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ICT Mentorship - Core Content - Month 02 - How Traders Make 10% Per Month
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ICT Mentorship - Core Content - Month 02 - How Traders Make 10% Per Month

Traders Making 10% Per Month

In this section, the speaker discusses how traders can make 10% per month by using a case study on the Aussie dollar. They identify the 75.12 level on a daily chart and bring it down to an hourly chart.

Identifying Liquidity Pools

  • There are buy stops above us, indicating liquidity pools resting above specific highs.
  • A buy setup at 75.12 on the daily chart is identified, and everything that needs to be focused on in September is being identified in this specific case study.
  • The stock could be in relative terms to the bullish order block, and three-to-one reward-to-risk ratios would unfold right below our first area of buy stops or the five-minute liquidity pool.

Risk Management

  • Using a 15-minute time frame reduces risk compared to an hourly chart.
  • Taking half of our two percent position off as we get three-to-one notice doesn't have to blow out the buy stops here; these buy stops don't even have to get blown out; this is three-to-one reward risk.

Trading with Institutional Overflow

  • We are trading with higher-level institutional overflow relative to that daily order block from 75.12.
  • Once we clear this buy stop, the area over here would be reached into as well, and we'd have 15r as well now this is the liquidity pool that we're resting around that same hourly basis I'm just viewing it in terms of the 15 minute chart you can see the expansion is available.

Framing Trades with Small Risk

In this section, the speaker discusses how framing trades with small risk can lead to multiple rewards.

Potential Rewards of Small Risk Trades

  • Even if you don't get every pip of a potential range, framing trades with small risk can still pay out in handsome rewards.
  • The potential range for a trade was about 100 pips from where they were looking at buying and where they thought the price would go. They only need to focus on the lines portion of the move, which is about 100 pips.
  • You don't need to get every pip of every potential range you identify as potential profit. If you insist on it, you'll be frustrated. Instead, focus on getting half of the range or more for your reward.

Example Trade Scenario

  • Assume that we had a $1,000 trading account and set up a trade originally with less than 10 pips stop loss using a five-minute chart. We rounded it to a 10-pip stop loss and got our three-to-one multiple when the market came up and allowed us to do so. In this trade, we would already have three percent paid to us.
  • If we framed our trades with really small risk, it's easy to get multiples of three-to-one or more for your reward so your R levels are easy to get to when you start refining your risk. It's not having big risk that makes money; it's having small risk that makes money - that's the real secret!

Institutional Sponsorship Levels

In this section, the speaker emphasizes that institutional sponsorship levels are highly impactful in terms of price action and that traders should focus on framing their trades on these levels.

Importance of Institutional Sponsorship Levels

  • The real orders are around monthly, weekly, and daily levels where institutional sponsorship is present. It has nothing to do with your indicators or supply and demand theory; it's where the orders are.
  • Traders need to be able to frame their trades on levels that should see institutional sponsorship. These levels will drive price higher and lower relative to those levels because that's where the real orders are.

Key Takeaways

  • Focus on framing trades with small risk for multiple rewards. You don't need to get every pip of every potential range you identify as potential profit. Instead, focus on getting half of the range or more for your reward.
  • Institutional sponsorship levels are highly impactful in terms of price action, so traders should focus on framing their trades on these levels.

One Shot One Kill Trading Strategy

In this section, the speaker discusses a trading strategy that involves taking partial profits and letting the second portion of the trade run to reach higher time frame objectives.

One Shot One Kill Trading Strategy

  • The strategy involves taking partial profits at three to one and letting the second portion of the trade run to reach higher time frame objectives.
  • Greed should not be allowed to influence trading decisions.
  • If you get the entire 100 pip range, you can make over 46% in one month. Continuously applying this strategy can lead to significant profits.
  • Scaling off one percent at three to one is recommended once you know what you're doing. Wait for the second portion of the trade to reach higher time frame objectives.

Aiming for a Weekly Trade of a 100 Pip Range

In this section, the speaker discusses how aiming for a weekly trade of a 100 pip range can lead to significant profits.

Aiming for a Weekly Trade of a 100 Pip Range

  • Aiming for a weekly trade of a 100 pip range can lead to significant profits even if you don't achieve it every week. It may require multiple trades or reducing your position size.
  • Paying yourself initially and taking partial profits is important because you don't know if your trades will pay out in full. Demanding precision beyond personal efficiency is not recommended.
  • Taking partial profits is not an impediment but rather an opportunity to make more money. Paying yourself when it's available is important.

Importance of Paying Yourself

In this section, the speaker emphasizes the importance of paying yourself and not being too rigid in profit taking.

Importance of Paying Yourself

  • Not allowing yourself to take partial profits can lead to missed opportunities and frustration. It's important to pay yourself when it's available.
  • Being too rigid in profit taking can be detrimental to trading success. Taking partial profits is not a weakness but rather an opportunity to make more money.
  • The speaker has had instances where he did not allow himself to take partial profits and watched his profits turn into losses or get stopped out at a minus stop loss before running in his favor.

Making Money in Trading

In this section, the speaker talks about how to make money in trading by focusing on partial trades and letting the balance run.

Focusing on Partial Trades

  • Placing a trade and paying yourself a modest 30 Pips move to the sidelines.
  • Letting the partial run while focusing on trading like that 10 in one month on the back end of your trade.
  • Doing Ultra short-term trades or trades like this can still yield handsome ten percent compounded over the year which is over 300 percent for the year.

Psychological Effects of Partial Trades

  • Paying yourself something after your first profit and then letting the partial run.
  • Watching your money better than anybody else and focusing on tripling your money every single year.

Comparison with Other Investment Options

  • No fund manager is going to double your money in a year consistently.
  • Tripling your money every single year with handsome returns is an astonishing number.
Playlists: 2016 ICT Private Mentorship Core Content Month 02
Video description

2016 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in October 2016. 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.