Crawling Out From The DeathPit Of ICT / SMC Concepts

Summary

In this video, the speaker emphasizes the importance of consistency, mentorship, and data-driven trading for long-term success. They explain that successful traders consistently follow a proven strategy, validate their approach with a mentor, and manage their emotions. The speaker advises against jumping between different strategies and highlights the value of journaling trades to improve over time. They also emphasize understanding risk management, managing expectations, and not being emotionally attached to outcomes. Ultimately, trading success comes down to having a clear, tested strategy, adhering to the rules, and allowing time for the system to work.

Takeaways

• 😀 Consistency is key: Apply the same strategy every time for consistent results.
• 😀 Avoid jumping between strategies: Stick to one approach and find a mentor to guide you.
• 😀 Chart reviews are crucial: Have someone experienced review your charts to ensure you're applying your strategy correctly.
• 😀 Emotional detachment from trades: Don’t get emotionally attached to your trades. Focus on following your plan.
• 😀 Losses are part of the process: Losing a trade doesn’t mean you did something wrong; it's a natural part of trading.
• 😀 Expect a variety of outcomes: Understand that every trade doesn’t have to be a winner or a loss—focus on the long-term sample size.
• 😀 Trading success is built over time: It’s about the consistency of your approach, not individual trade outcomes.
• 😀 Judge yourself based on process: The measure of success is following your trading rules, not just winning trades.
• 😀 Market understanding is critical: Be aware of the fundamentals and market structure before making trades.
• 😀 Use data to refine your strategy: Track your trades and learn from both wins and losses to improve your system.

Q & A

Why is consistency important in trading?

Consistency is key because without a steady approach, results become unpredictable. Following the same strategy and reviewing charts regularly helps in refining your process, avoiding mistakes, and improving over time.

What is the role of mentorship in trading?

Mentorship is vital because it provides guidance, feedback, and validation for your trading approach. A mentor can help you spot mistakes you might not notice and ensure you’re following a proven strategy.

How can a trader avoid emotional reactions to losses?

By developing a mindset where losses are seen as a natural part of the process, not as a failure. It’s important to judge your performance based on whether you followed your plan, not on the outcome of a single trade.

What does 'following the rules' mean in the context of trading?

Following the rules means sticking to your strategy, entry criteria, risk management, and trade execution without deviating from the plan, even when emotions are involved.

What should a trader do if they keep losing despite following their strategy?

If you’re consistently losing, it may be because of one of three things: you're not applying the strategy correctly, the strategy is incomplete, or you haven’t given it enough time to produce results. You should review your approach and ensure that it's been validated.

Why is it important to view trading as a long-term process?

Trading is a long-term endeavor, and success is not determined by individual trades. It’s about maintaining consistency over a large sample size of trades, where losses are part of the overall picture, and the goal is to finish in profit after reviewing the data.

How does journaling and reviewing trades help a trader improve?

Journaling allows you to track patterns, identify weaknesses, and adjust your strategy based on real data. By reviewing your trades, you can spot common factors between your wins and losses and make better-informed decisions moving forward.

What role does data play in improving a trader’s performance?

Data is crucial for identifying trends, mistakes, and areas for improvement. Analyzing your trade results helps you fine-tune your strategy and adapt your approach based on actual performance rather than just theory.

Why does the speaker suggest avoiding trading during the Asian session?

The speaker suggests avoiding the Asian session because their own data showed a pattern of losing during that period. By stopping trading during this time, their win rate improved. This demonstrates how traders should use data to optimize their trading schedule.

What does it mean to have an 'edge' in trading?

Having an edge means consistently applying a proven strategy that gives you a higher chance of being right than wrong over time. It doesn’t guarantee every trade will win, but it increases your probability of success in the long run.