ICT 2024 Mentorship \ Lecture #8 August 14, 2024

Name: ICT 2024 Mentorship \ Lecture #8 August 14, 2024
Uploaded: 2024-08-14T18:04:44.000Z
Duration: 8 h 44 min 1 s

Streaming Challenges and Market Analysis

Technical Difficulties with OBS

The speaker expresses frustration with OBS (Open Broadcaster Software), which is not functioning properly for streaming to YouTube.

After resolving audio issues, the speaker notes the delay caused by technology problems, highlighting the unpredictability of tech during live sessions.

Market Overview Post-NASDAQ News Release

The NASDAQ experienced a high-impact news driver release at 8:30 AM, leading to an increase in market activity as it opened on July 28, 2024.

The speaker discusses the significance of price levels from previous trading sessions and how they relate to current market behavior.

Understanding Wicks and Fair Value Gaps

A discussion on candlestick wicks reveals that if a wick does not return to its midpoint, it may indicate a potential reversal in market direction.

The importance of observing fair value gaps is emphasized; these gaps can provide insights into future price movements.

Observational Trading Strategy

The speaker stresses the need for patience in trading rather than trying to predict tops or bottoms. They advocate for observing market behavior before making decisions.

Focus shifts towards understanding market dynamics as they approach key timeframes, particularly during opening ranges.

Reflections on Trading Psychology

The speaker shares personal frustrations regarding engagement tactics used by others online while emphasizing their desire for accurate candlestick data.

Changing Phone Numbers and Personal Boundaries

Personal Communication Preferences

The speaker reflects on their intention to change their phone number due to unwanted communication from people who act as if they are close friends, emphasizing a preference for personal boundaries in communication.

Trading Insights and Market Analysis

Discussion shifts to trading strategies, particularly focusing on the concept of "trading down" to a wick without entering a gap, highlighting the importance of price delivery in market analysis.

The speaker notes that while price did not trade into the expected range, it reached for the consequent encouragement level indicated by the wick, suggesting ongoing interest in price behavior.

Price Action and Inefficiencies

Wicks are identified as significant elements in trading discussions, particularly regarding Turtle Suit strategies. The opening price on a wick is noted as crucial for understanding market movements.

An emphasis is placed on inefficiencies within individual candles during high-impact news events (e.g., at 8:30), indicating rapid price movements that can create trading opportunities.

Technical Analysis Techniques

The speaker describes observing wild price action where prices quickly drop and then return to previous levels, illustrating inefficiencies across various time frames that will be analyzed further with sub-one-minute charts.

A rule of engagement is introduced: whenever there’s a wick at swing highs or lows, it warrants attention for potential trading opportunities based on historical patterns observed by the speaker.

Historical Context and Learning Journey

The discussion includes reflections on past experiences with high-impact news events affecting long positions and how these moments shape current trading strategies.

The speaker shares insights about their learning journey in trading during the 90s using limited technology (like end-of-day data), which shaped their analytical skills over time.

Market Observations and Trading Insights

Importance of Real-Time Monitoring

The speaker emphasizes the significance of real-time monitoring in trading, noting that they would document price runs as they occurred, indicating specific times when notable price movements began.

Analyzing Price Fluctuations

The speaker describes their method of tracking numerical price prints without visual aids, highlighting the importance of noting fluctuations during significant market events.

Impact of Economic Reports on Market Movements

High-impact economic reports (e.g., PPI, CPI, FOMC) are identified as key drivers for market movements. The speaker notes that these reports can create distinct price formations and patterns.

Unique Trading Strategies

The speaker shares a personal observation about using quadrants to analyze reversal patterns and short-term trading opportunities, suggesting this approach is not widely referenced in existing literature.

Encouraging Analytical Thinking

The speaker encourages a peer named Caleb to describe his observations regarding missed trading opportunities and to articulate his understanding of market behavior based on their discussions.

Understanding Market Gaps and Wicks

Identifying Price Levels

Discussion revolves around identifying significant price levels where trades occur. The absence of gaps between closing and opening prices is noted as crucial for analysis.

Measuring Wicks for Trading Decisions

The importance of measuring wicks is highlighted; the speaker explains how wicks can indicate buying/selling pressure and assist in determining entry points for trades.

Candle Analysis Techniques

A focus on candle analysis reveals how traders should respect certain closed candles while also being aware of potential bearish signals if prices trade above them.

Fair Value Gaps and Their Implications

Fair Value Gap Dynamics

The discussion includes fair value gaps' role in guiding trader expectations about future price movements, particularly concerning bullish or bearish trends.

Visual Clarity in Charting

Emphasis is placed on maintaining clarity in charting by avoiding clutter from unnecessary indicators like Fibonacci levels over wicks, which could hinder effective analysis.

Rebounding Off Target Prices

Anticipating Price Rebounds

When discussing target prices, the speaker indicates that it’s reasonable for prices to rebound off established targets within fair value gaps, reinforcing the need for strategic planning based on observed patterns.

Understanding Market Dynamics and Price Action

Analyzing Candle Behavior

The market's failure to trade at certain levels can indicate weakness. If a price level is not revisited, it suggests a bearish sentiment.

Traditional support and resistance methods may misinterpret market movements; understanding the underlying reasons for price action is crucial.

A wick on a candle indicates buy-side delivery inefficiencies, which can signal future price drops as the market seeks to correct these inefficiencies.

Fair Value Gaps and Trading Strategies

Observing how prices interact with fair value gaps helps identify potential swing highs and lows, indicating where trades should be executed.

The 6 PM opening price serves as an important reference point due to its lack of gaps in trading data, making it a key level for analysis.

Price Action Insights

When bodies of candles fail to close above wicks, it signals potential reversals or continued downward movement in subsequent candles.

Traders should focus on lower highs following significant candle formations to frame their trading strategies effectively.

Importance of Real-Time Data

Access to real-time data is essential for effective trading; without it, traders may struggle to grasp intricate price movements.

While high time frames can provide insights, intraday charts offer more precision and detail necessary for managing risk effectively.

Personal Reflections on Trading Experience

Driver Distraction and Trading Insights

The Challenge of Multitasking While Driving

The speaker describes using a duct-taped transistor radio to monitor trading data while driving, highlighting the dangers of distracted driving.

Reflecting on past experiences, the speaker compares early cell phone distractions to modern smartphone usage, indicating a lack of focus on safe driving.

Early Trading Experiences

The speaker developed an obsessive interest in identifying patterns in trading data, leading to extensive analysis of price action.

Initially unaware of economic calendars and news drivers, the speaker recounts confusion over market movements triggered by reports like grain inventories.

Learning from Mistakes

The speaker acknowledges starting trading too early with real money without adequate knowledge, likening their approach to "cowboy" tactics that led to significant issues.

Emphasizes the importance of understanding market context and details such as Wicks for better trading decisions.

Understanding Market Structure

Discusses learning about swing highs and lows (referred to as ring highs/lows), emphasizing their significance in mapping market structure.

Shares insights into how traders used physical charts before digital tools became prevalent, illustrating the evolution of trading practices over time.

Analyzing Price Movements

The speaker reflects on witnessing the transition from manual charting to computerized systems, noting how this shift impacted learning speed and retention.

Highlights specific price movements and patterns observed during trades, stressing the importance of recognizing these elements for successful trading strategies.

Key Takeaways on Trading Techniques

Encourages viewers to appreciate detailed analysis when observing candlestick formations and their implications for future price actions.

Explains how identifying swing highs/lows can indicate potential trends or reversals in market behavior based on historical data points.

Understanding Institutional Order Flow and Price Action

Entry Mechanism Explained

The entry mechanism discussed is referred to as "institutional order flow entry drill," which emphasizes the importance of understanding price action and fair value gaps.

The speaker highlights that when a significant price run occurs, it often enters a sell program, indicating a downward market movement characterized by algorithmic behavior rather than individual buying or selling pressures.

Sell-Side Delivery Characteristics

Sell-side delivery is defined as a systematic process where the market delivers lower prices regardless of buying or selling activity; it's driven by algorithms.

The speaker clarifies that identifying sell-side liquidity involves recognizing areas where liquidity is resting below current prices, which can be targeted for potential trades.

Market Structure and Trading Strategies

The discussion includes various theories such as Order Block Theory, Fair Value Gap Theory, and Market Structure Theory, emphasizing their relevance in understanding market movements without needing complex technical indicators.

A critical point made is about identifying who the "mark" or victim in the trading room is; this knowledge helps traders avoid being on the wrong side of trades. If one cannot identify liquidity being absorbed, they risk becoming part of someone else's trade strategy.

Developing Entry Mechanisms

The speaker shares personal experiences regarding missed opportunities in trading due to not being able to enter at optimal points, leading to frustration and the need for alternative entry strategies. This led to developing the "price delivery continuum theory."

Emphasis is placed on continuous learning and adaptation in trading practices; simply writing notes does not equate to effective learning—it's about integrating knowledge into daily practice.

Commitment to Mastery

Understanding Price Delivery and Market Dynamics

The Importance of Learning from Experience

The speaker emphasizes the futility of seeking shortcuts like summaries or cliff notes, arguing that true understanding comes from in-depth learning rather than superficial knowledge.

Mentorship is highlighted as a unique opportunity to learn new concepts not previously taught, specifically referencing the "price delivery Continuum theory."

Specificity in Trading Strategies

The speaker criticizes vague trading strategies based on zones, asserting that successful trading requires precise price levels for entries, stops, and targets.

A challenge is posed regarding the criteria used by others teaching supply and demand zones, questioning their methodology for arriving at specific prices.

Critique of Supply and Demand Concepts

The speaker dismisses supply and demand zones as an oversimplified approach to market analysis, labeling it a "fallacy" that lacks depth compared to more precise methods.

There’s a clear distinction made between the speaker's teachings and traditional support/resistance concepts, emphasizing a more accurate predictive capability.

Insights on Market Behavior

The discussion includes how many educators may inadvertently teach concepts similar to those presented by the speaker but fail to deliver them effectively.

Wicks on charts are identified as critical indicators; measuring them can provide insights into market behavior that others might overlook.

Predictability in Market Movements

Observations across all time frames reveal consistent patterns; this principle applies universally regardless of chart duration.

The speaker expresses confidence in market predictability due to systematic approaches, contrasting it with gambling behaviors often seen in casual trading.

Understanding Price Movement and Trading Algorithms

Observations on Price Action

The speaker discusses the importance of live streams in observing price movements, emphasizing the need to annotate charts with time taken for specific price runs.

A focus is placed on fair value areas, particularly how wicks above current prices indicate potential premium arrays that traders should monitor.

The speaker highlights the significance of price action when it returns to certain levels, looking for signs of stopping or piercing through these levels as indicators.

Analogies in Trading

An analogy is drawn from the movie "Rounders," where one character cheats by stacking cards. This illustrates how some traders manipulate situations without others realizing it.

The discussion continues about the implications of cheating in trading and how awareness can lead to more authentic engagement in trading practices.

Insights into Algorithmic Trading

The speaker expresses a desire to share extensive knowledge but acknowledges limitations due to time constraints, hinting at a potential podcast idea.

There’s an emphasis on recognizing algorithmic patterns in trading, suggesting that many traders are unaware of these underlying mechanisms controlling price movements.

Smart Money and Market Dynamics

The speaker mentions a hidden group of traders who utilize algorithms effectively but remain out of public discourse, indicating a divide between common knowledge and advanced trading strategies.

A distinction is made between traditional indicators (like moving averages or Fibonacci ratios) and the actual factors influencing price movement—primarily timing rather than historical data.

Timing vs. Indicators

The speaker asserts that traditional mathematical indicators do not dictate price movement; instead, they emphasize that timing plays a crucial role in market dynamics.

It’s explained that prices will only move if conditions are right; otherwise, they will fluctuate within predetermined ranges set by algorithms.

Learning from Experience

Reflections on past mentorship experiences reveal challenges faced when trying to teach complex concepts related to price action and algorithmic behavior.

Discussion on Personal Obligations and Public Perception

Hiding Information and Personal Responsibility

The speaker acknowledges hiding information, suggesting that everyone has something they keep private. They express a sense of obligation to share certain knowledge.

The speaker mentions successfully transferring information in a way that resonates with many people globally.

Social Media Engagement

A personal anecdote is shared about the speaker's daughter sending them an Instagram profile related to their work, highlighting the disconnect as the speaker does not use social media platforms.

The speaker clarifies that any use of their name or logo by others online is unauthorized, emphasizing their lack of involvement in social media.

Concerns About Misrepresentation

The speaker expresses concern over students getting tattoos of their logo, referencing biblical advice against marking one's skin. They clarify that their logo is not associated with negative connotations like "the mark of the beast."

A discussion arises regarding a new Bachelor who is a day trader and follows one of the speaker's students on social media, indicating how interconnected these communities are.

Community Recognition and Misuse

The speaker reflects on being recognized by various individuals worldwide, including references from notable figures like Andrew Tate’s brother.

There’s frustration expressed towards those misrepresenting knowledge or skills they haven't been taught properly, labeling it as fraudulent behavior.

Streaming Experience and Content Delivery

The importance of live streaming for self-expression is highlighted; however, the speaker acknowledges challenges in meeting audience expectations while remaining authentic.

They emphasize the need to be true to themselves despite external pressures to change how they deliver content.

Technical Challenges and Trading Insights

After experiencing technical difficulties with streaming software (OBS), the speaker discusses how this affects their mood but ultimately leads into sharing valuable trading insights.

Understanding the Inquisitive Nature of Learning

The Journey of Curiosity

The speaker reflects on a six-year journey, emphasizing that their curiosity began early in life, where they would take apart toys like Stretch Armstrong to understand how they worked.

They describe a hands-on approach to learning, cutting open remote control cars to explore their inner workings, driven by an innate desire to know what makes things function.

This inquisitiveness is framed as a positive trait; while others may view it as destructive behavior, it has been essential for personal development and understanding complex systems.

Attention and Engagement in Learning

The speaker expresses a need for engagement in any subject matter; if something does not capture their interest or provide value, they quickly lose focus.

They address students' impatience and urge them to embrace comprehensive learning rather than seeking condensed versions of information.

Interconnectedness of Knowledge

Emphasizing the importance of viewing concepts holistically, the speaker argues that all elements are interconnected and should be understood as part of a larger system rather than isolated pieces.

Introduction to Turtle Soup Concept

The discussion transitions into the concept of "Turtle Soup," which involves anticipating market turning points based on liquidity runs—not solely relying on historical highs or lows.

Acknowledgment of Influences

The speaker mentions influential figures like Larry Conner and Linda Rasch, acknowledging their contributions while also expressing frustration over misattributions regarding his own teachings.

They reflect on purchasing an expensive book by these authors in 1995, valuing its insights despite some disagreements with its content.

Clarifying Misconceptions

There’s a strong stance against circumventing payment for educational materials; the speaker believes in respecting authors’ efforts and experiences when sharing knowledge.

Distinguishing Personal Teachings from Others

The speaker clarifies that much of what they teach diverges from traditional methods espoused by mentors like Larry Williams.

They express frustration over individuals claiming credit for their ideas or conflating them with other educators' work.

Confrontation Over Misrepresentation

A confrontation with Chris Lori is recounted where the speaker demanded public acknowledgment regarding claims made about copying material.

Ultimately asserting independence in teaching style and content, they emphasize self-reliance without needing external validation or support.

Understanding Market Dynamics and Trading Strategies

The Importance of Original Concepts in Trading

The speaker emphasizes the originality of their trading concepts, claiming that they have not been found elsewhere prior to 1996. They challenge others to prove otherwise.

Anecdotes about market makers and urban legends are shared, highlighting the speaker's extensive experience in the trading world and their unique insights.

Analyzing Price Movements: Wicks and Gaps

Discussion on price wicks is introduced; if prices are below a certain level, there may be potential for upward movement due to retracement.

The concept of "consequent encroachment" is explained, where gaps and midpoints play a crucial role in predicting price movements.

Measuring Price Action

The speaker describes how they measure wicks as gaps, regardless of the time taken for price action within a single candle.

Specific calculations are made based on wick length; shorter wicks can be estimated visually while longer ones require precise measurements.

Market Structure and Order Blocks

A shift in market structure is discussed when prices close below a bearish order block, indicating potential future price movements.

The importance of validating order blocks before shifts in market structure is emphasized as critical for understanding market dynamics.

Predicting Future Price Movements

Buy-side delivery indicates upward movement towards inefficiencies; this knowledge allows traders to anticipate future price objectives effectively.

Observations about traders ignoring clear price actions lead to poor decision-making; many fail to recognize significant patterns over time.

Confidence in Trading Strategies

The speaker expresses confidence in their trading strategies, which some may perceive as arrogance but stems from consistent success with these concepts.

A discussion on reversal patterns highlights two forms: changing buyer/seller programs or capturing reversals after consolidation periods.

Market Dynamics and Trading Strategies

Understanding Price Movements

The market has been part of a buy program, moving higher based on predetermined levels discussed previously. A news driver influenced this upward movement.

The speaker explains the concept of the new week opening gap, emphasizing that without understanding this, traders might not anticipate price reactions effectively.

Key trading concepts such as fair value gaps and breakers are introduced, highlighting their importance in identifying potential short entry points.

Analyzing Market Behavior

The discussion focuses on liquidity being taken out by specific price movements, distinguishing between institutional candles and order blocks.

The speaker emphasizes the significance of recognizing changes in market delivery states, particularly transitioning from buy-side to sell-side delivery.

Challenging Conventional Beliefs

A challenge is posed to skeptics regarding algorithmic trading; the speaker asserts confidence in their ability to predict market movements accurately.

The notion of rigged markets is discussed, with an assertion that understanding these dynamics can lead to consistent trading success.

Practical Trading Insights

The change in state at the opening price of an order block is crucial for predicting future price actions; it indicates a shift from offering higher prices to lower ones.

Traders are encouraged to focus on specific price levels known beforehand rather than relying solely on buying or selling pressure.

Engaging with the Audience

The speaker invites audience interaction and feedback through thumbs up during live streams as a form of currency for engagement.

Understanding Market Algorithms and Price Action

The Significance of Small Details in Trading

The speaker compares the significance of a child's drawing to trading algorithms, emphasizing that minor deviations (like "coloring outside the lines") can hold meaningful insights.

Focus is placed on understanding price action through candle bodies rather than just individual candles, suggesting that these details reveal deeper market truths.

Identifying Market Structures

The concept of bearish order blocks is introduced, highlighting that it's not solely about the last up-close candle before a down move but involves analyzing all relevant candles.

A shift in market behavior is noted when crossing an opening price, indicating a change from buy-side to sell-side dynamics.

Challenging Randomness in Market Movements

The speaker critiques the belief that market movements are random, arguing for the existence of underlying algorithms driving price actions.

Analyzing how markets behave below certain thresholds reveals patterns contrary to retail trading assumptions.

Validating Trading Strategies

The effectiveness of the discussed strategies is supported by real-world success stories where traders have achieved funded accounts and successful withdrawals.

Questions are raised regarding why certain trading principles seem to work better than others despite numerous available strategies.

Critique of Traditional Trading Methods

Various traditional trading theories (Elliott Wave, Dow Theory, etc.) are dismissed as ineffective or irrelevant by the speaker based on personal experience.

Emphasis is placed on practical application over theoretical frameworks; many popular methods do not correlate with actual market performance.

Community and Perception Challenges

Despite proven success within their community, external skepticism persists towards unconventional methods taught by the speaker.

The speaker expresses frustration at being criticized while advocating for evidence-based approaches over faith-based beliefs in trading methodologies.

Real-Time Analysis vs. Hindsight Trading

A distinction is made between live price action analysis versus hindsight evaluations often used by critics to validate their methods.

Successful traders must draw analogies from long-term experiences rather than relying solely on momentary successes or isolated instances.

Understanding Market Dynamics Through Analogies

The importance of recognizing changes in market scripts is likened to a scene from "The Matrix," illustrating how subtle shifts can indicate larger trends or reversals.

Market Dynamics and Trading Strategies

Anticipating Market Movements

The speaker discusses the importance of anticipating market objectives, noting a surprise when the price did not reach expected highs during the 8:30 news event.

Observations are made about how retail traders are provided with resistance levels, which they often use to make trading decisions.

Retail Trader Behavior

Retail traders typically place short sell orders at perceived resistance levels, convinced that prices will decline.

Traders often set stop losses just above recent highs, demonstrating their understanding of support and resistance dynamics.

Algorithmic Insights

The algorithm recognizes trader behavior and adjusts market movements accordingly, indicating a shift from buying to selling pressure.

A "sell program" is initiated as the market moves lower to address inefficiencies in pricing.

Price Movement Analysis

The discussion highlights various concepts such as fair value gaps and imbalances that influence price direction.

The speaker emphasizes the need for traders to identify discount arrays that can reverse roles in future price movements.

Understanding Order Blocks

Order blocks can act as both support and resistance depending on market conditions; their characteristics may change over time.

The analogy of "Deja Vu" is used to illustrate how small changes in price action can signal significant shifts in market behavior.

Risk Management Considerations

The speaker warns about potential pitfalls in trading strategies, emphasizing that getting stopped out does not invalidate a trade's overall strategy or logic.

Understanding Trader Mindset and Market Dynamics

The Emotional Impact of Trading Decisions

Discusses the frustration of dealing with setbacks, such as a flat tire, which can reflect broader feelings about one's job or trading experience. This emotional state can lead to impulsive decisions in trading.

Highlights the tendency of traders to abandon methodologies after their first failure, illustrating a common behavior known as "system hopping." This reflects a lack of understanding and patience in developing trading skills.

Communication Style and Learning Approach

Acknowledges that while the speaker may not always be eloquent, they aim to provide practical advice that is effective for traders. Emphasizes the importance of direct communication.

Stresses that listening carefully to guidance is crucial; ignoring advice could lead to negative outcomes. The metaphor of "good medicine" suggests that sometimes difficult lessons are necessary for growth.

Market Analysis Techniques

Introduces concepts related to market price movements, focusing on small incremental moves rather than large swings. This approach is aimed at building a solid foundation for new traders.

Describes specific market behaviors around key price levels and how these can inform trading strategies. Mentions the significance of fair value gaps and reference points in decision-making.

Price Levels and Trading Strategies

Explains how closing prices from previous sessions serve as important reference points for current market analysis. Emphasizes drawing lines on charts for clarity in identifying these levels.

Discusses potential misattribution in literature regarding trading strategies, highlighting the importance of original thought versus plagiarism in educational content.

Identifying Key Trading Zones

Focuses on identifying target levels based on candlestick patterns, particularly emphasizing body closures over wicks when determining entry points.

Encourages traders to consider rejection blocks as significant indicators for setting targets within their strategies, reinforcing the need for careful analysis before executing trades.

Managing Risk with Stop Losses

Questions traditional methods of defining supply and demand zones by emphasizing personal relevance in choosing price ranges for stop losses.

Advocates for a more robust understanding of risk management beyond basic methodologies, stressing the need for confidence in stop-loss placements during volatile market conditions.

Market Dynamics and Trading Strategies

Competitive Spirit in Trading

The speaker expresses confidence in outperforming a competitor, indicating a competitive atmosphere in trading. They emphasize the enjoyment of this competition, likening it to a sport.

Logic vs. Randomness in Market Movements

The speaker argues that market movements are not purely random; they suggest that valid logic underpins price actions, which should yield more than just 60% success rates if properly understood.

Control Mechanisms in Price Action

A discussion on the necessity of control mechanisms within market dynamics is presented. The speaker dismisses the idea that price movements are solely driven by random buying and selling.

Price Movement Analysis

The speaker analyzes specific price movements, noting how certain levels act as support or resistance based on previous price action and market behavior.

Fair Value Gaps and Market Expectations

The concept of fair value gaps is introduced, with the speaker explaining their significance in predicting future price movements. They assert that these gaps can indicate underlying market strength or weakness.

Importance of Key Price Levels

Emphasis is placed on understanding key price levels such as opening prices and fair value gaps. These levels guide traders' expectations for future price action.

Analyzing Candlestick Patterns

The speaker discusses how candlestick patterns provide insights into potential market direction, stressing the importance of recognizing these patterns for effective trading strategies.

Methodology for Trade Planning

A systematic approach to trade planning is outlined, where traders should focus on significant price levels before considering fair value gaps to enhance decision-making accuracy.

Understanding Market Sentiment through Gaps

The speaker explains their preference for observing open fair value gaps when bearish, suggesting that unfilled gaps indicate weak market sentiment unable to push back up towards them.

Practical Application of Trading Concepts

Practical advice is given regarding chart annotations and trade setups. The speaker emphasizes simplicity over complexity to maintain focus during live trading sessions.

Teaching Approach and Learning Focus

Insights into the teaching methodology reveal an emphasis on real-time analysis rather than theoretical concepts alone. This approach aims to enhance students' understanding of current market conditions through active observation.

Distinction from Other Trading Methods

Understanding Price Action and Trading Strategies

Al Brooks' Influence on Trading Techniques

Hugard, a student and fan of Al Brooks, emphasizes that there is no comparison between his methods and those of Brooks, highlighting the evolution in trading techniques focused on reading price action.

The speaker claims to be developing a new language for traders that goes beyond traditional methods, asserting that they are not merely transcribing existing ideas but creating a new science in trading.

Analyzing Market Structures

Discussion about identifying gaps and order blocks in market structures; the speaker stresses the importance of understanding these elements when analyzing price movements.

The speaker explains how to label gaps versus order blocks within specific ranges, indicating a preference for using order blocks as reference points during analysis.

Market Behavior Insights

When prices drop below an opening price within an order block, it signals a potential continuation of lower prices with brief retracements expected.

The concept of fair value gaps is introduced; the speaker notes that while some gaps may form during price drops, their significance can vary based on their relation to established order blocks.

Trading Execution Strategies

Emphasis on precision in trading entries; the speaker advises against relying solely on limit orders due to potential missed opportunities if markets move quickly.

Introduction of "price delivery continuity theory," suggesting traders should adapt their strategies based on real-time market behavior rather than rigidly sticking to pre-set plans.

Overcoming Psychological Barriers in Trading

The speaker reflects on personal experiences with fear and anxiety when missing trades, emphasizing the need for discipline and adherence to established rules.

Acknowledgment of common frustrations among traders who struggle with timing entries and managing stop losses despite having correct directional insights.

Learning from Mistakes

The importance of maintaining a trade log is highlighted; students are encouraged to review their entries critically to understand mistakes better.

Understanding Price Movement and Trading Concepts

Key Insights on Price Behavior

The speaker emphasizes the importance of understanding price movements in segments that make logical sense, rather than needing to grasp every detail available as a creator.

Discussion about an order block's proximity to the start of a price move; the speaker expresses disinterest in certain trades unless they show specific behaviors below key levels.

The concept of trading within a range is introduced, highlighting how price interacts with gaps and candle formations, referred to as "mohawks."

Analyzing Gaps and Fair Value

A balanced price range is identified through overlapping candle wicks and bodies, indicating where market movement may be restricted.

The speaker addresses varying interpretations of fair value gaps, stressing that not all gaps are inversion fair value gaps and encouraging traders to focus on observable price action.

Logic Behind Inversion Fair Value Gaps

Clarification that not every fair value gap becomes an inversion fair value gap; enthusiasm for this concept should be tempered with caution regarding its application.

If certain conditions (like specific gaps or opening prices) were absent, the discussion shifts towards using extended gaps as potential inversion fair value caps.

Market Dynamics and Inefficiencies

The speaker explains that when analyzing inversion fair value gaps, it’s crucial to understand whether these gaps close entirely or leave portions open—indicating market weakness if they remain unfilled.

Emphasis on recognizing inefficiencies in market behavior; if a gap does not fill completely while shorting, it signals potential downward movement.

Reflections on Teaching Trading Concepts

The speaker reflects on their teaching journey, noting how their approach has evolved over time while maintaining core principles consistent across different scenarios.

Mention of past lectures aimed at introducing foundational trading concepts but expressing anxiety about revealing too much information too soon.

Understanding Market Dynamics and Trading Strategies

The Unique Value Proposition in Retail

The speaker emphasizes the uniqueness of their offering, stating that there is nothing else in retail replicating or duplicating it. They highlight the significance of a $5 million valuation as evidence of its potential.

There is skepticism towards others claiming to offer similar products, suggesting they are merely trying to capitalize on the speaker's momentum and community engagement.

Analyzing Price Movements

The discussion shifts to analyzing price movements, particularly how historical price levels act as support or resistance. The speaker notes that understanding these dynamics is crucial when prices begin to decline.

It’s highlighted that price movements do not occur instantaneously; rather, they require time and analysis to understand market behavior during sell-offs.

Challenges with Trading Reports

The speaker points out difficulties traders face when dealing with significant economic reports (like PPI and CPI), noting that trading platforms may lag during these events, complicating execution.

This lag can prevent traders from accurately reporting their trades, which serves as a caution against misleading claims by some individuals in the trading community.

Fair Value Gaps and Market Logic

A focus on fair value gaps is introduced, where the speaker explains how new arrays forming within these gaps should be noted for future trading decisions.

The importance of convergence between bearish candles and bullish trends is emphasized; this alignment indicates stronger market sentiment and influences trading strategies.

Entry Strategies in Trading

The concept of speed and distance in trades is discussed. Large range candles are seen as indicators of market strength, guiding entry points for trades based on fair value gaps.

The speaker shares personal insights into trade entries, advocating for using lower thresholds at fair value gap highs while being prepared for additional entries if prices retrace back down.

Social Media Engagement and Trade Sharing

Personal anecdotes about sharing trade experiences on social media platforms like Twitter are shared. The speaker mentions using music to accompany trade videos but faces copyright issues leading to video removals.

Understanding Trading Strategies and Challenges

The speaker discusses the challenges faced due to copyright claims on their trading videos, leading to many being taken down by rights holders.

They clarify that they were not deleting content but rather encouraging viewers to download available videos before removal.

Trading Techniques and Market Analysis

The speaker explains a specific trading strategy involving short selling when market highs are reached, emphasizing the importance of timing and market conditions.

They mention recent high-impact news events affecting market movements, indicating a need for careful analysis during such times.

Live Trading Demonstrations

The speaker expresses intent to demonstrate live trading techniques, including order placements and stop-loss strategies, particularly for educational purposes aimed at their son.

They emphasize that while they will show live executions, it won't be a daily performance or service offered to others.

Addressing Duplication in Trading Methods

Concerns are raised about others replicating their methods without understanding the underlying principles, highlighting the prevalence of imitation in trading communities.

To combat this issue, the speaker plans to use a 15-second chart for real-time demonstrations despite potential latency issues.

Teaching Methodology and Knowledge Transfer

The focus is on providing foundational knowledge about trading concepts like order blocks and execution strategies tailored for personal teaching rather than broad public dissemination.

Emphasis is placed on logical reasoning behind stop-loss placements and trade executions as essential components of successful trading practices.

Importance of Comprehensive Learning

The speaker stresses that effective learning requires more than quick explanations; it involves deep understanding through thorough exploration of concepts over time.

They aim to equip their children with comprehensive knowledge so they can navigate challenges independently in real-world scenarios.

Anticipating Future Challenges in Trading

Understanding Market Maker Models and Trading Techniques

The Difference Between Knowledge and Application

The speaker emphasizes that merely hearing about trading concepts does not equate to understanding how to apply them in real market scenarios. True comprehension involves recognizing price action as it unfolds.

Market Maker Sell and Buy Models

The discussion introduces the concept of Market Maker sell and buy models, asserting that all trading strategies discussed are rooted in these models, even if not explicitly named.

Reference is made to mentorship videos from 2017 where the speaker elaborates on these models, particularly focusing on the buy side and sell side of the curve.

Price Action Dynamics

When discussing price delivery, the speaker mentions "down closed candles" and "fair value gaps," which indicate potential upward movements when certain conditions are met.

The term "Turtle Soup" is introduced as a reversal mechanism within existing price runs, suggesting a change in market direction that could last for an extended period.

Liquidity Considerations

The importance of identifying liquidity above recent highs is highlighted; this liquidity can act as a magnet for price movement.

A recommendation is made to track new week opening gaps and new day opening gaps on charts for better trade setups.

Entry Techniques and Patterns

Turtle soup patterns serve both as reversal indicators and entry techniques within ongoing price trends. This duality suggests they can be used strategically depending on market conditions.

A critique of simplistic trading patterns like those found in traditional literature (e.g., Street Marks' turtle soup pattern) is presented, arguing they lack depth for serious traders.

Trading Success Rates

The speaker discusses the low success rates associated with basic breakout systems (less than 38% accuracy), questioning their viability for long-term trading strategies.

Emphasis is placed on maintaining profitability despite low strike rates; understanding risk management and emotional discipline are crucial for sustainable trading practices.

Mindset in Trading

Turtle Soup Entry Mechanisms in Trading

Understanding Turtle Soup Entry Techniques

The speaker prompts the audience to reflect on their learning about turtle soup entry mechanisms, emphasizing the importance of recognizing existing price runs and trends.

A question is posed regarding examples of turtle soup as an entry technique within a prevailing trend or momentum, encouraging critical thinking among participants.

Fair Value Gaps and Trade Strategies

The discussion introduces the concept of fair value gaps, explaining that these gaps are utilized for trading decisions based on inefficiencies in market pricing.

The speaker illustrates a hypothetical trade scenario where they would buy below an old low, using candlestick analysis to identify potential entry points.

Analyzing Candlestick Patterns

Emphasis is placed on analyzing candlestick patterns, particularly focusing on overlapping wicks and bodies to determine market behavior and potential trades.

The speaker critiques common misunderstandings about fair value gaps, stressing that true understanding requires deeper knowledge beyond surface-level interpretations.

Identifying Market Inefficiencies

A distinction is made between typical fair value gaps and more complex scenarios involving volume imbalances, highlighting the need for comprehensive analysis in trading strategies.

The speaker discusses how certain price movements indicate flushes or taps down into specific ranges, which can signal opportunities for traders who understand these dynamics.

Importance of Detailed Learning

The necessity for thorough education in trading concepts is emphasized; superficial learning leads to misconceptions about market behaviors and strategies.

New concepts such as balanced price ranges within fair value gaps are introduced, showcasing advanced techniques that differentiate experienced traders from novices.

Convergence of Trading Signals

Discussion shifts to identifying convergence points between different trading signals and timeframes, underscoring their significance in making informed trading decisions.

The importance of annotating new day opening gaps is highlighted as a crucial aspect of understanding market transitions between closing and opening prices.

Understanding Candlestick Patterns and Trading Strategies

The Role of Wicks in Trading

Discussion on the significance of wicks in candlestick patterns, highlighting their importance in trading decisions.

Emphasis on trading into the body of a candle when it stops short, indicating potential bearish order blocks.

Explanation of recognizing order blocks before they become apparent to others, showcasing an advanced trading strategy.

Technical Analysis vs. Supply and Demand

Clarification that price movements are based on technical science rather than traditional supply and demand concepts.

Warning against trusting individuals who claim to predict intraday chart movements, labeling them as con artists.

Identifying Key Elements for Trading

Encouragement for traders to identify which elements resonate with them as multipliers for their strategies.

Importance of starting with recognizable elements in price action to build confidence and understanding.

Managing Trades Effectively

Discussion about the necessity of having measurable expected ranges for effective trade management.

Insight into how traders can avoid being shaken out by market fluctuations by focusing on specific PD arrays.

Learning from Experience

Reflection on the challenges traders face regarding exit strategies and self-expectations over time.

Striving for Perfection in Trading

The Pursuit of Improvement

The speaker discusses the continuous effort to achieve perfection in trading, acknowledging that while it may be unattainable, the journey towards improvement is essential.

Emphasizes the importance of not overcomplicating strategies; better results come from refining existing methods rather than adding more complexity.

Understanding Market Dynamics

Introduces a concept related to market fair value and how it can influence trading decisions based on price swings and ranges.

Explains a targeting strategy using price ranges, suggesting that traders should focus on smaller segments of price movements for better accuracy.

Projecting Price Movements

Discusses projecting lower price targets based on previous lows and high thresholds, emphasizing the significance of understanding market liquidity.

Shares personal experience regarding vision changes as an analogy for recognizing shifts in market conditions and adapting strategies accordingly.

Liquidity and Range Analysis

Highlights how to determine potential low thresholds when trading below established lows by analyzing previous price ranges.

Suggests measuring projected ranges to identify possible liquidity points, which can guide trading decisions effectively.

Simplifying Trading Strategies

Recommends a straightforward approach to range targeting without complex calculations, focusing on achieving one-quarter of the range beyond highs or lows.

Mentions standard deviations as a method taught in mentorship videos for precise exit strategies but emphasizes simpler techniques for beginners.

Engaging with the Audience

Encourages audience interaction through feedback (likes), indicating that engagement influences his willingness to share further insights.

Understanding the Value of Mentorship in Trading

The Importance of Appreciation

The speaker expresses frustration over a lack of appreciation for free content, feeling insulted by low engagement metrics like likes and comments.

Emphasizes that the information provided is unique and not available elsewhere, highlighting the effort put into teaching complex concepts effectively.

The Role of Mentorship

Discusses the expectation from viewers that they are owed something, asserting that he owes nothing to anyone but values genuine engagement.

Describes mentorship as a process where learners witness real-time application and understanding, rather than just demonstrations.

Teaching Methodology

Shares personal commitment to teaching despite challenges such as energy levels and viewer complaints about video length.

Introduces the concept of "fair value gap," explaining its significance in trading strategies without getting bogged down by irrelevant details.

Analyzing Market Behavior

Focuses on specific candle patterns and their implications for market movement, stressing the importance of volume imbalance in trading decisions.

Explains buy-side liquidity and its role in market dynamics, detailing how traders can position themselves based on market behavior.

Practical Trading Strategies

Outlines a strategy for entering trades with limit orders at specific price points while emphasizing observation over immediate action.

Discusses psychological comfort derived from understanding market movements, reinforcing that certain behaviors do not alter overall market direction.

Anticipating Market Movements

Highlights how untraded areas within gaps can indicate potential future price actions, encouraging viewers to observe these patterns closely.

Understanding Trade Entry and Fair Value Gaps

Key Concepts in Trading Strategies

The lecture emphasizes the importance of understanding price movements and trade entries, highlighting that many traders struggle with these concepts over time.

When shorting a fair value gap, it's crucial to enter at the previous candle's high, which is referred to as a "Turtle Soup" strategy. This involves trading in areas of inefficiency.

The speaker criticizes diluted mentorship programs that mislead traders, causing them to have unrealistic expectations and prolong their learning curve.

Breakers are identified as Turtle Soups that indicate changes in market direction during sustained price runs, emphasizing the need for deeper understanding when executing trades.

Advanced trading strategies require comprehensive knowledge of various price action levels and complementary understanding of other Price Delivery Arrays (PD arrays).

Analyzing Candle Patterns

The discussion highlights how visual aids can help traders understand price movements relative to previous highs and lows, aiding in decision-making.

A baseline entry strategy is introduced where stop-loss placements are critical; going above a specific candle's high indicates potential risk.

The concept of Fair Value Gaps is explained through three-candle patterns, identifying sell-side imbalances (SI) and buy-side inefficiencies (BI).

Traders should observe price action closely around key levels to determine optimal entry points while avoiding premature trades at highs.

The speaker expresses reluctance about sharing advanced content but acknowledges its value for students eager to learn effective trading methodologies.

Practical Application of Trading Strategies

Clear guidelines on stop-loss placement and entry points are provided, reinforcing the methodology behind successful trade execution.

Understanding Stop Loss Placement in Trading

The Importance of Stop Losses

Discusses the underlying risks in trading and how to effectively reduce them through smaller stop losses.

Emphasizes the need for tight stop loss placements, questioning how traders can ensure these stops won't be hit.

Highlights the importance of observing price behavior before entering trades, focusing on expected movements and responses.

Observing Market Behavior

Stresses that traders should spend months observing market behavior without executing trades to develop a deeper understanding.

Introduces the concept of tape reading, where traders watch price movements to anticipate potential trades without actually placing them.

Utilizing Candlestick Patterns

Explains how to use candlestick patterns, particularly wicks, as indicators for setting stop losses more efficiently.

Describes a scenario where a bullish candle's wick can inform better stop loss placement strategies.

Managing Fear in Trading

Addresses common fears among traders regarding being stopped out and encourages understanding over superficial learning methods.

Advocates for a comprehensive grasp of trading concepts rather than seeking quick fixes or easy answers.

Key Trading Strategies

Outlines two critical circumstances that lead to aggressive market movements: leaving a gap opening or closing it entirely.

Trading Insights and Strategies

Understanding Bearish Order Blocks

The speaker emphasizes the importance of bearish order blocks in trading, indicating that they are crucial for understanding market movements. He mentions training his son while focusing on these concepts.

A challenging question is posed regarding stop loss placement when trading a bearish order block, highlighting the need for careful note-taking to grasp this concept effectively.

The midpoint of a specific candle is identified as significant, suggesting that it serves as a fair value area where traders might expect price action to continue downward.

The speaker describes how algorithms provide markers (like traffic control devices) within the market, guiding traders on where to focus their attention during trades.

For those entering trades late, using an up closed candle can help formulate entry points; however, proper stop loss placement above this candle is critical.

Advanced Trading Techniques

Discussion about premium wicks indicates that traders should place their stops just above the bearish order block to remain within the context of a sell program.

The speaker explains scenarios where price may spike through an order block before dropping again, emphasizing the need for vigilance in such situations.

It’s noted that not all order blocks are protected; sometimes markets will move outside expected ranges without disrupting overall narratives.

Market Behavior During News Events

Anticipating price runs towards targets can be tricky; if prices create wicks but fail to reach targets, it signals potential volatility ahead.

The impact of news events (like PPI or CPI releases) on market behavior is discussed. These events often lead to unpredictable price movements due to algorithmic interventions.

Traders are cautioned against trading during major news releases because they can lead to unexpected losses and emotional distress from account depletion.

Recommendations for Trading Strategy

Emphasis is placed on avoiding trades at the time of significant news releases. Instead, waiting until after initial reactions can yield better opportunities with less risk involved.

Market Manipulation and Price Prediction Techniques

Understanding Market Dynamics

The speaker discusses the potential for market manipulation, particularly around news events like A30, suggesting that price may be engineered to create relative equal highs.

They emphasize the importance of predicting price movements based on candlestick formations, indicating a strategy where traders anticipate highs using wick formations.

The concept of "keeping relative equal highs" is introduced, with the speaker sharing experiences from social media platforms where they predict market behavior in real-time.

Trading Strategies and Scenarios

The speaker outlines their approach to trading during specific time frames, particularly focusing on the opening bell and its impact on price action.

They express a preference for a dynamic market environment that allows for both long and short trades within the same day, contrasting it with stagnant markets that yield minimal opportunities.

Liquidity Engineering Insights

The discussion shifts to liquidity engineering, where the speaker believes certain price levels are intentionally maintained until key moments in trading sessions.

They illustrate how traders might misinterpret bullish candles as signals for continued upward movement when in fact they could be part of a larger strategy to hold prices steady.

Candlestick Analysis Techniques

The speaker explains their method of analyzing candlesticks by observing wicks and anticipating future movements based on previous patterns.

They highlight the significance of recognizing initial wicks created by candles as indicators of potential price runs or reversals.

Algorithmic Trading Considerations

There’s an emphasis on understanding algorithmic trading behaviors and how they can influence market dynamics; traders should recognize when traditional technical analysis may not apply due to external interventions.

Understanding Live Trading Insights and Strategies

The Importance of Real-Time Data

The speaker emphasizes the necessity of real-time data in trading, arguing that without it, traders may feel misled or dissatisfied with their experiences.

He critiques the use of static examples from past market actions, suggesting they lack inspiration and do not reflect current market dynamics.

The speaker insists on the importance of live explanations to convey genuine trading strategies effectively.

Validating Trading Logic

He challenges viewers to consider whether sound logic exists in his methods, asserting that if they understand his concepts, they will find entries and stop-loss placements easier.

The speaker encourages skeptics to momentarily set aside their biases and recognize the validity of his trading approach.

Teaching Methodology

He explains how he provided a comprehensive clinic on trading techniques over recent days without needing to demonstrate live trades.

The speaker highlights that all traders observe the same market prices across different platforms, emphasizing transparency in Forex trading.

Risk Management and Legal Considerations

He discusses two forms of Turtle Suit strategies but warns about the complexities involved in short selling during volatile conditions.

The speaker clarifies that he uses demo accounts for teaching purposes to avoid legal issues related to financial advising.

Protecting Against Misinterpretation

By using demo accounts, he aims to communicate freely about trading strategies without risking accusations of causing financial losses for viewers.

Understanding Trading Through a Demo Account

The Value of Demo Accounts in Trading

The speaker addresses criticism regarding trading with a demo account, emphasizing that it serves as an effective teaching tool for both the trader and their audience.

They highlight the litigious nature of the U.S. and express indifference towards negative comments, focusing instead on positive feedback from those who appreciate their teachings.

Teaching Methodology and Learning Process

The speaker explains that using a demo account allows them to teach real-time price action without financial risk, reinforcing the idea that if strategies work in demo trading, they should also work in live accounts.

Emphasis is placed on desensitizing oneself to fear and excitement about money-making; the focus should be on learning how to read market movements confidently.

Engaging with the Audience

The speaker reflects on their past experiences of engaging viewers by creating controversy or "fires" around discussions, which helped grow their channel's following organically without advertisements.

They mention having 1.33 million followers while acknowledging mixed opinions about their credibility within the trading community.

Insights into Trading Competitions

Discussion shifts to participation in trading competitions like Robin's Cup; despite not being at the top of leaderboards, they express anticipation for upcoming events and reflect on others' performances.

Key Lessons from Live Streaming

The speaker encourages viewers to document questions arising from lessons learned during live streams, promoting continuous learning through journaling.

They introduce two fundamental elements of Turtle Trading: buying below old lows or selling above old highs, stressing these concepts as essential for understanding market behavior.

Trading Day Preparation and Strategy Insights

Importance of Pre-Session Planning

Starting the trading day without a clear plan increases the likelihood of an unprofitable day by 80%. Knowing what to expect is crucial for success.

Having specific objectives for the week, such as identifying key levels to watch, can guide trading decisions effectively.

Analyzing Market Conditions

Understanding daily objectives and market conditions, like volume imbalances and short-term highs, is essential for predicting price movements.

The perception that the stock market reflects the economy can mislead traders; awareness of this misconception helps in making informed decisions.

Execution Strategies at Market Open

Observing price action at critical levels right after market open (8:30 AM) provides insights into potential trade setups.

Recognizing patterns like "Turtle Soup" requires prior knowledge of expected price behavior before entering trades.

Discipline in Trading Decisions

Traders should avoid impulsive trades if they lack clarity on their strategy or objectives. Writing down key levels can help maintain discipline.

It's easy to be swayed into trading based on external influences; having a pre-defined plan mitigates this risk.

Adapting to Market Dynamics

Experienced traders may not always have a strong bias; observing initial market behavior post-open can inform subsequent strategies.

Trading Insights and Personal Reflections

Observations on Current Market Conditions

The speaker expresses a lack of interest in trading for the day, suggesting to move to the sidelines after observing price action that has fluctuated significantly.

Emphasizes the importance of analyzing individual days using various chart timeframes (1-minute, 5-minute, 15-minute) to understand market behavior better.

Importance of Personal Analysis

Critiques the practice of merely screenshotting charts with annotations without personal engagement or understanding; stresses that this does not constitute effective journaling.

Compares ineffective trading practices to collecting stamps or baseball cards, highlighting the need for meaningful engagement rather than superficial collection.

Developing a Personal Trading Model

Encourages traders to develop their own models based on personal criteria and personality traits, rather than blindly following others.

Warns against live streaming as a means of discovering one's trading model; suggests that many who do so are not successful.

Caution Against Misleading Mentorship

Criticizes individuals selling courses while failing in their own trading endeavors; warns potential buyers about investing in such courses.

Shares experiences with students who have successfully made money but emphasizes distancing from those misusing his name for mentorship purposes.

Community and Individual Growth

Discusses how some students have attempted to start their own funded account companies but did not succeed; clarifies he is not associated with these ventures.

Understanding the Role of Personal Image in Trading

The Importance of Critical Thinking

Acknowledges that skepticism towards figures like ICT can stimulate critical thinking about trading strategies and personal biases.

Emphasizes that followers should not idolize ICT, highlighting his fallibility and human nature rather than viewing him as an infallible authority.

The Nature of Competition in Trading

Discusses the competitive aspect of trading, stating that if someone is on the opposite side of his trade, he hopes they lose, which reflects the inherent rivalry in trading.

Expresses admiration for students who successfully challenge his predictions, indicating a healthy respect for their skills rather than taking offense.

Social Media Strategy and Perception Management

Describes how he has mastered social media to influence public perception and engage with followers effectively.

Mentions calculated actions in managing his online persona while also expressing frustration with technical issues during live sessions.

Restrictions on Translation and Distribution

Clearly states that he does not permit translations of his videos into other languages for distribution on platforms like YouTube.

Critiques individuals who have misused his content by creating unauthorized books or materials based on his teachings.

Encouragement for Original Content Creation

Offers support to those who wish to create original content based on their understanding of trading principles rather than copying his work verbatim.

Highlights the importance of building one's own brand through authentic representation of learned concepts instead of relying solely on translated material.

Mentorship Dynamics and Community Engagement

Supportive Yet Independent Learning Environment

Indicates a willingness to support students who are developing their channels but emphasizes independence from direct mentorship involvement.

Observations About Other Traders

Shares thoughts about fellow traders within the community, noting similarities between them and personal connections to family members.

Understanding Emotional Challenges in Trading

Observations on Personal Experience

The speaker reflects on watching his daughter navigate emotional challenges while using his trading tools, noting that she experiences stress and sometimes struggles with self-talk.

He observes her coping mechanisms, such as saying "I don't care" while displaying physical signs of frustration, indicating a desire to disengage from the situation.

Insights on Live Streaming and Trading

The speaker discusses the potential for making money through live streaming trading but emphasizes the importance of maintaining a positive approach without engaging in drama or negativity.

He warns that viewers often tune in to see traders fail, particularly if they have learned from him, suggesting that this creates pressure and scrutiny.

Recommendations for Content Creators

The speaker advises against using chat windows during live streams to avoid distractions and negative interactions with trolls. Instead, he suggests focusing on content quality.

He mentions the importance of not seeking validation through comments or likes, advocating for a more authentic engagement with audiences without relying on external approval.

Navigating Online Presence and Feedback

Reflections on Audience Perception

The speaker notes that many misconceptions about him stem from others' opinions rather than his actual teachings, emphasizing resilience against external criticism.

He expresses indifference towards negative feedback since he feels secure in his position and knowledge within the trading community.

Future Content Considerations

Although he has received offers for podcasts, he is hesitant to make decisions due to wanting to focus on personal projects first.

The speaker shares a desire to unplug from social media and return to a more authentic version of himself before becoming involved in online trading communities.

Emotional Authenticity in Communication

Balancing Emotion and Professionalism

He acknowledges that when speaking live, he tends to go off-topic but recognizes that sharing personal stories resonates well with audiences.

Reflecting on past presentations where he was monotone versus more animated, he concludes that showing genuine emotion enhances audience connection.

Conclusion: Embracing Authenticity

Understanding Authenticity in Content Creation

The Importance of Being Genuine

The speaker emphasizes that authenticity and organic content resonate most with audiences, particularly during lectures where emotions are expressed naturally.

Sharing personal experiences, including painful moments, can enhance relatability and connection with viewers.

Strategies for Successful Live Streaming

For those already proficient in trading, the speaker advises live streaming as a way to share their trading model without selling courses; transparency is key.

The focus should be on demonstrating real-time trading practices rather than engaging in drama or personal conflicts with others.

Methodology Over Personal Conflict

The speaker prefers discussing methodologies rather than individuals, asserting that personal attacks do not affect their approach or identity.

Encouragement is given to others to defend their methodologies publicly, fostering a community of shared knowledge and support.

Finding Your Trading Model

Comfort in Trading Practices

It's crucial for traders to find a model that suits their personality and comfort level; this includes choosing the right time of day and instruments for trading.

The speaker compares various trading strategies to different weapons, suggesting that no single method is superior if wielded by someone skilled.

Simplifying Trading Approaches

Understanding price movement is fundamental; traders must learn how to read market signals effectively before developing a personalized model.

Many traders struggle due to overcomplicating their models; simplicity often leads to better results when combined with confidence in one's strategy.

Overcoming Trading Challenges

Managing Leverage and Risk

Traders are cautioned against using excessive leverage which amplifies stress and complicates decision-making during trades.

Trading Psychology and Market Retracement Insights

Understanding Market Retracements

The speaker discusses the concept of retracement, explaining that a 50% retracement on an open position is not a cause for concern. They emphasize patience in trading rather than rushing to secure profits.

A retracement back to the entry point can present an opportunity to add more positions, indicating that spending time around the 60% retracement level is normal and should be anticipated.

The speaker illustrates a scenario where unrealized gains fluctuate, highlighting that even if open profit decreases temporarily, it shouldn't lead to second-guessing the trade as long as it hasn't hit the stop loss.

Anticipating Market Fluctuations

Emphasizing the importance of acclimating to market fluctuations, the speaker notes that seeing profits come back into the marketplace is part of a normal trading process.

Many traders expect quick results based on sped-up examples from videos but fail to realize that real trades often take longer and involve more complexity than what is shown.

Impact of Sped-Up Trade Videos

The speaker reflects on how their trade videos were condensed due to time constraints on social media platforms, which may have misled viewers about expected trade durations.

Feedback from viewers indicated they felt pressured to achieve fast results after watching these sped-up examples, leading them to struggle with patience during actual trades.

Real vs. Perceived Trading Experience

While many viewers enjoyed the entertainment value of these videos, they inadvertently set unrealistic expectations regarding trade execution speed and outcomes.

The realization dawned on the speaker that their presentation style might contribute significantly to new traders' impatience when holding positions.

Conclusion: Adjusting Expectations in Trading

The speaker acknowledges that while their intention was to inspire through effective examples, it unintentionally framed expectations for rapid success in trading scenarios.

Understanding Video Limitations and Personal Growth

Video Length Constraints

The speaker discusses past limitations on video length for Twitter, which restricted videos to around one minute and 20 seconds. This often required compressing content to fit within the constraints.

Transitioning from Short to Longer Videos

The speaker notes that while longer videos are now possible, they have chosen not to create them anymore, indicating a shift in their approach to content creation.

Embracing the Process of Trading

Emphasizes the importance of patience in trading, advising listeners to "submit to time" and understand that trades do not need to reach targets quickly for profitability.

Reflection on Content Delivery

The speaker expresses gratitude for the audience's engagement during a lengthy session, acknowledging their own hunger but also the value of sharing information.

Technical Challenges Faced During Streaming

Shares experiences of technical difficulties during live streams that disrupted thought processes but ultimately felt productive despite these challenges.

Future Plans for Content Structure

Mindful Transitions Between Topics

The speaker plans to be more mindful about transitioning between subjects in future live streams, aiming for clearer organization in discussions.

Cataloging Information for Viewers

Discusses the idea of providing timestamps or markers when shifting topics so viewers can easily navigate through long sessions.

Community Engagement for Indexing Content

Invites community members who enjoy cataloging content to help by noting down timestamps related to specific topics discussed during live streams.

Addressing Viewer Needs

Acknowledges efforts by some viewers trying to extract key insights from lengthy videos and suggests implementing timestamps as a solution rather than relying on splicing content into shorter clips.

Discussion on Live Stream Feedback and Content Structure

Importance of Viewer Feedback

The speaker expresses appreciation for viewer assistance in providing feedback, emphasizing that it is a personal matter of gratitude rather than a guarantee of visibility for comments.

Overview of Previous Live Streams

This marks the sixth live stream, with references to previous sessions (first through fifth), indicating a pattern of changing subject matters and amplifying discussions.

Length and Depth of Content

The speaker acknowledges their tendency to provide extensive information, likening the content delivery to an audiobook format, which may not be easily condensed into shorter segments.

Complexity of Topics Discussed

Emphasizes that reducing lectures into brief videos is impractical due to the complexity and interrelatedness of topics discussed; additional context from other videos is often necessary for full understanding.

Clarification on Specific Concepts

The speaker anticipates common questions regarding specific terms like "breaker," highlighting the need for viewers to seek out prior content for comprehensive explanations.

Encouragement for Further Learning

Viewers are encouraged to explore mentorship playlists from 2016 and 2017 on the channel as foundational resources before engaging with current discussions.

Closing Remarks