2022 ICT Mentorship Episode 15

Summary

In this video update, the trader shares a live trading session on their equity account, demonstrating how to navigate volatile market conditions and achieve consistent gains. They focus on identifying swing highs, bullish market structure, and Fair Value Gaps to plan precise entries and exits. The session emphasizes disciplined risk management, allowing small drawdowns while targeting meaningful profits. Viewers gain insight into practical strategies for trading with live funds, including using limit orders, monitoring market behavior, and adjusting stops during openings. The video highlights a methodical, student-friendly approach to trading, blending technical analysis with real-time decision-making.

Takeaways

• 😀 The video reassures viewers that the speaker is not missing but on vacation while still trading live accounts.
• 😀 The speaker demonstrates realistic intraday trading with the goal of showing achievable monthly returns (~20%).
• 😀 Fair Value Gaps (FVG) are used to identify potential support and resistance zones for entry points.
• 😀 Monitoring swing highs and market structure is key to confirming bullish trends and making informed trades.
• 😀 Narrative trading is employed, anticipating how other traders might react to price movements and stop levels.
• 😀 Entries around market open are high-risk due to potential whipsaws; flexibility is allowed instead of strict stop losses.
• 😀 The speaker emphasizes risk management, showing small drawdowns relative to potential profit ($60 drawdown for ~$1,000 gain).
• 😀 Limit orders are used for trade execution, with attention to platform differences across ThinkorSwim, TradeStation, and TradingView.
• 😀 Awareness of the economic calendar is important to manage intraday volatility and avoid unexpected price swings.
• 😀 The speaker aims to educate new traders by demonstrating practical trading strategies rather than cherry-picking ideal trades.
• 😀 The trades shown for the day netted $1,255 on two trades, highlighting realistic expectations for live fund trading.

Q & A

What is the main purpose of the speaker's video update?

The speaker aims to update viewers on their live trading account, clarify they are not missing, and demonstrate realistic equity growth while teaching trading concepts.

What trading strategy is primarily discussed in the video?

The video focuses on trading around Fair Value Gaps (FVGs) and swing high breakouts with a bullish daily bias.

Why does the speaker emphasize caution when trading at market open?

Market open (9:30 AM) can have high volatility, which may trigger stop losses prematurely, leading to potential losses if price temporarily dips below expected levels.

How does the speaker manage risk during trades?

They monitor price action closely, allow flexibility with stop-loss placement during volatile periods, and are ready to close positions if the trade goes against them.

What is the daily bias of the trader, and how does it influence trade decisions?

The daily bias is bullish, meaning the trader expects higher prices and targets trades that align with upward market movements.

What is the significance of the $1,000 target mentioned in the video?

The $1,000 target represents a realistic intraday profit goal based on the size of the FVG trade and limited drawdown, demonstrating disciplined trading.

How does the speaker handle minor Fair Value Gaps in recent candles?

The speaker notes them but does not necessarily expect price to revisit them; if it does, they anticipate support around the gap's low.

What tools and platforms does the speaker use for trading?

The speaker uses ThinkorSwim, TradeStation, and TradingView, adjusting settings and visuals for optimal trade analysis.

Why does the speaker mention the economic calendar?

Awareness of economic events is important because they can create additional volatility, which may affect intraday trading decisions.

What were the results of the speaker's trades for the day?

The speaker executed two trades, making a net profit of $1,255 after approximately $15 in commissions, with minimal drawdown around $60.

How does the speaker address concerns of new traders about trading live funds?

They show that consistent equity growth is achievable without cherry-picking trades and demonstrate realistic trading scenarios with live funds, including handling minor drawdowns.

What lesson does the speaker emphasize about stop-loss usage during volatile periods?

While stop-losses are important, at market open they can be triggered easily, so flexibility and active monitoring are sometimes necessary to avoid premature exits.