ICT Mentorship 2022 Introduction

Preparation for Upcoming Mentorship

Introduction to the Mentor's Approach

• The speaker introduces themselves as "the demo baller," emphasizing their use of a demo account for personal protection and teaching.

• They address skepticism from students regarding the effectiveness of their teachings in live trading, attributing failures to lack of discipline or adherence to instructions.

• The mentor encourages students to test their teachings in real market conditions, highlighting that perfection is not the goal but rather consistency over time.

Target Audience and Teaching Philosophy

• The mentorship is aimed at individuals who are eager to learn trading, particularly those who have struggled previously.

• The mentor expresses a desire to simplify concepts for easier understanding, especially for their daughter, aiming for clarity without overwhelming complexity.

• They acknowledge that advanced theories can lead to analysis paralysis among students, making it difficult for them to make decisions.

Discipline and Responsibility in Trading

• Emphasizing personal responsibility, the mentor warns about the dangers of improper training and urges respect for trading tools and strategies.

• A stripped-down version of trading concepts will be taught, focusing on specific models without introducing excessive information.

Trading Focus: Futures and Price Action

• The mentor plans to teach using index futures while also noting that Forex traders can apply similar concepts.

• They share their background as a commodity trader since 1992, transitioning into intraday trading which suited their lifestyle better than long-term position trading.

Goals of the Mentorship Program

• The aim is not perfection but improving understanding of price action and recognizing repeating setups with common characteristics.

Understanding the Teaching Approach

The Structure of Learning

• The instructor emphasizes a specific teaching method, stating that they will not take suggestions on how to teach differently. The focus is on structured learning rather than providing trade setups.

• Students are encouraged to study price movements and concepts taught, with an emphasis on transitioning from being a "yearner" to a "learner," and ultimately an "earner."

• The mentorship program is expected to last three to four months, with no content provided during March 2022 due to personal commitments.

Practical Application of Concepts

• In 2022, the instructor aims to demonstrate concepts in real trading environments outside of demo accounts, reinforcing the idea that students should be able to see practical applications.

• A warning against developing dependency on the instructor's guidance is given; students must learn independently for true growth and ownership of their results.

Individual Experiences in Trading

• The instructor reflects on past mentorship experiences where some students have struggled while others excelled. This highlights the unique journey each trader undergoes.

• Acknowledgment that some students may not follow instructions effectively or may attempt shortcuts, which could hinder their success.

Commitment and Participation

• Students are urged to engage fully with suggested drills and homework. Even if unable to participate live, reviewing recorded sessions is encouraged.

• Realistic expectations are set regarding participation; the instructor will not adjust schedules for individual needs but encourages commitment from all students.

Transitioning Platforms for Teaching

• Moving away from MT4 due to concerns about its reliability and potential for manipulation; TradingView will be used as the primary teaching platform.

• TD Ameritrade is chosen as a reputable platform for live trading due to its regulation by industry standards, ensuring transparency in trades.

Understanding Trading Platforms and Personal Experience

The Shift from Traditional Platforms

• The speaker expresses confidence that students can learn using platforms like MT4 or MT5, but has moved away from them due to concerns about potential manipulation and fraudulent results.

Live Trading vs. Demo Accounts

• Emphasizes the importance of live trading experiences over demo accounts, noting that demo accounts do not accurately reflect real-time price action and trading conditions.

Psychological Impact of Trading Results

• Discusses the psychological challenges faced by developing traders when comparing their results to those of more experienced traders, which can lead to feelings of inadequacy.

• Reflects on personal experiences in the 1990s where witnessing significant profits made by others felt overwhelming and discouraging for a novice trader.

The Unique Nature of Trading

• Describes trading as both simple and complex; it can be easy yet feels impossible for many due to its unique demands on personal responsibility and emotional resilience.

• Highlights the transition from demo to live trading, where every tick becomes significant, impacting success or failure directly.

Ownership and Responsibility in Trading

• Stresses the necessity for traders to take full ownership of their actions; success or failure is solely dependent on individual decisions without external blame.

• Points out that many individuals lack the mental fortitude required for successful trading, regardless of teaching quality or methods used.

Personal Challenges and Beliefs

• Shares personal struggles with mental health issues such as OCD, ADHD, and bipolar disorder while maintaining belief in the ability of others to succeed despite similar challenges.

• Asserts that skills in trading are transferable but must be actively developed by each student through practice and dedication.

Choosing a Broker: A Practical Approach

• Promises transparency by showing results outside a demo account using TD Ameritrade as a regulated broker choice for various asset classes beyond forex.

• Explains the advantages of using brokers like TD Ameritrade that offer diverse trading options (forex, futures, commodities), allowing flexibility based on market conditions.

Technical Transition Challenges

• Clarifies that while he does not endorse TD Ameritrade financially, he appreciates their reliable fills and confirmations during trades despite facing technical layout challenges transitioning from other platforms.

Introduction to a Hypothetical Income-Based Strategy

Overview of the Financial Context

• The speaker introduces a practical example of a financial strategy, emphasizing that it is based on real money rather than just theoretical or demo accounts.

• The objective is to teach a conceptual income-based strategy, not to outperform other traders but to provide foundational knowledge for potential success.

Market Analysis and Trading Setup

• Discussion centers around the e-mini S&P March delivery contract for 2022, showcasing a two-minute chart with specific entry and exit points.

• The speaker illustrates recent trades taken, highlighting short positions and small scalps as part of the trading strategy.

Entry and Exit Strategies

• Emphasis on understanding optimal trade entries and exits; precision in directional bias is crucial while forgiving entries are encouraged.

• The mentorship will focus on identifying setups conceptually, allowing traders to find more opportunities over time.

Building Confidence in Trading

Understanding Market Mechanics

• If traders can consistently capture 25 handles from the e-mini S&P market, they can achieve significant results even without large initial margins.

• Introduction of micro contracts allows traders with lower capital to participate effectively in the market.

Legal Considerations for U.S. Traders

• A warning about legal restrictions for U.S. traders regarding CFDs; emphasis on trading through regulated futures markets instead.

Simplifying Trading Concepts

Visual Learning Approach

• The goal is to simplify complex trading concepts by reducing distractions on charts; clarity in visual representation aids understanding.

• Key levels are highlighted visually without excessive chart clutter, focusing on liquidity matrices involving buy-side and sell-side dynamics.

Consistency in Finding Setups

• With proper training, traders should be able to identify at least one good setup per week; consistency leads to better outcomes over time.

Long-Term Financial Goals Through Trading

Practical Application of Earnings

• Encouragement for traders to think about how their earnings could cover essential expenses like rent or car payments over time.

Mindset Towards Trading Success

• Emphasizes patience and commitment; success may not come immediately but can be achieved through consistent effort and learning.

Mentorship Overview and Schedule

Introduction to Mentorship Goals

• The speaker aims to teach viewers how to anticipate market movements independently, enhancing their ability to read price action effectively.

• The mentorship program is expected to last around four months, with a break in March where no content will be uploaded due to vacation.

Content Delivery Schedule

• The YouTube mentorship will feature episodes released on Fridays, with additional uploads on Tuesdays and Thursdays.

• Assignments and PDF resources will be provided throughout the week; however, specific schedules for these materials are not guaranteed.

Community Engagement

• Viewers can access information and downloadable resources via the community tab on the channel, promoting active participation in the learning process.