If I Had To Restart Again As A Trader, At 20 Years Old - Part 3

Summary

In Part 3 of 'If I Had To Restart Again As A Trader, At 20 Years Old,' The Inner Circle Trader shares insights into developing a successful trading strategy focusing on the Euro Dollar during the New York session. The video emphasizes the importance of backtesting, patiently developing skills over a year, and recognizing optimal trade entry patterns. With a candid and straightforward approach, he highlights the significance of avoiding rash decisions, adhering to disciplined trading times, and the potential for financial freedom through diligent practice.

Highlights

• Introduction to backtesting and its importance for new traders. 🔍
• Optimal Trade Entry (OTE) patterns are a foundation for consistency and profitability. 📜
• Explanation of using relative equal highs as a resistance level and its role in trading strategy. 📊
• Using paper trading to prove theories and validate strategies without financial risk. 🧪
• Focusing on a single currency pair - Euro Dollar - to simplify the learning process for beginners. 🎓
• The significance of sticking to specific trading times (8:30 - 11 AM) for optimal results. ⏱️
• The psychological aspect of trading and the necessity of developing patience to avoid premature decisions. 🧘
• Detailed discussion on partial profits and managing trades effectively. 💭

Key Takeaways

• Patience in trading is crucial for long-term success. Avoid rushing into live accounts without extensive backtesting and paper trading. ⏳
• Understanding the Euro Dollar market is key, with a focus on the New York session from 8:30 to 11:00 AM. ⏰
• Optimal Trade Entry (OTE) patterns are essential for identifying profitable trades, and these require a disciplined and structured approach. 📈
• Utilize backtesting for at least six months to recognize patterns and build confidence in trading decisions. 🧠
• Take profits systematically through partials, fostering a cautious approach to managing trades and risks. 💡
• Focus on a simplistic trading model that minimizes distractions and maximizes focus on the Euro Dollar. 🎯
• Learn from real examples and backtested data rather than immediate financial outcomes. 📊

Overview

In this insightful video, The Inner Circle Trader explains how one should start their trading journey if they were to begin again at 20 years old. At the forefront is the necessity of backtesting for six months to cultivate a deep understanding of trading patterns and develop confidence before moving to paper trading.

The discussion revolves around the Euro Dollar and why it’s ideal for traders starting out. He emphasizes the importance of identifying and learning Optimal Trade Entry (OTE) patterns, which are capable of consistently yielding profitable trades, specifically during the New York session. The focus on a single currency pair and a specific timeframe allows for better discipline and specialization.

With a keen focus on patience, traders are advised to take profits using partials and only trade during the times with the highest likelihood of success. It’s a step-by-step approach that stresses long-term planning over short-term gains, urging traders to embrace the process of diligently developing their skills over a full year of practice.

Chapters

• 00:00 - 00:30: Introduction In the introduction, the speaker welcomes the audience to the third part of a series on how they would restart their life at the age of 20. They mention having completed six months of back testing as part of the process they are discussing.
• 00:30 - 01:30: Optimal Trade Entry Pattern and Backtesting The chapter emphasizes the importance of identifying the optimal trade entry pattern, particularly during the New York session between 8:30 and 11:00 in the morning. The author advocates for viewers to familiarize themselves with their series on Optimal Trade Entry Pattern Recognition and the OTE Primer, which are available on their YouTube channel, to gain a deeper understanding of these concepts.
• 01:30 - 04:30: Understanding Market Structure and Resistance The chapter focuses on understanding market structures and resistance levels in forex trading. The author suggests a six-month period for backtesting and maintaining a log of trading patterns. The chapter aims to teach practical engagement with the Euro-Dollar in the New York trading session using realistic examples.
• 04:30 - 06:30: Bullish Market Example and Execution The chapter titled 'Bullish Market Example and Execution' focuses on practical aspects of trading in a bullish market. It discusses how traders can visualize optimal trade entry patterns, set targets, and filter setups effectively. The transcript specifically mentions an hourly chart on the euro-dollar currency pair, referencing a recorded video execution showing how the trade hits its target. The focus is on explaining the technical execution and management of trades.
• 06:30 - 09:30: Paper Trading and Understanding Entries The chapter begins with the explanation of using recorded examples to demonstrate trading strategies. The focus is on paper trading, a technique to practice trading skills without risking real money, allowing the application of knowledge in a simulated environment. The instructor discusses how they would start trading again from scratch using only the information available from their YouTube channel, emphasizing ICT (Inner Circle Trader) concepts. This resource is aimed at providing depth to the strategies shared and shows practical application by revisiting fundamental trading principles and entries.
• 09:30 - 11:30: Developing Patience and Partial Profits The chapter focuses on trading strategies, particularly on developing patience and taking partial profits. It highlights the teachings shared on the Inner Circle Trader YouTube channel, emphasizing the concept of 'relative equal highs' which many retail traders perceive as a strong resistance level. It also notes a disparity with Wyckoff's theories, which do not address this specific area in price action. The chapter aims to provide a framework for traders by drawing strong conclusions based on these principles.
• 11:30 - 14:30: Framework for Optimal Trade Entry The chapter discusses the initial mindset of retail traders, often influenced by John Murphy's book 'Technical Analysis in the Financial Markets', which is considered a bible for retail traders. The speaker shares their own experience of initially adopting this mindset but later discovering profitability by interpreting the book's concepts from a different perspective. The mention of analyzing an hourly chart of the Euro with reference to relative equal highs suggests a practical application of chart analysis techniques.
• 14:30 - 17:30: Order Blocks and Market Structure During May 17th, 2021, a particular trading pattern is highlighted, involving a rally that breaks a short-term high, then retraces to an initial low. This is described as an 'optimal trade entry.' The speaker expresses a preference for this pattern and, although more diverse in trading approaches, favors utilizing this specific technique.
• 17:30 - 19:30: Convergence of Signals and Fibonacci Levels The chapter discusses the significance of a specific trading pattern taught on a YouTube channel. The speaker is confident that mastering this pattern can lead to consistent profitability, allowing individuals to potentially quit their jobs and build wealth. However, the pattern does not form frequently, so it requires patience from traders.
• 19:30 - 22:30: Dealing Range and Testing Strategy The chapter discusses strategies in a bullish market environment. It highlights the presence of tapped and untapped equal highs, which indicate potential buy stops above those highs. Traders who previously held short positions may place buy stops above to protect themselves, while bullish traders may also place buy stops to capitalize on upward movements. This behavior not only safeguards positions but also increases liquidity in the market, making it an interesting point for traders to consider.
• 22:30 - 25:10: Market Entry and Time Windows The chapter discusses market entry strategies and the significance of timing in trading. It analyzes a specific scenario where the speaker observes a rally followed by a decline, but notes that the rally did not surpass previous highs. Despite this, the speaker identifies a bullish optimal trade entry due to a shift in market structure above a short-term high, indicating upward momentum. The optimal trade entry is considered around the 79.62 level, which is seen as a favorable retracement point.
• 25:10 - 27:30: Paper Trading Strategy and Patience The chapter titled 'Paper Trading Strategy and Patience' discusses an optimal trade entry strategy. The strategy is not solely based on Fibonacci levels, but also on an underlying framework where the market rallies higher, breaks a high, and leaves unfinished business in terms of buy-side liquidity, or buy stops, that have not been adequately traded into. The retracement back down is viewed as an optimal entry point. The chapter includes an example recorded through Trading View.
• 27:30 - 31:00: Learning Over Emotional Trading The chapter titled 'Learning Over Emotional Trading' provides a discourse on the responsibilities and limitations associated with providing trade advice. The focus is on advocating learning and understanding trading concepts rather than making emotionally-driven decisions. The text clarifies that the examples shown, such as bullish positions and hypothetical scenarios, serve as educational tools rather than real entries or trades. Emphasis is placed on paper trading for compliance, while also noting that the content does not constitute professional financial advice, but rather aims to inspire the reader through ideas and simulations.
• 31:00 - 35:00: Time Windows and Trading Routine The chapter titled 'Time Windows and Trading Routine' discusses the importance of taking personal responsibility in trading decisions. The speaker emphasizes that whether one makes a profit or incurs a loss from trades, the results are solely the individual's responsibility. The speaker clarifies that they are sharing their insights because they enjoy speaking about the topic, but listening and acting on the information is the listener's choice. In case of a loss, the responsibility lies with the individual, and similarly, in the case of a gain, the individual should take full credit as they took the risk. The message emphasizes self-reliance and accountability in trading.
• 35:00 - 39:30: Long-Term Trading Success Strategy This chapter discusses the importance of paper trading in proving theoretical concepts and trading rules. It emphasizes the significance of understanding specific patterns and frameworks, specifically focusing on hourly pullbacks and the potential for short-term optimal trade entries within different timeframes. The chapter suggests that although these concepts are part of a broader strategy, some details are best explored in dedicated discussions.

If I Had To Restart Again As A Trader, At 20 Years Old - Part 3 Transcription

• 00:00 - 00:30 my all right folks welcome back this is part three of how i would restart at 20 if i had the opportunity to do so and the pantomime here i'm using is i've done six months of back testing
• 00:30 - 01:00 i've grown accustomed to trusting that the optimal trade entry pattern forms rather consistently during the 8 30 in the morning to 11 o'clock in the morning new york session time at any time if you've only watched this video it's advised for you to go and look at my optimal trade entry pattern recognition series and the optimal trade entry or ote primer those videos are found on my youtube channel so
• 01:00 - 01:30 in this lesson again i'm focusing on the understanding that we collectively agree that some time has passed and i recommend six months as i mentioned part two of this series of back testing and keeping a log of what the pattern looks like so assuming that's done how would i engage euro dollar in the new york session on a daily basis i'm going to cover that with an actual example not just
• 01:30 - 02:00 hypothetical and how might i visualize optimal trade entry patterns and how would i frame the targets and filter setups all right so here is the hourly chart on the euro dollar and before i get into this just note that i did record a execution and the link to that video on the execution and management where it hits the target as you can see here the entry
• 02:00 - 02:30 and exit arrow all of this has been recorded so you can see there was an actual example not talking from pure hindsight i'm using the actual things that i used in the trade example and i'm going to teach you more depth behind it and this is exactly how i would go into if i was starting all over again as a 20 year old using just the information on this youtube channel just my ict concepts everything is inner
• 02:30 - 03:00 circle trader me michael the things i would focus on primarily in the beginning is exactly what i'm showing you in this video here now the framework obviously if you go through all of the videos on the inner circle trader youtube channel i teach this idea here okay and it's relative equal highs and retail sees that as a very strong resistance level wyckoff does not talk anything about that specific area in price action doesn't talk about it doesn't mention it and i draw strong conclusions
• 03:00 - 03:30 that most retail traders think with this logic and i adopted that mindset initially as a trader by reading john murphy's book technical analysis in the financial markets which is the retail traders bible if you learn everything in that book and turn it upside down you can be profitable because that's essentially what i did so if i look at this relative equal high and we're looking at an hourly chart here on euro
• 03:30 - 04:00 the idea is during the 17th of may 2021 this pattern right here this rally up that clears a short-term high and trades right back down into this initial low trades back down in as an optimal trade entry i like this pattern this is actually one of my favorite patterns to trade if i'm only going to elect to use the optimal trade entry now obviously i'm much more reversed
• 04:00 - 04:30 than just ote patterns but for this youtube channel i teach that as the flagship pattern i am absolutely convinced 100 sold on the idea that anybody that learns this pattern can find consistency can find profitability can quit their job can grow wealth all you need is this one pattern the problem is you want it to form every 10 minutes and it's not likely to satisfy that itch
• 04:30 - 05:00 so what i want you to notice is the underlying framework is we're in a bullish market and we have these tapped untapped equal highs okay so there's a lot of buy stops resting above that because traders that have rode this down are going to have a buy stop resting up here to protect their short position and or anyone that's bullish will have a buy stop above that and it also builds more liquidity for buying now why is that interesting
• 05:00 - 05:30 to me if we're trading down here because i see a rally from here up and then back down in that did not take this run above these highs so in my mind i see this as a bullish optimal trade entry because we have had a shift in market structure above the short-term high so now momentum is in force on the upside the retracement back down in 79 62 in that area that's optimal trade
• 05:30 - 06:00 entry now it's not just simply the fib level that makes it optimal it is the fact that we have this underlying framework where we rally higher broke a high we have unfinished business up here okay that's by side liquidity that's buy stops that have not been adequately traded into so this retracement back down in i view that as optimal trade entry now again i'm showing you an example that i recorded through trading view i'm not
• 06:00 - 06:30 using the bullish position where it just shows you rectangles and shaded areas that's hypothetical that's not an execution that's not an entry that's not a management of any position whatsoever yes everything i'm showing you in this recording and also pointing to for the actual recording on may 17 2021 was a paper trade for compliance reasons and legal reasons i'm not licensed to give you trade advice or financial advice this is just my opinion and it's meant for you to be stimulated by the idea
• 06:30 - 07:00 and go into it and study on your own and you draw your own conclusions if you make money wonderful you did it on your own accord if you lose money you own that too neither of those things whether it be good or bad are my responsibility i'm here talking because i like to talk if you don't want to listen fine if you listen and you do something with it and you hurt you that's your responsibility to own up to that if you do something and you make money take all the credit for it because you took the initial risk hopefully we made ourselves very clear here
• 07:00 - 07:30 but paper trading proves theory it proves conceptual ideas are valid and the rules that i teach in this channel are in this specific day and in a specific pattern but the underlying framework is this hourly pullback right here now in this little short term turn here this is also housing a short term optimal trade entry but that's on another time frame and another discussion for another day but as we retraced back down in the
• 07:30 - 08:00 underlying market structure is still bullish the trend is bullish the momentum is bullish even though it's starting to retrace a lot of traders would see this and say okay we ran above these relative equal highs and now it's coming back down to go lower no the underlying narrative is this is what they're going to aim for who is they the institutional traders the smart money traders the non-white golf people so above here
• 08:00 - 08:30 those buy stops it's the draw on liquidity when this retraces that's your setup that's the framework it's bullish now we want to see it trade above these relative equal highs now initially if i was 20 years old and starting all over again i would want to take something ahead of these relative equal highs because i'm going to grow as a developing trader in this is all pantomime and you know hypothetically speaking i'm obviously a developed trader and no longer early
• 08:30 - 09:00 developing student of the market but i would go into it trying to take an exit just ahead of these highs being taken out that's what i'm framing here okay even though the arrow up here shows that it's on this candle don't let that misinterpret where the exit was the exit was actually below 21.80 and it was just a simple 30 pip run we'll talk about that when we drop down the lower time frame but for now just
• 09:00 - 09:30 know that if i was 20 in developing i would trust getting out just ahead of these relative equal highs because that would be the first stepping stone to learning how to do partials partials are taking partial profits and allowing a portion out before these highs are taken out and then holding for something that may or may not happen but it does obviously here in hindsight you can see it but i like to teach conceptually and with examples with logic that is
• 09:30 - 10:00 understandable even though it may be long-winded at times but if you want to learn something don't you really want to know all the intricate components and the subtle nuances that make you excellent at doing it not just here i'm going to show you a magic trick and you watch it one time you think you know how to do it you go and try to show your friends and you blows up and you get embarrassed okay you don't know how to do what you think you thought you could do trading is just like that and you don't want to just look at something and think oh this is easy let me go ahead and just do the same thing i just saw this guy doing a video
• 10:00 - 10:30 you need to put work behind it and gradually working towards understanding taking partials is again a graduated process you don't simply know where you're going to take a partial so you want to start initially and this is how i would do it all over again is i would train myself to take something ahead of where my actual target was now some of you would say well that doesn't make any sense because why have the target and not hold for it because you don't know and as a developing student you sure as hell won't know
• 10:30 - 11:00 if these highs are going to be taken at any time during your trade it might come back and hit your stop if you don't have to do trade management and stop placement so all these things have to be balanced and that's why i talk a lot in the videos because i'm not trying to waste my time i want you as my students here and those that want to incline their ear to my teachings i want you to learn i want you to learn it properly i don't want you to learn from somebody else that thinks they know what i do because they know
• 11:00 - 11:30 some of my lingo my language my vernacular that doesn't equate to understanding how to do it actually and that's really what i'm trying to press upon you in these videos not just this one but all of them now here is again a snapshot of may 17 2021 and i have not taken any trades since that day all of this was pre-designed i was using it for this teaching series i've not blown the account i've not
• 11:30 - 12:00 added more wins i have not taken any losses i'm just showing you that this is the actual in and out the orders what time they filled what time they executed everything okay so there was a stop placed when the stop was cancelled it's not because i closed stop or got rid of the order it's because the sell limit order triggered when that triggers that cancels your stop so i didn't cancel the stop ahead of the trade i didn't trade without a stop
• 12:00 - 12:30 watch the video that's going to be linked in the description below this video on youtube and you'll actually see a stop there it's managed and using the rule-based ideas i teach in part two of this series so with that let's continue all right so we were back to this chart here and i want you again focus on this area right in here and you'll see that that price swing from this low to this high down to that low that is the framework for optimal trade
• 12:30 - 13:00 entry it's optimal because it's within a larger area of potential running of buy-side liquidity so this high did not break that this retracement only sets up an opportunity to get long and ride that to a run above these relative equal highs you do not need it to run above those relative equal highs to be profitable that's the major point as a developing student if i was 20 years old and trying to teach myself patience i get a lot of questions even from my mentorship students
• 13:00 - 13:30 how do i develop patients because i put a trade on and i just want to get out when it's having just a little bit of profitability and i just want to get out i don't like the pressure that's because you're trading with money that you should not be trading with and you don't know what you're doing yet you haven't conditioned yourself or desensitized yourself to doing the same things over and over and over again and not being dependent on the result being positive every single time that's the purpose of back testing training your perception of what these patterns look like
• 13:30 - 14:00 over a long period of time not just one sample set of a week or a month it's six months and you'll see how many times it fails and how many times it works and using a rule based idea you'll see that if you're looking for framework of three to one or higher but three to one minimum even if you have losing trades and i'll talk a little bit about that also in this video they can be overcome and canceled out by a long series of more profitable trades than not
• 14:00 - 14:30 profitable all right so we're going to zoom in a little bit here and i'm going to draw your attention to this candle right there now notice this candle has another lower candle and another lower candle so all of my bearish candles are always a black candle and bullish candles i represent that with a green candle so whenever we have consecutive down close candles after a major run like this that takes out a short-term high okay if that happens that makes this a high probability
• 14:30 - 15:00 bullish order block now i'm going to repeat that again we're in a bullish market structure we have this level up here that it may reach for we don't know for certain but that's likely to occur this level is that relative equal high on the hourly chart that was shown before i zoomed in this high being taken out here on this candle your eye should drop right back down to these three consecutive candles it's high and it's open those two levels are important
• 15:00 - 15:30 draw that out in time you can see the market does in fact trade back down into it it overshoots it by a little bit but that's okay because if you look at a sample set of different brokers price feeds this candle is going to have a lower low or higher low and it's going to be slightly off but it doesn't make a difference because if you have the high and the open that's your range you're working in so how do you use that you use the highest level and add a couple pips to it for
• 15:30 - 16:00 your spread and if it trades down into that that would be a bullish opportunity for an entry i don't require the best entry because sometimes that doesn't offer you an entry on a limit basis it might trade just to that level and your limit may not trigger because of your broker's spread or it may not go to it exactly and just miss the opportunity again your limit order not tripping you into the trade so you want to use the highest easiest entry and allow for trade management to work a
• 16:00 - 16:30 stop that respects this level as well so we have this optimal trade entry with a bullish order block and we're looking for prices to run higher the optimal trade entry is shown from this high this low and here's your 62 retracement level and a 79 percentage level this is just to highlight a oversold condition relative to this range low in this range high the fibonacci is not the answer
• 16:30 - 17:00 okay it's not the magic it's not the silver bullet it's just a graphic visual representation of a short-term oversold condition relative to a specific dealing range what is the dealing range the dealing range is this low and this high it's retracing back down in our beliefs is that it's not going to go below here our confidence is that we've done six months of back testing we've seen this pattern over and over again and with this logic with momentum
• 17:00 - 17:30 bullish an underlying bicep liquidity pool that's most likely going to be drawn to price is probably going to reach up there any retracement lower with this structure and if it's occurring at a time of day between 8 30 and 11 o'clock in the morning new york time this is optimal trade entry now that is my pattern that's my optimal trade entry that's ote okay ict's optimal trade entry has all of those signatures not just
• 17:30 - 18:00 find a low find a high and then whatever their 62 or 70 chasm level if it goes there it's a buy that's what trolls and neophytes think they think that i'm trying to say i invented the three-quarter pullback okay or that i invented this no i didn't i never claimed that okay the structure of how i use it and all these things that come together where it runs for liquidity all that together is mine you don't find that in
• 18:00 - 18:30 print it's not in anything else no one's talked about it until i mentioned it and it gets under a lot of people's skin but i don't care i repeat it because there's too many new people coming into this business falling as a sucker to these 20 year olds to pretend that they learned this from wyckoff or they invented it themselves they didn't so let's take a closer look inside of all this all right so we're zoomed in here on a 15 minute time frame and the fibonacci is laid across this low to this high and the 62 percent retracement level and
• 18:30 - 19:00 the seven times change level is shown here respectively and then we have that optimal trend tree with the order block so there's a lot of converging things here that line up for something that would be otherwise viewed as bullish if we look at how price shows this optimal trend entry and using the level here and i've shown this in my optimal trade entry pattern recognition series so if you want to see the levels i have for my fib
• 19:00 - 19:30 you can find it there and you can also find another alternative way of setting up your fib with the ote primer i'll leave it up to you which one you like but the one that i actually use predominantly is the one i show in my optimal traditional pattern recognition series okay so that's where you're gonna find these levels we have the short term high here when the market trades down in on this candle i'm entering along i'm entering on it because we've
• 19:30 - 20:00 already seen willingness to run a rally here and it's trading back down into this down closed candle which is a bullish order block so i have a lot of things lining up that post the likelihood of a run above this short term high and maybe that relative equal high on the hourly chart which is up here so there's two pools of liquidity bicep equity here and bicycle here as a developing student you are not going to always have the
• 20:00 - 20:30 confidence to get out here that has to be a graduated learned skill set but we have a short term bicep equity pool here that if we can run above that and get me three to one odds if it pays out three to one that's good and then i'll watch and study does it give me the opportunity to see it runs above this bicycle pool here this is the relative equal high this is just a short term high i don't need it to go above here to be
• 20:30 - 21:00 profitable three to one my entries here on this candle and my exits here three to one i'm risking 10 to get 30. i'm risking one to get three i'm risking 50 bucks to make 150 bucks however way you want to slice it that's what we're working with as a minimum criteria so i can't take the optimal trade entry trade in new york unless it gives me the framework that if it runs about three to one
• 21:00 - 21:30 and it fits logically in this context like this if it goes above an old high if i'm bullish or it goes below old loaf i'm bearish and it offers three to one that's the trade i'm gonna take if it can't offer me that and say the optimal training tree forms a little bit higher up and it doesn't really offer me three to one i have to let it pass it doesn't mean i won't paper trade it or you know on paper i would say i could take this trade and see how it would pan out but i wouldn't have that much conviction behind the results and attribute that much to
• 21:30 - 22:00 it because it would be a trade that i would never really take or enter so there's a measure of differentiation between looking at movements in price where you would engage and actually try to enter which is three to one or higher and those that don't quite fit that criteria but you want to still study and observe it because it further solidifies the need for rule-based ideas and it will teach you how using three to one as a minimum
• 22:00 - 22:30 criteria that is ideal because over time your losses will be overcome by the winds okay we're zoomed down into a five-minute chart and this is the time frame i used in the recording on may 17 2021 and this is the actual candle right there so as it was trading back down in and touching this down closed candle so now see all the layering there's a bullshotter
• 22:30 - 23:00 block there's another lower time frame bullet shoulder block and then there's a lower time frame below shoulder block and now we're doing it again here so that is the fractal nature of using order blocks it isn't just pick one time frame that order block only works in it's understanding the logic this low here already shown a willingness to you know send price higher we retraced so when we have price running back down into the previous down closed candle there as it was going lower i'm buying i'm going along as the candle's going down
• 23:00 - 23:30 as a developing student that doesn't feel natural it feels a little uncomfortable and you have to overcome that by going through copious examples of looking at back tested data looking at hindsight moves and seeing how many times it forms and seeing it so many times you burn it into your subconscious then practicing going forward after six months this is the stage i'm in hypothetically and i'm pantomiming with
• 23:30 - 24:00 you here in this video for part three i'm pretending to be a six month versed back tested student and i'm now starting to practice doing entries that's the timeline that's the ideal ict approach to learning from this youtube channel if you try to do it faster you will not get the results you want you will rush you will try to put money into an account because you're gonna hear other people say you gotta put a little bit of skin in the race no because if you don't know
• 24:00 - 24:30 what you're doing you're just fortifying bad habits toxic thinking and you're only guaranteeing you're going to be fearful or greedy and either one of those two demons will overtake you and you'll never be where you want to be at because you won't have the experience to say i'm going to stay with it even though i'm not doing well because you have lost money it's one thing for you to have your pride and ego hurt because
• 24:30 - 25:00 you're learning how to do it and you didn't lose any money but when you add money to it all that does is add a very clear punctuation at the end that not only is this painful but it's costly and do i really want to spend more time doing this stuff if it's taking money out of my pocket it adds to the the hurdle that you gotta leap over it increases the height of the mountain that you think it is to climb over to get to successful
• 25:00 - 25:30 consistent trading so you have to strip it down to that elementary stage of it's just writing alphabets over and over and over again it's a small little simple task it doesn't take anything from you but over time it builds in a perception of character recognition which is pattern recognition in trading we have a time window here 8 30 in the morning till 11 o'clock in the morning new york time it's always new york local time
• 25:30 - 26:00 the first run into that order block the opening price on the hourly chart it bounces off that then we have a down closed candle here we ran above it and then the next candle we trade deck down into it right there i'm going along there i don't need this entry and i don't need this entry because the overall context is i still have enough entering here that if it runs above this level and gives me an exit here that's 30 pips that's three to one and i don't need
• 26:00 - 26:30 this level to be traded through but i'm going to watch and observe it and train myself by experience to see this occur and then by conditioning myself with real examples walking forward in a paper trading account not live funds live funds comes an another six months later okay now let me slow you down again because you're all thinking all i got to do is do six months i can do that now no you're going to study back tested
• 26:30 - 27:00 data for six months then you're going to walk forward in paper trading or demo trading for six more months that means that you can't touch a live account for a full year some of you are wanting to turn the video off and go to the next mentor do it because i promise you you will be back here you will be back here when you taste all the other garbage that everybody else is trying to sell you the instagram stuff all that stuff forget about all that stuff
• 27:00 - 27:30 because that's not going to get you where you want to be at right here is home you don't have to believe me now go out there and taste the slop that everybody else is giving you watching when that fails watch when you fall victim to all that glitz and image and materialism and i have all that stuff but you never see it i have the wizardry here in the charts and this is how you get it you learn it this way you don't learn it by looking at rented cars period three to one entering
• 27:30 - 28:00 inside of a specific time window of the day how incredibly convenient now you can structure a business model around the time of day when are you looking to do a trade if you're new you have no idea you're looking at all these candles like how do i know when to do anything you have a window of three and a half hours monday through friday what are you going to do you're going to try to trade it 12 30 in afternoon new york time no you're gonna get up early and trade
• 28:00 - 28:30 london no you don't have to but there's some good news in london so what there's good moves on sunday sometimes too i'm not worried about that it's narrowing your focus to the best of the best of the best that's what this process will do for you but if you don't believe me then you're never going to do it and you're never going to see it for yourself but once you submit to this process you'll see it and then you'll regret never having done
• 28:30 - 29:00 it sooner or later complicated because none of this stuff is complicated i'm stripping this down to a way where you all have no excuse that you all can quit your job in 36 months three years if you know how to do this and you have two years behind you and you invest a respectable amount of money and consistently do it and you have a real nice return every single month yes you'll have losing trades you can still carve out a career now will you be
• 29:00 - 29:30 making 200 000 a year i can't promise that i can't promise any amount but can you do it 36 months from the beginning stages of use submitting to this process and not requiring to live on a paycheck that's given to you by someone that tells you when you're no longer needed you don't want an employer you don't want a job and you don't want a paycheck you want your own way your own path and that's all i'm offering
• 29:30 - 30:00 if you just listen to me this is exactly how i would do it all over again and in 36 months i would be retired again nobody else is teaching like this because nobody else is rich nobody else has made millions nobody else knows how to do it nobody else does executions nobody else proves this theory before it happens and outlines it like i do so you're welcome to disagree with what i'm saying you're welcome to have the opinion i talk too much you're welcome to have all of these conjectures about why does
• 30:00 - 30:30 he not do it with a live account why doesn't he do this and why doesn't he show his cars and why doesn't he do this and that focus on the things i'm teaching you because these are the only things that matter what i drive and where i sleep has no bearing on how much you're going to make or how fast you leave your job this process works and this is exactly what i would do if i had to start all over again at 20 as a neophyte and given this the information that this youtube channel has this is exactly what i would be doing
• 30:30 - 31:00 focusing on this tiny little window of opportunity specifically on monday tuesdays and wednesdays i wouldn't touch thursday i wouldn't touch a friday what am i talking about the weekly range bias that i teach on this youtube channel so if i'm bullish i'm looking for a monday tuesday or wednesday trade between 8 30 and 11 o'clock in the morning new york time if i don't get it i don't trade if i miss the entry then i wait
• 31:00 - 31:30 if it doesn't give me to me on tuesday then i try one more time on wednesday and if i don't get it wednesday i don't take any trades that week i lost nothing i invested some time observing and watching but that's experience now i have if i'm bearish i'm looking for shorts just everything that's shown here it will be reversed on monday i look for a short between 8 30 and 11
• 31:30 - 32:00 or tuesday i'd look for a short between 8 30 and 11 or wednesday i'd look for a short between 8 30 and 11 thursday and friday saturday and sunday they're off days now think about that think about it that's three and a half hours a day but if you get your one weekly setup that gives you your weekly payout of three to one or more again it's just the minimum criteria three to one you're going to see that there's opportunities that offer more than three
• 32:00 - 32:30 to one it could be five to one six to one eight to one in the same day but you won't observe them until you get used to seeing what they look like and you find that by looking at it for six months in hindsight and you study that and once you get a feel for what it looks like in hindsight then you start testing it and walking forward with it and you grow in your understanding and your patience
• 32:30 - 33:00 and then over time you're going to learn that you're going to take something off ahead of this just above this high and then leave a portion once it runs above that then you close the trade that's double tap take something off hold for a higher position exit if you're bullish or hold for a lower position exit if you're bearish two take profits one's a partial the other one is your final close you
• 33:00 - 33:30 grow into that next level of understanding for targeting so i've already covered how i would filter out my trades i've already covered what time of day and what days i would trade we're only looking at euro dollar i'm not complicating it by adding different pairs i'm not even talking about cable british pound hasn't even entered the conversation or chat i haven't talked about dollar index how easy is this it's extremely easy
• 33:30 - 34:00 in that little area right there that's my entry in my mind i'm submitting to i don't care how long it goes sideways i'm holding for here and it might go up here but i don't need it to because 30 pips is just below it and that's three to one that gets me out i'm training myself to be content with profits not being right right is going above this level here notice that
• 34:00 - 34:30 the idea was the initial draw i was on that relative equal high on the hourly chart that is the right i don't need right to be profitable i need to be profitable profitable is it's moving in my favor it's offering me three to one i don't know at that time at that time i don't know if it's going to trade above there it could go right to that level and come back down and clean this out and scare me out of the trade remember i'm a developing student
• 34:30 - 35:00 you have to be realistic i'm trying to make this as realistic as i possibly can i'm giving you all the possible curveballs that could happen and you have to know these things these are pitfalls when you're developing if you don't have a mentor that's gone through it themselves and found consistency you're never going to learn how to do this yourself it's too easy to paint this to it's so easy anybody can do it it's so easy forex is so easy and they never execute a trade you never
• 35:00 - 35:30 see them managing anything all i'm trying to do is show in strong contrast what it's like when you know what you're doing versus what everybody else does here on youtube and instagram and discord and telegram and that's why i'm not like that's why i'm trolled you keep the focus on your development you keep the focus on the things i'm teaching you to do because you'll find out really quick if what i'm teaching is real or if it's fluff
• 35:30 - 36:00 this right here is one optimal trade entry if you're looking at optimal trade entry alone this would have been an entry there i missed this by timing putting the chart on i didn't see it as it formed so when it traded back down in this order block with this underlying framework here that's what i was basing it on remember this whole run up here was an hourly optimal trade entry then you have a smaller one here so this is a fractal
• 36:00 - 36:30 of what i showed you on the hourly chart remember this is five minute now so this initial run up and then down that's the optimal trade entry on the hourly then we have this small little run here that's an optimal trade entry as well within a larger one that's really bullish but i missed it there i didn't have the chart open at the time so when it traded back down in i'm using this order block because i want to be positioned on the logic that's used from this low to this high to that low i'm trusting that why because it's occurring inside of
• 36:30 - 37:00 that window of new york session 8 30 to 11 o'clock in the morning so this run here this is the ideal entry yes for ote purposes during new york because this is the head of new york 8 30 starts here so that's a little ahead of it so this is the first opportunity to go ote bullish high odds in your favor and i used the context of the bullshotter block there in the recording on may 17 2021 you watch me do this one here
• 37:00 - 37:30 and i say this is a live call that's a buy as it's trading right down in there i label it using trading view i type it out that's a buy that's the new york session buy it's from this low to this high down in but before that one occurs you have this one as well you have this low to this high down in that could be a buy two there's nothing wrong with that and then you have this one as well here to here and it would be in this entry but now
• 37:30 - 38:00 when you have this you have to use this low in the context for your stop so it doesn't need to go completely below that low you can go just below these bodies of these candles here and put your stop light right in there my stop initially was 121 35 and three pipettes you see it in the trade from entry through the whole process it's being managed with the rules that i gave you in part two of this series that's how i use that stop it teaches
• 38:00 - 38:30 you proper trade management and stop management nobody has a real clear idea on how to manage a stock that's why everybody that's learning from everyone else is either getting stopped out even if their trades are well let's not call it profitable let's say their trades are right in a direction and say they had a pretty good entry point they don't know where to put their stop loss and they put it up there too close to their open profit or where the market is trading now because they don't want
• 38:30 - 39:00 to have a losing trade and that's what you have to overcome and the only way you overcome that is seeing how the back tested data shows that this logic is strong this kung fu that i'm showing you is strong this is all algorithmic these things repeat every single day not every single day do you get three to one eight to one ten to one twelve to one but the ones that do offer three to one
• 39:00 - 39:30 that's what you look for that's what you focus on and if you do that i promise you i promise you you will have all that you need to leave that job change the financial destiny of everyone in your family tree after you and you'll only have regret because you didn't listen to me sooner until next time i wish you good luck and good trading