Unfolding Truth

Name: Unfolding Truth
Uploaded: 2023-03-24T11:43:53.000Z
Duration: 5 h 46 min 47 s
Description: Twitter Space ICT 23/03/2023

Introduction

The speaker introduces the topic of the video and discusses how not all of his tools are applicable to every trader.

Not All Tools Are Applicable

The speaker has a lot of tools, but not all of them are applicable.

Over time, traders will see which tools meet their criteria for their model.

Some tools won't resonate with certain traders.

Unfolding Truths

The speaker talks about simple truths that he showcases daily on Twitter and in live streams.

Simple Truths Showcased Daily

The speaker showcases simple truths daily on Twitter and in live streams.

These truths are based on information he's already talked about in his lectures.

Seeing these truths happen live removes any doubt about whether they actually happen in the marketplace.

Complicating Simplicity

The speaker encourages traders to simplify their analysis by focusing only on what's pertinent.

Simplify Analysis by Focusing on Pertinent Information

Traders should put aside everything they try to reach for using various concepts and processes.

Traders should focus on simplicity that's available to them instead of complicating it with unnecessary information.

Not every PD array is in every fractal of price action, so traders need to consider only what's pertinent.

Utilizing Every Available PD Array

The speaker discusses how he utilizes every available PD array when doing pyramid entries.

Utilizing Every Available PD Array for Pyramid Entries

When doing pyramid entries, the speaker utilizes every available PD array.

He does this so viewers can see examples of different types of pyramiding entries and choose which one resonates with them.

Viewers don't need to do a pyramid entry; they can do a full pull and go all out at the Terminus.

Parlaying Equity Size to Enormous Heights

In this section, the speaker discusses how management and other factors can help traders parlay their equity size to enormous heights.

Focus on Examples

The speaker encourages viewers to focus on examples and determine where they entered pyramid entry based on study.

Viewers should look for PV arrays that jump off the chart and are most important to them.

Start with one PV array and do the most work with it until you find continuity in reading price.

Price is Not Random

Price is not random, and manipulation in markets is very real.

The speaker encourages viewers to pay attention to examples of executions by students and himself.

High impact news drivers like FOMC rate announcements or non-farm payroll can lead to unfavorable conditions for a short period of time.

Trading Strategies

Medium or high impact news drivers provide low resistance liquidity runs, which is what the speaker teaches as a mentor.

The speaker engages in high resistance conditions but acknowledges that it requires more babysitting.

Mitigation blocks can be used when trades don't pan out well.

Experienced traders understand when to reverse trades if they're showing willingness not to go lower.

Observing the Market

In this section, the speaker talks about observing the market and setting up for the afternoon. They discuss the fair value gap and how it sets the tone for intraday trading.

Observing the Market

The speaker is observing the market on FOMC day.

They mention a fair value gap around 40.26-40.28 level on a five-minute basis.

The speaker gives an imbalance with a dealing range in that blue shaded fair value gap.

It's important to think like these protocols put you in front of your charts looking for these signatures that repeat that come into the marketplace so you're not reacting to price you're anticipating.

Anticipating Price Movements

In this section, the speaker discusses anticipating price movements and how to operate in a symmetrical market.

Anticipating Price Movements

Expecting it to trade back down into the opening range Gap.

The opening range gap sets the tone for how we can trade intraday.

We have to anticipate some measure of continuation when there's a lack of symmetry meaning indices are doing opposite things they're not in agreement one's going up.

Taking Notes and Understanding Liquidity

In this section, the speaker emphasizes taking notes and understanding liquidity as visible property in analysis.

Taking Notes and Understanding Liquidity

It's important to write down notes because if you don't, you won't remember what was said.

You have to anticipate some measure of continuation when there's a lack of symmetry meaning indices are doing opposite things they're not in agreement one's going up.

Liquidity is visible, and it goes without saying if you look at a book map or the ladders on depth of Market level two data you're gonna see numbers right above what you can see on your chart that would be an old high.

The speaker teaches how to trade naked where there's no indicators no reliance on some Subscription Service thing no indicator-based idea.

Understanding Buy Side Liquidity

In this section, the speaker discusses understanding buy-side liquidity and how it affects trading.

Understanding Buy Side Liquidity

Above old highs, we can see buy-side liquidity as visible property in analysis.

We don't care about the ratio of what amount of buying on a breakout or buying a short covering exit; we just know that that's a market truth above old highs or a.

Understanding Liquidity and Market Manipulation

In this section, the speaker discusses how to identify pools of liquidity in the market and how to avoid falling victim to market manipulation.

Identifying Liquidity

Below swing lows is a pool of liquidity in the form of sell-side orders.

Above swing highs is a pool of liquidity in the form of buy-side orders.

Avoiding Market Manipulation

Don't rely too heavily on indicators or overlays; instead, focus on reading the chart itself.

Understand that markets seek out obvious levels of liquidity above old highs and below old lows.

Spend time studying old price moves with an eye towards identifying who was being targeted and who got hurt.

Harmonic Patterns vs Order Flow

In this section, the speaker compares harmonic patterns to order flow analysis.

Harmonic Patterns

A bullish gartley pattern may indicate that the market will go up, but it's not as reliable as understanding order flow.

Order Flow Analysis

The algorithm seeks out obvious levels of liquidity where orders would be resting or inefficiencies such as fair value gaps or volume imbalances.

The market can see old highs and lows but cannot see the number of orders above or below them because human psychology is being manipulated by placing stops above old highs and below old lows.

Preventing Trading Mistakes

In this section, the speaker discusses how to prevent common trading mistakes.

Common Trading Mistakes

Many traders rely too heavily on indicators and overlays, resulting in blown accounts.

Learning to read the chart itself is more important than relying on any particular indicator or overlay.

Preventing Trading Mistakes

Spend time studying old price moves with an eye towards identifying who was being targeted and who got hurt.

Place a narrative on what clearly took place by annotating charts with as much detail as possible.

Understanding Time Aspects In Trading

In this section, the speaker emphasizes the importance of understanding time aspects in trading. He explains that by paying attention to certain signatures that tend to repeat at specific times of the day, traders can anticipate expected delivery and price.

The Importance of Time Aspects

Traders should pay attention to certain signatures that tend to repeat at specific times of the day.

By looking at how the market is being delivered during a particular session, day or week, traders can anticipate expected delivery and price.

There are certain process successes little lists of orders which is a macro it starts to activate at these times.

Understanding time aspects helps traders avoid surprises and make more informed decisions.

Macros and Signatures

Macros are little time windows when subtle nuances come into price delivery and the market will start running.

Specific macros include 9:50 - 10:10 AM, 10:50 - 11:10 AM, 3:15 - 3:45 PM in the last hour of trading.

Signatures refer to changes in state of delivery such as flipping from opening price or retracement back down into opening price.

Conclusion

The speaker concludes by stating that understanding time aspects is crucial for anticipating expected delivery and price. By paying attention to macros and signatures, traders can make more informed decisions and avoid surprises.

Understanding Order Blocks

In this section, the speaker explains how to identify bullish order blocks and how they can signal a change in the state of delivery.

Identifying Bullish Order Blocks

A down close candle with a fair value gap in the market is bullish.

If the market trades down into it and touches that opening price of the down close candle, it's a bullish order block.

This signals a change in the state of delivery.

Anticipating Market Movements

In this section, the speaker emphasizes the importance of anticipating market movements and understanding subtle changes in order flow.

Waiting for Confirmation

If you have a bullish breaker and the market trades down below it, it fails to get above it or support it.

If it trades back up into it like a springboard trampoline, send it higher.

However, if you don't pick up on subtle changes in order flow where now it's not likely to do that, what is happening is that it's returning back to that order block which is a breaker and signals a change in the state of delivery.

Once it gets back to those inversion levels because it could be a breaker or mitigation block, we want to see if we can trade through or act as resistance/support.

The Importance of Learning Order Blocks

In this section, the speaker discusses why learning about order blocks is important for successful trading.

Submitting to One Idea

By understanding concepts such as fair value gaps and order blocks through real-time examples provided by experienced traders like ICT (the speaker), traders can learn how to anticipate market movements with confidence.

Traders who learn these concepts have a strange sense of confidence that others who don't learn them lack.

By submitting to one idea and waiting for it to present itself, traders can avoid anxiety and worry about missing a move.

Building Confidence Through Anticipation

In this section, the speaker emphasizes the importance of anticipation in building confidence as a trader.

The Importance of Anticipation

When you anticipate something, it means you have the foresight to know it's likely to occur.

Traders who learn how to stalk, hunt, and anticipate market movements with confidence are more successful than those who don't.

By learning how to anticipate market movements through concepts such as order blocks and fair value gaps, traders can build their confidence and avoid ambiguity about whether or not they will see what they're waiting for.

Learning from Real-Time Examples

In this section, the speaker discusses the benefits of learning from real-time examples provided by experienced traders.

Learning from Experienced Traders

By learning from experienced traders like ICT through real-time examples provided in live streams or on Twitter, traders can gain valuable insights into how to anticipate market movements with confidence.

Traders who learn these concepts have a strange sense of confidence that others who don't learn them lack.

By watching live streams or following experienced traders on Twitter, traders can gain valuable insights into how to anticipate market movements with confidence.

Turtle Soup to Trade Down Here

In this section, the speaker discusses a trading strategy that involves waiting for displacement at the downside and then selling short the fair value gap that forms.

Trading Strategy

Wait for displacement at the downside.

Sell short the fair value gap that forms.

Try to do it with five handles, but aim for ten handles.

Allow for the market to trade up into the second fair value gap if there are two gaps.

Be willing to let go without trading if it doesn't meet expectations.

Market Truths

In this section, the speaker talks about market truths and how traders should manage their expectations when it comes to fills and slippage.

Managing Expectations

Not getting your best fill or experiencing slippage is a market truth.

It's important not to obsess over what didn't happen favorably with your entry.

Don't make a mountain out of a molehill; focus on managing trades instead of worrying about fills.

Developing Over Time

In this section, the speaker emphasizes that developing as a trader takes time and effort. He encourages traders to set low-hanging fruit objectives and be patient with themselves as they develop their skills.

Developing as a Trader

Developing as a trader takes time and effort; don't expect immediate results.

Set low-hanging fruit objectives like aiming for five handles per trade.

Five-handle trades are easy and can be achieved in back-and-forth markets.

Give yourself permission to develop over time; don't get discouraged by slow progress.

Trading Strategies and Understanding the Market

In this section, the speaker discusses how to properly approach trading and grow at a normal rate without performance anxiety. He emphasizes that traders should not compete with others outside of themselves and instead focus on finding opportunities in every session.

Proper Approach to Trading

Traders should not compete with others outside of themselves.

Focus on finding opportunities in every session by looking for five handles instead of going after big moves.

Anticipate, stalk your prey, and know when it's going to show up when you're a hunter.

The speaker has already set up trail cams or windows in trading the kill zones.

Understanding the Market

The speaker knows what the market is going to do, when the price is going to spool, and what liquidity is going to reach for because he has set up trail cams or windows in trading the kill zones.

The speaker proves his understanding on Twitter live in tweets that can't be augmented or changed.

The speaker's ability to predict market movements should build confidence in traders.

Traders need to understand elements of time coupled with liquidity coupled with inefficiencies and repricing.

Daily Bias

Knowing daily bias flawlessly is essential but difficult for most students coming into trading. Rushing into trades without proper understanding will result in losing money.

The Importance of Learning

In this section, the speaker emphasizes the importance of learning and how he is dedicated to teaching his students.

The Speaker's Dedication to Teaching

The speaker tells his audience that he has been teaching for a long time through live data lectures.

He emphasizes that he is not motivated by ad revenue or social media support but rather by helping those who want to learn.

He assures his audience that what he teaches works and has been working for years, as evidenced by his successful students.

The Reality of Trading

In this section, the speaker talks about the reality of trading and how it requires experience and knowledge.

Trading Requires Experience

The speaker explains that trading requires experience and knowledge, which can only be gained through practice.

He emphasizes that he is sharing his experience with his students through Twitter calls and live stream lectures.

He encourages his audience to follow in his footsteps and stay on the well-beaten trail he has forged.

Learning from Experience

In this section, the speaker talks about how he is lending his experience to help others learn about trading.

Lending Experience Through Twitter Calls

The speaker shares specific levels on Twitter calls to help others learn about trading.

He encourages his audience to have an epiphany moment where they realize there is something more than randomness in trading.

He emphasizes that he does not have to do these live streams or talk on Twitter all day but does so because he wants to help others learn from his experience.

Trading Futures vs Forex

In this section, the speaker discusses why he is focusing on teaching about futures instead of forex and how traders can apply the information to forex trading.

Focus on Futures

The speaker's attention is currently on futures.

The concepts he teaches work in forex as well, so traders can apply them to forex trading.

Understanding Market Symmetry

It's important to understand market symmetry and how it aids a trader's perspective and analysis technique.

Market symmetry refers to when the dollar is up, ES (E-mini S&P 500) is down, and foreign currencies are down as well. This creates lower lows and higher highs across the board.

If ES and Forex are both going up while the dollar consolidates instead of going lower, that means there is manipulation happening. Traders need to trade this condition differently.

By understanding market symmetry, traders can identify different degrees of market delivery such as high resistance or symmetrical markets.

Importance of Dollar Index Analysis

Traders should not throw out the dollar index because they're watching two markets.

By analyzing the dollar index from a macro perspective, traders can determine where the dollar, pound, and euro will go.

When using market analysis concepts from a macro perspective such as risk-on/risk-off or expecting bearish conditions for ES trading, traders should also consider how these conditions affect the dollar index.

Importance of Taking Notes

In this section, the speaker emphasizes the importance of taking notes during his discussions and understanding how it can help improve a trader's performance.

Million Dollar Making Stuff

The speaker believes that taking notes during his discussions can help make a trader's performance superior to others'.

He encourages listeners to write down important concepts such as high resistance or symmetrical markets.

By going into price moves and seeing how these concepts play out, traders can convince themselves of the effectiveness of these concepts.

Investment in Yourself

The speaker believes that listening to his discussions and taking notes is an investment in oneself.

He emphasizes that he's not doing this for another mentorship run or to get more money out of traders. He loves teaching people how to trade and transform their lives.

Importance of Understanding PDA Arrays

In this section, the speaker emphasizes the importance of understanding all PDA arrays and not just relying on one. He also stresses the need to have a complete understanding of trading concepts and techniques.

Understanding PDA Arrays

It is important to understand all PDA arrays, not just rely on one.

You need to understand all PDA arrays until you settle on the one you like.

Knowing the different PDA arrays can help identify institutional order flow entry drills.

Trading Techniques

The speaker explains how he identified a trade opportunity by waiting for displacement.

Waiting for fair value gap can be an effective entry technique.

The speaker encourages traders to use their own model but warns against being lazy in learning new concepts.

Opening Range and Day of Week Analysis

In this section, the speaker discusses opening range analysis and how it relates to day of week analysis.

Opening Range Analysis

The first 30 minutes after market open is crucial for opening range analysis.

Premium means that we are opening with a gap higher than where we closed in regular session hours.

Market opened at a premium, rallied up, traded to five-minute fair value city low which ended up being high of day before selling off into open range gap.

Day of Week Analysis

Thursday tends to create opposite end of weekly range so anticipate likelihood of market topping out.

Understanding Price Action in Real Time

In this section, the speaker explains how he predicted market movements and walked viewers through every candle. He emphasizes the importance of observing and recording critical thoughts without being emotionally strung out.

Predicting Market Movements

The speaker outlines where he thinks the market is going to go and why it should gravitate lower.

The market goes right back up to the high of that opening range gap, then starts selling off.

The speaker explains how bear shoulder blocks repel price and how volume imbalances affect price movement.

The market trades down into fair value cap at 85, then reaches for the low of that opening range gap low.

Observing Price Action in Real Time

Viewers are encouraged to observe and pull in their experience while watching live streams.

Recording observations without anxiety or stress-driven annotations is important for building a trading model.

Positive self-talk cancels out necessary evils that come with beginning trading.

Subconscious retention occurs when traders see something that repeats over time due to fair value gaps, delivery to old lows/highs, and imbalances.

Viewers are encouraged to anticipate before the speaker says what will happen.

Trading Mindset

The speaker wants viewers to practice recording observations without being emotionally strung out because not all trades will move in their favor.

High resistance liquidity runs can be like arguing internally with price action.

Traders should focus on times when they know it will be hard and avoid over-leveraging or trading too much.

Trading in Low Resistance Liquidity Run Conditions

In this section, the speaker talks about how to trade in low resistance liquidity run conditions and the importance of taking easy wins.

Importance of Easy Wins

The speaker promises that it will be quick and easy to reach your limit order in low resistance liquidity run conditions.

When you have windfall victories in these conditions, it's important not to get trapped into thinking that you need to push your edge and do it again. Instead, take your win and go home happy about it.

The speaker emphasizes that we're not in this industry to do lots of trading. It's better to take a few trades with high probability setups than many trades with lower probability setups.

Characteristics of Low Resistance Liquidity Run Conditions

In these conditions, there is a jet pack behind the trade and it moves quickly. We want to be in those trades that run instead of just hanging around.

The speaker explains how he walked his students through a recent example of low resistance liquidity run conditions where they could see both sides of the market behavior.

It's important to log how you feel during these market conditions without emotionalizing them. Negative recordings can manifest subconsciously and affect your interpretation of future market behavior.

Understanding Market Behavior

In this section, the speaker discusses how understanding market behavior can help traders make better decisions.

Importance of Understanding Market Behavior

The speaker emphasizes that understanding market behavior is crucial for making good trading decisions.

He explains how he uses market structure to identify high probability setups and how he teaches his students to do the same.

The speaker talks about how market behavior can change depending on the time of day, news events, and other factors.

Market Structure

The speaker explains how he uses market structure to identify key levels of support and resistance.

He emphasizes that it's important to understand the context of these levels and not just blindly trade them.

The speaker talks about how he uses multiple time frame analysis to confirm his trades.

Trading Psychology

In this section, the speaker discusses the importance of trading psychology and how it affects traders' decision-making.

Importance of Trading Psychology

The speaker emphasizes that trading psychology is one of the most important aspects of successful trading.

He talks about how traders need to be aware of their emotions and biases in order to make good decisions.

The speaker explains how he helps his students develop a positive mindset by focusing on process over outcome.

Developing a Positive Mindset

The speaker talks about how he encourages his students to focus on process goals rather than outcome goals.

He emphasizes that traders need to have a growth mindset in order to learn from their mistakes and improve their skills.

The speaker explains how he helps his students develop discipline by setting rules for themselves and sticking to them.

Importance of Journaling

In this section, the speaker emphasizes the importance of journaling for traders and how it can help them overcome fear and negativity.

The Negative Impact of Self-Talk

Recording negative self-talk in a journal or posting it on social media can poison a trader's subconscious and lead to fear.

Negative self-talk reinforces the belief that one is a loser, which can manifest in their actions during trading.

Toxic YouTubers who try to make themselves look better than others are doing harm to themselves by reinforcing negativity.

The Importance of Positive Self-Talk

Traders need to coach themselves, cheerlead themselves, and pamper themselves through positive self-talk in their journals.

Journaling is not just for weak traders; it helps traders develop into successful ones.

Traders who do not use positive self-talk will likely struggle with emotional instability while trading.

Learning Trading Requires Boredom

In this section, the speaker explains why learning trading requires boredom and how emotional stimuli can be counterproductive during early development.

The Need for Boredom During Learning

When learning trading, it is important to bring oneself to a level of anticipation without any emotional stimuli that could be distracting.

Traders should learn every boring detail about charts and channels before moving on to more exciting aspects of trading.

Emotional Stimuli Can Be Counterproductive During Early Development

Emotional stimuli can distract traders from learning all the details they need to know about trading.

It is important to avoid emotional stimuli during early development and focus on learning the boring details of trading.

Submitting to Price Delivery

In this section, the speaker discusses how he teaches traders to submit themselves to price delivery and why it is important.

The Importance of Submitting to Price Delivery

The speaker teaches traders how to submit themselves to price delivery during live sessions.

Traders who are highly critical may miss out on profitable moves because they panic and make everything a competition.

Applying Gaming Theory and Money Management to Trading

In this section, the speaker discusses how applying gaming theory and money management to trading can lead to optimal results.

Plateau of Learning

When a trader reaches a plateau in their learning, they become bored and know what to expect from their trades.

Applying gaming theory and money management can increase accuracy and precision without emotional stimulation.

Optimal F applied to risk management leads to increased equity.

Desensitizing Yourself

To prepare for successful trading, traders must desensitize themselves to the ebb and flow of equity in trades.

The speaker emphasizes the importance of remembering discussions about trading strategies during live streams or Twitter spaces.

Traders who have never experienced profitable trades with real money may struggle when profits start building up quickly.

Paralyzed by Profit

Traders may become paralyzed when profits start building up quickly in a trade without a limit order or partials set.

It is important for traders to have a model outlined with profit targets and partials before entering trades.

Without preparation, traders may experience attention deficit disorder when everything is happening at light speed.

Dealing with Distractions During Trading

In this section, the speaker discusses how distractions can negatively impact trading decisions.

Attention Deficit Disorder

Traders experiencing high-speed changes in equity may develop attention deficit disorder during trades.

Distractions such as spouses talking or other noises can compete for attention during critical moments in trades.

Preparation is Key

Having a model outlined with profit targets and partials before entering trades can help prevent distractions from impacting decision-making.

Traders should be prepared for unexpected changes in equity during live trades.

Trading Mindset

In this section, the speaker discusses the importance of having a strong trading mindset and being confident in your abilities as a trader.

Importance of Confidence

Having confidence in your abilities as a trader is crucial to success.

It's important to trust yourself and your decisions, even if they don't always work out.

Anticipating Price Action

Successful traders are able to anticipate price action and make informed decisions based on their analysis.

This requires discipline, precision, and a deep understanding of technical analysis.

Different Mindset

The speaker emphasizes that successful traders have a different mindset than those who are unsuccessful.

They approach trading like soldiers going into battle, with confidence and an understanding of what they're walking into.

Monster Lab Mentality

In this section, the speaker discusses how his students are trained to be successful traders with a "monster lab" mentality.

Savage Traders

The speaker describes his students as "Savage claws fangs everything," indicating that they are highly skilled and aggressive traders.

He emphasizes that his students are not average traders but rather "mutants" who approach trading with precision and discipline.

Technical Analysis vs Fundamentals

The speaker argues that technical analysis is more important than fundamentals when it comes to trading successfully.

He suggests that everything you need to know can be found in the technical indicators on the chart.

Finding Victims in the Market

Successful traders know how to find the next victim in the market and take advantage of their mistakes.

They are able to anticipate price movements and make informed decisions based on their analysis.

Understanding Market Inefficiencies

In this section, the speaker explains how market inefficiencies can be exploited to make profits in trading.

Exploiting Market Inefficiencies

Smart money rebalances an inefficiency and then sends it to the sell side or buy side.

If the market is consolidating, it will eventually expand.

If a consolidation is not around expected times, anticipate expansion.

The market moves to the opposite range if smart money has taken a position on one side.

Spend time watching price action and understanding why it moves in certain ways.

Importance of Diligence and Consistency

This section emphasizes the importance of diligence and consistency when learning about trading.

Learning Trading Effectively

Treat learning trading like you're learning the highest form of financial warfare.

Consistently show up and take it seriously like a business.

Organization is key for success in trading.

Watching videos alone won't make you successful; you need to put in effort and practice.

Understanding Market Sessions

This section discusses how different sessions affect the market and how traders can use this information to their advantage.

Morning vs. Afternoon Sessions

Signatures in AM session differ from those in PM session.

Knowing opening range gap helps anticipate future movements.

Unfilled opening range gaps lead to exaggerated retracements past lunch hour.

Use morning sessions after FOMC or large range day for intel gathering only.

Mapping Out Terrain for Trading Success

This section explains how traders can map out terrain for successful trades by identifying liquidity, fair value gaps, strongholds, etc.

Collecting Intel for Successful Trades

Identify liquidity, fair value gaps, strongholds, and other key factors.

Stack up victims in PM session where liquidity is high.

Use intel gathered to release the hounds of hell during the 2 o'clock hour.

Watch price unfold like you've outlined it.

The Power of Price Action

In this section, the speaker emphasizes the importance of understanding price action and how it can lead to a significant increase in confidence and success in trading.

Understanding Price Action

Observing price action can give traders a sense of power and confidence.

Learning how to read price action can be life-changing.

Even new traders can learn to call every minor fluctuation in the market with precision.

Many traders did not believe it was possible to have such accuracy before learning about price action.

Developing Expertise in Price Action

Traders should focus on getting good at reading price action rather than making money.

Desensitization to market fluctuations is key for consistent success.

Immediate feedback from observing up-close candles is crucial for determining if a trader's direction is correct.

Experience helps traders make better decisions when seeing premium arrays or bearish signals.

Example: Dollar Index and ES

The speaker walks through an example of how he predicted the movement of the Dollar Index and ES using his knowledge of price action.

Understanding Macro Analysis

In this section, the speaker explains how macro analysis works and how it can be used to identify trends in the market.

Balancing Market Interpretation

The speaker explains that traders need to balance what they are reading from price delivery and other markets that are important.

They constantly interpret these factors to determine when things will happen around certain times of the day.

Quarterly Shifts and Seasonal Tendencies

The speaker discusses quarterly shifts, which involve major macro changes in the tide of direction and price action.

Traders need to identify whether they are in a bearish or bullish market and work with that information.

Seasonal tendencies also play a role in identifying trends. Traders should focus on weeks that are likely to expand on the weekly candle in the direction of seasonal tendency.

Leverage and Risk Management

Traders should limit their exposure to risk based on their higher time frame macro analysis.

When analyzing Sunday or Saturday before the market opens up, traders should expect that weekly candle to expand lower if they're expecting a quarterly shift being bearish.

Traders can use potentially their largest leverage or pyramid when everything is framing an idea that they're trying to build a position going short with everything in their favor going down.

Managing Risk Based on Higher Time Frame Order Flow

In this section, the speaker emphasizes managing risk based on higher time frame order flow.

Going Against Macro Order Flow

The speaker advises against pushing violently with your equity if you're going against macro order flow.

If you know you're going against it, why would you risk more? Why would you push your account?

Building Positions Going Short

Everything is framing an idea that you're trying to build a position going short with everything in your favor going down.

Traders can do pyramiding and build their positions when everything is in their favor.

The Importance of Being Teachable

In this section, the speaker emphasizes the importance of being teachable and open to learning. He uses the parable of the Jade Master to illustrate how students should approach their instructors with humility and a willingness to learn.

The Parable of the Jade Master

The speaker shares the parable of the Jade Master, where a young man approaches a master pretending to be knowledgeable about jade.

The master puts the young man through various exercises and chores to teach him discipline and patience.

The speaker emphasizes that students should approach their instructors with humility and a willingness to learn, rather than thinking they already know everything.

He explains that drills and exercises are meant to build discipline and patience in students.

Fortifying Understanding

The speaker explains that his lectures aim not only to teach but also fortify understanding.

He emphasizes that students will lean on these discussions when faced with challenging situations in trading.

Students should submit themselves to new ideas instead of panicking when things don't go as planned.

Avoiding Panic

The speaker warns against freezing in confusion, panic, or bewilderment when making money from trades.

He cautions against thinking that getting lucky with demo accounts is an invitation for real trading.

Students who think like this are selling themselves short.

Building Equity Base

Instead of taking unnecessary risks, students should aim for building up their equity base over time by making consistent profits.

The speaker encourages students to aim for a 6% profit on their account and build it up over months to make 50% in six months.

This approach will help students avoid the temptation of taking unnecessary risks and instead build a solid foundation for trading.

Learning About Yourself

The speaker emphasizes that learning about oneself is an essential part of trading.

Students may be intimidated by how much they have learned in such a short period, but this is all part of the learning process.

Trading Takes Time

In this section, the speaker emphasizes that trading takes time and effort to master. He advises traders not to rush their learning process and instead focus on understanding their models.

Big Money Takes Years

The speaker notes that none of his students who have made big money did so in a short period.

Real fund managers will tell you it takes years to know how to trade.

You can be profitable in less time, but you won't truly know your model until you've spent years trading.

Knowing Your Model

The key is knowing when your model is going to materialize in price and being there on time.

You don't need to be able to walk into any market environment and find a pound of flesh like the speaker can.

All you need is discipline, responsibility, and the ability to close your charts when it's done.

The Gambler Mentality

When traders experience success, they feel a sense of accomplishment that can be intoxicating.

However, this feeling wears off quickly, leading traders to want more success immediately.

Traders must exercise discipline and keep the gambler mentality from taking over.

Live Trading with Real Money

In this section, the speaker discusses what it feels like for new traders putting on their first live trades with real money. He advises them to start small and focus on price rather than profit.

Weight of the World

Putting on your first live trade with real money feels like the weight of the world is on your neck.

Even if you're trading very small leverage, it feels like your heart's going to stop.

It's important for new traders to start small and talk to themselves, reminding themselves of what they did in the demo.

Focus on Price

New traders should take their money out of the equation and focus on price.

They should avoid worrying about profit and counting ticks up and down.

The worst thing new traders can do is have the money tab showing them their profit.

Trading Lessons Learned

In this section, the speaker discusses the importance of trusting your model and not trading impulsively. He emphasizes that trades should be made to make money, not to impress others or distract oneself.

Trusting Your Model

Trades can feel like a lifetime, but as you do more of it and trust your model, it feels like nothing.

Discoveries about yourself and the market will be uniquely personal. How you deal with them is an individual experience.

New levels mean new devils in this industry until you know yourself, your model, and the market conditions you operate in.

Trading Impulsively

Don't trade just because you're bored or want to distract yourself from something else.

Trades are there to make money, not to make yourself feel better or impress others.

Don't invite impulsive behavior by trading outside of your model. Use your journal to remind yourself what you intend to do each day.

Conclusion

The speaker stresses that trades should always be made with the intention of making money and not for any other reason. It's important to trust your model and avoid impulsive behavior when trading.

Importance of Having a Trading Plan

In this section, the speaker emphasizes the importance of having a trading plan and writing it out. He compares it to a playbook in football and explains how it helps with discipline and responsibility.

Writing Out Your Plan

It is important to have a notepad where you write out your plan of attack.

Just like in football, every player on the team understands the strategy because they have a playbook.

Writing out your plan makes you more inclined to wait for the setup to form instead of impulsively reacting like retail traders.

Forging Discipline and Responsibility

Having a written-out plan helps forge discipline and responsibility.

In the beginning, traders need to be diligent about following their plan as that's where everyone tends to be reckless.

The speaker advises being patient and giving yourself time when going through funded account challenges.

Teaching New Traders

In this section, the speaker talks about teaching new traders by resetting paper accounts and letting them execute trades. He also emphasizes patience when going through funded account challenges.

Resetting Paper Accounts

The speaker resets his son's paper account and lets him execute trades based on what he thinks he would do in a combine challenge.

This helps new traders understand what it feels like to lose money without actually losing any real money.

Patience is Key

The speaker advises his son not to rush through funded account challenges just because they say you have to trade five days or less.

He compares work hardening for children with making them work jobs that wouldn't be flashy but help them understand that they don't want to spend their lives doing menial tasks.

Wrestling with Impulsive Trading

In this section, the speaker talks about his son's impulsive trading behavior and how he is trying to teach him self-control.

Teaching Self-Control

The speaker's son is very competitive and a bit of a trash talker on Xbox Live.

He is eager to start trading impulsively and show off his skills on social media.

The speaker wants to teach his son self-control before letting him trade with real money.

He warns his son that trading impulsively will only lead to failure.

The speaker wants his son to feel the weight of failure so that he can learn from it.

The Dangers of Proving Yourself

In this section, the speaker talks about the dangers of constantly trying to prove oneself and how it can lead to impulsive behavior in trading.

Proving Yourself

People often try to prove themselves by elevating their perspective in other people's eyes.

This desire for validation can lead to impulsive behavior in trading.

The speaker hopes that he can teach his son not to fall into this trap.

Humble Pie

In this section, the speaker talks about how his son learned a valuable lesson about humility through paper trading.

Learning Humility

The speaker's son had a taste of humble pie when he tried paper trading for the first time.

His ego was bruised when he realized that he couldn't trade as well as he thought.

The speaker hopes that his son will learn from this experience and not beat himself up too badly about it.

Show Me What You Would Do

In this section, the speaker talks about how he challenged his son to show him what he would do in a paper trading account.

Paper Trading Challenge

The speaker challenged his son to show him what he would do in a paper trading account.

He wanted his son to experience the weight of making trades without risking real money.

The speaker hopes that this challenge will help his son develop self-control and avoid impulsive trading behavior.

Mentoring and Preparing Traders

In this section, the speaker talks about his experience mentoring traders and preparing them for real trading. He emphasizes the importance of following a model and not letting emotions drive trading decisions.

Importance of Following a Model

The speaker explains that traders need to know when not to trade with real money.

He warns against manifesting desires to trade instead of following a model.

The speaker shares examples of students who faded everything he said in commentary and failed in their results.

Dealing with Recklessness

The speaker discusses how difficult it is to make some students understand what they are doing wrong.

He shares an example of a student who was going in the opposite direction despite being told otherwise.

The speaker talks about his son's experience with hiding losing trades and how it is important to embrace mistakes rather than hide from them.

Lessons Learned

The speaker emphasizes the importance of being prepared before trading with real money.

He stresses the need for transparency when showing trades to mentors or teachers.

The speaker encourages traders to learn from their mistakes rather than beat themselves up over them.

Over-Leveraging in Demo Accounts

In this section, the speaker discusses how new traders often over-leverage their demo accounts and engage in silly games instead of practicing and studying.

Over-Leveraging Demo Accounts

New traders often over-leverage their demo accounts to run up fake numbers.

This is not a constructive use of a demo account.

Instead, traders should practice entry drills with very low drawdown and do lots of sample sets.

Traders should focus on waiting for the market to trade into an order block or fair value gap and try to nail the middle point.

This is a skill set that should be practiced on all time frames.

Timing Drills

In this section, the speaker discusses timing drills and how they can help traders condition themselves to wait for trades.

Fair Value Gap Timing Drill

Traders should practice timing drills by waiting for the market to trade into an order block or fair value gap.

When it hits the midpoint, traders can time it right then and there.

This completely desensitizes oneself to selling short in up moves because one has done it hundreds of times before.

Traders who are scared of doing this need to condition themselves by practicing these timing drills.

Encouraging Young Traders

In this section, the speaker talks about his son's interest in trading and how he wants him to do everything right.

Encouraging Young Traders

The speaker's son is interested in trading, but he needs guidance so that he does everything right.

The speaker wants his son to avoid playing stupid games and winning stupid prizes.

He encourages his son to practice and study instead of engaging in silly games.

The speaker is very interested in making sure his son does everything right because he knows that once he starts trading, it's a recipe for disaster if he doesn't.

Teaching Proper Trading Habits

In this section, the speaker discusses the importance of teaching proper trading habits to his son and shares some exercises he uses to help him learn.

Importance of Learning Properly

The speaker wants his son to learn properly so that he can avoid toxic thinking and lazy habits.

He emphasizes the importance of doing laboratory experiments, timing entries, and trying to do entries with the least amount of drawdown.

The speaker recommends an exercise where you drop down into a 15-second chart and wait for price to run up into a volume imbalance or premium fairway gap on a 15-second chart right before it goes to a new low.

Exercises for Learning

The speaker shares an exercise where he uses a five-second chart or 15-second chart and tries to get three or four handles before it runs out on old low.

He shows his son how this exercise can be done quickly in just three minutes, which is equivalent to a whole week at a coffee shop dealing with distractions.

The speaker believes that experiencing menial jobs will motivate his son never to want to do them again.

Money Management

The speaker learned the hard way that giving children money without earning it makes things harder as a parent because they don't appreciate money.

He shares how his older daughter squandered her money and got herself into financial trouble.

Having money doesn't make things easier; it makes things harder as parents when kids know you have it.

Empowering Children

In this section, the speaker talks about how parents should empower their children and not create adversities for them. He shares his experience of bailing out his children from debt but realizing that he did not equip them with the necessary skills to handle finances.

Empowering Children

Parents should empower their children and free them from adversities.

Bailing out children from debt does not equip them with necessary skills.

The speaker's youngest son is motivated to learn financial management after seeing his brother do it.

The speaker wants to ensure that his son Cameron is successful in building a legacy for his future family.

Cameron's Personality

In this section, the speaker talks about his son Cameron's personality and how he wants him to be successful. He also warns him about the consequences of seeking attention online.

Cameron's Personality

The speaker believes that Cameron will be more successful than him at a young age because of his personality.

Cameron wants all the attention and has a hit list of people he wants to make look stupid.

The speaker warns Cameron about putting negative energy online as it will come back to him.

Personal Family Matter

In this section, the speaker shares a personal family matter involving his son and girlfriend potentially having a child. He discusses how this situation complicates things for both families.

Personal Family Matter

The speaker found out that they were potentially grandparents but later found out it was not true.

The situation has complicated things for both families as the girlfriend is supposed to start college and the speaker's son is not going to college.

The girlfriend's parents are professionals and have raised successful children, but they do not understand what the speaker does with homeschooling.

Concerns about Future Grandchildren

In this section, the speaker expresses his concerns about becoming a grandfather and how it may affect his son's future.

Worries About His Son's Future

The speaker worries that his son will be judged by his girlfriend's parents for not going to public school or college.

He believes that working a traditional job with limited income potential is not as desirable as being able to earn money consistently through trading.

The speaker wants to motivate his son to earn enough money so that he can prove himself to his girlfriend's parents and eliminate any doubts they may have about him.

Personal Feelings on the Matter

The speaker admits that he is angry at the idea of someone thinking his son is not good enough for their daughter.

He wishes he could confront his son's girlfriend's parents and explain why their concerns are unfounded.

Becoming a grandfather at this point in time would be too much of a change for the speaker and his wife.

Preparing Children for Financial Resilience

In this section, the speaker talks about his experience with his children and how he is preparing them to be financially resilient.

Teaching Financial Resilience

The speaker shares that he never contemplated what it would feel like if one of his children got pregnant or got themselves in a situation where they got their girlfriend in trouble.

He encourages his son Cameron to focus on making six figures a year after taxation as it is still comfortable living and above the median income in America.

The speaker wants to prepare all his kids to be resilient from falling victim tip and not have to lean on him to bail them out because something bad's coming in the future.

Dealing with Adult Children

The speaker discusses how he deals with adult children who do not want to listen. He tells them that if they don't want to follow his advice, then they should stay where they're at financially because he won't change it for them.

He shares that Cody had a little case of the ass for a while when he didn't talk for a couple of months because Cody thought the speaker should give him money because he has it. However, the speaker believes that bailing Cody out will not help him learn financial resilience.

Conclusion

The speaker wants his children to learn how to trade something outside of crypto and become financially resilient.

The Dangers of Financial Depression

In this section, the speaker talks about how financial depression can affect an individual's decision-making process and lead to reckless trading. He shares a personal story about his son Cody's experience with financial depression after a long-term relationship ended.

Personal Experience with Financial Depression

Cody's separation from his long-term girlfriend who got together with someone well-to-do affected him badly.

Cody has been depressed since then, and it is physical depression that affects his decision-making process.

Throwing money at him did not help, and the speaker regrets doing so.

The speaker let Cody stay in that position so he could come around on his own.

Everyone has debt, and sparing kids from it does not teach them anything.

How Financial Depression Affects Trading

When depression hits you, every decision you make is not clear-headed.

Mistakes made in life can derail one's trading if they are not careful.

Recklessly plowing into the market hoping to win is no different from gambling at a casino.

Importance of Boring Trading

Trading should be methodical and boring like running a business.

Running Trading Like a Business

In this section, the speaker discusses the importance of treating trading like a business and separating personal life from trading.

Separating Personal Life from Trading

Trading is an island of itself, and it's important to keep personal stuff out of it.

Don't invite other people into your trading, including spouses or partners.

Be honest with your partner about what you're doing but keep them out of it to avoid mental baggage and adverse impacts on your trades.

It's better not to invite adversities that can come from sharing results with others.

Running Trading Like a Business

Treat trading like a business by engaging in high probability low-risk opportunities and managing them until they are over.

Practice discipline by turning off charts after each session or trading day.

Show results to your spouse at the end of the year instead of every day or week to avoid their opinions affecting your trades.

Be honest with your partner when it's time to pay taxes and show them what you were able to do.

Trading and Relationships

In this section, the speaker discusses how involving a spouse or partner in trading decisions can lead to emotional decision-making and negative consequences for both the trader and the relationship.

Emotional Decision-Making

Involving a spouse or partner in trading decisions can lead to emotional decision-making.

Fear of not being able to present details and results to a spouse can cause traders to make decisions based on external factors rather than their trading model.

Allowing emotions to drive trading decisions can cause traders to become unraveled and over-leverage trades.

Separating Trading from Relationships

Inviting a spouse or partner into trading decisions can create issues that would not exist if the trader separated their personal life from their business operations.

Traders should view themselves as the CEO of their trading business and keep their spouse or partner out of board meetings. At the end of the year, they can discuss what was done and how proceeds will be spent.

Managing Trading and Relationships

In this section, the speaker discusses how to manage trading and relationships. He emphasizes that in a husband-wife team, one person should be the CEO while the other is there for moral support.

One Person Should Be the CEO

The speaker suggests that in a husband-wife team, one person should be the CEO while the other is there for moral support.

Two minds looking at trading decisions are not generally going to agree.

Somebody has to know that they're the one making decisions and the other is subordinate to that.

Encouraging Your Partner

The partner who is not making decisions should cheerlead their partner on and not place any more stress on them than necessary.

If your partner doesn't want to talk about their trading day, let them talk when they want to talk about it.

If you give your partner any more reason to feel like he has to put out a fire when there isn't one, he'll start one.

Consequences of Not Managing Trading and Relationships

Losing money can cause problems between partners if one feels unsupported or if animosity arises due to recklessness.

Managing Income as a Partnership in Marriage

In this section, the speaker discusses how to manage income as a partnership in marriage.

How to Spend Money as a Partnership

Throughout the year, earn money for the year and then sit down with your partner to decide how to spend it.

If you have children under 17, you can pay them each year without having any income taxes taken from that by setting up an LLC or S corp.

If you have adult children, set up a Family Management LLC where you can pay them a gift each year through the LLC and they don't have to pay taxes on that income.

Advantages of Setting Up Your Business

In this section, the speaker talks about advantages of setting up your business.

Advantages of Setting Up Your Business

As an employee at your job, you don't have any advantages like health benefits.

When you set up your LLC and start making money, write off expenses for health insurance and everything else.

As long as you talk about or do business during travel time while working on vacation, all travel expenses are tax-deductible.

Protecting Yourself When You Have Money

In this section, the speaker discusses how to protect yourself when you have money.

Protecting Yourself When You Have Money

Incorporate yourself if you're able to make money.

Get umbrella policies that protect you from being sued for different things.

Importance of Personal Life and Financial Management

In this section, the speaker emphasizes the importance of managing personal life and finances correctly to avoid impulsiveness in trading.

Change Your Way of Thinking

The speaker advises changing one's way of thinking about relationships, work life, and money management.

Managing finances correctly can prevent impulsiveness in trading.

Having all financial protections in place can help traders be mentally prepared for trading.

Fortify Yourself

New traders should fortify themselves against people trying to take what they have or victimizing them.

Changing perspectives on personal life and relationships can prevent impulsiveness in trading.

Run Your Life Like a Business

Traders should run their lives like a corporation or business to balance personal life, work life, financial decision making, and trading.

Personal relationships should not have a place in decision-making as it leads to impulsive behavior.

Avoid Taking Out Frustration on Trading

In this section, the speaker discusses how arguments or disagreements with spouses or family members can lead to impulsive behavior while trading.

Arguments Can Lead to Impulsivity

Arguments with spouses or family members are common but can lead to impulsive behavior while trading.

It is important not to let personal issues affect trading decisions.

Overall, the speaker emphasizes that managing personal life and finances correctly is crucial for successful trading. Personal relationships should not have a place in decision-making, and traders should avoid letting personal issues affect their trading decisions.

Balancing Trading and Life

In this section, the speaker talks about the importance of having a hobby outside of trading to channel energy and maintain balance in life. He shares his personal experience of being obsessive with trading and how it affected his relationships.

Importance of Having a Hobby Outside of Trading

It is important to have a hobby outside of trading to channel your energy, whether it be positive or negative.

This hobby could be anything such as going to the gym, working out, martial arts, playing music or an instrument, art, etc.

Having something outside of trading helps you disconnect from the market and not feel like you're suffocating without it.

You need to make sure that you're doing that hobby away from the marketplace and not thinking about getting back to charts or trading.

Personal Experience with Obsessive Trading

The speaker had a long period where everything was about trading. He constantly had to see the ticker tape every 10-11 minutes even when visiting other people.

This obsession affected his relationships with family members and children. His personal health and fitness also suffered.

When making money from trading, it changes you and makes you want more. It can become your whole purpose in life if you never came from money.

Carrying your phone around while doing other things or constantly looking at your phone for market updates is not healthy.

Importance of Scheduling Balance in Life

You need to schedule balance in your life in the beginning so that it keeps balance in your life.

It is easy to get obsessive with trading even if you're not an obsessive person when you start making money.

You need to have something outside of trading and your marriage too.

The Dangers of Obsessing Over Money

In this section, the speaker talks about how obsessing over money can lead to a lack of satisfaction and negatively impact one's personal life.

The Pitfalls of Obsessing Over Money

When you become obsessed with making more money, it is never enough.

Pouring more money into the marketplace becomes a report card for success.

Obsessive behavior leads to neglecting family and loved ones.

Time lost due to obsessive behavior cannot be regained.

Finding Happiness and Success

In this section, the speaker discusses how finding happiness and success requires balance in one's personal and professional life.

Achieving Balance

Determining what is "enough" for oneself is crucial in achieving balance.

Being constantly online or on social media can lead to neglecting personal relationships.

Helping others and being uplifting is an important aspect of living a fulfilling life.

Minding one's own business and having a game plan are key factors in achieving success.

Regrets and Life Lessons

In this section, the speaker reflects on his past mistakes and shares valuable life lessons he has learned.

Reflecting on Past Mistakes

Despite being successful, the speaker regrets putting his family aside for his career.

Seeking acceptance from loved ones who are no longer present can lead to negative behaviors such as obsession with image and money.

Replacing negative behaviors with positive ones of equal or greater value is crucial in achieving personal growth.

The Importance of Impacting Lives

In this section, the speaker talks about how sharing his knowledge and seeing the impact it has on people's lives is healing for him. He also emphasizes the importance of having a positive impact on others.

Impacting Lives

The speaker finds comfort in hearing people share their success stories after learning from him.

Having an impact on other people's lives is something that cannot be measured by money.

Many students in the speaker's mentorship program choose not to do interviews but still share their testimonies openly within the community.

Seeing and hearing his students describe their transformation and newfound confidence is emotional for the speaker.

Starting Out Right

In this section, the speaker stresses the importance of starting out right when pursuing a new venture. He warns against developing toxic habits and impulsive gambling, which can lead to losing time with loved ones.

Starting Out Right

It is important to be diligent in the beginning stages of pursuing a new venture.

Toxic habits such as impulsive gambling can creep in without realizing until it's too late.

It is important to consider who you allow to influence you when starting out.

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Motivation for Future Study

In this section, the speaker encourages the listener to stay motivated and continue studying.

Encouragement to Stay Motivated

The speaker advises the listener to stay motivated.

Today was a little bit harder than it needed to be, but the listener should keep going.

The speaker wishes the listener a good weekend and says they will be back at it again on Monday.

The speaker reminds the listener to be safe.