YouTube Video — Transcript

This video teaches advanced price action trading, focusing on demo trading, risk management, and mindset for consistent growth.

Ask about this video. Answers come from its transcript only — with the timestamp, so you can check them.

Generated from the transcript and can be wrong — check the timestamp.

Key Takeaways

Consistent demo trading for at least six months is essential before considering live trading.
A detailed trading plan and risk management strategy are critical for success.
Emotional control and mindset are as important as technical skills in trading.
Aiming for 20% monthly returns is a realistic goal but not guaranteed every month.
Rushing into live trading without preparation often leads to failure.

What the video covers

The instructor explains how to apply advanced price action theory in live and demo trading environments.
Emphasizes the importance of demo trading and building consistency before risking live capital.
Discusses the mindset required to manage risk and avoid emotional trading mistakes.
Highlights the goal of achieving consistent 20% monthly returns through disciplined trading.
Shares personal experience of early trading mistakes and lessons learned from rushing into live trading.
Explains the necessity of having a well-documented trading plan including entry, stop loss, and profit targets.
Stresses the importance of desensitizing oneself to losses through demo trading to build confidence.
Mentions the use of micro accounts and specific market structures like the micro e-mini Nasdaq for teaching.
Addresses common questions from students about readiness for live trading and managing expectations.
Encourages patience, backtesting, and forward testing before transitioning from demo to live trading.

Chapters

Why does the instructor emphasize demo trading before live trading?

The instructor stresses demo trading to build consistency, desensitize to losses, and develop a solid trading plan without risking real money prematurely.

What is the monthly return goal suggested in the video?

The goal is to aim for a consistent 20% monthly return, recognizing that it may not be achieved every month but is a realistic target for disciplined traders.

How does the instructor recommend managing emotional responses to trading?

By using a well-documented trading plan and practicing extensively on demo accounts, traders can reduce anxiety and avoid impulsive decisions when trading live.

Full Transcript — Download SRT & Markdown

Speaker A

All right, folks, welcome back. This is an extra lesson, but we'll call it episode 13 nonetheless. So last night, I gave a lesson on market structure for precision technicians, and advanced price action theory in action is going to be this lesson here.

Speaker A

here so it's one thing to talk about it and provide the basis as to what i'm doing when i'm doing these executions when i'm running these demo accounts up really fast you know what am i doing how am i doing it i got a lot of questions

Speaker A

So it's one thing to talk about it and provide the basis as to what I'm doing when I'm doing these executions, when I'm running these demo accounts up really fast. You know, what am I doing? How am I doing it? I got a lot of questions.

Speaker A

acceleration just makes it well you have new you have no connection to it if you don't know how to do this and you're new you start seeing velocity in equity increasing even though it's a demo it does not matter the same

Speaker A

As to how I ran the ten thousand dollar account up to, which was at 256,000 this morning, but it quickly got to a point where it no longer can be appreciated from a student's perspective. It's too fast of growth, and the acceleration just makes it, well, you have no connection to it. If you don't know how to do this and you're new, you start seeing velocity in equity increasing. Even though it's a demo, it does not matter. The same principles are applied whether you're trading with a live account or if you're trading with a demo account and you're learning. And I want to take you into what it is I do and how I'm able to run the equity up quick.

Speaker A

what is the mindset behind what is i'm doing but before i get into it let me remind you what i stated last night in the video because of the heightened volatility because of the uncertainty and the likelihood of

Speaker A

What is the mindset behind what I am doing? But before I get into it, let me remind you what I stated last night in the video. Because of the heightened volatility, because of the uncertainty and the likelihood of price action moves that would be unexpected even for me, because it's already delivered what I wanted to see happen anyway, and I'm technically bearish on equities, I don't feel confident or willing to risk after being profitable in live trading going short this market, making my February gain. I don't want to go in and risk that because it's already arrived down below these lows. So there's an objective I look for for the week. There's an objective I try to aim for for the day, and there's something I'm aiming for for a goal for the month.

Speaker A

going short this market making my february gain i don't want to go in and risk that because it's already arrived down below these lows so there's an objective i look for for the week there's an objective i try to aim for

Speaker A

So truth be told, the account that I'm showing with TD Ameritrade, I'm trying to illustrate in my best ability to pantomime how it would likely be for a new student if they were to try to do live trading with a model and aiming for 20% per month. Now some of you are going to think, well, 20 isn't a lot of money. You know, it's not a lot of money. Well, 20 isn't money, okay? It's a percentage. So I don't care if you start with one dollar. If you make 20% consistently, the compounding effects of that is astonishing.

Speaker A

be for a new student if they were to try to do live trading with a model and aiming for 20 per month now some of you are going to think well 20 isn't a lot of money you know it's not a lot of money well 20

Speaker A

Now, is it my belief that my students can consistently hit 20 every single month? I would never go out on a limb and say that. I might not hit 20 one of the months, but that is a goal that I'm aiming for. And if you're a new developing student, you have worked very hard to find and refine your own model with the things I'm teaching, and you have a trading plan that is well documented, you know what it is you're doing, when you're not going to do something, you have a complete understanding of what it is that's going to allow you to engage or not engage in price, then how to manage that risk, all those factors involved, and you've been consistent with a demo account for six months, then and only then would I—not necessarily that you need to do this—but I would then only at that time consider maybe going into live fund trading.

Speaker A

i would never go out on a limb and say that i might not hit 20 one of the months but that is a goal that i'm aiming for and if you're a new developing student they have worked very hard to find and refine your

Speaker A

But I don't ever tell my students—I never answer an email when they say, "Do you think I'm really going to live?" I don't answer those questions. I say, "I don't know. You tell me," or generally I ignore those emails because there is never going to be a record of me saying, "I think you're ready to go into live trading," and then when they blow their account, who are they going to blame? Naturally, the human is going to say, "Well, it wasn't my fault. There was a guy that told me I should do it. He told me to jump off the bridge." So I never put myself in that situation.

Speaker A

to allow you to engage or not engage in price then how to manage that risk all those factors involved and you've been consistent with a demo account for six months then and only then would i not necessarily that you need to

Speaker A

Okay, and I don't think any mentor or educator worth their salt would ever tell you to go out and risk live money because experience has taught me that I got into live trading way too fast, way, way too fast in 1992. That was the worst thing I could have done for my development—was rush to get into real money trading, and I had no idea what I was doing. I tricked myself into believing it was so easy, reading one book, no real backtesting whatsoever.

Speaker A

don't answer those questions i say i don't know you tell me or generally i ignore those emails because there is never going to be a record of me saying i think you're ready to go into life on trading and then when they blow their

Speaker A

And I was like, "Well, you know, I can see this one-two-three top and one-two-three bottom idea. You can see it." Yeah, I saw it one-two-three. I was gone in my first trade, 50% history, goodbye. Close the account, send me my money. I was afraid. But when we understand what it is we're trying to do, obviously it comes with a great deal of nervousness and anxiety because you have not put the time into backtesting and then forward testing it with a demo account.

Speaker A

okay and i don't think any mentor or educator worth their salt would ever tell you to go out and risk life money because experience has taught me that i got into live trading way too fast way way too fast in 1992 that was the

Speaker A

So if you feel this tug of war, this butterfly feeling in your stomach where you just can't relax and you're engaging in the marketplace, you're not ready. That's the bottom line. You're not ready. You have to desensitize yourself with the results not being a factor. If you lose, it doesn't make a difference to you. You're indifferent to it. And it doesn't seem possible that you could be indifferent to losing money, but a student that has a solid price action model, a trade plan that's well documented, they know what they're going to do, why they're doing it, what they're waiting for, what will cause them to push the button to get in, where their stop loss is going to be, how much they're going to risk, what they're going to aim for, where their partials are going to be if they're going to take partials at all. You have to know those things in advance. You can't determine them once you enter the marketplace.

Speaker A

and i was like well you know i can see this one two three top and one two three bottom idea you can see it yeah i saw it one two three i was gone in my first trade 50 history goodbye

Speaker A

And that's what retail traders do. That's exactly what I did in 1992. I got into a trade and then I tried to figure out what I was supposed to do once I was there. I want you to see what it is that I was showing last night, and even though I'm not personally willing to risk my live account right now because of the conditions that we have at the present—Ukraine and all that business, all the uncertainties, you know, potential black swan event anytime can pop off—and I don't want to expose myself to that measure of risk, especially since I have hit all my numbers, the market has delivered to what I expected in my analysis, so I'm not worrying about trying to get in and do anything else.

Speaker A

testing it with a demo account so if you feel this tug of war this butterfly feeling in your stomach where you just you can't relax and you're engaging in the marketplace you're not ready that's the bottom line you're not ready

Speaker A

So how do I manage that desire to get back in and do some more? I go right to a demo account. I work inside of a paper account. It provides me context. It keeps me glued, obviously, to what the market's doing, so I'm staying plugged in, if you will, close to the market, being able to read the tape. So that way, I can answer student questions. I can still teach around the markets doing right now, and that way my students can still appreciate the level of depth that I'm providing, but I'm not taking on monetary risk when I don't believe it's wise for me to do so.

Speaker A

that has a solid price action model a trade plan that's well documented they know what they're going to do why they're doing it what they're waiting for what will cause them to push the button to get in where their stop loss is going to be how

Speaker A

Because if I'm wrong, let's say I'm wrong and I traded today with live funds, or if I traded on Monday and I lose what I gained in February, that would eat at me all through the month of March. So it's toxic thinking, and I learned that the hard way many years ago. So what I'm going to show you obviously was executions in the TradingView paper trading account, but I want to make sure you understand because there are so many people out there that have this issue with me teaching in a demo, which is compliance. Like, I'm not licensed to give you trade advice, so I operate through the function of a demo account to protect me and protect you.

Speaker A

the marketplace and that's what retail traders do that's exactly what i did in 1992.

Speaker A

You know, you can't make that money. You're not following me in a trade, so if I was wrong, you don't take a financial loss, and if I'm right, you can't make money and get tricked into thinking that the only way you're going to make money is to follow me. See, there's a balancing that's being done there, and if I'm wrong, if I don't know what I'm doing and these things don't work, they'll fail on the demo account just as easily they would be failing in the live account.

Speaker A

live account right now because of the conditions that we have at the present ukraine and all that business all the uncertainties you know potential black swan event anytime can pop off and i don't want to expose myself to that measure of risk

Speaker A

So with that foundation laid, let's go into the discussion. So the idea is we went below this low. I don't want to sell it.

Speaker A

i go right to a demo account i work inside of a paper account it provides me context it keeps me glued obviously to what the market's doing so i'm staying plugged in if you will close to the market being able to read

Speaker A

the tape so that way i can answer student questions i can still teach around the markets doing right now and that way my students can still appreciate the level of depth that i'm providing but i'm not taking on monetary risk when

Speaker A

i don't believe it's wise for me to do so because if i'm wrong let's say i'm wrong and i traded today with live funds or if i traded on monday and i lose what i gained in february that would eat at me

Speaker A

all through the month of march so it's toxic thinking and i learned that the hard way many years ago so what i'm going to show you obviously was executions in the trading view paper trading account but i want to make sure

Speaker A

you understand because it's so many people out there that have this issue with me teaching in a demo which is compliance like i'm not licensed to give you trade advice so i operate through the function of a demo

Speaker A

account to protect me and protect you you know you can't make that money you're not following me in a trade so if i was wrong you don't take a financial loss and if i'm right you can't make money

Speaker A

and get tricked into thinking that the only way you're gonna make money is to follow me see there's a balancing that's being done there and if i'm wrong if i don't know what i'm doing and these things don't work

Speaker A

they'll fail on the demo account just as easily they would be failing in the live account so with that foundation laid let's go into the discussion so idea is we went below this low i don't want to sell it short even

Speaker A

though i'm bearish so what's it likely to reach up into well i'm thinking it could potentially trade up into this up closed candle here okay i'm thinking it could trade into that the low or the open of that candle

Speaker A

so that's kind of like the magnet or the draw on liquidity so it also could reach up into this little area right here because there's a fair value got there just like we had it here and here and filled in

Speaker A

it can go right up into this go right up there and then still resume going lower it might need to go up into that so i went in this morning and i was watching the nasdaq and the e-mini s p

Speaker A

e s p had a lot of energy to the upside and usually these markets move in tandem that means they're generally moving together and even though that nasdaq was a little bit lethargic and wasn't trying to go up

Speaker A

as quick and as fast as es or e-mini s p the tendency is that it will be drawn to the same degree that the other indices were so if es was higher and q which is nasdaq futures should be

Speaker A

you brought higher in sympathy all boats rise in high tide in basically what i'm saying now if we look at the hourly chart this is what i was seeing i was trading all this in a demo account and

Speaker A

it ran up into levels it became absurd now so i satisfy my itch when i'm not trying to trade with the live account in the demo account and i'll run them up real quick there is no fraud required and none of those things are

Speaker A

required to make these things compound and blow up really quick in terms of the equity increases but i'm going to show you how even with a micro account so if you haven't already noticed this is the micro e-mini nasdaq

Speaker A

so every one point or four ticks is equivalent to two dollars okay and i went in with the idea that i'm using a micro account with a discount broker and a discount broker i'm hypothetically using while i'm taking these executions is i'm

Speaker A

hypothetically trading with an amp amp futures account and i'll show you their margins and show you the details as to what i'm basically implying by doing these things here down closed candle after a run up we retraced went down inside this gap see that

Speaker A

this area here when it trades down towards this gap this is the draw on liquidity up here as well near term so above these relative equal highs we have what livestocks or buy-side liquidity so i'm thinking that the algorithm is not letting price go

Speaker A

lower so it's going after everyone that's been profitable going short so where are their stops right here so we're just going to call it 14 110 okay real simple the market starts to rally and leaves this down closed candle

Speaker A

i'm going to watch to see if it can trade back down into that because if it does i'm going to treat that as a bullish order block remember what i taught last night if the move has been bullish

Speaker A

down closed candles should not be violated down closed candles should not be violated they're going to act as support bearish market moves up close candles should not be breached and broken through never even come back so when you're bearish and you're

Speaker A

watching the market go down and you see candles starting to form a potential up close candle you as a neophyte that is new to trading these are the moments where you get scared you basically snap yourself out the desire to hold the trade and you

Speaker A

just collapse the trade because you can't handle it it's that overwhelming uncertainty that eats at you like mental cancer it just literally makes you want to just get out of the trade even when you're profit you ever feel that

Speaker A

the trade's profitable and you're like i just can't stand it anymore i gotta get out you're making money your trade is profitable quote unquote in a demo it's worse when you have live account funds and you have a profit because if you don't

Speaker A

have the wherewithal and the experience of submitting to these ideas and watching them come to fruition over and over again months of experience not just a week or day you're going to feel like you just want to collapse the trade

Speaker A

so when i teach my students when you're looking for a price move that's going to be a long-term price swing not that this is a long-term price swing in the sense of time but on this time frame for one hour this is a nice decline

Speaker A

it's a prolonged price swing it's not like little tiny little movements in here and vice versa we have it here it's going higher so all the down closed candles does it go below this down close candle when it

Speaker A

starts to retrace no we expect this to be areas where they're going to accumulate more long positions we retrace going down into an imbalance and the market rallies above the down close candle does it support price yes time of day

Speaker A

is important so i'm watching when price comes back down into it here i'm taking the opening price extending it out in time when that occurs then i know i have a setup where i can go long but i want to go into the time frames a

Speaker A

little lower than the hourly chart give me a little bit more context because we do have a low that has a higher low to the left and a higher low to the right so that makes this what enemy term

Speaker A

low this retracement here this might be trading into an imbalance which is what i'm teaching you to look for but the overall market structure is it's likely to go higher and aim for a run above these highs by side liquidity resting right up there

Speaker A

so we're going to take these levels this red level is anchored to this here relative equal highs five stops are above that rallies comes back down in we're looking to see if it wants to run through that notice this high

Speaker A

in this high it creates what relative equal highs retail-minded traders are going to see that and say oh this is exactly what the text say about resistance so it's acting as a ceiling price acting like a ceiling what should

Speaker A

they expect to see price do go over so here's that level where the body stops are we're above it rather here's that hourly down closed candle which is a bullet shorter block notice the down closed candle is made up

Speaker A

of two candles on the fifth minute time frame price moves away from it goes above it right here does it create an imbalance here yes that is how you determine your high probability bullish order block it must have the imbalance

Speaker A

coupled with the down closed candle and the underlying narrative that it's likely to go higher to reach for buy side liquidity period okay it's it's that's it there is no engulfing candle does this forget all that you don't need that okay it's

Speaker A

the gap plus the down closed candle plus the idea that's likely to go for my side liquidity that's it okay so i just noticed by the way there's a guy out there trying to hawk a seven dollar indicator

Speaker A

and he says he's the real deal and it's all about order blocks and i'm not going to change the name on that just let you know so we're trading down into this imbalance here but now we're doing it at the time of

Speaker A

day after the equity is open at 9 30 in the morning new york time so volatility the initial move is technically the incorrect move going into the opening at 9 30. so this is like a judas swing so think about what we're seeing here

Speaker A

now the markets likely go up above this level here to take the buy side because the market's unwilling to go lower the algorithm keeps pressing higher higher it retraces down into the 930 opening this is that fake move

Speaker A

don't chase this and don't chase going higher right before the equity is opening 930 either so you have to take a step back and figure out what is your looking for well i'm looking for a discount market low

Speaker A

to high i'm below 50 yes i'm inside the order block yes the equities opening has happened i'm bullish and it has traded lower so public is going to be thinking what it's resistance it's going to keep going down

Speaker A

to what there's your support level because it bounced there last time so they're going to think there well it doesn't do that down to a five minute chart it hits the order block and then rallies what is this

Speaker A

what's your favorite gun market trades back down in overlaps that gap between this candle's high and this candle is low this right here that right there that is one order block with a lower time frame order block and

Speaker A

a fair value cut you can take that trade if you know what you're looking for and you understand bias narrative and where the liquidity matrix is likely to lead to later on which is drawing up above this red level here

Speaker A

my stops are above here so if they're going to send the price higher from here and start rallying that supposes that there's someone that got on board long here where would their ideal exit be six points higher 10 points higher no

Speaker A

you're going to want to take it up here where there's willing buyers with buy stocks to protect their short positions so when the market trades above that level the buy stops become market orders to buy the market which floods the market

Speaker A

with liquidity for those that have bought down here they can sell to those willing buyers at a higher price which they're waiting for down here and waiting for that price rally to go up now as the market goes higher

Speaker A

the expectation is my expectation was i want to go along in here and reach for this high this was my entry idea that it's overlapping filling in that gap and it's an order block here with a higher timeframe order block

Speaker A

there so there's an hierarchy higher time frame to a lower time frame with the idea framed on it's going higher for buy side i have an intermediate term low forming and now this when it fills in that gap

Speaker A

once that happens what did i teach you last night this becomes an intermediate term low this low should not be taken out once it starts rallying it should not come back down here what else did i teach you

Speaker A

if price is going higher down closed candles should support price well it trades above it here this down close candle is high right there it trades above it on this candle right there and starts going higher but then

Speaker A

look what happens it starts to go back down you might come down here and stop me up i'm not thinking that i'm looking at this down close candle thinking it's only going right back down into this down close candle to accumulate more

Speaker A

long positions so smart money traders are going to be buying more here like i did rallied we have down close candles we went above it i'm not worrying about the market as long as it doesn't take out these two

Speaker A

down close candles trades down gets real close to that but does it eat up and go through that range of these two down close candles no it just retraces down into what an imbalance why so smart money can

Speaker A

buy again like i did the market rallies again and goes into the bicep equity order block trades through it here get long fair value got order block retracement get long order block imbalance with the fair value gap trades

Speaker A

back down doesn't even come back down into the order block this is classic it generally doesn't like to go all the way back in rebalance when it's that close to the profit objective so the algorithm only has a

Speaker A

small little retracement inside the fair value gap so you would be a buyer just that that candle is low it runs right to the target now i know some of you just don't trust me these are trading view execution errors

Speaker A

and i'm going to log in to trading view and actually show you by highlighting these actual arrows but i'm going to take you down into the charts they'll all be all the way down into a 30 second chart so you can see the

Speaker A

grouping of where i actually entered with this logic okay now remember enemy term low is down here this should never be overtaken until the objectives reached so all this price action leg here is i trust that it's going to keep going

Speaker A

higher as long as the down closed candles keep price above it above what above the down close candles that's going to be supporting each new leg higher the market should not retrace back down below those so what am i saying

Speaker A

for trailing stop losses you do not want to take your stop loss if say you brought it down here like i did and your stop was below the middle of this candle that's mean threshold of the bullshort block so i don't think it's

Speaker A

going to go down below that once i'm entering then it starts around goes above this candle's high my stop-loss must remain below this candle's low because it can dig into that candle because it's going to act as a order

Speaker A

block then the market rallies away comes back down retraces now if i put my stop loss inside this area here i'm stopped out prematurely chances are you probably wouldn't have the wherewithal to get back in you'd think well

Speaker A

i just lost out one potential profit i made a little gain but i'm afraid to get back in you because it took me out that's infancy that's because you don't know what you're doing everybody was like that i was like that

Speaker A

but you grow out of it if you do the same things i'm teaching you over time it's built into your understanding and it's ingrained in your understanding about price delivery the market rallies above takes out these two down closed candles now the stock

Speaker A

can be raised from whatever would be below this down close candle now it can be raised below this down closed candle because the idea is these closed candles are one order block that should not be violated if it's bullish

Speaker A

if it comes down and breaks the low of these down closed candles well there you go you probably did the right thing by getting stopped down because it might be failing and going lower how's that for logic you're not gonna be perfect i'm not

Speaker A

perfect even though you see these errors on the lowest candle here and it goes out to the exit here right above that this is not photoshopped i've never had to do a photoshop okay i've never had to do that

Speaker A

but i'm teaching you the logic right out of last night's lesson i went right into the market this morning no it's not done with a live account but i'm showing you in theory with the application of a demo account

Speaker A

which is the same live data that would be utilized in my td ameritrade account or your live account if you have one these candles are forming just like they would be in your live account but i'm executing with the logic i'm

Speaker A

teaching you right out of last night's lesson now here is the one-minute chart all right so here we're over in trading view everything is live printing right now this is where we're at at the moment it's just hanging around that old high

Speaker A

now i'm not upset i missed this move here i could care less i'm going for logical places where liquidity is going to be resting and i'm entering in logical places that would reasonably expect to see price advance higher from where i'm buying

Speaker A

it's not complicated but watching last night's lesson can feel like you're trying to learn a foreign language and expect it to understand how to speak it fluently two hours later don't let that happen okay i can make these lessons

Speaker A

as deep as i want them to be but i'm showing you how i'm taking very complex topics and simplifying them in a manner that hopefully is easily received by you as a student so i showed you the hard

Speaker A

perspective last night that's advanced market structure now i've simplified it within the scope of what i teach in this youtube channel do you see the difference it's only in the manner of how i'm teaching it but it's the same things

Speaker A

it's the same ideas that i've just simply made it easier i've created a language that helps me communicate what i taught last night in a much more palatable method so that way it's not as complicated seeing it like

Speaker A

this this makes sense to you all you're like okay now we're back into this stuff it makes sense now i'm teaching you the same thing i taught you last night i'm just not teaching it to you at the degree that is

Speaker A

in my head you might be thinking well you know keep it to yourself i see i don't need to see it like that and that's okay i get it it's fine but this right here these are the elements

Speaker A

that make up really simple logical setups that repeat every single week and many times every day so i started i ran up the other paper trading account to like 200 some thousand dollars this morning and i was thinking myself okay now we're in

Speaker A

territories it's just gonna feel silly you're not gonna have any interest in seeing that it's it at that point it becomes okay now we're absurd you know it's just ridiculous you're not going to believe that this is possible

Speaker A

or maybe some of you do and you think you want to go out there and try to do the same thing with your live account either one of those things are not my goal okay it's just me losing myself in price action so

Speaker A

i treat it like a game it's a puzzle so i'm looking for the outcome of a specific trading session or a trading day and i'm trying to navigate those candlesticks and that's what you're seeing here if i hover over top of these little

Speaker A

arrows okay you can see that they're not photoshopped and you make them appear by going into the trading view settings and you click the little execution box here watch below the swing lows and above that something high you'll see them

Speaker A

toggle on and off it's all going on and off okay so this is proving precision number one it's proving theory in action and it's proving that it's not flawed logic none of this is retail absolutely none of it

Speaker A

there's nothing here that's elliott wave none of it's harmonic none of it is supply and demand none of this is chris laurie's stuff i have a lot of chris laurie students lots of them and they'll tell you this isn't even

Speaker A

taught in his stuff either so with that said let's go over to the paper trading account this is just again illustrate for the folks that say well you know you can't really grow an account if you're using micro accounts and that was some

Speaker A

of the comments i got also and i'm like stop thinking you need a lot to make a lot you don't you need to be able to compound the things that you see me do in these accounts and they're being

Speaker A

parlayed up really quick every time i'm buying like i bought right here let me see if i can get this to go away for a second when i bought the three micros here the next time i see a buy signal that's

Speaker A

below the area i'm aiming for above that red level i'm gonna try to buy more but i'm not gonna buy more than three i'm gonna buy now two i'm pyramiding i'm building the biggest position initially and then every time i buy in

Speaker A

again i'm building it with a smaller position than i had prior to the when i'm entering now because i have all the equity behind that entry with three supporting the two i'm buying here so even if it starts to

Speaker A

re you know retrace too deep on me i have the ability to weather a little bit more whereas if i say i want to be a buyer of one here two here three here that's an inverted pyramid it's not stable imagine a pyramid upside

Speaker A

down and it's balancing on its point it's not it's not a solid foundation it's wobbly so i'm building the biggest base at the bottom of the pyramid or position size in its initial position entry so i'm buying three here

Speaker A

then i'm buying two here then i'm buying one here and then i'm letting it run to my profit objective okay with that said starting with a hypothetical ten thousand dollar account just this morning over 21 one trade with three

Speaker A

scalings okay i consider this all one trade i don't consider this three separate trades it's one trade scaled in largest middle last portion then it runs to my objective so the account history starts with ten thousand dollars here

Speaker A

ends with twelve thousand one hundred eleven dollars demo money okay the history tab shows you here and if i'm not mistaken i have everything shown don't know yeah time everything's toggled here nothing's hidden none of that and then you can see over

Speaker A

here all the business there okay so my question to you is this who cares if you gotta trade a micro account three micros two more micros one more micro that's six micro contracts that requires technically twelve hundred dollars

Speaker A

so i really didn't need the ten thousand dollars to do these trades but in my mind with proper leverage and money management ten thousand dollars with this position size and gearing that's optimal anything more than this would have been too much leverage for

Speaker A

that account to make 21 plus in one trade who's going to argue against that being well above average now what happens if you do that once a week and that's your trade and you stop and once you hit it you end your trading

Speaker A

that's it and then you go to a demo account you have any idea the leaps and bounds that you can have in your equity increasing and the peace of mind knowing that you don't have to over trade that's what i'm trying to cultivate here

Speaker A

in this community folks i'm not trying to create monsters that they trade every single day because i say these likely form every single day but they absolutely form every single week that is not an invitation for you to go out and say ict

Speaker A

said trade every day no it's not what i said i'm saying if you miss a trade you're likely to find one tomorrow well not tomorrow because it's saturday but you know what i mean the next trading day so there's a balancing act that you have

Speaker A

to have when you're listening to me you just can't take one comment that i say and take it completely out of context and say well i see he's a day trader and he's proven that he's really precise these

Speaker A

concepts work i watched a couple videos i trusted so now i'm gonna go out looking at charts and i think i see it forming right now and i'm going in all in i'm in it and then you're sitting down writing an

Speaker A

email to me saying i blew my account whose fault is that it's not mine it's yours when i blew my accounts it wasn't my broker's fault it was mine i did not know what i was doing i was out of control

Speaker A

taking 60 70 trades in a day when you lose control and you have no idea what you're doing it's impossible for you to execute like this you have to think about these examples as the goal not that you want to be this precise

Speaker A

right from the beginning because you can't be no one is it takes time to grow into that in your understanding but it takes some measure of goal setting that you have to have you know you listen to some

Speaker A

people after they pretend to be teachers they'll say having a weekly goal or a daily goal is the stupidest thing in the world really i guarantee you these people are not profitable that say that they're hit and miss

Speaker A

they have periods of drawdown that are much longer than most people would be willing to endure and if you don't aim for a target you're going to hit nothing 100 of the time you have to have a goal

Speaker A

so if your goal is to hit nothing then obviously don't set a goal but i set very low hanging objectives in front of me these things are extremely easy for my capability and for many of my students from the 2016 group and 2017 group they

Speaker A

can take trades like this in fact i have a woman in my group from the first group from australia that is phenomenal she does very very well and these are trades that i believe that even you as a youtube student

Speaker A

in this mentorship on my youtube channel i believe in six months of practice and looking at price action you can do this yourself and do it consistently consistently what do you mean every day michael no one time a week finding something like

Speaker A

this and working that position in like that absolutely i'm making myself available twice a week this is an extra video today because i know last night's video was a little bit more deeper than you're accustomed to and i'm not suggesting or implying that

Speaker A

the lessons are going to go that direction i'm just stating that when i'm studying market structure i'm studying with that degree and more but i had to create a language that gets to generally the basis of what that is

Speaker A

doing without all the complications within it so be glad that i'm not requiring you to understand that degree because the language i'm teaching like in here is accomplishing the same method just doing it without all of the extra

Speaker A

acrobatics because i know what you're going to be questioning you're probably looking at your chart thinking how do i classify this swing high is any term high versus a short term high in a long term high how does

Speaker A

he know right that's the part you're never going to get so i had to create a language that makes it simple and that's what you see in my lessons on this youtube channel i showed by comparing and contrasting

Speaker A

where i came from and what i'm providing to the public i can show you just how complicated the real intricacies are behind these marketplaces but you do need to know certain things that repeat and they're very generic in price and they're not

Speaker A

linked or built upon the foundation of anything that's retail logic none of that stuff not support resistance not any of those other disciplines that people use and you make businesses around selling books and courses and such so one of the cool things

Speaker A

that if you still are a trader that uses like elliott wave and harmonix and things like that if you start studying what i'm teaching you for free right here you're gonna find that your trades that win have my information underneath

Speaker A

and when your trades fail the things i'm teaching you here are missing see this is what i asked last night in the closing the video and i'm closing this video now again the mystery that plagues all speculators is

Speaker A

what trading approach is the one that's going to make me money and i don't have to worry about losing more money in flawed approaches of trading what you're saying is there's a method out there that is better than everyone else

Speaker A

i'm humbly submitting to you you have found it it's not costing you anything but it's going to require some work it's going to require some time effort it's going to feel like you can't get it it's going to feel like you're

Speaker A

never going to understand it that's all normal it's all normal but you'll get it there's folks in my 2016 group that couldn't get it they got it now it took them a couple years others they get it real quick

Speaker A

i don't understand why some get it quicker than others i just know that it's like that and you might be one of those slower learners it's okay i was a slow learner but once you learn it it's yours

Speaker A

you don't forget it's like riding a bike and that should be your passion and your pursuit to get to know how to do this like riding a bike you can put the bike down for a couple years and then get back on again and

Speaker A

just like you never stop writing it and that's a comfort and a confidence that is something that i can't articulate in the words and if you are able to find consistency and profitability it doesn't matter what you're doing in

Speaker A

the economies then doesn't matter how much it's going to cost you for a gallon of gas or how much it's going to cost you on your groceries because you can outpace inflation if you know what you're doing in these

Speaker A

markets that should be your goal always outpace inflation and there should be no concern i'm not promising you rich can you get wealthy with this sure you can am i promising it's going to happen for you no way

Speaker A

will you lose money in the process absolutely i'm guaranteeing you're going to lose money every trading system discipline educator everybody loses in trading they take losses some take stunning losses and others just take mediocre losses that are just nuisance

Speaker A

other traders that are really really good can have periods of drawdown and then regain that equity draw down back and it's like it didn't even happen not even skip a beat that's experience these are all bridges that you're going

Speaker A

to cross you're going to cross them at times and intervals that i can't outline in advance for you but i generally know the concerns and questions that you have at this point my request to you is to suspend those

Speaker A

feelings that you have to have all the answers right now because you don't you have to be more diligent about placing yourself in front of the charts and back testing and researching what i'm showing you because it's there

Speaker A

and by seeing that over and over again it's better than a book it's better than a course it's better than a mentorship that you pay because i'm teaching you how to go into price and price will teach you

Speaker A

it will teach you it's repeating so if it's repeating and you're looking at it constantly you are training your eye to see what it does by default when you buy a book and you look at the examples in the book

Speaker A

each chapter has an idea that it's trying to focus on how many examples do you generally see just a handful at most right but remember what was like when you got a trading book for the first time and you

Speaker A

looked at it and you saw bearish diversions and bullish divergence was the caustic indicator and it made it lower low in the price but it didn't make a lower low in the stochastic and it was a bullish divergence and you were thinking man i

Speaker A

can see that that's easy and then you start looking at it on a live chart and when you thought it was diverging it just kept going lower in price they're only going to show you the examples that help sell the book

Speaker A

because they don't want you to return the book i'm teaching you how to go through price action and fared out these repeating signatures and it isn't just a handful of examples it's every week every day and it won't stop

Speaker A

so enjoy your weekend i will touch base with you on tuesday lord willing and until then be safe

Topics:price action tradingdemo tradingrisk managementtrading mindsetmarket structuretrading planconsistent returnsmicro e-mini Nasdaqtrading educationtrading psychology

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