2022 ICT Mentorship - Index Futures Review June 27, 2022

2022 ICT Mentorship - Index Futures Review June 27, 2022

Market Review and Personal Trading Experience

Overview of the Trading Day

  • The speaker introduces a review of the S&P 500 and Nasdaq, noting some distractions during trading due to personal circumstances.
  • Despite challenges, the speaker managed to achieve a positive outcome, aiming for around $4,000 in trades while using a live account.
  • The speaker emphasizes transparency in trading practices, addressing skepticism about paper trading versus real trading.

Technical Analysis Insights

  • Discussion on swing highs in price action; references "Street Smarts" by Linda Rasch and Larry Connors as a recommended resource for understanding market patterns.
  • Introduces the concept of the "three drives pattern," indicating potential reversals after three consecutive higher swings.

Market Behavior Observations

  • Notes overlapping price action and its implications for market direction; highlights how retail traders might react to broken support levels.
  • Describes observing market behavior where traders may mistakenly view previous support as resistance after it is broken.

Personal Challenges During Trading

  • Shares an anecdote about being distracted by pets during trading sessions, which affected focus and decision-making.
  • Discusses closing trades prematurely due to loss of concentration caused by distractions from pets entering the office.

Mental Health Considerations in Trading

  • The speaker candidly discusses managing ADHD and OCD while trading, emphasizing that these are hurdles rather than disabilities.
  • Reflects on mood fluctuations related to bipolar disorder and how they impact trading performance throughout the day.

Summary of Trading Outcomes

  • Concludes with reflections on missed opportunities for greater profits but expresses contentment with overall earnings despite challenges faced during the session.

Trading Insights and Emotional Management

Managing Expectations in Trading

  • The speaker discusses the importance of not entering trades with unrealistic expectations, especially after a previous performance that did not meet their standards.
  • Advice is given to exit a trade if distractions hinder focus, emphasizing that it’s often better to kill the trade than to hold onto it while distracted.

Emotional Awareness During Trades

  • The speaker reflects on personal emotions affecting trading decisions, noting feelings of anger due to external distractions and self-blame for allowing them.
  • A specific trading decision is described where the speaker exited positions as soon as they recognized emotional interference, despite missing potential profits.

Market Preferences and Strategies

  • The preference for trading S&P over Nasdaq is explained; the speaker is currently teaching their son about market focus before returning to Nasdaq for personal trading.
  • Discussion on using market structure highs instead of candle wicks for setting stops in volatile markets like Nasdaq, suggesting this approach may yield better results.

Observations on Forex Trading

  • The speaker expresses disinterest in Forex trading at present due to trust issues with the market's reliability, preferring cleaner setups in other markets.
  • A brief mention of a recorded discussion about Forex's future indicates ongoing concerns and a hiatus from trading in that space.

Execution Challenges and Real-Life Distractions

  • An analysis of recent trades shows challenges faced during execution due to real-life distractions (e.g., pets), impacting focus and decision-making.

Trading Insights and Personal Reflections

Trading Decisions and Market Conditions

  • The speaker discusses recent trading activities, detailing purchases made at specific prices: three at 39.12, one at 39.09, and another at 39.11.75.
  • Acknowledges the lack of favorable trading conditions in the afternoon session, particularly in forex markets, expressing disinterest in engaging with them due to their "sloppy" nature.

Communication Style and Content Delivery

  • The speaker mentions a new format for sharing thoughts via Twitter Spaces while driving, likening it to a podcast where he expresses his unfiltered opinions.
  • A warning is issued regarding potential offensive language during live sessions; the speaker admits to losing control of his tongue occasionally when animated.

Editing and Authenticity

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Video description

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.