a demo account.
738
00:39:26,490 --> 00:39:29,070
Okay? It's also going to teach you that
739
00:39:29,070 --> 00:39:30,750
you're not going to trade every single
740
00:39:30,750 --> 00:39:33,060
day, but it will give you one trading
741
00:39:33,060 --> 00:39:36,300
setup per week. Notice the double lines
742
00:39:36,300 --> 00:39:37,950
here, see that that's a Sunday. So this
743
00:39:37,950 --> 00:39:41,910
whole day here is one day or Monday.
744
00:39:41,970 --> 00:39:43,530
This is Tuesdays actually between the
745
00:39:43,560 --> 00:39:46,230
vertical lines here in here, between
746
00:39:46,230 --> 00:39:49,380
this vertical line here and here is
747
00:39:49,380 --> 00:39:51,990
Wednesday's trading. This is Thursdays
748
00:39:51,990 --> 00:39:54,600
trading. This is Monday's trading, okay.
749
00:39:57,420 --> 00:39:59,580
Using this example, here, this is a
750
00:40:00,270 --> 00:40:02,400
resistance level, okay delineated from
751
00:40:02,400 --> 00:40:05,460
the weekly chart you would sell at this
752
00:40:05,460 --> 00:40:17,790
price level at 168 25 168 25. Right
753
00:40:17,790 --> 00:40:20,970
there and your stop loss
754
00:40:27,210 --> 00:40:31,680
would be up here. So, if you're selling
755
00:40:31,680 --> 00:40:38,820
at once exceed 25 price traded what's a
756
00:40:38,820 --> 00:40:41,940
high if I can get my oh do Hickey here
757
00:40:41,940 --> 00:40:46,740
to work with me. Let's get a little bit
758
00:40:46,740 --> 00:40:53,100
tighter. The range high on that is
759
00:40:53,190 --> 00:41:01,620
168 44. So in here 168 44 It's close he
760
00:41:01,620 --> 00:41:03,960
may depend upon what data feed you were
761
00:41:03,960 --> 00:41:05,790
using and what broker you could have
762
00:41:05,820 --> 00:41:08,250
tagged down it could have very well
763
00:41:08,640 --> 00:41:10,530
taken you out. So that would have been
764
00:41:10,530 --> 00:41:12,900
an opportunity even though it did pan
765
00:41:12,900 --> 00:41:19,170
out and move from that level 20 pips and
766
00:41:19,170 --> 00:41:21,300
would have paid on that one they you
767
00:41:21,330 --> 00:41:22,800
could have you could have very easily
768
00:41:22,800 --> 00:41:24,750
been stopped out. Okay. And that's it
769
00:41:24,750 --> 00:41:26,580
that's the thing that's an exercise for
770
00:41:26,580 --> 00:41:28,800
you to see what it's like to go through
771
00:41:28,800 --> 00:41:31,050
that adversity. Okay and still see it
772
00:41:31,260 --> 00:41:32,640
still moving right in the right
773
00:41:32,640 --> 00:41:34,440
direction. So here we have another
774
00:41:34,440 --> 00:41:37,200
example just doing the same thing. You
775
00:41:37,200 --> 00:41:39,960
will be selling at once to see 825 as
776
00:41:39,960 --> 00:41:43,710
price trades right up to it. your stop
777
00:41:43,710 --> 00:41:51,540
loss again. never touched. Okay. So
778
00:41:51,540 --> 00:41:52,950
appears where your stop loss would be.
779
00:41:54,000 --> 00:41:58,290
20 pips take profit. Right down here on
780
00:41:58,290 --> 00:42:00,810
this candle you'd be filled That's it,
781
00:42:00,870 --> 00:42:03,450
you'd be out. Okay. And you would simply
782
00:42:03,450 --> 00:42:05,400
move to the sidelines. Again, the other
783
00:42:05,400 --> 00:42:07,860
part of the trading exercises, you are
784
00:42:07,860 --> 00:42:10,320
taking specific surgical strikes and
785
00:42:10,980 --> 00:42:13,560
taking out pips, controlled risk,
786
00:42:13,950 --> 00:42:16,170
controlled execution, you know where
787
00:42:16,170 --> 00:42:17,790
you're getting in now, you know, when
788
00:42:17,790 --> 00:42:20,010
you're getting out at, you know exactly
789
00:42:20,010 --> 00:42:21,600
what you're doing when you're doing it
790
00:42:21,660 --> 00:42:23,010
while you're doing it based on a
791
00:42:23,010 --> 00:42:26,520
specific price level that was delineate
792
00:42:26,520 --> 00:42:27,930
from a daily and weekly chart, which are
793
00:42:27,930 --> 00:42:31,290
the two highest important in
794
00:42:31,380 --> 00:42:33,300
institutional levels to be paying
795
00:42:33,300 --> 00:42:34,560
attention to, again, that being the
796
00:42:34,560 --> 00:42:40,260
weekly and daily so we had an example of
797
00:42:40,260 --> 00:42:43,170
a buy during that week. And we had an
798
00:42:43,170 --> 00:42:46,170
example of sell here for that week that
799
00:42:46,170 --> 00:42:48,540
would have panned out as an as a losing
800
00:42:48,540 --> 00:42:51,960
opportunity. We have a new week here
801
00:42:51,960 --> 00:42:53,970
starting on Sunday, right on Monday, we
802
00:42:53,970 --> 00:42:55,890
have that first opportunity trade, boom,
803
00:42:56,190 --> 00:42:58,680
sell into that resistance and get your
804
00:42:58,680 --> 00:43:03,330
20 pips done. Okay, now you can now also
805
00:43:03,420 --> 00:43:05,400
fine tune this a little bit. We
806
00:43:05,400 --> 00:43:07,710
discussed how to make 6%. Right? You can
807
00:43:07,710 --> 00:43:10,650
test the theory of making 6% with one
808
00:43:10,650 --> 00:43:12,810
trade per week by saying okay, well I'm
809
00:43:12,810 --> 00:43:15,330
not going to use a 20 Pip, stop loss and
810
00:43:15,330 --> 00:43:17,310
take profit at 20 pips, I'm going to use
811
00:43:17,310 --> 00:43:22,830
a 30 PIP stop loss and aim to make 25
812
00:43:22,830 --> 00:43:25,050
pips for the weekly goal. Yes, you're
813
00:43:25,050 --> 00:43:28,290
making less than your risk. But you're
814
00:43:28,290 --> 00:43:31,830
also aiming with the mindset that slowly
815
00:43:31,830 --> 00:43:33,330
developed into where you could
816
00:43:33,330 --> 00:43:35,490
potentially look to make that 30 pips
817
00:43:35,490 --> 00:43:38,100
for the 30 pips risk, okay. And then you
818
00:43:38,100 --> 00:43:40,530
take this exercise one step further by
819
00:43:40,530 --> 00:43:42,750
saying, Okay, well, if I can see these
820
00:43:42,750 --> 00:43:45,990
levels like this, why can't I take my
821
00:43:45,990 --> 00:43:49,740
stop loss and reduce it to a 15 PIP
822
00:43:49,740 --> 00:43:53,400
stop. So now if you're selling on that
823
00:43:53,400 --> 00:43:59,910
level, here your stop losses now. See
824
00:43:59,910 --> 00:44:02,970
that So that's how we will use these
825
00:44:02,970 --> 00:44:06,060
exercises going forward. Okay to groom
826
00:44:06,060 --> 00:44:07,890
you into doing the things that you need
827
00:44:07,890 --> 00:44:10,860
to be doing again this is one week
828
00:44:10,890 --> 00:44:14,400
starting here again you're going to let
829
00:44:14,490 --> 00:44:16,170
other trades pass by you don't care
830
00:44:16,170 --> 00:44:19,050
about what the other market setups are
831
00:44:19,050 --> 00:44:22,770
dealing you don't care about that. Where
832
00:44:22,770 --> 00:44:28,110
are we at here? We are did one trade for
833
00:44:28,650 --> 00:44:30,930
you Yeah, that was the Monday so you
834
00:44:30,930 --> 00:44:32,910
would be done for the week if you're
835
00:44:32,910 --> 00:44:35,940
doing once one shot one kill mentality
836
00:44:35,940 --> 00:44:38,700
in developing that. Here we have another
837
00:44:38,700 --> 00:44:42,180
an area here where we're looking for 20
838
00:44:42,180 --> 00:44:46,470
pips stop. Sell that level at the figure
839
00:44:46,470 --> 00:44:50,040
at 170 even 20 PIP stop, never hit you.
840
00:44:51,570 --> 00:44:55,650
Does it pay you to 20 pips? Sure does.
841
00:44:55,680 --> 00:44:57,900
Boom. There's your one shot one kill set
842
00:44:57,900 --> 00:45:01,260
up. Drill for that week. And it does
843
00:45:01,260 --> 00:45:04,470
give you another one right here that
844
00:45:04,470 --> 00:45:06,990
would have paid you again to 20 pips.
845
00:45:08,940 --> 00:45:10,200
But once you get it you moved to the
846
00:45:10,200 --> 00:45:11,970
sideline, you don't worry about again,
847
00:45:12,150 --> 00:45:14,880
here's two scenarios right here where it
848
00:45:14,880 --> 00:45:21,600
does it again. Your stop is obviously
849
00:45:21,600 --> 00:45:25,620
never hit selling it at 160 I'm sorry
850
00:45:25,620 --> 00:45:26,790
170 60
851
00:45:29,430 --> 00:45:35,550
and looking at your 25th target taken
852
00:45:35,610 --> 00:45:36,840
right there, you would have got filled.
853
00:45:37,380 --> 00:45:39,000
same scenario here for another
854
00:45:39,000 --> 00:45:42,120
opportunity. Obviously stop, never hit
855
00:45:42,150 --> 00:45:45,510
song at the big figure. I'm sorry 170 60
856
00:45:46,170 --> 00:45:47,850
paying you. You're 20 pips right there.
857
00:45:48,360 --> 00:45:52,560
wonderful opportunity. Going into a new
858
00:45:52,560 --> 00:45:57,900
week. We have this Sunday here. All
859
00:45:57,900 --> 00:46:02,190
right. We have Price trading down to
860
00:46:02,190 --> 00:46:08,610
this level here buying the level Okay,
861
00:46:08,670 --> 00:46:10,620
here we are at a resistance and support
862
00:46:10,620 --> 00:46:12,450
level based on daily and weekly that red
863
00:46:12,450 --> 00:46:15,180
lines weekly. You would be buying here
864
00:46:15,270 --> 00:46:17,760
with a stop loss 20 pips below this is
865
00:46:17,760 --> 00:46:19,740
where you would absolutely be taken out
866
00:46:19,740 --> 00:46:21,660
of the trade rather quickly if you took
867
00:46:21,660 --> 00:46:23,340
it at all. Okay, so that'd be a losing
868
00:46:23,340 --> 00:46:27,150
trade for you to actually feel in feel
869
00:46:27,150 --> 00:46:28,650
what it's like to go through that.
870
00:46:30,240 --> 00:46:31,890
Here's an area where you'd be selling
871
00:46:31,890 --> 00:46:33,150
that same level because we traded right
872
00:46:33,150 --> 00:46:36,000
back up to it. your stop loss 20 pips
873
00:46:36,000 --> 00:46:39,750
away so you'd sell right at that 170
874
00:46:39,750 --> 00:46:43,380
figure. Stop Loss will be up here. never
875
00:46:43,380 --> 00:46:49,080
hit? does it pay you to 20 pips? Boom.
876
00:46:49,260 --> 00:46:51,750
Yes, it does. Okay. So you would be you
877
00:46:51,750 --> 00:46:53,670
would recoup the loss you took here.
878
00:46:53,940 --> 00:46:56,070
You'd immediately right now be back to
879
00:46:56,400 --> 00:47:02,040
even for the week. Okay, If you were
880
00:47:02,040 --> 00:47:04,800
looking to sell, again that level here,
881
00:47:05,400 --> 00:47:08,040
you would take a loss with this
882
00:47:08,040 --> 00:47:10,350
exercise. If you're taking again, it's
883
00:47:10,350 --> 00:47:13,800
assuming you take multiple entries. So
884
00:47:13,800 --> 00:47:16,920
you would if you sold this level here,
885
00:47:16,920 --> 00:47:18,630
you'd be stopped out for your 20 PIP
886
00:47:18,630 --> 00:47:21,570
loss. Okay, price comes back back down.
887
00:47:21,930 --> 00:47:24,180
This is a same level again, you would be
888
00:47:24,180 --> 00:47:27,120
buying it now. Again for the exercise.
889
00:47:28,170 --> 00:47:30,450
Price comes down that level you buy 170
890
00:47:30,450 --> 00:47:32,100
big figure your stop loss is 20 pips
891
00:47:32,100 --> 00:47:34,380
below it never trades there. does it pay
892
00:47:34,380 --> 00:47:37,890
your 20 pips? Yes. So now you took a
893
00:47:37,890 --> 00:47:40,740
loss here, recouped it here. You took a
894
00:47:40,740 --> 00:47:42,870
loss here recouped it here, your net
895
00:47:42,900 --> 00:47:47,280
even on the week and you go out the
896
00:47:47,280 --> 00:47:49,770
week, not even. That's a good exercise.
897
00:47:50,040 --> 00:47:51,630
That's a good learning experience for
898
00:47:51,630 --> 00:47:54,240
you that week. We go into a new week
899
00:47:54,240 --> 00:47:59,820
here, up to a level Okay, you have
900
00:47:59,820 --> 00:48:01,380
stopped loss above that level selling
901
00:48:01,380 --> 00:48:04,860
short blows you out 20 pips stop loss
902
00:48:04,890 --> 00:48:07,350
done. Okay, you're out of a loss. He
903
00:48:07,350 --> 00:48:09,600
starts the week. Again as a net loser.
904
00:48:10,920 --> 00:48:14,280
We got to another level. Notice it
905
00:48:14,280 --> 00:48:16,140
doesn't get to it right here fell short
906
00:48:16,140 --> 00:48:18,330
of a little bit. You sell short on that
907
00:48:18,330 --> 00:48:23,550
level of stop losses above 171 80. So at
908
00:48:23,550 --> 00:48:25,560
that price level and does it pay your 20
909
00:48:25,560 --> 00:48:28,740
pips? Yes. Be patient. Okay, so you
910
00:48:28,740 --> 00:48:31,230
recoup the loss you took here. Now
911
00:48:31,230 --> 00:48:34,680
you're even for this week. There's two
912
00:48:34,680 --> 00:48:37,440
weeks, you had no gains, but you're able
913
00:48:37,440 --> 00:48:39,930
to recoup the losses. Very, very
914
00:48:39,930 --> 00:48:40,710
important lesson.
915
00:48:46,140 --> 00:48:49,350
Price comes down to this example we
916
00:48:49,350 --> 00:48:51,900
showed earlier in the video explaining
917
00:48:51,930 --> 00:48:55,530
how to get the four to one scenarios. So
918
00:48:55,530 --> 00:48:56,520
this is where we're at right now
919
00:48:56,520 --> 00:48:58,530
presently. We trade up to that same
920
00:48:58,530 --> 00:49:05,430
level here intraday. selling this level
921
00:49:05,430 --> 00:49:08,520
at 171 ad using a 20 PIP stop never got
922
00:49:08,520 --> 00:49:13,380
tagged. Did it pay your 20 pips? Yes,
923
00:49:13,380 --> 00:49:17,580
indeed. Okay, so you're able to capture
924
00:49:17,580 --> 00:49:19,380
this one here and capture this one here
925
00:49:19,650 --> 00:49:22,560
using the trading exercises. And it's
926
00:49:22,560 --> 00:49:24,540
again, it's meant to develop your
927
00:49:25,410 --> 00:49:27,120
consistency of following a plan,
928
00:49:27,510 --> 00:49:29,160
regardless of whatever that makes money
929
00:49:29,160 --> 00:49:31,080
every single time or not. You don't care
930
00:49:31,080 --> 00:49:33,630
whether or not if you get to trade every
931
00:49:33,630 --> 00:49:35,850
single day, you're looking for weekly
932
00:49:35,850 --> 00:49:37,920
and daily highs and lows. Once they
933
00:49:37,920 --> 00:49:40,290
trade there, boom, you just go back over
934
00:49:40,530 --> 00:49:43,410
your charts of recent price action, you
935
00:49:43,410 --> 00:49:45,660
know, two, three months at tops and go
936
00:49:45,660 --> 00:49:47,250
through those levels, have them on your
937
00:49:47,250 --> 00:49:49,440
charts, okay, delineate them and then
938
00:49:49,440 --> 00:49:52,050
color, you know, fashion you like I use
939
00:49:52,050 --> 00:49:53,640
red for the weekly and green for the
940
00:49:53,640 --> 00:49:55,590
daily. It could be whatever, whatever
941
00:49:55,590 --> 00:49:58,440
you like. It doesn't have to be exactly
942
00:49:58,440 --> 00:49:59,970
how I'm showing it to you in turn.
943
00:50:00,000 --> 00:50:02,520
Colors and thicknesses and all that.
944
00:50:02,760 --> 00:50:03,930
It's a matter of preference what you
945
00:50:03,930 --> 00:50:06,690
want to differentiate those levels based
946
00:50:06,690 --> 00:50:09,300
on whether the weekly or daily and don't
947
00:50:09,300 --> 00:50:11,220
think too much about setting precedence
948
00:50:11,220 --> 00:50:13,290
over weekly being better than a daily
949
00:50:13,290 --> 00:50:15,960
for now just use the swing points and
950
00:50:15,960 --> 00:50:18,480
highs and lows that we discussed earlier
951
00:50:18,480 --> 00:50:22,260
in the video to build you the basis for
952
00:50:22,260 --> 00:50:24,660
the the initial steps and finding your
953
00:50:24,660 --> 00:50:27,750
excellence in execution. And until the
954
00:50:27,750 --> 00:50:30,780
next edition, I wish you good luck and
955
00:50:30,780 --> 00:50:31,380
good trading.