ICT 2026 Smart Money Concepts Lecture \ January 29, 2026

Summary

This video delves into the mindset and techniques needed for successful trading. The speaker emphasizes the importance of timing, especially around key market moments like 8:30 AM and 9:30 AM, where volatility often occurs. Key strategies include focusing on inefficiencies and liquidity pools, using micro contracts for risk management, and keeping things simple. The video stresses discipline, risk awareness, and understanding market patterns over seeking quick wins. With an approach grounded in patience and precision, the speaker highlights how mastering small, consistent trades leads to long-term success in trading.

Takeaways

• 😀 The market can be highly unpredictable, especially at the start of the year, with many eager traders making big, risky bets. It's crucial to wait for the right time to enter the market.
• 😀 January is often not the best time to trade actively, as market sentiment can be volatile and unpredictable. It's better to wait until February before making substantial moves.
• 😀 A consistent trading strategy should focus on price action and understanding the market's direction, rather than trying to predict every movement with high precision.
• 😀 In trading, focusing on liquidity and inefficiency is key. Traders should look for moments when the market leaves gaps or inefficiencies that can be exploited.
• 😀 The market behaves in cycles, and understanding the patterns—such as fair value gaps or breaker levels—can help predict where the market is heading next.
• 😀 It's important to be realistic about your trading expectations. Success doesn't happen overnight; it's about consistent learning and adjusting your approach over time.
• 😀 Negative self-talk or unrealistic expectations can be detrimental to your trading progress. It's important to be patient, accept mistakes, and keep learning from them.
• 😀 Developing a disciplined approach to trading involves creating a set routine. Consistency in studying price action and identifying key market points is vital for long-term success.
• 😀 The psychological aspect of trading plays a crucial role. Cultivating a positive mindset and managing emotions is just as important as mastering technical skills.
• 😀 The key to becoming a successful trader is focusing on the process of learning and gradually building your skills. Patience, self-reflection, and persistence are essential in this journey.
• 😀 It's important to let go of the desire for quick profits. Developing a skill set that consistently works is a more reliable way to secure long-term financial success in trading.

Q & A

Why does the speaker wait until February to start trading more actively each year?

The speaker avoids starting to trade heavily in January because it is often a month filled with impulsive, heavy bets driven by high energy and market sentiment after the holidays. January can be volatile and unpredictable, so they prefer waiting for February when the market settles down a bit.

What does the speaker mean by a 'sloppy, choppy' market, and how does it affect trading?

A 'sloppy, choppy' market refers to a period when the market is indecisive, with price action bouncing back and forth without clear direction. This makes it difficult for traders to anticipate price movements with precision, which is why the speaker avoids such conditions for heavy trading.

What is the significance of understanding the 'direction' of the market before entering trades?

The direction of the market is the first priority in trading. The speaker emphasizes that traders should focus on understanding where the market is likely to go next, rather than trying to pick perfect entry points right away. Once the market direction is clear, it becomes easier to refine entry and exit strategies.

Why does the speaker advise against overcomplicating trading strategies?

The speaker suggests keeping trading simple, especially when starting out. Overcomplicating things can make it harder to understand market patterns and behavior. A simpler approach allows traders to focus on key concepts, which can be refined and built upon over time.

How does the speaker describe the role of negative self-talk in a trader’s mindset?

Negative self-talk, such as blaming oneself for mistakes or becoming frustrated with slow progress, is detrimental to a trader’s mental state. The speaker advises adopting a positive mindset, where even mistakes are viewed as learning experiences. This helps build resilience and improves long-term performance.

What is the 'Judas' move mentioned in the script, and how does it affect market behavior?

The 'Judas' move refers to a deceptive price movement where the market breaks in one direction, only to reverse and move in the opposite direction shortly afterward. This move can trick traders into thinking they know the market direction, only for the market to prove them wrong. It’s an important pattern to recognize for timing entries and exits.

What is a 'fair value gap,' and why is it important in trading?

A 'fair value gap' is a price inefficiency or a gap in the market where price has moved too quickly, leaving an area where the market is unlikely to revisit immediately. These gaps can offer important insights into where the price might go next, as they often act as support or resistance levels in future price action.

What is the significance of a trader submitting to the learning process, according to the speaker?

The speaker emphasizes that successful traders must submit to the learning process, which involves patience, consistent practice, and self-reflection. It’s important to accept that, in the beginning, traders won’t know everything, and they need to give themselves time to understand market behavior and refine their strategies.

Why does the speaker believe it’s important to record experiences, even when trades don’t meet expectations?

The speaker advises traders to record their experiences and reflect on what happened, even if the trade didn’t go as expected. This practice helps identify patterns and lessons that can improve future decisions, and it encourages positive thinking about mistakes as part of the learning process.

How does the speaker suggest traders should approach the beginning of their trading journey?

In the beginning, the speaker advises new traders to focus on observing market direction rather than trying to make profits right away. Traders should practice patience, learn to recognize patterns, and accept that mistakes are part of the process. The goal is to build a solid foundation of understanding, which will eventually lead to better decision-making.