2022 ICT Mentorship Episode 31

Summary

In this video, the speaker discusses a trade on the S&P 500 June contract, explaining the approach of targeting liquidity and using fair value gaps for market entries. Emphasizing that he doesn't spoon-feed trades, he highlights the importance of learning to spot key market levels, such as the May 16, 2022 low, and using proper risk management. The speaker also addresses concerns about not seeing enough forex trades and mentions that volatility in stock index markets is currently more prominent. Throughout the video, he stresses self-sufficiency, guiding viewers on the mechanics of market moves without providing direct trades.

Takeaways

• 📉 The video analyzes the S&P 500 June 2022 contract using daily and lower timeframe charts.
• ⚠️ The speaker warns viewers about scammers impersonating him on WhatsApp and Twitter, emphasizing he never asks for money or direct messages.
• 💹 The focus is on finding volatility in the stock index market since Forex has been relatively quiet recently.
• 🎯 The instructor does not provide exact trade calls, entries, stops, or targets but teaches how to anticipate market moves.
• 🧭 The low of May 16, 2022, is highlighted as a key reference point for identifying potential liquidity areas in the market.
• 🔍 Students are encouraged to act as 'snipers' by learning to scope out opportunities and execute trades independently.
• 📊 Fair value gaps and bearish order blocks are used as tools to identify potential short opportunities.
• 💡 Proper risk management is emphasized, including moving stops to protect against volatility rather than out of fear.
• ⏱️ The speaker demonstrates real-time trade execution, showing entries, partial exits, and reaction to market consolidations and stop runs.
• 🍽️ Typical market behaviors, such as lunch-time consolidation in New York, are discussed as predictable patterns to watch.
• 📝 The overall teaching style prioritizes experience-building over hand-holding, aiming to develop independent trading skills.

Q & A

What is the primary focus of the video?

The video primarily focuses on analyzing the S&P 500 June 2022 contract using a daily chart. The content also emphasizes the importance of identifying volatility and liquidity in the stock index market and teaching how to use these for trading.

Why does the speaker warn viewers about scammers?

The speaker warns viewers about scammers who may impersonate them on platforms like WhatsApp and Twitter, asking for money or offering trading advice. They clarify that they will never ask for money or direct message people for trading purposes.

What point is the speaker making about market volatility?

The speaker points out that while the forex market has low volatility at the moment, the stock index market, particularly the S&P 500, is currently experiencing higher volatility. They suggest that traders should focus on volatility where they can find it, even if it's not in the forex market.

What is the speaker's stance on providing trade signals?

The speaker clarifies that they do not provide trade signals with specific entry, stop, or target levels. Instead, they educate viewers to identify likely market directions and trade setups on their own, encouraging independent learning.

How does the speaker use the low of May 16th, 2022 in the analysis?

The speaker refers to the low of May 16th, 2022, as a significant price point, drawing attention to it as a potential target for the market. They encourage viewers to aim for liquidity in these areas when the price is above, as a part of their trading strategy.

What does the speaker mean by 'scout' and 'sniper' in the context of trading?

In the analogy, the speaker compares themselves to a scout who identifies likely price movements (such as pointing to the low of May 16th) and the viewer to a sniper, who must then take the trade based on the scout's direction and execute it with precision.

What does the speaker say about the importance of fair value gaps?

The speaker emphasizes the importance of identifying fair value gaps, which are areas where the price has moved quickly, leaving behind a gap in the market. These gaps are key to making trading decisions, as the market often revisits these gaps.

How does the speaker manage risk during volatile market conditions?

The speaker explains that they manage risk by adjusting their stop-loss orders as the market moves in their favor. They use sound money management principles, ensuring they do not let a trade turn into a loss while the market is volatile.

What is the significance of the bearish order block mentioned in the analysis?

The bearish order block marks an area where sellers have been active, typically leading to a price decline. The speaker identifies this order block as a key point to watch for entry, especially when combined with a fair value gap.

What does the speaker say about trading during the New York lunch break?

The speaker notes that the New York lunch break often leads to consolidation in the market. They observe that during this period, stops may be triggered before the market moves lower, which could present opportunities for traders.