If I Had To Restart Again As A Trader, At 20 Years Old - Part 2

Summary

In this insightful continuation of Inner Circle Trader's guide to restarting as a trader, he emphasizes the importance of aligning trading styles with one's personality. He shares personal experiences from his trading journey, discussing the psychological aspects that can influence trading success. Key topics include the significance of maintaining focus on one market, leveraging personality traits to choose a suitable trading style, and the importance of backtesting and study journaling for long-term success. He concludes with a practical approach to developing trading skills and strategies through repetition and observation.

Highlights

• The Inner Circle Trader introspects on how he would adapt his trading style if he had to restart at 20. 🧠
• Importance of aligning trading tactics with personal traits and personality. 🛠️
• Emphasizes focusing on a single market to hone skills and develop patience. 🏹
• Discusses the pitfalls of comparing oneself to other traders and switching strategies. ⚠️
• Highlights creating a study journal to track trades, which aids in learning. ✍️
• Reiterates the importance of backtesting and understanding market structures. 🔍
• Shares insights on the psychological adjustments needed to succeed in trading. 🌀

Key Takeaways

• Align your trading style with your personality to boost success! 🎯
• Focus on one or two markets to develop patience and reduce stress. 🧘‍♂️
• Avoid comparison with others; stay in your own trading lane. 🚗
• Create a study journal to learn and refine your trading strategy. 📚
• Repetition in recognizing trading patterns builds expertise. 🔄
• Avoid getting influenced by the Instagram trading glamour; focus on data! 📊
• Understand that losses are part of the process; be prepared. 💪
• Simulate trades and log your observations without emotional bias. 📝

Overview

The Inner Circle Trader takes us through the process of how he would begin his trading journey anew at the age of 20. By aligning trading styles with personal characteristics, he finds the sweet spot in executing quick trades. This strategy minimizes stress and allows for a focus on the opportunities best suited to his strengths.

Keeping distractions at bay by concentrating on a single market is key. He highlights the effectiveness of crafting a study journal to fine-tune one's market strategies. Through diligent backtesting, he unveils the benefits of recognizing trading patterns, paving the way for informed and strategic trading actions.

Trading is portrayed as a discipline stronger than the glamorous image often sold on social media. Like an athlete preparing for the Olympics, a trader needs to focus on specific skills and develop them to perfection. The narrative concludes with a focus on removing emotional anchors by relying on data and consistent practice.

Chapters

• 00:00 - 00:30: Introduction This chapter introduces the theme of starting over. The speaker addresses the audience as 'folks' and mentions that this is the second part of a discussion on how they would begin anew.
• 00:30 - 01:30: Book Recommendation and Early Influence The chapter begins with the author imagining starting over with no prior experience and only having access to basic content like that found on YouTube. Before delving deeper, a book recommendation is given for "The Mental Edge in Trading" by Jason Williams, who is the son of Larry Williams. The author notes that while this book isn't focused on technical aspects of trading, it deals with other important concepts related to trading.
• 01:30 - 03:30: Matching Personality to Trading Style The chapter discusses the concept of matching one's personality to an appropriate trading style, a topic introduced to the author by Larry Williams. Williams's courses in 1995 highlighted the importance of aligning trading strategies with individual personality traits. This philosophy was passed down to Williams's son, who continued the legacy while pursuing a career in medicine.
• 03:30 - 05:30: Focus on Short-Term Trading The chapter titled 'Focus on Short-Term Trading' reflects on the psychological aspects of trading influenced by the author's psychiatrist father. The author shares insights derived from growing up in an environment where the mental challenges faced by traders were a common topic of discussion. The narrative includes a personal perspective on how personality traits and mental preparedness are crucial for effective trading, especially for those engaging in activities they may not be naturally inclined to handle. This personal experience aims to shed light on the intrinsic psychological battles traders face in short-term trading.
• 05:30 - 07:30: Avoiding Performance Anxiety This chapter discusses the importance of aligning one's personality with a suitable trading style to avoid performance anxiety. It begins by examining how different trading styles, such as scalping, day trading, short-term trading, swing trading, and position trading, can be matched to an individual's personality. The narrator reflects on their own personality traits, such as being quick to anger and often changing their mind, and considers how these traits influence their choice of trading style.
• 07:30 - 09:30: Choosing Quant Over Instagram Traders The chapter explores the concept of choosing quantitative analysis over relying on Instagram traders for trading strategies. It emphasizes the ability to quickly identify opportunities in the market through understanding micro market structures. The narrator highlights their ability to see frameworks in lower time frames, allowing them to enter and exit trades swiftly, which aligns well with their personality.
• 09:30 - 13:00: Importance of Focusing on One Market The chapter explores the significance of concentrating on a single market segment. It discusses the traits of day trading and short-term trading, emphasizing the strategies and mindset needed for success. The speaker prefers day trading due to the ability to quickly execute trades and increase equity through frequent market interactions, highlighting the importance of precise and timely exits. Patience is marked as less crucial compared to the skill in identifying opportune entry and exit points. The goal is to employ effective strategies to optimize profits while minimizing time spent in each trade.
• 13:00 - 17:30: Studying and Back Testing The chapter discusses the advantages of short-term trading over long-term trading. The speaker emphasizes a personal approach to trading, focusing on staying in one's lane and not being affected by others who may catch thousands of pips holding onto long-term trades. By concentrating on short-term trades, the speaker aims to minimize stress and performance anxiety, creating a trading strategy that suits their needs and personality.
• 17:30 - 23:00: Developing a Study Journal This chapter discusses the initial challenges faced by males in certain careers who, upon starting, feel the need to go beyond what is currently working for them. It highlights a common mistake among early achievers: comparing themselves to others and feeling inadequate if not mimicking their actions, leading to unnecessary and potentially harmful changes in approach or focus.
• 23:00 - 29:00: Using 15-Minute Time Frames The chapter discusses the challenges of maintaining long-term positions for an individual who frequently identifies multiple trading opportunities within a short period, such as 30 different opportunities in a week. This can cause conflict for those who find it difficult to ignore short-term opportunities in favor of holding trades for months. The focus is on how shifting between many trading strategies can hinder one's ability to excel in their chosen method.
• 29:00 - 34:00: Annotating and Analyzing Trades The chapter 'Annotating and Analyzing Trades' focuses on aligning one's unique personality with specific trading styles. It emphasizes the importance of understanding personal trading preferences and styles that match one's personality. The chapter highlights the author's preference for frequent trade setups in intraday charts, as opposed to long-term setups seen in monthly and weekly charts. Additionally, the chapter suggests occasionally referencing long-term charts to get broader market perspectives, though the main focus remains on short-term trading.
• 34:00 - 38:30: Learning by Repetition and Pattern Recognition The speaker emphasizes the importance of consistency and not flip-flopping on expectations, especially in trading contexts. They mention using higher time frames to outline specific biases and avoiding distractions from flashy and colorful elements that can divert attention from actual trading strategies.

If I Had To Restart Again As A Trader, At 20 Years Old - Part 2 Transcription

• 00:00 - 00:30 hello folks this is part two of how i would restart all over again if
• 00:30 - 01:00 i had to go back and do it all over again as a completely blank slate no experience whatsoever and only having access to the youtube level content that i put on my channel before i get into this one just a book recommendation for you this is the mental edge in trading this is jason williams he is larry williams son now while this isn't really a technical trading book it's more along the lines of the things
• 01:00 - 01:30 i'm going to talk about here now i'm not trying to reduce this book's effectiveness in covering the things i'm going to mention briefly here but i will mention that larry williams brought this up early on in my career it was first exposed to the idea of matching personality to trading styles by larry williams courses that i discovered and purchased in 1995. so his son naturally carried on with that school of thought and becoming a doctor and a
• 01:30 - 02:00 psychiatrist he ended up making a book with his father's uh experience in trading and i guess growing up listening to his uh his father talk about the ins and outs of the psychological aspects to trading and how traders many times fight to do something they're not really equipped mentally to relate to and i'll give you my personal experience and how i think about things and how i am from a personality standpoint
• 02:00 - 02:30 and how that matches up with a specific trading style so at first obviously consider my personality and i would try to match my personality to the appropriate trading style now what does that mean well there's lots of different ways the trading there's scalping day trading short-term trading swing trading position trading my personality is i'm quick fused and i'm prone to changing my mind frequently so while that means
• 02:30 - 03:00 seeing like indecisiveness on the part of someone that doesn't really understand what i mean by that it just means that i can see lots of opportunities and i can see micro market structure in price and i can draw a relationship between that and opportunity for me to get in and get out so otherwise i can see a framework in lower time frames rather quickly and i can get in and get out rather quickly so my personality personally lines up
• 03:00 - 03:30 with day trading and short-term trading because i like to take a lot of executions i like to get in and out and parlay my equity up that's the goal as a short-term day trader is to get in take your surgical strikes and get out try not to overstay your welcome i do not have patience to sit in long-term swings
• 03:30 - 04:00 so with that it helps me narrow down my focus and i don't care how well someone else does trading and catching 1500 pips 2 000 pips 3 000 pips for a year holding onto these long-term trades i just draw no affinity for that short-term trading allows me to keep myself in my own lane try not to worry about putting on more stress than it's necessary and i really removed the whole aspect of performance anxiety which
• 04:00 - 04:30 will obviously be a thing for the males in this career when they first start they feel like they have to do something else in addition to what they may already see working early on now i'm not saying everyone's going to find success early on but those that do find success early on they make the mistake of looking at other people and saying well i'm not doing what they're doing and that means i'm probably not doing as much or as well as i should and you change lanes and that changing
• 04:30 - 05:00 of lanes many times will take you out of what you're really prepared to do the best in and that means like i'm not really good holding long term positions because i'm going to see 30 different position opportunities in a week well that doesn't fit well with someone that is expected to get into a trade and hold it for months at a time because i'm going to be wrestling with man that's an opportunity for me to go short here and i'm long it's just it's problematic
• 05:00 - 05:30 so this book i think also helps match up your unique personality helps you discover what your unique personality is and how it might relate to a specific style or approach to trading and i personally enjoy the frequency of trade setups in intraday charts so i don't spend a lot of time on monthly and weekly just once in a while i'll get a long-term perspective and that usually stays in motion for a number of
• 05:30 - 06:00 weeks so i'm not trying to flip-flop back and forth with my expectations and i try to milk a specific bias that that higher time frames already outlined now obviously when we get into trading we're met with all kinds of flash and glitz and image and all of that colorful thing tries to get your attention
• 06:00 - 06:30 the opposite side of that is the quant side so you have instagram traders fakes and then you have the left side where it's quants they're highly highly mathematically derived system-based rule-based ideas and they're kind of like the nerdy crowd so there's going to be two schools of thought for you and i would really elect to go with the quant side because i'm analytical i have computer science background
• 06:30 - 07:00 information systems and computer programming that side of things is more appealing to me and i'm a numbers kind of guy i've never been an image person even though i did do that kind of stuff as a young man it doesn't give me the satisfaction of just beating the socks off the marketplace with data and you're going to decide that early on too but i would not go towards the instagram crowd like i mentioned in the first
• 07:00 - 07:30 volume of this series i would keep my focus only on one market and avoid switching markets sporadically that means if i don't have a trade setup or if i don't see something that is producing a condition in the marketplace that i could operate favorably in it doesn't mean i'm going to abandon that market it just means i'm going to learn patience and sit
• 07:30 - 08:00 and wait that part of your development is crucial and this is the reason why i teach my students to focus on one or two markets that are closely correlated and measure that against the benchmark like the dollar if you don't have the patience to wait for your setup you're going to rush to do things and gamble and the only way that you form and forge patients is to develop it by sticking to one market and
• 08:00 - 08:30 identifying when it's not trading in a condition that's favorable and just being patient it gives you clarity you don't guess about whether or not you should be doing something or not you don't abandon your market simply because it doesn't give you the opportunity you usually take right now you simply wait because you know what you're looking for so early on when i first started trading commodities back in the early 90s i would jump from one commodity to the next if it didn't give me a setup i knew that if i looked hard enough i would
• 08:30 - 09:00 find a reason to get into another market and sometimes that was painful i would lose a lot of money and it would make me angry and it's okay well i'm not making any money in this green i'm going to go into the meat market and i would trade feeder cattle or i would trade pork bellies or lean hogs something that effect and if i took a loss there then i would say okay well i'm going to go and i'm going to trade crude oil or heating oil or unleaded gas and then if i took a loss there i'd jump into cocoa or sugar you know i would jump all over the place sporadically and that's a loser's cycle
• 09:00 - 09:30 and you don't want to start that and you want to enter this whole process with a professional mindset and perspective that means think of a an olympic contestant or an athlete okay you don't see an olympic athlete going from the swimming pool to the shot put okay or trying to throw the discus or to do the relay race they specialize in on one
• 09:30 - 10:00 thing and they're only going after the gold on that one specific event and they're really focusing and narrowing their focus on one specific process that they believe will lead to their superior result above everyone else and the gold that's what they're after they're not trying to be the master of every olympic event same thing with these markets a professional trader is going to be focused on one specific market
• 10:00 - 10:30 narrowing their focus and knowing what it is they're looking for and i'll cover a little bit of what that would be and how i could use the youtube channel to to formulate that idea but keeping your focus on one market is important because you'll learn when not to do something and you'll know when to do something you won't feel the tug of war of emotional psychological effects of not doing something because the gambling aspect of trading won't be an enticement for you because
• 10:30 - 11:00 you know what you're waiting for if it's not there you simply wait because you know given enough time that specific market will give you a setup i would build a study journal of back testing that single market or asset class and i would start with the euro dollar now what do i mean by study journal and what is back testing what would i be doing well i'd be going into the charts and
• 11:00 - 11:30 since my preferred outlook on the marketplace is short term to intraday i would have an hourly chart of the entire week and with that hourly chart showing monday through friday i would look for old highs and old lows where the market traded above an old high rejected and go the other direction or i would watch where the old low was taken out by a lower low and then reversed and went the other direction and i would study that market structure in those two reference points now initially i would not be trying to
• 11:30 - 12:00 pick the weekly range or the direction that's not what i'd be trying to do in the beginning because it's easy to trick yourself into thinking you know what you're doing and then being discouraged when you don't when you find out later on you don't know what you're looking for so to do things at a very modular pace and slow pace and realistic pace and development i would focus in on optimal trade entries and how that would be easily determined
• 12:00 - 12:30 looking at the marketplace as i'm going to show you in this volume and this would be done at least six months so for six months i would expect myself to submit to back testing and logging in a study journal the way i'm going to show you in this so what does it look like when you're back testing and filling up a journal with six months of
• 12:30 - 13:00 back data well as i mentioned i would have an hourly chart and this is exactly how i started as an s p and bond trader when i stripped away all the retail stuff i used the s p market and the bond market why those two markets you said one market michael well it's essentially one market that i was following which was bonds but because bonds and s p are inversely related
• 13:00 - 13:30 so in other words bonds go up s p goes down vice versa if one goes up the other one goes down so it doesn't make a difference which market was giving me the setup i knew if i could relate it to the other it would support the opposite view so since i'm still working with one market it's the same thing as if i was using the euro dollar against the dollar i want to make sure that what i'm anticipating in the euro dollar is the opposite in the price action in the dollar
• 13:30 - 14:00 so on an hourly chart i'd take the entire week and break it up from monday to friday this would all be done after the fact okay because the whole pantomime here is i'm developing and how would i teach myself to go through the process of developing with a steady learning curve and not waste a lot of time you start with an hourly chart also let me preface it by saying this is my approach this is where i would have gone back if i could
• 14:00 - 14:30 and do this very thing because i would have learned at a quicker pace not that i'm speeding you along but because if i would have figured out early on what my personality is and how it would relate to trading day trading and intraday trading you only need an hourly chart you don't even need a daily chart you don't need a weekly chart you don't need a four-hour chart you don't need a monthly chart you don't need any that kind of stuff you just need to look for market structure at turning points okay and at key intermediate term highs and
• 14:30 - 15:00 lows that's all you need to focus on what are they well if you look at this chart here i have a high here and this is a monday it trades up on tuesday runs that previous high and breaks down trades lower the next day on a wednesday trades higher than this high here then trades lower we have a low here
• 15:00 - 15:30 it trades down below that and starts and turns the other direction as well after also this low taking out that so all i'm looking for is intermediate term highs and lows and are they traded through and is there a possibility there's going to be a rejection because i don't need the market to trade 300 pips in my favor i don't need to trade 200 pips in my favor all i need is 50 pips 50 pips and i can do as much as i want taking
• 15:30 - 16:00 that same 50 pips and repeating it every single week so what i'm focusing on is learning how to find one setup or multiple setups that would net me a 50 pip net result for the week because that's the first thing you got to set a target for what it is that you believe that you could do consistently on a weekly basis do not set the target for 50 pips a day because you're not going to hit that okay you are not going to hit that period
• 16:00 - 16:30 you want to have something spread out over the course of the entire week and 50 pips is only one half of a penny move in 4x so if i'm only trying to get 50 pips even if i don't get my full targets and i just get 10 pips each day trying to do this procedure in theory i could get 50 pips that way and still never hit my ultimate targets so even in failure reaching my milestone each week this is crucial because i put too much emphasis on being right in the beginning
• 16:30 - 17:00 of my development and every single time i had small little modular winds on paper now these were live trades back when i was trading but when i say i had paper profits they were unrealized they were only showing that if i would close the trade i would have this much money in real dollars in my account but i would hold on to it for my targets and never understood the concept of taking partials along the way and paying myself so before i would
• 17:00 - 17:30 learn that i would teach myself and condition myself to do what i'm going to show you here so each day you split the hourly chart with vertical lines they may may not be that visible here but there's a one here here here and here is friday's trading and then the end of friday's trading is there so all i'm looking for is intermediate term highs and lows where the market trades above it and then once it does that does it break down and i'm going to go into these areas and study it on a lower time frame 15 minute time frames all that's
• 17:30 - 18:00 necessary and the same thing in here same thing with this low there okay and same thing with this low being taken there and you study it and you look for these specific characteristics now on monday we can see that the market trades above this short-term high here and above the short-term height there so we're only going to look for the sake of brevity in this volume because i could obviously talk for six hours and then bore you to sleep but i could dig really deep with this
• 18:00 - 18:30 just in this one whole chart here on this hourly chart but we're just going to look at just one specific day on that monday and the whole framework is this short term high is being divided there and we're going to look at this fractal right there all right so here's the 15 minute time frame on may 10 2021 and here is the naked price action and what you want to do is in your study journal you want to take the chart and have it set up where you have it naked no annotations nothing and you want to
• 18:30 - 19:00 have the access to areas in your chart where you can write out your own annotations after the fact because you're going to dress this up but you're going to learn later on a week later a month later three months later when you come back to it you're going to see what the market has done since these specific days and this is how you teach yourself by repetition seeing how they all nest together each individual days price actions basically a small
• 19:00 - 19:30 component or cog in the greater scheme of how these markets move and book so you want to start with a very simplistic approach and a good 15 minute time frame and hourly chart for the whole weekly range and you do this every single week and you do it for six months you don't try to demo trade you don't try to go in with a small live account just to see what it feels like and feel the psychological tug of war like everybody that doesn't know how to make money tells you to do that's nonsense you're gonna start with the wrong foot
• 19:30 - 20:00 first doing that the way you go into these markets and you learn how to do it without any emotion without any fear of losing is to simply desensitize yourself to that whole aspect of it needs to be right because it doesn't need to be right you don't need to be right i didn't need to be right in the beginning but i felt that i had to be right all times 24 7 every single trade and that is problematic it conditions you to have unrealistic expectations so we have to just strip this thing down
• 20:00 - 20:30 into a simple pattern recognition approach to seeing something that repeats over and over and over again well let's take a closer look at this specific day when you annotate your chart for your study journal you want to find the optimal trend entry that occurs between 8 30 in the morning and 11 o'clock new york local time that's what you're going to annotate here okay here's the high it trades down below a short-term low here
• 20:30 - 21:00 so that's eight shift in market structure it rallies back up inside of this shaded area here that's optimal trade entry 79 tracement level 62 retracement level there the idea is that you're going to use the 62 retracement level as your hypothetical entry now this is all hypothetical you're not attempting to do these trades all you're doing is building a study journal which is back testing old data so what this does it helps
• 21:00 - 21:30 condition you to see specific elements to these ideas and then watching it flesh out and build up as time goes on well if you look at how this market goes from this high down to this low shift in market structure rallies back up you go short right there this is the first time the candle touches this price level the stop goes just above this short term high so your stop loss is there
• 21:30 - 22:00 10 pips nothing less every single example you're going to backlog and show in the examples a 10 pip minimum that's the least of a stop loss you can use that way you're not trying to convince yourself that you can go in two pip stop losses okay avoid all that stuff for right now 10 pips is reasonable if you're using a 15 minute time frame that's reasonable doesn't mean that you won't get stopped out it doesn't mean that it's going to work like that in the future all the time it
• 22:00 - 22:30 just means that as a rule-based idea going in studying back testing data everything that's already happened in hindsight you're looking at examples to frame out something that can build a respectable risk to reward model not that i have that as a dependence in my trades because i don't look at it as i have to have this i have to have that in terms of what i risk i'm you don't know what the market's gonna give you just because you have your trade framed out with ten to one you're
• 22:30 - 23:00 risking a dollar to make ten dollars you have no idea and no assurity that it's going to move ten dollars in your favor no one knows that i don't know that there isn't a trader alive that's going to be able to tell you that's going to absolutely happen because that was the case we'd all be billionaires but you have to have some kind of idea that you're going to submit to okay so as a suggestion this is all this is all of your framework you want to try to set it up with three to one that means you're trying to risk one dollar to make three dollars
• 23:00 - 23:30 if you do that you have a really good chance of over time the losers being overtaken by your winners and you don't need to have a high strike rate to be profitable theoretically so right here we have 10 pips defined as our risk and the market comes back up one more time note this okay so anywhere over here in your annotations you want to record how much time it took when it started the trade here how much time did it take before it
• 23:30 - 24:00 started really moving in your favor i like to see one and a half of what i have risked before i would consider moving a stop that was one of the original ideas i had from my trading is whatever i'm risking it has to move one and a half times that before i even move my stop now if you have that rule-based idea this return back into the general area where you got in would not stop you out many times traders would rush their stop down in
• 24:00 - 24:30 here and it comes back knocks them out and then it moves in their favor because they're so afraid to take a loss do not be afraid to take a loss and submit yourself to the initial risk that you put on and leave that there until it at least moves one and a half times what you've risked what does that mean well it has to move 15 pips in your favor before you move your stop loss in any degree and at that point i'm only moving it to half the initial risk once it does two times what i've opened up myself for initial risk in other words it's moved 20 pips on my
• 24:30 - 25:00 favor then i go to break even and you want to have that annotated here how much time does it take for you to be able to do that and you log that and you simply do this every single day old lows is what you'd be aiming for so there's liquidity resting below that it's cell stops using your fib you have an extension of negative one and i've already showed this on my optimal trade entry pattern recognition series which you're welcome
• 25:00 - 25:30 to look at on my youtube channel it's in the playlist section on my youtube so this is the target but we're going to be trying to get deeper into this sell side liquidity pool so this is our target to get this we're going to assume that the market needs to go at least a good five pips below that now why five pips some brokers have really tight spreads wouldn't that get me out no as a rule based idea you want to anticipate a five pit run below where you think it might go so frame all your trades
• 25:30 - 26:00 that way so that way once the market does in fact trade to that point five pips below it no matter what broker you have you have about a ninety percent likelihood that they'll fill you that's why i have that rule based idea and you can see the market does in fact trade down to that level so five pips below this target below this liquidity pool that's where you would have it marked now when you have it marked up like this then you want to start adding all the annotations but the main thing is is knowing when that shift in market structure occurs that's what sets up your pattern and then once you have it all fleshed
• 26:00 - 26:30 out with all the annotations and it doesn't take long to do this it literally only took me less than 10 minutes to mark this chart up just like this so even if you have a job you have children you have a family to take care of whatever okay you still don't have to spend a whole lot of time doing this and you're only doing with one market and once it's all marked up obviously you want to fill in the details you know what time did the short hypothetically fill and what time did the target fill so you essentially got in at 10 o'clock in the morning
• 26:30 - 27:00 here on this candle and hypothetically you would have got out at around 8 45 pm time in the market is 10 hours and 45 minutes the drawdown was 3.2 pips that means this highest candle right here went 3.2 pips away from where your entry was on this candle that's why i'm teaching you to use a 10 pip stop loss because it gives you a forgiving range where you don't have to be so precise and you're linking it to the old high
• 27:00 - 27:30 and if you start doing this for six months you're going to have a backlog of historical data that is fleshed out in such a way where you can go back and see how these individual unique days are part of the weekly range and then also how it is part of the monthly range like how does this particular day the 10th of may 2021 how does it relate to the entire trading of the month of may and how does it relate to
• 27:30 - 28:00 the first quarter's trading going into the second quarter of 2021. where is it in relationship to all of that and the only way you're going to understand how these markets are fractal and how they fit together is by doing these types of exercises and teaching yourself by repetition what the pattern looks like how to frame it over and over and over again even though it's hindsight and you can't trade it it's teach it's teaching you how to recognize it and how to frame it and
• 28:00 - 28:30 you'll see that there are repeating phenomenon and characteristics to these specific very simple approaches to trading that's taught for free on this youtube channel that are consistent they occur every single week but all you need to find is one candle or high that's pierced and if it breaks and it has a shift in market structure which is a short term low right before it creates the runner higher high then you anticipate a optimal trade entry the fact that it's hindsight you don't
• 28:30 - 29:00 you're not going to have any fear of being stopped out because it's already happened and that's perfect because you can't lose you can't make money you're only focusing on identifying the structure and pattern and by knowing what that looks like comprehensive approach to learning from back data historical data where nothing can influence you from a greed standpoint or fear standpoint you are taking all the psychological elements out of it and you're taking the money
• 29:00 - 29:30 out of it and you're teaching pattern recognition when you were in grade school and you were learning the alphabet was it gonna make you any money or take any money out of your pocket if you didn't know how to draw or write or recognize the third or fourth letter in the alphabet no you were being conditioned to do what the same thing over and over again you'd have a little ditto paper okay and they would give you an example of a capital a and you'd have to fill the whole page up with a capital a over and over and over again as boring as that was your hand would hurt at the end of doing it
• 29:30 - 30:00 but you were expected to do that and the next day what letter would you be working on the letter b and what are you doing each day pattern recognition was it profitable for you not at the time but now you can write letters you can send text messages it's useful information to you but you started that way pattern recognition you have to strip trading down to that elementary state where you're not influenced by anything monetary or psychological you're not
• 30:00 - 30:30 elevating yourself up with ego because you called something right or you're not deflated because you got it wrong because it's already happened and you're conditioning your subconscious to see this pattern over and over and over again and as you go through and annotate you you're not limited to this you can put more details in there as much as you want how much time did it take before it moved one and a half times your initial risk how much time did it take before that would happen and these are things that you wouldn't build up and you're going to see these
• 30:30 - 31:00 reoccurring characteristics are in the majority of these setups and you're also going to relate to what day of the week these patterns are forming and how that relates to the weekly range which days produce the best setups for shorts which days produce the best longs when it's bullish and keeping that log going you're the rest of your career that's what you're going to do you're going to be doing this the rest of your life charting and annotating your charts but in the beginning you have no idea
• 31:00 - 31:30 what you're looking at on the hard right edge of that chart so to eliminate all that fear and performance anxiety just don't worry about that teach yourself pattern recognition and using this as an approach to initially start it this is how i would do it if i was 20 starting all over again just using what's on this youtube channel this is exactly what i would do until i talk to you again in part three be safe