2022 ICT Mentorship Episode 24

Introduction and Mindset

In this section, the speaker introduces the video and emphasizes the importance of having the right mindset when watching it.

Importance of Proper Mindset

• The speaker urges viewers to consider why they are watching the video.

• Viewers are warned against being disruptive or disrespectful in the comments section.

• The speaker stresses that what is shown in this video is not a gimmick but real market delivery.

• Viewers are encouraged to be responsible, attentive, and listen carefully to what is being taught.

Comment Section and Backtesting

In this section, the speaker discusses how viewers can interact with him through the comment section and explains how backtesting works.

Comment Section

• The comment section is open for viewers to ask questions or provide feedback.

• The speaker uses viewer comments to steer future lessons in specific directions.

• Viewers are encouraged to be respectful when commenting.

Backtesting

• Viewers are advised not to trade or demo trade but instead look for patterns through backtesting.

• A backtesting episode will be done upon request from viewers who have a proper mindset.

ICT Experience

In this section, the speaker talks about another segment of his mentorship program called "ICT Experience."

ICT Experience

• The ICT Experience involves community posts where viewers can get updates on charts and ideas from the speaker.

• This area is not meant for direct communication with the speaker but rather as an additional resource for learning.

• Disrespectful comments will result in a ban from posting.

Conclusion

In this final section, the speaker concludes by providing a specific task for viewers to try.

Task

• Viewers are instructed to open their NASDAQ and E-mini S&P 15-minute charts and drop a horizontal line across them.

Importance of Studying and Critical Thinking

In this section, the speaker emphasizes the importance of studying and critical thinking in trading. He also talks about why he refrains from doing live sessions and how responsibility is lacking in trading.

The Importance of Studying

• Watching videos alone will not translate to understanding how to trade.

• It is important to study charts and understand specific patterns.

• Mindset is crucial for success in trading.

Responsibility Lacking in Trading

• Responsibility is lacking across all countries, ages, and demographics in trading.

• The speaker refrains from doing live sessions because of this lack of responsibility.

• Critical thinking is necessary for success in trading.

Examples of What Critical Thinking Is Not

• The speaker gives an example of a commenter who misunderstands his teachings on entry stop targets.

• Another example is given where someone blindly follows a strategy without understanding it.

The Importance of Demo and Paper Trading

In this section, the speaker emphasizes the importance of demo and paper trading. He explains that everything he teaches is under the guise of demo and paper trading, which is compliance. He also mentions that none of his students should be trading this model with live funds.

The Risks of Live Trading

• The speaker explains that live trading can be risky, especially if someone loses money.

• He emphasizes that it's not his fault if someone loses money while live trading.

• The speaker highlights that demo and paper trading give traders the freedom to think about what they're doing without the tug-of-war of making or losing money.

Compliance and Mentorship

• Everything taught by the speaker is under the guise of demo and paper trading for compliance purposes.

• Paid mentorship students sign an agreement acknowledging that everything taught is under the pretense of demo and paper trading.

• The speaker mentions that he has been saying for six years to stop listening to people who claim to start another mentorship.

Disrespectful Comments Will Be Removed

In this section, the speaker talks about disrespectful comments on his channel. He warns viewers against posting disruptive or disrespectful comments as they will be removed.

Respectful Disagreement vs. Disruptive Comments

• Viewers are entitled to their opinions but must disagree respectfully.

• Disrespectful comments are disrespectful to the speaker and other viewers, and they will be removed.

• The speaker warns that any nonsense meant to start a ruckus will result in the channel being blocked.

Take Accountability for Your Actions

In this section, the speaker emphasizes the importance of taking accountability for one's actions. He explains that he did not tell anyone about a trade and that viewers should not get caught up in all the frenzy to be pushing any buttons yet.

Live Trading is Viewers' Responsibility

• Viewers must take accountability for their actions when taking trades.

• The speaker did not tell anyone about a trade, so viewers should not get caught up in all the frenzy to be pushing any buttons yet.

Introduction

In this section, the speaker apologizes for a previous post and explains that he won't tolerate negative behavior. He also introduces the topic of the E-mini Nasdaq 100 futures contract.

Apology and Introduction to Topic

• The speaker apologizes for a previous post and promises not to repeat it.

• Negative behavior will not be tolerated.

• The E-mini Nasdaq 100 futures contract is introduced as the topic of discussion.

Analysis of E-mini Nasdaq 100 Futures Contract

In this section, the speaker analyzes the daily chart of the E-mini Nasdaq 100 futures contract for June 2022 delivery month.

Analysis of Daily Chart

• The daily chart is analyzed.

• The speaker predicts that there could have been a run higher followed by a drop lower based on certain patterns observed in the chart.

Validity of Trading Model

In this section, the speaker discusses how having a valid trading model can prevent bad trades.

Importance of Valid Trading Model

• A valid trading model can prevent bad trades.

• Not all bad trades can be prevented, but some can be avoided with a sound logic behind the model.

Logic Behind One Hour Chart Analysis

In this section, the speaker explains his logic behind analyzing a one hour chart and looking for specific patterns.

Importance of Non-Farm Payroll Friday

• Thursday's analysis is discussed in relation to Non-Farm Payroll Friday volatility.

Catalyst for Run Up to Relative Equal Highs

• The speaker explains the catalyst for a run up to relative equal highs.

• Dropping down into a discount is discussed as a point of interest for finding setups.

Understanding Fair Value Gap

In this section, the speaker explains the concept of fair value gap and how it is related to time. He also talks about volatility and how traders can look for displacement.

Fair Value Gap

• The fair value gap is the price where a pattern should form by itself.

• Time is an important element in determining the fair value gap.

• At 9:30, there is expected to be some volatility dropping down into that area.

Looking for Displacement

• Traders should look for displacement when trading below an old low.

• If there is no energetic move above that old low, then it's not a good idea to buy.

Taking Responsibility for Trading Decisions

In this section, the speaker emphasizes the importance of taking responsibility for one's trading decisions. He also talks about impulsivity and self-control in trading.

Impulsive Trading

• Buying impulsively without following proper logic can lead to financial ruin.

• The responsibility lies solely on the trader, not on anyone else.

• It takes a lot of logic and adherence to rules to succeed in trading.

Self-Control

• Having self-control is crucial in trading.

• Studying charts thoroughly before making any decisions can help prevent impulsive trades.

• There are many ways to trade, so traders should find what works best for them.

Importance of Self-Control in Trading

In this section, the speaker emphasizes the importance of self-control in trading and how it can prevent impulsive decisions that lead to losses.

Slow Incremental Pieces

• The speaker teaches slow incremental pieces because traders who lack self-control tend to do things impulsively.

• Traders who lack self-control are more likely to blow up their accounts.

Responsibility and Ownership

• The speaker does not put his students in a position where they have to be handheld through a trade.

• Traders must take responsibility for their results, whether good or bad.

• Success is earned through hard work, backtesting, studying, forward testing, and producing a track record that one can feel confident in.

Championing Success

• The speaker never tells anybody when to trade with live funds.

• If traders make money, it is their success and well-deserved. They should never champion the teacher for their success.

Enduring Losses

• Traders need to make a promise to themselves that they will endure losses as long as they are trading.

• Trading is all about managing losing trades. Every trader is a losing trader that finds success out of loss or suffers ruin in it.

Where Setups Form

In this section, the speaker talks about where setups form and provides details on the model used.

Model Details

• The model used by the speaker involves identifying key levels of support and resistance on higher timeframes such as daily charts.

• Once these levels are identified, traders look for price action signals on lower timeframes such as 4-hour charts.

• Price action signals include pin bars, engulfing bars, and inside bars.

• Traders should also look for confluence between the price action signals and the key levels of support and resistance.

Understanding Price Movement

In this section, the speaker explains how to identify a bearish scenario in the market and what to look for in price movement.

Identifying a Bearish Scenario

• A bearish scenario is identified by equal highs.

• The trigger for a trade is when the market goes above the relative equal high and then breaks back down below it with displacement.

• Once you have the displacement leg, you can look for fair value to short into.

Two Entry Strategies

In this section, the speaker discusses two entry strategies for trading based on fair value gaps.

Entry Strategy 1: Bearish Market

• If there is an old fair value gap above and the market is below it, wait until it trades up to the relative equal highs.

• Once it takes out the low of the fair value gap and trades in there, go back through that leg and look for fair value.

Entry Strategy 2: Bullish Market

• If there is an old fair value gap below and the market is above it, wait until it trades down to the relative equal lows.

• Once it takes out the high of the fair value gap and trades in there, go back through that leg and look for fair value.

Missed Trades and Toxic Thinking

In this section, the speaker talks about how he missed a trade due to market conditions and how it does not mean that his models are broken. He also discusses toxic thinking and how it can impact trading.

Missed Trade

• The speaker planned to enter a trade but the market did not provide the structure for it.

• This does not result in a losing trade because the logic was not utilized.

• The speaker encourages viewers to apply the logic themselves as homework.

Toxic Thinking

• The speaker advises against beating oneself up over missed trades.

• Negative thinking is toxic and unproductive.

• The speaker will not entertain negativity in his videos.

Trading Advice vs. Price Action Study

In this section, the speaker clarifies that he does not give trading advice but rather teaches price action study.

Price Action Study

• The speaker emphasizes that he never tells viewers to buy or sell anything.

• Instead, he teaches viewers to study specific elements of price action.

• This is transferable knowledge that requires practice and endurance.

Trading Advice

• The speaker distinguishes between price action study and trading advice.

• He warns against those who pretend they never make mistakes or always catch runs.

• Viewers should change the channel if his teaching style does not fit them.

Mental Impact of Losses

In this section, the speaker discusses losses in trading and their mental impact.

Types of Losses

• Missing moves is considered a loss in trading.

• Taking a monetary loss or demo trade is also considered a loss.

Mental Impact

• Viewers have control over their mental response to losses.

• They can choose to amplify negative feelings or learn from them instead.

• The speaker encourages viewers to condition themselves to handle setbacks without being completely derailed.